AIR TRAVEL INDUSTRY NEEDS INNOVATIVE NEW APPROACHES TO ADAPT TO CHANGING WORLD, SAYS KNIGHTHOOD CAPITAL CHAIRMAN
The air travel industry needs innovative new approaches to adapt to the challenges of the changing world, said James Hogan, executive chairman of Knighthood Capital, in a presentation to investors today. Speaking at a Redburn event in London, Mr Hogan said:
“Rapid economic, social and geopolitical changes are re-shaping the global order. Air travel should be both a key enabler and a major beneficiary of this change.
“But the industry is a real paradox. It is built on constantly changing, innovative new technology – but is stuck in a 70-year old regulatory environment.”
He said the strong economic growth prospects in India and China, coupled with new trade routes across the globe, offered enormous opportunities for growth and meant air travel was sure of a successful long term future.
“How do we take advantage of these growth opportunities? There are several factors. In both Europe and America, consolidation has been effective, but can still go further in a more deregulated market. “Consolidation and partnerships with properly defined governance will also be key to unlocking the real potential in China and India, if they can address some of the current market constraints. “We need to see further structural changes to the industry’s regulatory environment. This is a scale business and real scale can only come with effective M&A activity across the industry.”
He also spoke about the opportunities for cost and operational efficiencies offered by emerging technologies for the global industry.
Mr Hogan was speaking to an audience of analysts and investors, giving his views on the changing nature of the air travel industry.
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