May 2023 - Briefing

🤩 Starting with the good news, this month in Caravelo we announced the launch of Europe’s First True Flight Subscription , WIZZ MultiPass! On this note, Wizz Air’s CEO, Jozsef Várady in an exclusive interview claimed “we are an airline of the future”.

🔗 Things are also changing in the M&A front. Lufthansa has seemed to find a deal with ITA , and TAP may be next . Also, Israir is in “strenuous talks” to buy Czechia’s Smartwings . 

By contrast, other airlines are about to face a breakup. Air Malta chief confirms national airline will be replaced by end of year , and Air Astana could spin FlyArystan into a separate business in 2024 .

👻 In a blast from the past, after 15 years the case is closed and Ryanair lost to Lastminute.com in Swiss court of appeal . On a similar note, Europe says Alitalia must repay €400m loan .

For AirAsia it’s time to say goodbye to its founder Tony Fernandes , who has decided to focus on health, education and private equity.

🌏 Other news from Asia see China on a rocky path to recovery , and analysis on the Indian travel market show great potential for domestic and international growth. Good news also from Japan , where Covid-19 testing and vaccination protocols will finally drop.

🍲 Something is cooking also in North America. United is planning to expand Australia and New Zealand flights betting on international travel rebound, and in the Canadian ultra-low-cost carrier landscape we are witnessing many interesting movements.

🚧 Overseas, European travel has been affected by disruptions caused by French air traffic controllers' strikes. The situation has motivated European airlines to continue pushing for a Single European Sky and to create a more efficient airspace architecture.

🚂 The uncertainty of air travel could be one of the reasons why European travelers are shifting to trains . Some carriers, such as ITA , have decided to hop on the trend, offering air+rail tickets. But it’s also true that airlines should step up their customer experience .

🤝 Indeed, the relationship between companies and customers is complex and risky. On a controversial note, Hopper attracted some press for its “deceptive” tip feature. While on the flip side, Google made headlines for its new refund guarantee offer on selected flights if the purchased airfare drops before departure.

✈️ Talking about airlines, baggage fees are now a regular revenue source. The CarTrawler 2022 Global estimate of baggage fee revenue reveals a 39% increase over the 2021 figure of $20.9 billion. Also, as Virgin Atlantic COO Corneel Koster said, leisure bookings for upper-class, premium cabins are booming .

🔭 Could these factors impact the future of RM ? In a further twist, emerging technologies are shaping the future of airline revenue management, and Caravelo is one of them !

⚗️ New technologies and trends are also leading more and more travel companies to experiment with incorporating generative AI into their business , and new players, such as Live Nation are entering the travel industry.

🛸 Also, the future aircrafts may be closer than we think. Even though Lilium is facing a financial crisis , United Airlines and Archer have announced plans to launch the first air taxi route in Chicago.

🤔 Looking even further ahead and browsing through this compilation of Aviation-Themed April Fools' pranks, we cannot help but wonder: could there be a grain of truth in every joke?

✨ What a month for aviation and tech! From significant M&A moves to game-changing innovations, we've seen it all. What's your take on these developments?

Share your insights in the comments and don't forget to hit the share button if you found this roundup useful. Let's keep the conversation going and together navigate the future of air travel and tech. As they say, the sky is not the limit, it's just the beginning! 🚀