Prompt: As the major artery of our business, airlines are a fundamental component of travel and tourism.
The airline industry, however, has many challenges ahead, including dealing with consumer confusion over business models, ticketing, an ever-increasing regulatory burden and historically high oil prices. How are airlines going to address these issues and what kind of an impact will this have on the, wider travel and tourism industry? How can we support airline agendas for the better health of our industry as a whole?
Moderator: Peter Greenberg
Speakers and Panelists: Willie Walsh (CEO, International Airlines Group), James Hogan (president and CEO, Etihad Airways), Shinichiro Ito (president & CEO, All Nippon Airways Co.), John Hogar, chief executive, Cathay Pacific Airways) and HE ZongKai (executive vice president, China Southern Airlines).
Tony Tyler (IATA CEO): Airlines are very unprofitable. Airlines should not have to apologize for trying to make a profit.
Willie Walsh: I am impressed with the recovery efforts of Japan. Aviation is a social goods. Benefits are not only economics but it helps travelers from a personal level. Aviation industry is one of the world's leading employers. Our industry has been under attack by environmental critics. Aviation would contribute no more than 5% of CO2 emission by 2050. We need a global solution. We have significant apprehensions towards the EU trading scheme. The EU must use practical approach to the trading scheme. The problem with EU is that it forces its solutions to the rest of the world. Air Passenger Duty is a disgrace. It has nothing to do with environmental issues. Not a single penny of that tax goes to environmental issues.
John Slosar: The airlines have to reflect, and you cannot do that if you have a negative balance sheet.
Shinichiro Ito: Due to the demand in Japan and business related to Asia and the Pacific area. We have complete and full open skies (agreement] with the US. On open skies, we want to see progress [in this area]. We want to see expedite when it comes to open skies [agreement].
James Hogan: It is about simplicity with regards to security. Building a strong product is significant. Social media is important in monitoring the response from customers.
HE ZongKai: In our case, we hope our air market will increase. Demand of market as a whole.