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CAPA Discusses Ownership and Effective Control Rules, Big Data and the ‘Threat’ from Google

CAPA Discusses Ownership and Effective Control Rules, Big Data and the ‘Threat’ from Google

Addressing the CAPA Conference at Powerscourt Hotel, Co Wicklow, last week, Bobby Healy, Chief Technical Officer, CarTrawler, addressed the subject ‘Google Flight Search and Why It’s Bad for Airlines’, and told the airline leaders in the audience: “Wait until you are paying US$50 to Google per online booking!”

The conference adopted an interesting form of panel debates and ‘boardroom sessions’ that discussed three main topics: disruption in the airline industry, the existing ownership and effective control rules, and big data analytics and how the power of major data companies is challenging airlines.

Peter Harbison, Executive Chairman, CAPA – Centre for Aviation, introduced the subject by listing ‘four phases’ of disruption in the airline industry: 6th Freedom operations, the Gulf carriers, the impact of low-cost carriers, and – the next phase – the rise of China, partnerships and big data analytics.

He compared the market capitalisations of the big data companies – Amazon $454bn, Facebook $433bn, Google $648bn, Priceline (Booking.com) $90bn, Uber $70bn (estimated), and Airbnb $35bn (estimated) – with those of the biggest airlines – Delta $37bn, United $24bn, IAG $13bn, Qantas $9bn, Lufthansa $8bn, and Ryanair £16bn.

Moderator John Byerly, Consultant, introduces the ‘Great Debate’ on ownership and control rules, with Barry Humphreys, Chairman, BKH Aviation, and Rigas Doganis, Chairman, European Aviation Club, for the proposition, and Ulrich Schulte-Strathaus, Managing Director, Aviation Strategy & Concepts, and Albert Muntane Casanova, Senior Vice President Aviation Research, DVB Bank, against the propostion

Moderator John Byerly, Consultant, introduces the ‘Great Debate’ on ownership and control rules, with Barry Humphreys, Chairman, BKH Aviation, and Rigas Doganis, Chairman, European Aviation Club, for the proposition, and Ulrich Schulte-Strathaus, Managing Director, Aviation Strategy & Concepts, and Albert Muntane Casanova, Senior Vice President Aviation Research, DVB Bank, against the proposition

Conference Quotes

“At board meetings we need to regularly remind non-airline people of the existence of ownership and effective control rules that often prevent us from doing things.” – Willie Walsh, IAG

“With regard to ‘ownership’ of the traveller, third-party data analystics are about to crash the party.” – Peter Harbison, CAPA

“Hotels, telecoms and taxi companies are being ‘disintermediated’ – taxis are heavily regulated but they are being ‘Uber-ed’. – Peter Harbison, CAPA

“The ownership and effective control rules as existing are increasingly irrelevant – many countries now accept up to 49% foreign ownership and some, including India, accept 100% foreign ownership.” – Rigas Doganis, European Aviation Club

“Ownership and control rules will be different, but will remain – Governments need O+C provisions in order to negotiate – and the disruptions will come from elsewhere, not from O+C rules.” – Ulrich Schulte-Strathaus, Aviation Strategy & Concepts

“Transport policy is the last bastion that sovereign Governments will give up.” – Ulrich Schulte-Strathaus, Aviation Strategy & Concepts

“Eventually common sense will prevail and there will be a chipping away of the ownership and control rules.” – Barry Humphreys, BKH Aviation

“There is no pressure from the investment industry to remove the ownership and control rules.” – Albert Muntane Casanova, DVB Bank

“Low-cost carriers gained huge advantage by adopting API distribution almost from the start – but the legacy carriers are fighting back. Airlines need to work collaboratively with all players, particularly travel agents.” – Ian Heywood, Travelport

“The cloud is probably the biggest opportunity that airlines have not moved to take advantage of.” – Paul Pessutti, SAP

“When you get a supportive airline regulator isn’t it amazing what can happen!” – Peter Bellew

Chairman of the Board Peter Harbison, Executive Chairman, CAPA – Centre for Aviation (third left) introduces the ‘Boardroom Session’ on options available to airline management in the new marketplace with Giorgio Callegari, Deputy General Director for Strategy & Alliances, Aeroflot; Willie Walsh, Chief Executive, IAG; Henrik Hololei, Director General MOVE, European Commission; Peter Bellew, Group Managing Director and Chief Executive, Malaysia Airlines; and Eamonn Brennan, Chief Executive, Irish Aviation Authority

Chairman of the Board Peter Harbison, Executive Chairman, CAPA – Centre for Aviation (third left) introduces the ‘Boardroom Session’ on options available to airline management in the new marketplace with Giorgio Callegari, Deputy General Director for Strategy & Alliances, Aeroflot; Willie Walsh, Chief Executive, IAG; Henrik Hololei, Director General MOVE, European Commission; Peter Bellew, Group Managing Director and Chief Executive, Malaysia Airlines; and Eamonn Brennan, Chief Executive, Irish Aviation Authority

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NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 50 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 40 years.

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