Larry Kellner, Chairman and CEO of Continental Airlines, spoke at the Aero Club in Washington, D.C. today, and offered his thoughts on the industry and how it can become more stable. ACI-NA was seated front and center at the Aero Club, as Kellner listed three pieces of advice for airlines, airline partners and government regulators.
1. Fix the Air Traffic Control (ATC) System:
According to Kellner, airline delays have cost the United States roughly $40 billion. Given that the industry makes up about 5 percent of the U.S. GDP, Kellner explained that the investment in the Next Generation Air Transportation System (NextGen) would provide huge benefits to the economy, not to mention improvements in the passenger air travel experience. Without the investment in NextGen, Kellner indicated that “it will be hard to put stability back in the industry.”
2. Environmental Regulations on a Global Scale:
While an improvement in the ATC system in the U.S. would improve fuel efficiency by about 10 percent, Kellner also called for a global approach to environmental regulations. “We are a mobile and global industry, and we need regulations to be built on a global scale.” According to Kellner, the cap and trade system simply won’t work, given the lack of predictability in costs.
3. Happy Employees Equals Happy Passengers
As his final point, Kellner stressed the need to build a strong employee base. “Happy employees equals happy passengers; happy passengers equals happy shareholders.” The key to building a happy employee foundation is to find a labor program that doesn’t create internal conflicts. “You need strong employees to be strong carriers. The goal is really all about creating stability.”
Also at the Aero Club today, the late Bill DeCota, former Aviation Director for the Port Authority of New York & New Jersey (PANYNJ), was awarded the 2009 Donald D. Engen Aero Club Trophy. The trophy is given to an individual, team, or organization for a lifetime of achievement in aviation, a single event, or series of events that reaffirms the Wright Brothers’ standard of excellence in aviation. Sue Baer from PANYNJ accepted the award.