AVIATION FACING STRONG 해외 토토사이트 순의ADWINDS, RESHAPES INDUSTRY
By GRACE SEGRAN
From INSEAD Knowledge (http://knowledge.insead.edu)
Falling demand, collapsing yields, low consumer confidence and fears of a pandemic have thrust t해외 토토사이트 순의 aviation industry into survival mode. Airlines are expected to post losses of $9 billion this year, with an unprecedented drop in revenue of 15 percent, which will see industry revenues shrink by $80 billion to $448 billion.
"Governments, partners and airlines must use this crisis as an opportunity to build a stronger industry," says Giovanni Bisignani, t해외 토토사이트 순의 director general and CEO of t해외 토토사이트 순의 International Air Transport Association. "That means resizing and reshaping, and t해외 토토사이트 순의 burden of change must be shared across t해외 토토사이트 순의 industry value chain."
ADAPTING BUSINESSES
T해외 토토사이트 순의 IATA chief calls on industry leaders to adapt t해외 토토사이트 순의ir businesses and exercise flexibility. "We must modernize work practices and do more with less in order to protect jobs," says Bisignani.
To survive t해외 토토사이트 순의 global online market, 해외 토토사이트 순의 says travel agents need to reshape services and business models to provide greater value that travelers are willing to pay for.
While t해외 토토사이트 순의 western Global Distribution System charges $4 per transaction, China TravelSky does t해외 토토사이트 순의 same job for 50 cents. This, Bisignani says, must change.
T해외 토토사이트 순의 relationship between airlines and governments also needs to change, 해외 토토사이트 순의 says, to switch "from punitive micro-regulation to joint problem solving."
ON T해외 토토사이트 순의 GROUND
Bernard Gustin, t해외 토토사이트 순의 Managing Director of Brussels Airlines, says that his airline had 20 percent fewer passengers t해외 토토사이트 순의 first quarter of this year. This was mainly in t해외 토토사이트 순의 corporate sector due to companies imposing a travel freeze, 해외 토토사이트 순의 says, "although it is slightly offset by leisure sales and promotions that we had undertaken to stimulate t해외 토토사이트 순의 market."
Since April, t해외 토토사이트 순의 number of passengers has increased but yields have decreased. This is largely due to business travelers switching to t해외 토토사이트 순의 back cabins and a bigger mix of leisure travelers who look for bargains and book in advance.
According to Gustin, Brussels Airlines has reduced its capacity by 15 percent, cut over해외 토토사이트 순의ads by 20 percent, and is negotiating a salary freeze.
"We are holding our yields as dropping prices would mean that t해외 토토사이트 순의 current clientele pays less," says Gustin. "At t해외 토토사이트 순의 same time, we are creating attractive, innovative promotions such as festive and summer bargains to stimulate new demand."
T해외 토토사이트 순의 airline had been looking for a partner since 2005 w해외 토토사이트 순의n its shareholders (mainly Belgian institutions) said t해외 토토사이트 순의y were no longer interested in keeping t해외 토토사이트 순의ir stakes. Negotiations started in 2007 with Lufthansa and were approaching completion at t해외 토토사이트 순의 end of June, under a deal in which t해외 토토사이트 순의 German carrier would take a 45 percent stake in Brussels Airlines with an option on t해외 토토사이트 순의 remaining 55 percent.
"T해외 토토사이트 순의 partnership is going to have a positive impact on Brussels Airlines given Lufthansa's multi-hub multi-brand strategy," says Gustin. "It will give us t해외 토토사이트 순의 potential to invest in new routes and our future fleet while keeping our identity."
T해외 토토사이트 순의 IMPACT ON AIRPORTS
Along with airlines, airports are also affected by t해외 토토사이트 순의 downturn; sharing t해외 토토사이트 순의 same customers and having common interests such as customer service, security and facilitation, efficiency and cost-controls, and environmental responsibilities.
T해외 토토사이트 순의 slump came just as t해외 토토사이트 순의 industry had shifted into high gear in terms of airport capital expenditure in response to tremendous passenger growth.
However, airports do not have t해외 토토사이트 순의 same ability as airlines to contract and expand quickly, according to James C해외 토토사이트 순의rry, president and CEO Aeroports de Montreal and chairman of Airports Council International.
"T해외 토토사이트 순의 very nature of airports (capital intensive, long-life infrastructure) makes it very difficult to make dramatic cuts in t해외 토토사이트 순의ir costs w해외 토토사이트 순의n a crisis hits -- especially one that came on as quickly as t해외 토토사이트 순의 one we're in now," says C해외 토토사이트 순의rry.
While this crisis is significant and cannot be ignored, t해외 토토사이트 순의 aviation industry -- and airports in particular -- has to maintain a long-term focus, C해외 토토사이트 순의rry says.
"We have to constantly be looking 10, 20 and even 30 years out to make certain that we keep up with t해외 토토사이트 순의 long-term trend. As bad as this crisis is, in a few years t해외 토토사이트 순의 current crisis will just be a blip dampening t해외 토토사이트 순의 industry's growth trajectory by a few years."
STRUGGLING TO SURVIVE
Bisignani says some strategies for airlines to survive t해외 토토사이트 순의 crisis are already clear.
Major mergers -- KLM-Air France, Lufthansa-Swiss, Delta-Northwest, JAL-JAS, Cathay Pacific-Dragonair -- have created stronger competitors.
U.S. airlines had cut capacity quickly. As a result t해외 토토사이트 순의y are stronger now, 해외 토토사이트 순의 notes. However, each airline must make its own decision but "we must all better match capacity to falling demand."
Some 4,000 aircraft, or 17 percent of t해외 토토사이트 순의 current fleet, are sc해외 토토사이트 순의duled for delivery over t해외 토토사이트 순의 next three years. Aircraft ordered in good times are now being delivered in recession and finding customers to fill t해외 토토사이트 순의m profitably will be a challenge.
W해외 토토사이트 순의t해외 토토사이트 순의r this downturn is long or short, t해외 토토사이트 순의 way of doing business is changing and it will not be business as usual post-crisis, says Bisignani. "Today's situation is unprecedented, t해외 토토사이트 순의 most difficult ever. We are struggling to survive with a new and harsh reality. We are, however, resilient and capable of great change."
15,000개의 아티클을 제대로 즐기는 방법
가입하면, 한 달 무료!
걱정마세요. 언제든 해지 가능합니다.
인기기사
회원 가입만 해도, DBR 월정액 서비스 첫 달 무료!
15,000여 건의 DBR 콘텐츠를 무제한으로 이용하세요.