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4th Quarter 2009 Volume 01 - No. 6
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INDUSTRY HOPEFUL AFTER SUCCESSFUL
NETWORK LATIN AMERICA |
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 Network
Latin America 2009 has come and gone. On December 7 and 8 2009, PJIAE
hosted some 178 delegates representing various companies, namely
airlines, airports, handling companies and other aviation related
businesses. “There were some 330 one-to-one meetings between airlines
and airports. PJIAE executives had 12 meetings with different airlines
and these meetings were mostly successful and hopeful,” reported PJIAE
President drs. Eugene Holiday at the wrap-up conference at which he was
joined by Mr. Mark Pilling, Editor of Airline Business Magazine, the
organizer of the conference.
The PJIAE President explained that since PJIAE measures success from its
ability to perform at highest possible standards, he was satisfied with
how the conference went. “Based on the feedback we received, we may
conclude that Network Latin America 2009 was a success. The objectives
of the conference to create a forum for aviation exchange, while
showcasing our airport and our island have been achieved,” he said.
Responding to questions from journalists about tangible results of the
conference, Mr. Pilling explained that these may only materialize in six
to 18 months. “Every airport wants airlines to start new service. And
for us, success of a conference is when can help to achieve that. But
generally all these conferences serve is the establishment of good
relationships. People don’t come and sign contracts to start new service
unless you are lucky. That being said, I will be surprised if within six
to 18 months you don’t get new service. The bottom-line is that you want
new service and that will happen,” he said.
Drs. Holiday, in full agreement with Mr. Pilling, stressed that he never
counts his eggs before they hatch. “Over the years we have built many
solid relationships with airlines at conferences like these, but there
is nothing better than meeting some of those people here, on our own
island. Now they know what to expect. They have seen it and that makes a
major difference,” he said. “Latin America, from a route development
perspective, is the new frontier for St. Maarten and I am convinced that
we will be seeing direct flights from this region as scheduled
operations. We will see deepening of the relationships,” he assured.
The conference got underway on Monday December 6 2009 with a
paneldiscussion about the challenges facing sustainability in the
industry. The executives agreed that they face a host of challenges, for
which however solutions are not too far off. “You have to think outside
the box. We increased our market value through sheer creativity,” said
Mauricio Moreira, of Brazilian airline GOL.
Challenging his audience with his company’s operational target to
turn-around aircraft from touch-down to departure in 20 minutes, Mr.
Moreira was adamant that operational efficiency is key to
sustainability. “Aircraft on the ground do not make money, so you have
to turn them around as quick as possible to get them back in the air,”
he said.
Former LIAT Chief Mark Darby made a call for Caribbean Governments to
adopt a more enlightened approach as to the role of airports in the
Caribbean. He said that on his own ticket on which he flew from England,
through Antigua to St. Maarten no less than 45 percent was tax.”Too many
islands in the Caribbean see their airports as a means to drop parts of
their operational costs on the tourists and this holds back the region,”
he said. In his view taxing discourages visitors from visiting and
airlines from adding flights. “They say: we have a choice. We are better
off operating domestically,” he explained. He advocated that Governments
bear a proportion of the costs of airlines and airports and make their
destinations attractive to airlines and encourage tourists.
Delegates at the two-day aviation conference also took aim at the
non-existence of open sky agreements which make operating in the region
expensive. “What will also work for expanding service are bilateral
agreements. I really cannot see why any island would want to hamper the
creation of open sky agreements, aside from the need to monopolize their
industry and uphold protectionism,” said GOL executive Mr. Moreira.
He found support from Nigel Harris who recently returned to volcano
stricken Montserrat to resume operations of FlyMontserrat between the
tiny islands of the North Eastern Caribbean. “Every flight I operate is
an international flight. It really is one of the last barriers for more
efficient operations in this region,” he said.
Delegates also recognized a need for more marketing of the tourism
destinations. “It is crucial to get the message across that you have a
product. Get your islands and destinations on the map and demand will
build,” said Mr. Kirby. Mr. Darby chimed in, adding that creativity and
aggressiveness will work as well. “A good example is Puerto Rico. They
jumped into the regional inter-island market right after American
Airlines pulled out in early 2008 and invited opened their doors to
Caribbean visitors,” he said.
“The Caribbean market is still looking ahead at a year of flat
performance ahead. Yes, the recession is over, and traveler confidence
has returned, but airlines are still suffering. Many people based in our
main markets have lost their jobs and there simply is less money
floating around. Worldwide the airline business is still slow,”
concluded Mark Darby, former CEO of LIAT. Passenger growth is expected
to resume in 2010 and vary between 0 to 5%, which generally was
considered a welcome change after a pretty slow 2009.
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