"They'd purchase a new A380, given a chance to shape its design"
Going for More Luxury: Is Etihad Generating Wealth with Their New A380s?
In the midst of numerous crises, the travel industry is witnessing a surge in demand. The CEO of Etihad, Tim Clark, spills the beans to ntv about the current situation in the aviation sector, the post-pandemic changes, and the modern challenges faced by airlines.
What's the current state of affairs in the aviation industry?
Tim Clark: Numerous airlines are posting impressive profits, and this upward trend has been consistent since the COVID-19 pandemic. The industry is on a roll, and we hope this momentum continues. Most airlines are flourishing at the moment.
How about the past few months for Etihad?
Spectacular! We're experiencing high load factors and significant revenues. The global economy might be struggling, but the industry is doing splendidly nevertheless. Our performance remains impressive.
Why is the industry so resilient to global crises?
There are a couple of reasons. Firstly, demand has remained stable. During the pandemic, the industry was on the edge of collapse. Everyone claimed the demand would never recover or would return at a much lower rate, with no premium services in sight. However, as the industry bounced back, a new picture emerged. Demand is still robust, and we don't foresee a decline in the near future.
The pandemic reshaped the travel market. Do you notice any noticeable changes in customer behavior?
Indeed! Something dramatic occurred during the pandemic. The market segments shifted completely. We're trying to get a handle on this, and our understanding is growing. More folks are choosing Emirates, and they're willing to pay premium prices. They're not just traveling once a year, but multiple times. Additionally, we experienced a spike in travelers from Germany after the pandemic.
How significant are innovations such as the Premium Economy Class?
The Premium Economy Class has surpassed all our expectations. We anticipated a certain revenue threshold to make it worth our while to eliminate economy seats and implement the new class. We've nearly doubled that number! Our aim is to introduce it on as many routes as possible.
Demand is strong, but many airlines are abandoning Germany due to high expenses. Are there plans to expand operations in Germany?
If we had more aircraft, we'd be more prevalent in the German market. Yes, Germany's expenses are steep. And yes, it's challenging to speak for other airlines that are leaving the market. But it's not just Germany. Across-the-board cost increases affect the entire network. Still, that doesn't stop us from serving a country. Our main concern is currency devaluation and volatility. This adversity impacts numerous developing nations with volatile currencies that we find difficult to hedge. That issue is more detrimental to us than high airport or fuel fees.
It seems that you still desire to fly to Berlin twice a day.
I've been chasing that dream since 1994, over 31 years ago. Yes, we're still trying.
You mentioned the lack of aircraft. Would you buy a new A380 if offered?
If we could customize the design, we'd take it. Our A380 aircraft are in high demand at the moment. These planes are the most coveted on the skies today, and the desire to travel on them remains unwavering. The aviation viewing tribunes at airports worldwide are always jam-packed with spectators watching our A380s take off and land. Germans have their fair share of admirers, too. Frankly, demand is evident for larger aircraft - provided we secure slots at the airports for them.
The economy class has remained unchanged for a while. Are there plans for enhancements?
We're actively working on that. We've managed to improve the premium zone, but we need to refine the economy class too. There are numerous concepts planned, but I won't disclose them. However, I think we can do better for our passengers, who endure up to 18 hours on a flight. Comfort must be improved.
Interview with Tim Clark by Thomas Wimmer
Source: ntv.de
- Airlines
- Etihad Airways
- Tourism Industry
- Aviation
- Travel trends
- Tim Clark: "We're still trying" to fly to Berlin twice a day, a dream that has persisted since 1994.
- The interviewed CEO mentioned that their A380 aircraft are in high demand and are the most coveted on the skies today, with many admirers, including Germans.
- Following the resurgence of the industry, Tim Clark expressed that demand for larger aircraft such as A380s is evident, but securing slots at airports for them remains a challenge.
