Your weekly travel and aviation Quote-a

10 February, 2023

At a time of crisis, it is important that we share our insights and experience, helping each other to contain and mitigate the impact of COVID-19.

CTC - Corporate Travel Community each week brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.

Tourism New Zealand: Return of Chinese visitors marks a positive step in recovery

Tourism New Zealand CEO René de Monchy stated the return of Chinese international visitors to New Zealand marks an important milestone in New Zealand's continued recovery following the coronavirus pandemic. Mr de Monchy stated: "Although we anticipate the return to be gradual. The first arrivals will likely be visiting friends and relatives with leisure travel picking up in the coming months". Mr de Monchy added: "Tourism New Zealand is continuing to work hard to encourage high quality visitation to support the sector and New Zealand's recovery". Prior to coronavirus, China was New Zealand's second largest market. Tourism New Zealand noted Chinese visitors are high quality, often travelling in off peak seasons, engaging in a range of activities and cultural experiences, and have contributed more than NZD1.7 billion (USD1.1 billion) to New Zealand's economy.

Qantas Group CEO: Fares continue to be impacted by supply chain shortages and fuel prices

Qantas Group CEO Alan Joyce said airfares will continue to be constrained by inflationary factors. Mr Joyce noted a lot of aircraft were put in reserve due to a shortfall in spare parts. Mr Joyce said: "As we get these supply chains back, we'll be able to put those aircraft back in the air and that will also bring airfares down". Mr Joyce added fuel is a "big impost" on airfares. Mr Joyce said fuel increased 65% compared to pre COVID levels.

Thai Airways to leave debt rehabilitation 'much earlier' than 2024: CEO

Thai Airways CEO Chai Eamsiri stated the carrier intends to leave its debt rehabilitation plan "much earlier" than a late 2024 target. Mr Eamsiri added the carrier is also in discussions with manufacturers, including Boeing, for long term acquisitions to modernise its fleet. He said: "We have met most conditions in the debt plan quite quickly, and now begins our long term growth programme", noting revenue is expected to grow by 40% in 2023.

IATA director general: Airline industry ends 2022 'in far stronger shape than it entered'

IATA director general Willie Walsh stated: "The industry left 2022 in far stronger shape than it entered, as most governments lifted COVID-19 travel restrictions during the year and people took advantage of the restoration of their freedom to travel. This momentum is expected to continue in the New Year, despite some governments' overreactions to China's reopening".

Boeing international president: 'India will soon become the largest footprint' outside of US

Boeing international president Brendan Nelson said: "India is and always has been one of the most important countries in the world", adding "India will soon become the largest footprint that Boeing has outside the United States", noting that it has surpassed Australia. Mr Nelson said: "The future for Boeing lies outside the United States", with 40% of its revenue for 2022 being made from outside the US.

Avolon CEO: Changing aircraft production plans driving 'a lot of anxiety' among customers

Avolon CEO Andy Cronin commented on delivery delays from aircraft manufacturers, stating: "It makes it exponentially more difficult to manage a business when you just don't know what you're going to be at or when you're going to get it". Mr Cronin added: "The constant problem is the plan may continue to evolve as we move through the year. And it's that fear of the unknown that is driving a lot of the anxiety in our customer base".

IndiGo CEO: We aim to expand international network in 2023

IndiGo CEO Pieter Elbers, commenting on the LCC's Q3FY2023 financial results, stated "While domestically, we served a very significant share of" passenger traffic in India during the quarter, "internationally, we served around 16% passengers, leaving us with an enormous opportunity for further growth".

'West Africa is the most expensive region for airlines to operate': IATA area manager

IATA area manager and head of account management for West and Central Africa Samson Fatokun commented on aviation costs in the region, stating: "Several studies have shown that West Africa is the most expensive region for airlines to operate". Mr Fatokun added: "The taxes are just too high". He also commented: "Now is not the time to increase or impose new taxes".

Greece's Minister for Tourism: Tourism will be the main source of income in 2023

Greece's Minister for Tourism Vassilis Kikilias reported Greece recorded the biggest recovery in air passenger traffic in the EU in 2022, and expects "tourism will be the main source of income" in 2023. Mr Kikilias said air passenger traffic in Greece was only 1.9% below 2019 levels in 2022, compared to the European average which was down by 21%.

East African Business Council CEO calls for single air transport agreement for East Africa

East African Business Council (EABC) CEO John Bosco Kalisa urged the governments of East African Community (EAC) partner states to implement a single air transport services agreement to reduce airfares and air cargo rates. Mr Kalisa also called for EAC heads of state to agree on "preferential" treatment for EAC airlines. He stated: "The EAC should consider replacing the existing bilateral air services agreements with a single air transport services agreement for EAC to lower the cost of air transport in the region".

Spirit expecting decision on JetBlue merger 'in next 30 days or so': CEO

Spirit Airlines CEO Ted Christie, in the company's 4Q2022 and full year 2022 earnings call, stated it expects US antitrust regulators to decide whether the LCC may proceed with a USD3.8 billion merger with JetBlue Airways in the "next 30 days or so". Mr Christie added: "We are now waiting to see whether the Department of Justice filed suit to block the deal or allows us to proceed".

daa CEO calls for state wide defence system against drone disruptions

daa CEO Kenny Jacobs said Ireland requires a state wide defence system to counter drone disruptions at airports and other public infrastructure. Dublin Airport was subject to 16 disruptions as a result of drone activity on 05-Feb-2023 and 06-Feb-2023. Mr Jacobs stated: "I think this goes beyond Dublin Airport. It's not a matter for us to sort this out. I think it's a state-wide issue, probably more defence and justice than it is transport... I think getting the system in place to take drones down is something that would be good for the state".

Mesa Air Group has 'all the pieces in place to begin restoring capacity' across fleets: CEO

Mesa Air Group chairman and CEO Jonathan Ornstein stated the carrier has "all the pieces in place to begin restoring capacity" across its fleets, following a Q1FY2023 impacted by industry-wide pilot shortages and resulting challenges to block hour productivity.

LIFT CEO calls for 'responsible approach' to restoring domestic capacity

LIFT Airline CEO Jonathan Ayache stated the South African domestic market has recovered to approximately 75% of 2019 passenger volumes. Mr Ayache said the cost of jet fuel is the industry's biggest challenge, having almost tripled since Dec-2020. He added: "ZAR weakness is also a challenge", and noted that the airline's three largest operational costs of fuel, aircraft leases and insurance are denominated or driven by the USD exchange rate. Mr Ayache commented: "A responsible approach to recovery and adding seat capacity is crucial from all airlines to avoid a repeat of what we have seen the past 25 months, where four airline brands shut their doors".

'Pandemic recovery' to impact Philadelphia International Airport pax 'for two more years': CEO

City of Philadelphia Department of Aviation CEO Atif Saeed said the airport expects "pandemic recovery" to impact its passenger traffic "for two more years", adding: "The increase in passenger volume PHL experienced in 2022 was driven by the return of transatlantic travel... We continue to move closer to the record volume we set in 2019 - and I am confident that we will surpass that in the near future"