Jetrader - Autumn 2016 - 56

There hasn't been as much rationalization among the carriers as has occurred in the U.S., although you can say that Geneva is no longer really the hub that it once was. Overall, I think the route rationalization in the U.S. that eliminated unprofitable hubs certainly occurred. In 2008, I said that environmental regulations would increase costs, which would lead to slower growth. In that respect, the industry is only smaller relative to what it would have been without some of the environmental regulations. I think that is true. Costs are higher all around. We have environmental taxes in Europe and soon more in the U.S. The industry has also moderated the increase in capacity by becoming more efficient and better in scheduling and revenue management. The manufacturers are making aircraft with more seat sizes so that the carriers can better match supply and demand on individual routes. In addition, improvements in forecasting technology has allowed the industry to operate with seat factors at all-time highs. We never used to see year-end seat factors in the 80s and even the high 80s. The daily volatility of demand would have prevented that. Those sorts of improvements lead to moderating capacity growth because we are now using the airplanes to capacities or using more than their capacities. In a way, I think I was correct on this prediction, but the industry is only smaller as it would've existed without some of the environmental regulations. In regard to it being a less competitive industry, I think it is less competitive today than it was eight years ago. Although the We're looking for a few good engines. Life Cycle Solutions© for monetary recovery International Aircraft Associates, Inc. al.vorhauer@internationalaircraft.com www.internationalaircraft.com WE SUPPORT ALL COMMERCIAL ENGINE TYPES: CFMI, GE, IAE, PRATT & WHITNEY, ROLLS-ROYCE 56 The official publication of the International Society of Transport Aircraft Trading 12/24/15 785650_International.indd 1 2:14 PM LCCs have continued to expand at record rates, consolidation has also occurred. There have been big acquisitions like Delta and Northwest, United and Continental and American and US Airways, and that's just in the U.S. In Europe there's been the growth of IAG with BA, Volaris and Iberia, Lufthansa has acquired carriers Austrian and is deciding whether or not to increase its minority stake in Brussels to full ownership. Because of these combinations, we have an industry that's less competitive than it was eight years ago. However, this does not mean that it's not competitive. Fares and prices continue to be a bargain for travelers. You might pay less today than you would have 10 years ago for the same flight. We still have a competitive industry, but fewer carriers than we had a decade ago. Fewer carriers mean fewer players which, in turn, means less competition. I think the prediction of the industry pursuing carbon neutrality was spot-on. It was an easy prediction to make due to the efforts to reduce fuel consumption being the same as the effort to go green; thus lowering carbon emissions. We have created an industry that is working very hard to become a carbon neutral industry. It doesn't matter that the driving motivator is improving fuel efficiency, as the effect is the same. Some of the expected regulations that force the industry to reduce carbon have been modified and slowed in terms of their introduction, but even so the economic desire and incentive to reduce fuel consumption has continued to make it work very effectively for carbon neutrality. JT: What do you see for the future in the aviation industry and its efforts to go green? DT: There's no question that there's been major advances in the industry to go green, and the industry will continue on that path. The airlines get rewarded by becoming more fuel efficient if they go green. They get rewarded with improved profitability. I expect that we will continue to see the industry go green. On top of that, we've got ICAO pushing new rules for emissions standards for aircraft. For example, those new standards are expected to be implemented by 2017 for effectiveness by 2020. The EPA rules in the U.S. will be developed. Europe has carbon trading rules. All of these areas will be impacted to create additional pressure on the industry to go greener. http://www.internationalaircraft.com http://www.internationalaircraft.com

Table of Contents for the Digital Edition of Jetrader - Autumn 2016

A Message from the President
Calendar/News
Q&A: Mike Williams, Jetaire Group
Wish Upon a Star
Sunshine, Rain and Mixed Feelings
ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Survival of the Fittest
Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
5 Places to Visit While Attending the ISTAT Latin America Forum
From the ISTAT Photo Archives
From the Jetrader Editorial Archives
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser Index
Advertiser.com
Jetrader - Autumn 2016 - cover1
Jetrader - Autumn 2016 - cover2
Jetrader - Autumn 2016 - 3
Jetrader - Autumn 2016 - 4
Jetrader - Autumn 2016 - 5
Jetrader - Autumn 2016 - 6
Jetrader - Autumn 2016 - A Message from the President
Jetrader - Autumn 2016 - 8
Jetrader - Autumn 2016 - 9
Jetrader - Autumn 2016 - Calendar/News
Jetrader - Autumn 2016 - 11
Jetrader - Autumn 2016 - Q&A: Mike Williams, Jetaire Group
Jetrader - Autumn 2016 - 13
Jetrader - Autumn 2016 - 14
Jetrader - Autumn 2016 - 15
Jetrader - Autumn 2016 - Wish Upon a Star
Jetrader - Autumn 2016 - 17
Jetrader - Autumn 2016 - Sunshine, Rain and Mixed Feelings
Jetrader - Autumn 2016 - 19
Jetrader - Autumn 2016 - 20
Jetrader - Autumn 2016 - 21
Jetrader - Autumn 2016 - 22
Jetrader - Autumn 2016 - 23
Jetrader - Autumn 2016 - ISTAT’s 2016 Farnborough Airshow Chalet and Reception Continue to Achieve Record Attendance
Jetrader - Autumn 2016 - 25
Jetrader - Autumn 2016 - 26
Jetrader - Autumn 2016 - 27
Jetrader - Autumn 2016 - 28
Jetrader - Autumn 2016 - 29
Jetrader - Autumn 2016 - 30
Jetrader - Autumn 2016 - 31
Jetrader - Autumn 2016 - Legal Status of Aircraft Engines and Effects on Financing and Leasing Transactions
Jetrader - Autumn 2016 - 33
Jetrader - Autumn 2016 - 34
Jetrader - Autumn 2016 - 35
Jetrader - Autumn 2016 - 36
Jetrader - Autumn 2016 - 37
Jetrader - Autumn 2016 - Survival of the Fittest
Jetrader - Autumn 2016 - 39
Jetrader - Autumn 2016 - 40
Jetrader - Autumn 2016 - 41
Jetrader - Autumn 2016 - 42
Jetrader - Autumn 2016 - 43
Jetrader - Autumn 2016 - Weathering Economic Gusts: Copa Airlines’ Pedro Heilbron Advocates Flexibility and Smart Growth
Jetrader - Autumn 2016 - 45
Jetrader - Autumn 2016 - 5 Places to Visit While Attending the ISTAT Latin America Forum
Jetrader - Autumn 2016 - 47
Jetrader - Autumn 2016 - 48
Jetrader - Autumn 2016 - 49
Jetrader - Autumn 2016 - From the ISTAT Photo Archives
Jetrader - Autumn 2016 - 51
Jetrader - Autumn 2016 - 52
Jetrader - Autumn 2016 - 53
Jetrader - Autumn 2016 - From the Jetrader Editorial Archives
Jetrader - Autumn 2016 - 55
Jetrader - Autumn 2016 - 56
Jetrader - Autumn 2016 - 57
Jetrader - Autumn 2016 - Aviation History
Jetrader - Autumn 2016 - 59
Jetrader - Autumn 2016 - 60
Jetrader - Autumn 2016 - 61
Jetrader - Autumn 2016 - 62
Jetrader - Autumn 2016 - Aircraft Appraisals
Jetrader - Autumn 2016 - 64
Jetrader - Autumn 2016 - 65
Jetrader - Autumn 2016 - ISTAT Foundation
Jetrader - Autumn 2016 - 67
Jetrader - Autumn 2016 - 68
Jetrader - Autumn 2016 - Advertiser Index
Jetrader - Autumn 2016 - Advertiser.com
Jetrader - Autumn 2016 - cover3
Jetrader - Autumn 2016 - cover4
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