Rapidly changing airline industry
Mr Spohr highlighted a number of other areas in which the airline industry is changing rapidly. These include the growing importance of bilateral joint ventures and the permanence of the (low cost) point to point business model, which is outpacing the growth of the hub model. He noted the slow progress of European airline consolidation, describing this as "overdue".
While airline privatisation had been a significant movement in Western Europe, Mr Spohr observed that this process "stops east ofVienna", with the result that private sector carriers such as Lufthansa had to compete "not just with government-owned airlines, but with government-owned aviation systems". He argued that this was distorting the economics of intercontinental air travel.
Outside the core airline passenger business, Mr Spohr highlighted the overcapacity in the cargo sector, where capacity growth is ahead of "stagnant" demand, but saw growth opportunities in the MRO sector through increasing fleet numbers, especially in Asia and South America. In the airline catering segment, he observed that this highly consolidated market was shifting to Asia
Rapidly changing airline industryMr Spohr highlighted a number of other areas in which the airline industry is changing rapidly. These include the growing importance of bilateral joint ventures and the permanence of the (low cost) point to point business model, which is outpacing the growth of the hub model. He noted the slow progress of European airline consolidation, describing this as "overdue".While airline privatisation had been a significant movement in Western Europe, Mr Spohr observed that this process "stops east ofVienna", with the result that private sector carriers such as Lufthansa had to compete "not just with government-owned airlines, but with government-owned aviation systems". He argued that this was distorting the economics of intercontinental air travel.Outside the core airline passenger business, Mr Spohr highlighted the overcapacity in the cargo sector, where capacity growth is ahead of "stagnant" demand, but saw growth opportunities in the MRO sector through increasing fleet numbers, especially in Asia and South America. In the airline catering segment, he observed that this highly consolidated market was shifting to Asia
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