Airlines should be prepared for the industry to face an imminent downturn, the CEO of TAP Express has warned.
Aviation has had “four great years” but “the downturn is around the corner,” Valter Fernandes, CEO of TAP Express, operated by Portugalia Airlines, told MRO Europe.
“We don’t know when, but it is coming,” he said. “Fuel costs are rising. We have a problem of speed of improvement, and we need to look at how we can improve aircraft.”
Fernandes was speaking at the 21st annual edition of MRO Europe, taking place in Amsterdam, which focused on aircraft maintenance, repair and overhaul and was attended by 447 companies.
He also warned that the slow speed of progress in the airline industry means carriers could get left behind by as customer demands evolve.
He said: “We aren’t sexy or cutting edge any more. We have to be more creative; we definitely have the brainpower. People are not amazed by our product anymore.”
“You have to plan in advance; that’s easier said than done sometimes."
Additionally, Fernandes outlined his carrier’s strategy, as it comes under increasing pressure from low-cost carriers in its main markets.
“As the new millennium started, we started to struggle,” said Fernandes. “It was very hard to compete with the point-to-point LCCs. We had an aging fleet and we needed to modernise, so we went to the Embraer E-Jet product.”
“Our plan is to grow our fleet to offset fixed costs and feed TAP at its main hub, which is Lisbon. We want to service those routes not suitable for the Airbus A320.”
“Our product needs to be different from TAP and we need to differentiate from our point-to-point LCC competitors."
Related Content
