CAPA Airlines in Transition - CEOs discuss alliance membership

May 3, 2012

Datalex recently sponsored the CAPA Airlines in Transition Conference in Istanbul. An airline CEO event, it covered a broad spectrum of ills and remedies affecting the industry. One of the more interesting insights was the general opinion, echoed by a number of CEOs, that membership of a global alliance did little to fuel innovation and growth, or improve services for the small to medium sized airline. By far the most effective strategy for such airlines was to follow more bilateral agreements with partner airlines that could extend network reach, provide more substantial feeder numbers from markets which matter. In addition there needs to be a like-minded management culture in order to make it work, and not appear as purely a CEO-CEO quest.

Carriers that contributed single digit percentages to the alliance had very little say, or room, at the alliance decision table. At the same time these smaller airlines have to pour significant funds into maintaining complicated integration standards which do not produce the ROI. The cost of maintaining such integration is not proportionate between the biggest and smallest alliance member, and therefore it becomes a more critical and difficult justification.

Peter O’Kelly

Commercial Director, Datalex

 

About Datalex

Datalex is a market leader in digital commerce for travel retail. The Datalex Digital Commerce Platform provides airlines with a unique solution to drive revenue and profit as digital retailers. Today the platform enables a travel marketplace of over one billion shoppers covering every corner of the globe, driven by some of the world’s most innovative airline retail brands. The Group is headquartered in Dublin, Ireland, and maintains offices across Europe, the USA and China. Datalex plc is a publicly listed company on Euronext Dublin (DLE).

Contact us to understand more about our Digital Commerce Platform.

About CAPA

CAPA - Centre for Aviation, part of the Aviation Week Network, is one of the world’s most trusted sources of market intelligence for the aviation and travel industry. Since its establishment in 1990, CAPA has developed a formidable global network of aviation researchers and analysts located across Europe, North America, Asia and Australia.

 

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