Travel News

Land of the Brave & Home of the Fee: Airline CEOs Speak Out at GBTA Convention

Locations in this article:  Bangkok, Thailand Buffalo, NY Chicago, IL London, England Oslo, Norway Pittsburgh, PA

This week 8,000 delegates from the Global Business Travel Association (GBTA) were in Boston for the annual convention.  And for the sixth year in a row Peter was on stage moderating the airline CEO panel.

This year he was joined by Keith Williams, CEO of British Airways, Bjorn Kjos, CEO of Norwegian Air Shuttle and David Barger, CEO of JetBlue Airways to tackle the economic implications of capacity, fuel, airline routes, and ancillary revenue.

Yes airline fees make many American scoff that it’s the “land of the brave and the home of the fee, ” but the panel began by looking at the disparity in economic circumstances around the world. While the US is forecast to have 2 percent economic growth, the UK is forecast to have flat growth and the Southern parts of Europe are struggling with negative growth.

The good news according the Williams is that Europe is “a buyer’s market.” And you can see this in the airlines’ bottom line. British Airways’ profit in the last quarter was $820 million, whereas Iberia, an airline that British Airways acquired 3 years ago, is struggling. Plus, British Airways will likely have the “halo effect” of the upcoming Olympics Games and the potential of drawing people to London in the future.

But it’s not just about Europe. The growth of business in Asia is causing Norwegan Air Shuttle’s Kjos to rethink the accepted principle that Europe to America is the bread and butter route. Kjos, who is planing a base in Bangkok, anticipates that within 10 years more travelers will be headed East than West. But Kjos is still planning to be competitive on the Oslo to New York route to, aiming to run flights on the Boeing Dreamliner with an anticipated $300 round-trip fares.

Regardless of destination, to be competitive in the global market you do need to fly to international markets. JetBlue was once thought of a low cost U.S. carrier, but CEO Barger noted that 30 percent of JetBlue’s flights are now Caribbean or international routes. The business market has been key to their growth as well. Not only are they the largest airline in Boston’s Logan International Airport, but they are also the main airline for hubs like Chicago, Buffalo, Raleigh, and Pittsburgh.

And that’s not all. Watch the full CEO panel discussion to see the latest developments in airlines operations and it’s impact on the business traveler.

Follow the GBTA YouTube channel to see other speeches from the convention including former presidents George Bush and Bill Clinton.

For more of the latest airline news, check out:

By Lily J. Kosner for PeterGreenberg.com