Andrea Crisp: April 2006 Archives

Old kid on the block

By
Andrea Crisp
 on April 10, 2006 9:21 AM | | Comments (0) | TrackBacks (0)

Air Malta has finally appointed a chief executive to replace Ernst Funk who last June announced he would be standing down. And it appears Joe Cappello, who is currently chief operating officer, will step into Funk's shoes, working alongside chairman Lawrence Zammit.


We caught up with Cappello and Zammit earlier this year at the Maltese embassy in London to talk about Air Malta's plans for the future. At the time they mentioned they were interviewing for Funk's replacement. We didn't think anything of the fact both Zammit (as chairman, the more senior) AND Cappello turned up for the interview. We just figured it was a sort of two-for-one deal.


But looking back now it seems obvious Cappello was already being seriously considered for therole of chief executive and this was potentially part of his handover.


Cappello says in the official announcement: "This is indeed the biggest professional challenge that I have had to face…The task is huge, the resources are limited, but the willingness, experience and capability to turn the company around and continue delivering our seamless service is there."


So, good luck Cappello. After being with Air Malta for 30 years since graduating in 1976, it's a long overdue recognition.

Bells, whistles and low fares

By
Andrea Crisp
 on April 6, 2006 4:26 PM | | Comments (0) | TrackBacks (0)


What do passengers really want from airports and airlines? So went the smirk-inducing title of the event I attended recently. Organised by the UK's Chartered Institute of Marketing Travel Industry Group and London City Airport, the event took place at the airport itself, with an awesome view of aircraft taking off and landing.


So, what do passengers really want? Well, it appears we're a predictable bunch really. Yes we want low fares. But as David Evans, managing director of the newly launched BA Connect (BA's regional arm), said, if all we wanted was just low cost, we'd all be driving Ladas. And that's not the case. "Price is critical but it's not the only factor," he says.


Yes, it appears we want low fares, but we're also prepared to pay for more. And that's where there's money - and product distinction - to be made.


The success of easyJet and Ryanair in Europe has sparked the influx of low-cost carriers compared with five years ago. Tim Jeans, managing director of Monarch Scheduled Services, says that easyJet and Ryanair's domination has given rise to a number of successful second-tier operators: bmibay, flybe, Jet2, Monarch and Thomsonfly.


"The market is sufficiently large that niche players can offer products and succeed," says Jeans. "The market has moved on from simply wanting low fares. Now passengers want a choice of seat, meal and extra leg room. And they're prepared to pay for it."


Monarch for example took out one row of seats and created extended 32" seat pitch on 42 seats for which passengers pay extra - a move that's been worth ｣200,000 a week in revenue for the carrier.


"It's not all about minimum everything," stresses Jeans. "This is a niche market. It's not a one-size-fits-all model."

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