Airline Economics’ Post

Last month, the Farnborough International Air Show was a whirlwind of activity, where the immediate challenges and opportunities within the aviation industry took center stage. In my discussions, which ranged from mergers and acquisitions to the future of low-cost carriers, the common thread was a focus on near-term industry dynamics. While there, I had the privilege of being interviewed by Juliet Errington Mann for CGTN’s program “The Agenda,” where we delved into the pressing issues facing aviation today. You can catch our full conversation here: https://lnkd.in/egMXVRiQ Here are the key takeaways that dominated my discussions at the airshow: - M&A frenzy before elections - Ongoing supply chain struggles and emerging opportunities - What’s next for Boeing - Widebody engine market share implications, especially after the British Airways order - Out-of-control inventory and potential solutions - Timing for large-scale cost reduction programs in supply chains - how long before the next Partnering For Success - How long the MRO golden age will last and who will feel the impact once it ends - Space: short-term industrialization challenges, but a clear long-term thesis - Airline industry overcapacity and risks in order backlog - Future of the LCC model #aerospace #Farnborough #airshow #cgtn

🌍 Can Airports Be Catalysts in Reducing Aviation’s Climate Impact? The push towards decarbonisation in aviation is gaining momentum, with airports playing a pivotal role in this transition. In an insightful study led by Marc Adrien MOUNIER, Head of Regulatory Prospects at Genève Aéroport, the potential of airports to drive down emissions is explored in depth. The focus is on how airports can not only reduce their direct emissions but also influence the broader ecosystem, from infrastructure to operations and beyond. 🔋 Key Insights: 1. Scope 1 & 2 Emissions: Marc Mounier, André Schneider and the team highlight the significant efforts being made by airports to curb these emissions. With up to 95% of total airport emissions stemming from Scope 3 sources (primarily airline operations), the challenge is enormous but not insurmountable. Airports are adopting innovative solutions such as the electrification of ground vehicles, energy-efficient construction practices, and procuring low-carbon energy. 2. Fleet Renewal & Infrastructure Development: Geneva Airport’s fleet renewal initiative, as detailed by Mounier, stands as a benchmark. By investing CHF 3 million in upgrading to the latest aircraft models, they achieved a 15% reduction in CO2 emissions. This initiative is complemented by efforts to enhance infrastructure for electric vehicles and promote the adoption of sustainable aviation fuels (SAFs), which are increasingly critical as the industry aims for broader decarbonisation goals. 3. Future-Focused Strategies: The study emphasises the importance of forward-thinking strategies, such as incentivising the use of next-generation aircraft and building sustainable infrastructure. Mounier advocates for airports to serve as leaders in this space, leveraging their unique position to influence airline operations and passenger behavior. As Marc Mounier and his colleagues point out, the road ahead will require collaboration across the aviation ecosystem, including regulators, airlines, and ground service providers. By adopting these proactive measures, airports can indeed become powerful catalysts for reducing aviation’s impact on the climate. #Sustainability #Aviation #Airports #Decarbonization #ClimateChange #Innovation

Today in Brand History: On June 12, 1934, the Black-McKellar Bill reshaped aviation history by splitting William Boeing's empire into three entities ✈️ including Boeing and United Airlines. Explore the impact and learn more about this pivotal moment in aviation history and the launch of two legacy brands in my latest blog post (link in comments) #AviationHistory #BoeingLegacy #Innovation

As the pioneering advanced air mobility (AAM) technologies under development in recent years draw ever closer to certification, industry and government leaders gathered for the third annual Honeywell Advanced Air Mobility Summit to consider U.S leadership in the sector, and detail the steps needed to fully leverage the promising new on-demand form of flight.

Rebuilding Trust with Airlines: Boeing Chairman’s Strategic Outreach Learn about Boeing's efforts to rebuild relationships with major airline CEOs. Bloomberg reports that Steve Mollenkopf, the new chairman, is prioritizing direct communication with American Airlines, Southwest Airlines, United Airlines, and Alaska Airlines. Discover the importance of these conversations and their impact on the aviation industry. #Boeing #AirlineIndustry #AircraftManufacturing #AviationNews #StrategicPartnerships #AirlineCEO #Bloomberg #BusinessRelationships #IndustryUpdates #AviationInsights #aviationnews #aviationdaily

Concorde was a marvel of aviation technology, the most advanced passenger airliner of its time. Yet, it failed! As sales compensation professionals, we understand the parallels between Concorde's downfall and the challenges companies face when implementing new compensation plans. Many businesses still grapple with similar issues today. Read our blog to discover how to avoid the 'Concorde mistakes' in your sales performance management program - https://lnkd.in/djCnB6JU #salescompensation #concorde #spm

SkyWest Airlines has announced a net profit of $89.7 million for the third quarter, highlighting the company’s robust financial health and strategic growth. CEO Chip Childs credited the success to the organic growth of captains and the efficient integration of new aircraft into service. The airline has added 21 Embraer E175s year-to-date, with plans to introduce four more in the fourth quarter. In a significant expansion of its partnership with United Airlines, SkyWest has secured a multi-year contract to operate 40 CRJ550 aircraft. The agreement involves acquiring 11 second-hand CRJ550s and converting 29 existing aircraft, with deliveries slated between late 2024 and the end of 2026. This move aligns with United’s strategy to enhance its regional services and offers SkyWest an opportunity to strengthen its market position. 2024-11-02 I DAC0316 #aviation

“Airlines are a driver of wealth. We must have policies that propel aviation to new heights and does not hold back an industry that, by definition, knows no border.” Inspiring words from Airbus Commercial Aircraft CEO Christian Scherer. Transitioning away from fossil fuels is our moral obligation, but we will need more ambitious policy reforms to ensure we fly efficiently in the future. #AviationSummit2024

The Resurgence of the U.S. Big Four Airlines In the latest edition of Flight Friday, Aviation Week shines a spotlight on the remarkable recovery and growth of the "Big Four" U.S. airlines post-pandemic. Here’s what professionals in the aviation and aerospace sectors need to know: 🛫 Flight Increase: All four major U.S. airlines are now operating more flights than their pre-pandemic levels, setting new benchmarks for utilization. ✈️ American Airlines' Comeback: Demonstrated significant recovery by early 2021, surpassing 2019 flight levels with an expanded fleet. 🌐 Delta's Strategic Growth: Returned to 2019 flight levels in 2024, with an emphasis on in-sourcing and fleet expansion. 📈 Southwest's Robust Recovery: Despite a temporary setback in December 2022, Southwest has consistently operated at 10% above 2019 flight levels. 🚀 United Airlines' Steady Ascent: Averaged 15% higher utilization in 2023, signaling strong growth momentum into 2024. The detailed analysis underscores the resilience and strategic agility of these airlines as they navigate the post-pandemic landscape. #Aviation #Aerospace #USBigFour #AirlineRecovery #FlightFriday #lovewhatyoudo #upendostaffing

Aviation Week's Jeremy Kariuki, Graham Warwick and Ben Goldstein discuss the potential effects advanced air mobility may have on the business aviation industry. Listen here >> https://bit.ly/4cRdYge