Article from BTNews 30 MAY 2016
Cathay warning over future
The airline industry is facing a worldwide wave of consolidation in face of economic turbulence, according to Cathay Pacific Airways chairman John Slosar.
Speaking at an industry gathering reported in the South China Morning Post, Slosar said the emergence of Chinese airlines as international brands and investment in data analytics were other ongoing trends facing carriers.
His remarks followed a report that a plan by Air New Zealand to sell its stake in Virgin Australia was attracting Chinese companies including Hainan Airlines and China Southern Airlines.
Both are considered logical as owning part or all of Australia’s second-largest carrier. This would give network access to the Chinese airlines eager to expand and allow them to benefit from the increasing number of Chinese taking flights within Australia.
Slosar said repeated mergers and restructurings among US airlines had helped to transform the formerly loss-making sector into one with healthy profits, with IATA estimating US carriers made on average US$22.48 per passenger last year, compared with US$4.89 for Asia Pacific airlines.
“But,” Slosar added, “is consolidation the future of the industry? I don’t know. I hope the answer is no.”
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