With major airlines disappearing from the aviation industry a change is observed with most long haul operations now looking at competing with the budget carriers, an aviation expert highlighted at a seminar in Colombo last week.
Prof. Richard de Neufville, Professor of Engineering Systems and Civil Environmental Engineering at the Massachusetts Institute of Technology (MIT), made these observations, that the airport business faced a generation of turmoil for which they needed to prepare ahead, during his speech on the topic of “Planning, Design & Management for Airports and the Airline Industry – to deal effectively with the on-going market turmoil” organised by the Chartered Institute of Logistics & Transport of Sri Lanka (CILT) in conjunction with the University of Moratuwa.
It was noted that today most major airlines were disappearing and that in the US from about 10 there were only three remaining while some others were absorbed.
Prof. De Neufville predicted that Dubai which was currently the third largest international airport could surpass London within two years.
In fact, he noted that airlines like Kingfisher that looked good had now disappeared and in this respect, he explained the “future is unclear.”
Today changes take place in transfer hubs and the St. Louis airport went bankrupt having only half the traffic it envisaged.
He explained that change in the sector was clearly evident in view of the low cost airlines that have become the dominant players. In this respect, the major carriers were looking at partnering and joining alliances and even merge to stay afloat like KLM and Air France.
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Gravity always wins!