Page 19 - AAA NOVEMBER - DECEMBER 2022 Online Magazine

INTERVIEW

DESIRE FOR

AIR TRAVEL

HAS RETURNED

BUT THE MAIN CHALLENGES FOR AIRLINES ARE
THE OVERHANG OF DEBT COUPLED WITH THE
EXPANDING CRACK SPREAD, WHICH IS THE
HIGHEST IT HAS EVER BEEN,
SUBHAS MENON, DIRECTOR GENERAL OF THE
ASSOCIATION OF ASIA PACIFIC AIRLINES (AAPA)
TELLS JAY MENON, EDITOR OF ASIAN AIRLINES &
AEROSPACE IN AN EXCLUSIVE INTERVIEW.

EXCERPTS:

AAA: The aviation industry has repeatedly shown resilience to
come back stronger, bolder and smarter from previous crises SUBHAS MENON, DIRECTOR GENERAL
that have threatened to disrupt the status quo. How optimistic OF THE ASSOCIATION OF ASIA
are you about the future of air travel in the region? PACIFIC AIRLINES (AAPA)

Menon: It bears repeating that the pandemic is not over. Many of plan for its members in 2023?
us are still learning to live with it. But we can be hopeful that by
year-end, Asia-Pacific air travel volumes will recover to at least Menon: Recovery will continue to grow
two thirds of the pre-pandemic levels. Full recovery may take by leaps and bounds. The focus will be on
another year at least, provided the Global Economic Outlook improving the seamlessness of air travel with
doesn’t get any worse. technology, aviation sustainability and most
importantly keeping up the safety record.
Prospects for air travel in the region are bright. Despite the
global macroeconomic picture air travel is up six fold and forward Recovery is tied to how open borders are.
bookings are strong well into 2023. Most Asian markets are fully open now. China
remains closed and not surprisingly air travel
Indeed, the recovery of the Asia-Pacific region stands in contrast to and from China is laggard.
to other regions which are already seeing air traffic volumes close
to 90 per cent of the 2019 levels. That is the quantitative picture. AAA: What measures should the government
Qualitatively, air travel is pretty much like what it was. Airports adopt in order to facilitate a full global recov-
are busy, flights are full… the desire for air travel has returned. ery for the aviation industry?
The immediate challenges are high fuel costs. Strong US Dollar. Menon: Step up the roll out of technology
Looming recession in wealthy countries. at airports to improve seamless air travel,
for instance by sanctioning digital identity
AAA: What is preventing the aviation industry from fully recov- processing for passport and visa clearance
ering to pre-pandemic levels? for border access and security clearances.
Menon: It is a challenge to ramp up supply of flights in the short
term to meet the strong pent-up demand. Many have left the AAA: How important is it for organisations
industry after it was shut down for over two years. At the same like AAPA to encourage the full recovery of
time unemployment is at its lowest in decades. New hires and the global aviation industry?
existing manpower have to be trained or retrained. Background
checks and certification also take time. It will take at least till the Menon: Very. We need to see how we con-
end of the first quarter of 2023 for supply to match up. front the immediate operational challenges
and how flexible we are to adapt to dynamic
AAA: Are we are seeing a new year of recovery? What is AAPA’s market conditions. These will decide how

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