AFA Panel: How have partnerships, technology adoption, and business models evolved in the Asian market since the crisis and have we seen the strategic shifts that were predicted?
At Aviation Festival Asia, Richard Nuttall, CEO, SriLankan Airlines, Mike Szücs, CEO, Cebu Pacific, and Barathan Pasupathi, CEO, Jetstar Asia Airways joined Bryan Sumers to explore business models and partnerships in the APAC region. The panel covered significant ground within 45-minutes, touching on revenue management, yields and capacity, restructuring, consumer behaviour, ancillaries, sustainability, the future of the Hong Kong air market, and more.
As the carrier leaders reflected on the post-pandemic landscape, Szücs asserted, “people talk about revenge travel, but this is a capacity story.” Exploring the consequences of this interpretation, the panelists debated whether, as Szücs suggested, capacity is the “real factor” playing in to the current market. This fed into further discussion of airline restructurings in the region looking at the importance of long term capacity and fleet availability.
The panel also explored the role of ancillaries within their respective business models. Pasupathi steered discussion specifically to the impact of the pandemic on customer engagement with ancillary offers focusing on insurance and flexibility. Although the importance of ancillaries was highlighted during the conversation, Nuttall also pointed towards the challenges legacy systems present for ancillary sales including bundles.
Concluding the panel, Sumers posed the CEOs with a challenging question: what is the best run airline in Asia and why? To hear their answers, watch the full interview below.
For more from the panelists see:
- Richard Nuttall, CEO SriLankan Airlines – Keynote interview
- Interview with Mike Szucs, CEO of Cebu Pacific Air – Digitalisation and growth