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The Passenger Comes First

Sergio Allard - National Chamber of Air Transport (CANAERO)
President and Director General

STORY INLINE POST

Thu, 12/01/2016 - 11:17

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Q: What is CANERO’s strategy for supporting the aviation industry’s growth?

A: The aviation industry is responsible for 2 percent of Mexico’s GDP. The airline industry generates 150,000 direct jobs and almost 750,000 indirect jobs. The clusters in Queretaro, Chihuahua and other states are also contributing to employment. CANERO has 73 members across different aviation sectors including commercial airlines, cargo airlines and private aviation. For the latter we have a working group of 12 members that focuses on implementing better practices. The chamber is an open body and membership is available to everyone. We hope that as our importance and relevance in the industry increases we will attract more members. By the end of 2016 we expect to have three more members who will help us make sure the industry improves through the implementation of international practices.

Throughout 2016 our strategy has revolved around four key points. The first is to increase our competitiveness and deepen alliances with US airlines. Our second goal is to support the operations of Mexico City International Airport (AICM). Although the AICM is saturated there are more than 159 working saturated airports such as JFK in New York and Heathrow in London. CANAERO’s operations and schedules committee has contributed to creating a methodology for conducting operations in the AICM. The third part of our strategy is the construction of the new airport in Mexico City, NAICM, complemented by the fourth key point, which is to improve passenger facilitation services.

NAICM is a long-term project that we need to support. It entails investments, connectivity, more and better jobs with higher salaries. The airport will be like a small city with hotels and businesses, as well as a beautiful architectural composition. Most importantly, it will allow us to reduce layover times, increasing our competitiveness. Without this airport, aviation growth in our country would be severely limited.

Q: How will BASA impact air operations in Mexican airports and how prepared is the local infrastructure to handle an increase in passenger traffic?

A: Mexican airlines successfully entered many countries before BASA was signed. Our airlines are competitive, have modern fleets and are efficient. Several routes to the US are controlled by Mexican airlines due to our great product offering and excellent service. We expect that by the end of 2016 we will have transported around 80 million passengers, almost 30 million more than in 2010. Of those, more than 42 million passengers will have traveled through the AICM. BASA, implemented in August 2016, is expected to increase flight supply and competition between airlines, which will force us to improve practices in airports, airlines, regulations and customer services. The tourism industry will be positively impacted by this. The trans-border market between Mexico and the US is the third largest in the world and by the end of 2016, 30 million passengers will have traveled between both countries.

We tend to overlook the good things about our country and our industries. There are complaints about operations within the AICM but it is at the same levels as other airports in the US and Europe. We are developing the needed infrastructure and airport groups are investing in terminals. Monterrey has a functional airport and Cancun is constructing its fourth air terminal.

Q: In what ways can CANAERO improve the Mexican aviation industry’s competitiveness?

A: We just finished an analysis on the key competitiveness factors of US aviation that need to be applied in Mexico. One of our main conclusions is that we need to improve the productivity of our pilots. Other practices include improving airport operations or materials costs. Mexican jet fuel, for example, is 7 percent more expensive than in the US. The growth of the aviation industry depends on GDP growth and infrastructure, a strong regulatory entity and improved services for passengers. In the AICM, we follow the best international practices and observe international regulations, such as transparency for the allocation of slots following IATA’s worldwide guidelines.

Developed countries transport an average of one passenger per capita per year. If we can improve the conditions needed for the industry’s growth in five or six years we should be moving around 125 million people annually. Cargo aviation also needs to be bolstered. The federal government can implement a series of public policies to improve passenger facilitation services and cargo. Specific operations such as migration, customs and airport safety also need support. Our goal is to coordinate all these factors to improve the industry.

Q: What is the extent of the creation and adoption of a passenger culture?

A: CANAERO supports the diffusion of passenger’s rights and obligations, which are all featured on our website. People need to be more informed so we work with the federal government, the Ministry of Communications and Transport (SCT), the Ministry of Tourism (SECTUR) and the Federal Attorney’s Office of Consumers (PROFECO) to ensure every passenger is aware of this information. About 99 percent of passengers are educated on travel culture. We are seeing passengers becoming increasingly high-tech so the whole industry is investing in technology to speed up processes for our clients. All industry participants have a clear and common vision and we want to give customers better services.

Q: How has connectivity evolved in Mexico and what needs to be improved?

A: Mexico City has become a traveling hub and Monterrey is on its way. Similarly, the new Cross-Border Walkway between the Tijuana and San Diego airports offers interesting and improved connectivity opportunities. In Mexico, we have a misguided concept of what connectivity is, which is not having direct flights between a small city and Tokyo. European and US consumers understand that the most efficient way to travel is through hubs. We need to understand this to recognize that Mexico City’s hub is well connected.

Airlines need to take advantage of BASA, find ways to operate efficiently in the AICM, support the construction of the NAICM, respect passenger rights and improve passenger services. Airlines participate in finding the best way to manage logistics of passengers, luggage and connectivity. They contribute immensely to defining the best practices for the new airport’s operation.

Q: What major trends in the aviation industry do you expect in the short term?

A: There have been important advances in aerodynamics. We have seen transformations in fleets, processes and most importantly, in safety. Airplanes have become the safest transportation method. People are traveling more comfortably with more technology and safety and at lower prices. What Boeing, Airbus and Embraer are doing today barely resembles their operations 20 years ago. Airports are placing safety and security above all and air transport is becoming accessible to broader demographics. Flight offerings are impressive and collaborations such as SkyTeam and StarAlliance allow for greater connectivity.

 

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