Jetrader - Summer 2016 - 21

The world is changing in ways we never could have imagined, said
Adam Pilarski, Ph.D., senior vice president, consulting, AVITAS,
Inc. Along with these changing world realities, Pilarski said, we're
seeing uncertainty clouding the aviation market.
Amid record profits for airlines, large deliveries and order books
for manufacturers, and a rising percentage of leased aircraft, Wall
Street remains cautious about what effect the low oil prices will
have on the market, Pilarski said during the ISTAT Americas keynote address on 29 February in Phoenix, Arizona. The conference
drew nearly 1,800 attendees from around the globe, making this
another record-breaking event for ISTAT.
Pilarksi said the high oil price environment of previous years
created the new realities of today, including developments in
aircraft and engines. "It's a fact of life; it happened," he said.
"This omelet cannot be unscrambled. We cannot go back."
He predicts that airlines will continue to expand and profit and
that oil prices will rise, but not above $70 per barrel for a long
time. "Those who invested in new technologies may not reap all
the benefits that they hoped for," he said.
Randy Tinseth, vice president of marketing, Boeing Commercial
Airplanes, also outlined several areas of concern for the industry.
Similar to Pilarski's list, these included state of the global economy,
oil price volatility, geopolitical hot spots, air cargo demand, airline
labor, and FAA reauthorization, among others.
John Leahy, chief operating officer - customers, Airbus, spoke
about a cautious approach toward production levels during his
presentation the first day of the conference. He said that people
looking for a cyclical industry to return shouldn't look to Europe.
"This is no longer a cyclical industry," he said. "My biggest fear
is being able to produce everything we've sold."
The two-day event featured speakers from all sectors of the commercial aviation industry and engaging panel discussions, such as the
engine manufacturers and airline panels on Monday and the popular
financial markets and lessor CEO panels on Tuesday afternoon.
During the lessor CEO panel, Steve Hazy said that he's "still
cautiously optimistic" about the industry but he sees constraints
in regards to pilots, infrastructure, ATC slots, and airport operations. Outside of China, it is very difficult to build new airports,
he said, and this will be a concern as traffic continues to build.
Hazy also explained the important role that lessors have played
in the transformation of the airline industry. "We've turned a lot
of dreamers who wanted to start airlines into a reality," he said.
Mixed in with the industry presentations were an equally strong
networking and activities lineup. Many attendees who made it
to Phoenix early took part in the Sunday networking activities,
including the ISTAT Foundation Golf Tournament, the clay shooting event, the tennis tournament and new this year, the Grand
Canyon flights. The one-hour flights over the Grand Canyon were a
fundraiser for the ISTAT Foundation and sponsored by Bombardier.
The experience offered incredible views of the massive natural
wonder on a Q400.
The closing President's Gala Dinner was particularly special
as Steve Hazy and Doug Parker shared memorable stories of this
year's ISTAT Award winner, John Leahy.

ASK THE AUDIENCE
During the conference, survey questions asked the audience
for feedback on the industry's trajectory, panel topics, and
their enjoyment of ISTAT Americas. Below, view some of the
results of those surveys:

How satisfied were you with your overall conference
experience?
1.
2.
3.
4.
5.
6.

Extremely satisfied
Very satisfied
Satisfied
Dissatisfied
Very dissatisfied
Extremely dissatisfied

46%
37%

14%

1%
1.

Please select your most important consideration
in booking travel
1.
2.
3.
4.

Price
Schedule
Loyalty program
Aircraft type

45%
33%
17%
4%
1.

There are currently four publicly-listed Lessors in the
U.S. By 2020, there are likely to be:
1.
2.
3.
4.

4 or less
5
6-7
7 or more

37%
29%
19%
14%

Hazy praised the man who came from modest beginnings and
accomplished so much, saying that Leahy is the only person on
the face of the planet to sell more than 10,000 jets. "I feel very
fortunate and unfortunate, both, to have ordered 1,100 from John
himself," Hazy said.
Parker echoed Hazy's respect for Leahy by saying that there
are very few people in this industry who you can say that the
company would not be the same without. "He's changed the entire
company," Parker said.
All agree that Leahy is a relentless and creative aircraft salesman. "He's a force of nature," Parker said.
Presentations and photos from ISTAT Americas are now available
via the ISTAT mobile app and the ISTAT website.
Jetrader * Summer 2016 21

Jetrader - Summer 2016

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