Airline CEOs rise to the challenge
Aquick trip to the Ninoy Aquino International Aiport, or even to the nearby Newport City, is enough to catch a glimpse of the growing air travel industry. More and more people are opting for traveling on a plane, as local and international airlines come up with budget travel schemes or promos. There are also flights to new destinations, both domestic and abroad, adding to the influx of travelers into Manila’s three airport terminals.
Obviously, this increase in air travel is a good thing, pumping both the local economy and the country’s tourism industry. But it’s not without challenges, as evidenced by the recent setback experienced by hundreds of passengers during the Xiamen Airlines incident just some weeks ago.
Nevertheless, the country’s major local airlines are all stepping up to meet the demands inherent to the growing aviation industry. We spoke with the Chief Executive Officers (CEOs) of these major local airlines and here’s what they have to say about the greatest challenge the airline industry and aviation will face in the future and how they’re getting ready to cope with it.
A common challenge these CEOs see is the growing number of air travel passengers.
“Infrastructure limitations that give rise to airport congestion remain the biggest challenge for the local aviation industry,” explains Philippine Airlines Chairman and CEO Dr. Lucio Tan.
“In the medium-to-long term, the grow- ing number of travelers will put a strain on aviation infrastructure and push demand for pilots, cabin crew, aircraft technicians, and other jobs in airlines,” Cebu Pacific CEO and president Lance Gokongwei tells the Manila Bulletin.
SkyJet Airlines CEO Dino ReyesChua agrees. “The greatest challenge [the] airline industry will face in the future is airport congestion, particularly in Manila’s airports. Airlines are losing billions of pesos collectively due to unnecessary fuel costs, as planes roam the skies, waiting for the runways to be cleared for landing. Airline companies also can’t launch additional flights due to airline congestion, making it a hindrance for expansion of any airline company that operates in Manila,” he explains.
For AirAsia’s Dexter Commendador, the challenge goes beyond just the influx of passengers. “Global travel and tourism figures show Asian countries will continue to drive global tourism growth, which is largely driven by air links,” he tells the Manila Bulletin. “With this comes a huge challenge for governments and the airline industry to ensure we can successfully meet the essential demands of travelers — from infrastructure to guest experience.”
Apart from the expected surge in the number of air travelers, Gokongwei also points out that other factors could lead to an increase in travel costs. “In the short term, economic and political conditions, which create volatility in world fuel prices and currencies, among others, are challenges that all airlines will have to deal with, albeit in varying specific circumstances,” he explains.
Nevertheless, these airline bosses aren’t at all fazed. Quite the contrary, they are ready and willing to face it.
“In relation to the increasing passenger traffic, sustainability is a challenge all airlines also face. Cebu Pacific has been in the forefront of promoting sustainable tourism as it launched ‘Juan Effect,’ a program aimed at engaging travelers and local stakeholders alike, to mitigate the impact of tourist arrivals on the environment,” Gokongwei offers. “CEB has also announced its shift to eco-friendly utensils for inflight catering on all its domestic and international flights starting Oct. 1, 2018. We have made investments in technology and adopted process improvements as stop-gap measures. Cebu Pacific also launched a Cadet Pilot Program to boost the number of pilots in its corps,” he adds.
Commendador has this to say: “AirAsia has always leveraged on innovation to drive greater guest convenience and service delivery. By employing the latest technologies, we aim to further increase our internal efficiencies while understanding our guests better. Now, after 17 years of operations, AirAsia is at a critical juncture. Our goal is to transform from an airline into a tech company, driving innovation and change.”
While it’s good that these local airlines are prepared to take it upon themselves to address the challenges in the future of the aviation industry, Reyes-Chua acknowledges that their efforts will work best with support from the government. “The government must-fast track the opening and development of more alternative airports. The more airports we have the merrier it will be for the whole airline industry,” he says.
“For factors that have a direct impact on costs, initiatives that help temper or mitigate those — such as technology that helps reduce fuel consumption or improves operational efficiency — are adopted. It is also imperative to keep tabs on developments that may affect us, such as new policies on airport security,” Gokongwei offers.
“We extend full support to the aviation authorities to address the challenge which is vital for the growth of air travel, tourism, and our airlines. We opened three hubs outside Manila: Cebu, Clark, and Davao — where we operate a full network of flights to help keep tourism growing,” Dr. Tan adds. (With reports from Krizette Chu)
Infrastructure limitations that give rise to airport congestion remain the biggest challenge for the local aviation industry. — Dr. Lucio Tan Philippine Airlines chairman and CEO
Airlines are losing billions of pesos collectively due to unnecessary fuel costs, as planes roam the skies, waiting for the runways to be cleared for landing. — Dino Reyes-Chua SkyJet Airlines CEO Global travel and tourism figures show Asian countries will continue to drive global tourism growth, which is largely driven by air links — Dexter Commendador AirAsia Philippines CEO
In the medium-to-long term, the growing number of travelers will put a strain on aviation infrastructure and push demand for pilots, cabin crew, aircraft technicians, and other jobs in airlines — Lance Gokongwei Cebu Pacific CEO and president