Airline Weekly Lounge Podcast

Hawaiian Airlines CEO Peter Ingram isn't too worried about increasing competition from U.S. and Japanese carriers on routes to Hawaii. During an an interview with Skift Airline Weekly Editor Madhu Unnikrishnan in Las Vegas on Aug. 26, Ingram said  Hawaiian has been competing fiercely on those routes for 90 years, so this is nothing new, Ingram said. What is new, at least since Aloha and Go went bankrupt, is competition on inter-island routes. Southwest recently began flying limited routes between the Hawaiian islands, but Hawaiian's deep routes in the community, its long history serving what Ingram calls "the neighbor islands," and the frequency of its routes will stand it in good stead. Ingram also admitted that he may be among the 717's last defenders, and argues that the airframe's engineering is perfectly suited to Hawaiian's needs. To hear more, listen to this week's episode of the Skift Airline Weekly Lounge.

AirBaltic was an early adopter of the Airbus A220, back when it was the Bombardier CSeries. The aircraft is perfectly designed for the Baltic carrier's missions, and CEO Martin Gauss is enthusiastic about the model. He took a few minutes to talk to Skift Airline Weekly editor Madhu Unnikrishnan and Skift Senior Aviation Business Editor Brian Sumers at the IATA Annual General Meeting in Seoul in June. Gauss said for now AirBaltic's focus is on its region of Latvia and neighboring countries, and the airline has no plans to establish bases in Western Europe. Gauss, however, pointed to the example of Finnair, which, like AirBaltic, has a small home population but outsize international traffic. This is the kind of operation he thinks AirBaltic can grow into. Listen for the full interview with AirBaltic CEO Martin Gauss:

Just before stepping down as CEO of British regional carrier Flybe, Christine Ourmieres-Widener took a minute to talk to Skift Airline Weekly at the IATA Annual General Meeting in Seoul. Ourmieres-Widener’s two years at the helm of Flybe were tumultuous, she acknowledged, and culminated with the carrier’s acquisition by Virgin Atlantic. But she noted that she focused on saving the airline and getting it back on its feet, even if that meant selling it. And she pointed out that her first priority was saving jobs, and of that Ourmieres-Widener said she’s very proud. With Ourmieres-Widener’s departure, the already small circle of women airline CEOs gets even smaller. She said the industry has to do better to attract and mentor young women as they rise through the ranks. She also said efforts have to begin earlier — at school, to encourage girls to study STEM (science, technology, engineering, and math) subjects. Listen for the full interview with Skift Airline Weekly Editor Madhu Unnikrishnan

Singapore Airlines CEO Goh Choon Phong said he envies American Airlines CEO Doug Parker for the scale and potential for profitability that U.S. carriers have from a large domestic market. Parker, the chief of the U.S.’s largest carrier, once famously said the era of airlines reporting losses is over. In its most recent quarter, Singapore Airlines reported profit margins lower than analysts expected and lower than the company had previously reported. Much of this is explained by the region in which Singapore operates. Unlike Parker, Goh said his company has no domestic market to provide a valuable feed of passengers to its long-haul routes. Speaking at the inaugural Skift Forum Asia in Singapore in May, Goh said he is confident that the company is headed in the right direction. The group is taking steps to keep so-called CASK (costs per airline seat kilometer) down by, among other measures, hedging against fuel price volatility and managing fleet leases. Listen for the full interview with Skift Airline Weekly Editor Madhu Unnikrishnan.

United Airlines President Scott Kirby issued a warning to potential new-entrant low-cost-carriers, including JetBlue founder David Neeleman’s Moxie: United will match your fares. Kirby, speaking on stage at Skift Forum Asia in Singapore in June, said he’s heard of about 50 airlines over the years that were supposed to be created but Virgin America, founded in 2004, was the last startup airline in the United States that actually became a reality. The low-cost airline model is predicated on the competition not matching prices, Kirby said, and unlike the situation over the last 30 years, United now has the capabilities with segmentation, including basic economy, to go tit-for-tat with the new entrants. Listen for the full interview with Skift Editor-in-Chief Tom Lowry. 

The latest edition of the Skift Airline Weekly Lounge contains an exclusive interview with Aireen Omar, AirAsia’s deputy CEO. There was no backtracking from AirAsia in its plan to branch out into selling other airlines on its platform, financial services, and more experiences. Asked at Skift Forum Asia in Singapore in May 2019 if becoming the Amazon of travel is overly ambitious, Aireen Omar, AirAsia’s deputy CEO, said it’s “ambitious, but I think it’s very doable.” Another AirAsia executive recently made the declaration that the airline could become the “Amazon of travel.” In this discussion, interviewer and Skift Airline Weekly Editor Madhu Unnikrishnan gets to the core of the boast.

The Skift Airline Weekly Lounge returns with an exclusive interview with British Airways CEO Alex Cruz. Since taking over as CEO and chairman of British Airways in 2016, Cruz has endured his fair share of criticism over some of the changes he made to the airline, particularly with regards to food on short-haul flights. But Cruz, speaking at Skift Forum Europe in London on April 30, 2019, said the changes were necessary in turning the carrier into a more customer-focused airline as well as one that is much more financially stable. “When we started this new phase of British Airways, there were many decisions to be taken with regards to the direction of the company, and some of those decisions that were made early on were indeed probably less welcome than others,” Cruz said.  

With a new year underway, we’re thinking about what will happen in 2019—always a dicey proposition. In this episode, we consider the prospects of airlines around the world. Some, like Aeroflot and Turkish Airlines, are facing huge opportunities. Others, like Jet Airways and South African Airlines, are facing grave challenges. Will the International Airlines Group make another offer for Norwegian? Will Alitalia find a partner? Will Lion Air cancel plane orders? Will Emirates and Etihad merge? In short, what will 2019 bring? In this episode, we reluctantly offer some predictions.

After pummeling each other for years, Icelandair and Wow Air agreed to a truce in the form of a merger. But the merger fell through. Now Wow Air may be finding comfort with serial airline investor Indigo Partners. What will that mean for both airlines? Aeroflot apparently finds comfort in being big. In fact, the Russian airline is looking to nearly double its fleet size in just five years. Meanwhile, Mexico’s airline industry nervously watches as it appears more and more likely that Mexico City’s one-third-built airport won’t be seen to fruition. What did Aegean do this summer? For one thing, it posted a Ryanair-like profit margin. Lastly, U.S. airlines are getting bullish about the fourth quarter.

More and more people are traveling by air in Mexico, but Mexico’s airlines continue to struggle. All four of its main carriers had a disappointing 3rd quarter, which is historically peak season. VivaAerobus at least made a little money. Aeroméxico and Volaris barely broke even. And, Interjet’s numbers were simply alarming. Fortunately, oil prices have dropped so much that the outlook for airlines everywhere has changed. In the U.K., easyJet posted earnings that were strong but not nearly as good as LCC rivals Ryanair and Wizz Air. Is that a problem? LATAM is navigating economic headwinds well. AirAsia X seems to be proving that “low-cost longhaul” remains a difficult business model. Lastly, Flybe’s ongoing struggles raise this question for some: Is an acquisition in order?