Robert Hazel of Oliver Wyman presented an admittedly “glass half empty view” when it comes to the state of international air service. To start with, U.S. airports seeking to attract international service are challenged by the fact that the majority of international passengers (96 percent) are handled by just 25 airports in the U.S. Of those airports, the top two are handling nearly 20 percent of international passengers. This kind of concentration means “disbursement” is just not happening, Hazel told attendees at the 2009 ACI-NA International Aviation Issues Seminar.
Among the recent issues in international aviation are:
- Airlines’ continuing effects of expanding their network of alliances makes attracting service outside an alliance increasingly difficult
- Aviation is operating in a “back to the basics” mode, making niche and experimental services less likely to happen in the current business environment
- International passenger traffic has been on the decline; however, the decline is beginning to stabilize.
What’s driving international air service? Among the factors:
- Exports of goods and services
- Capacity/utilization
- Imports of goods and services
- Rate of civilian unemployment
Among the bright spots: Some destinations are experiencing growth, including Spain, South Korea and Australia, just to name a few.