Christine was the CEO of Flybe, which was Europe’s largest regional airline, from 2017-19 and has over 30 years experience in the airline industry. She started her in 1988 at Air France before joining Amadeus inu 1992 as Director of Sales and Marketing in Europe for 4 years. In 1998, Christine rejoined Air France as VP, Sales before making her way to General Manager of Air France KLM for UK and then CEO of CityJet, the regional airline subsidiary of Air France KLM. Christine is also on the Board of Governors at the International Air Transport Association.
I think the structure has been moving in the same direction, which is consolidation. Why? Because of the pressure that you have. When you are an airline, the external factors are very challenging, not only on the competition side, but also on your cost structure. The market that has seen the fastest consolidation has been the US market, with quite a limited number of players that are also controlling, in a way, the regional carriers, to feed their own hubs. The regional carriers, in the US, are flying another brand of the flag carriers, so it’s a very consolidated structure market, compared to what you can see in other regions of the world.
Europe is the most fragmented market, maybe because it’s the oldest one, with flag carriers, low-cost carriers, regional carriers, that are competing with each other. I think that’s a crisis and it’s already what you see, with airlines going into administration. Not only in Europe, but in other regions of the world. They are asking for state support. So there will be consolidation and there will also be a rationalization. Looking at the example of Alitalia and the government saying that it will definitely be smaller. You will have an evolution of consolidation mixed with optimization of capacity, which is definitely supporting consolidation, because the rationalization of the capacity will not have to be done only by consolidation, but also by some players being a little bit smaller.
When Lufthansa announces that they are going to reduce their fleet by more than 100 aircraft, it means that they are already optimizing the capacities they have in the market.
They will take up some slots of routes, if it makes sense for them, if there is a business case. Maybe, for some routes, they are already on the routes and they will have even more success. There are strong players, who are very successful and, financially, they can afford it. I think the game on European short-haul is definitely already showing that there is the story of being the low-cost carrier model and when you see some players, like Wizz Air, who are opening a base in Abu Dhabi, that’s an even bigger change for the industry.
When you look at the structure of some bail-outs today, it’s very interesting. It’s very different in Europe, compared to the US, for obvious reasons to do with the governance of organizations. In the US, there are conditions for the support that has been given, by the government, to airlines. If you take an example in France, there are also some conditions that have been given from the French government, to Air France, including sustainability. That’s quite interesting, because it’s really on the agenda even more than it was because the crisis has been revealing that, for some groups of activists, without any flights, nature is taking a revenge.
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Christine was the CEO of Flybe, which was Europe’s largest regional airline, from 2017-19 and has over 30 years experience in the airline industry. She started her in 1988 at Air France before joining Amadeus inu 1992 as Director of Sales and Marketing in Europe for 4 years. In 1998, Christine rejoined Air France as VP, Sales before making her way to General Manager of Air France KLM for UK and then CEO of CityJet, the regional airline subsidiary of Air France KLM. Christine is also on the Board of Governors at the International Air Transport Association.