Head to routes
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 30 September 2008
Due to the crisis in the industry caused mainly by high oil prices, a major trend is emerging at this year's Routes Forum.
Looking for ways to share the oil price pain is how the organiser of the World Route Development Forum (Routes) is describing this year's event. As reports of ‘an industry in crisis' continue, the Routes event to be held in Kuala Lumpur, Malaysia from 12th - 14th October is witnessing a change in its trend.
While the world's airlines and airports attending Routes normally focus on new market opportunities, many airlines are requesting to meet airports they already serve.
Mike Howarth, CEO of Route Development Group believes the detrimental effects of the high oil price has boosted the events attendee numbers and that airlines are approaching airports to look for answers to soften the blow of huge fuel bills.
"With the effect of high oil prices, a lot of airlines are not planning new routes, but it doesn't seem to have had a significant impact on the event. Because of the current climate we weren't sure what to expect this year, but it seems airlines are coming to Kuala Lumpur to talk about routes they already fly and say to airports ‘how can you help me?'"
Routes began 14 years ago and is fundamentally an opportunity for airports and airlines to meet in a series of 20-minute meetings. Since the inaugural event Routes has grown in size rapidly. Howarth sees this as reflective of the airline/airport relationship.
"There was a view when the event first started that airlines did route development and an airport's job was to run an airport safely and efficiently. But increasingly as the risks and costs of developing new routes have increased so the airlines have allowed the airports into that process. Airports have almost said that their route networks are too important to be left just to airlines to decide. They feel they have to get involved and in some cases will provide financial incentives such as reduced landing fees. Whereas, in previous years, airports talking to airlines was just an angle of the event, the relationship is now a core driving force."
It is believed that at least one major airport authority will be using Routes to announce a cost saving initiative to support its carriers. Some airlines are also sending larger teams to bring a wider range of skills into the discussions. Howarth has been quick to notice changes to the delegate list.
"We have a low cost carrier which has just added its procurement manager as a delegate. Now, procurement managers don't do route development and he is clearly there for procurement reasons as opposed to just market development reasons."
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