What operational lessons have Asia Pacific carriers drawn from the experience of the last few years to ensure their own performance matches the demands of the system?
Last week’s @ CAPA Asia Aviation Summit saw Andy Feng and me attending, and Doug Carlucci — Head of Transportation, Asia Pacific, Oliver Wyman —participating on a panel with industry leaders to discuss this.
Key conference takeaways for me:
1️⃣ Asia’s air travel recovery is strong (especially for domestic travel), with variation across the region. Chinese tourism market still holds significant importance and share of revenue for airlines and airports, despite lagging recovery compared to other regions. Interestingly, Chinese tourists’ travel demands may have fundamentally changed to focus more on domestic travel and a shifting preference from group travel to flexible independent travel
2️⃣ Asia is a very heterogeneous region of developing and developed countries, so it does not have a guiding sustainability policy for aviation (unlike Europe or North America). Sustainable aviation fuel (SAF) will help reduce emission in air travel, but will take time to ramp up supply and for the cost to normalise. The onus is on the industry to continue investing in aircraft with lower carbon footprints, enhancing ops efficiency, building a future-proof foundation, and collaborating amongst industry stakeholders to achieve sustainability goals.
3️⃣ Structural changes in customer behaviours are here to stay. The divergence between premium and value/low-cost travellers is increasing. Both ends of the market see strong demand growth, while the middle market is thinning. This trend is stronger in Asia than other parts of the world. Value carriers must be very mindful on how their value add is perceived.
You can also listen to our thoughts in the video below. Many thanks to our great marketing team for producing the branding materials and video below - Yat Shum, Rachel Koh and Nawal Dzaki !
Explore Oliver Wyman's work and capabilities in the aviation and transportation space > https://owy.mn/46Zr3Si
#Aviation #CAPA2023
What operational lessons have Asia Pacific carriers drawn from the experience of the last few years to ensure their own performance matches the demands of the system?
Hear what our aviation experts Doug Carlucci and Andreas Hilz, who attended CAPA - Centre for Aviation Asia Aviation Summit earlier this week, have to share.
Explore Oliver Wyman's work and capabilities in the aviation and transportation space > https://owy.mn/46Zr3Si
Andy Feng #Aviation #CAPA2023
Gift Card Specialist at Cinemark
1moI got to hear a snippet of what Mark is going to talk about, you won’t want to miss it!!!