Giovanni Bisignani
Giovanni Bisignani
Giovanni Bisignaniis an Italian businessman, who was Director General and Chief Executive Officer of the International Air Transport Association from 2002 to 2011...
airline battle beyond effective improve increase reduce yields
The airline battle to reduce costs, increase yields and improve efficiencies is effective well beyond expectations.
cautious combined economic emerging europe improved improving lead losses near nowhere optimism prospects reduced situation trend
There is a new cautious optimism emerging in the industry. Improved economic prospects in Europe and Asia, combined with an improving situation in the US, will lead to reduced losses in 2006 and strengthened profitability in 2007. While the trend is positive, we are nowhere near sustainability.
great india market short
India was always a great market, but for the future. Now it can become an important market in the short term.
airport charles cost decision effects efficiency expensive focusing major matter paris position reduction second survival
Efficiency and cost reduction are a matter of survival for airlines. Charles de Gaulle Airport is already the second most expensive airport in Europe. It should be focusing on cost decreases not increases. This short-sighted decision will have long-term effects on the competitive position of Paris as a major hub.
counting longer losing partners shirt
If one of the partners in a partnership is losing his shirt while the other is counting his money, it is no longer a partnership.
barrel billion burden card continuing costs dollar domestic drive enormous fuel hike increase industry last levels months offset oil per positive prices reduction remains rise rose wild yield
Oil remains the wild card for industry profitability. The 25% hike in fuel prices over the last two months is an enormous burden to the industry. However, the S$ 1.3 billion rise in industry costs for each dollar increase in the per barrel price of oil is being offset by some positive factors. Industry hedging levels are 50%. Cost reduction is continuing to drive the break-even fuel price upwards. And the US domestic yield rose 12.4% in February.
airline airlines alone along billion capacity challenge companies demand dollars encourage expanding fuel gives hope instead investment investors next oil plan prices quarter reduced remains research response return stepped strong time trillion
Oil remains the single-biggest challenge for airline profitability. Strong demand gives little hope of significantly reduced prices this year. What is disappointing is the response of the oil industry. Instead of expanding refinery capacity, the oil companies plan to return a quarter of a trillion dollars to investors over the next two years. Airlines alone have contributed $14 billion to this windfall profit. It is time that governments stepped in to encourage investment in new refinery capacity along with research into alternative fuel sources.
agenda ahead billions capital change cost cover difficult expect involving lost margin near net nowhere partners profit recovering return since
We will only see profitability in 2007 when we expect a return of US$6.2 billion. This is a net profit margin of 1.5%, not even enough to cover the cost of capital and nowhere near recovering the billions lost since 2001. A long and difficult agenda for change involving all partners is still ahead of us.
added adds barrel billion costs dollar oil price
Each dollar added to the price of a barrel of oil adds $1 billion in costs to the industry.
achieved aircraft airlines bill costs gave increase office operating percent pilot reduction total users
Europe's airlines have achieved a 9 percent reduction in aircraft operating costs, a 24 percent reduction in distribution and back office costs and a 14 percent increase in pilot productivity. Airports, on the other hand, gave the airlines a 13 percent increase in per-passenger costs, with a total bill for airlines and their users of $14.5 billion.
both brought good growth month months news percent recovery resulting solid strength stretched three
February, traditionally the slowest month for international traffic, brought both good news and solid growth. The recovery in freight has stretched to three months with growth of over 5 percent resulting from strength in international trade.
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We fully understand the principles of supply and demand. But it is difficult to see this as anything other than a $14 billion cash grab by the oil industry that is pouring salt into the wounds of a global crisis.
fully principles supply understand
We fully understand the principles of supply and demand,
aircraft capacity card demand flu last matching orders record wild year
As the record aircraft orders of last year are delivered, matching capacity to demand will become even more critical. And Avian Flu is the wild card for 2006.