NETWORK LATIN AMERICA SUCCESSFUL
Network Latin America 2009 has come and gone. For
two days PJIAE hosted some 178 delegates
representing various companies, namely airlines,
airports, handling companies and other aviation
related businesses. “There were some 330 one-to-one
meetings between airlines and airports. PJIAE
executives had 12 meetings with different airlines
and these meetings were mostly successful and
hopeful,” reported PJIAE President drs. Eugene
Holiday at the wrap-up conference at which he was
joined by Mr. Mark Pilling, Editor of Airline
Business Magazine, the organizer of the conference.
The PJIAE President explained that since PJIAE
measures success from its ability to perform at
highest possible standards, he was satisfied with
how the conference went. “Based on the feedback we
received, we may conclude that Network Latin America
2009 was a success. The objectives of the conference
to create a forum for aviation exchange, while
showcasing our airport and our island have been
achieved,” he said.
Responding to questions from journalists about
tangible results of the conference, Mr. Pilling
explained that these may only materialize in six to
18 months. “Every airport wants airlines to start
new service. And for us, success of a conference is
when can help to achieve that. But generally all
these conferences serve is the establishment of good
relationships. People don’t come and sign contracts
to start new service unless you are lucky. That
being said, I will be surprised if within 6/12/18
months you don’t get new service. The bottom-line is
that you want new service and that will happen,” he
said.
Drs. Holiday, in full agreement with Mr. Pilling,
stressed that he never counts his eggs before they
hatch. “Over the years we have built many solid
relationships with airlines at conferences like
these, but there is nothing better than meeting some
of those people here, on our own island. Now they
know what to expect. They have seen it and that
makes a major difference,” he said. “Latin America,
from a route development perspective, is the new
frontier for St. Maarten and I am convinced that we
will be seeing direct flights from this region as
scheduled operations. We will see deepening of the
relationships,” he assured.
The conference got underway on Monday December 6
2009 with a paneldiscussion about the challenges
facing sustainability in the industry. The
executives agreed that they face a host of
challenges, for which however solutions are not too
far off. “You have to think outside the box. We
increased our market value through sheer
creativity,” said Mauricio Moreira, of Brazilian
airline Gol.
Challenging his audience with his company’s
operational target to turn-around aircraft from
touch-down to departure in 20 minutes, Moreira was
adamant that operational efficiency is key to
sustainability. “Aircraft on the ground do not make
money, so you have to turn them around as quick as
possible to get them back in the air,” he said.
Former LIAT Chief Mark Darby made a call for
Caribbean Governments to adopt a more enlightened
approach as to the role of airports in the
Caribbean. He said that on his own ticket on which
he flew from England, through Antigua to St. Maarten
no less than 45 percent was tax.“Too many islands in
the Caribbean see their airports as a means to drop
parts of their operational costs on the tourists and
this holds back the region,” he said. In his view
taxing discourages visitors from visiting and
airlines from adding flights. “They say: we have a
choice. We are better off operating domestically,”
he explained. He advocated that Governments bear a
proportion of the costs of airlines and airports and
make their destinations attractive to airlines and
encourage tourists.
Delegates at the two-day aviation conference also
took aim at the non-existence of open sky agreements
which make operating in the region expensive. “What
will also work for expanding service are bilateral
agreements. I really cannot see why any island would
want to hamper the creation of open sky agreements,
aside from the need to monopolize their industry and
uphold protectionism,” said Gol executive Moreira..
He found support from Nigel Harris who recently
returned to volcano stricken Montserrat to resume
operations of FlyMontserrat between the tiny islands
of the North Eastern Caribbean. “Every flight I
operate is an international flight. It really is one
of the last barriers for more efficient operations
in this region,” he said.
Delegates also recognized a need for more marketing
of the tourism destinations. “It is crucial to get
the message across that you have a product.. Get
your islands and destinations on the map and demand
will build,” said Kirby. Darby chimed in, adding
that creativity and aggressiveness will work as
well. “A good example is Puerto Rico. They jumped
into the regional inter-island market right after
American Airlines pulled out in early 2008 and
invited opened their doors to Caribbean visitors,”
he said.
“The Caribbean market is still looking ahead at a
year of flat performance ahead. Yes, the recession
is over, and traveler confidence has returned, but
airlines are still suffering. Many people based our
main markets are lost their jobs and there simply is
less money floating around. Worldwide the airline
business is still slow,” concluded Mark Darby,
former CEO of LIAT. Passenger growth is expected to
resume in 2010 and vary between 0 to 5%, which
generally was considered a welcome change after a
pretty slow 2009.
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