Page 20 - AAA NOVEMBER - DECEMBER 2022 Online Magazine

the next few years will pan out. As the trade association of the job vacancies in the aviation industry are at
region’s airlines, AAPA’s mission is to articulate, the perspectives their highest. Costs are escalating for airlines,
of the airlines. With the support of the airlines, AAPA can engage in particular fuel costs. We need to confront
more effectively with governments on issues, and contribute to these to ensure that aviation remains resil-
the continued long term success of the air transport industry in ient, sustainable, and a growth industry..
the region.
AAA: There are widespread comments that
AAA: Sustainability is high on everyone’s agenda these days. airlines in the region, even the LCCs, are
How confident are you about aviation successfully achieving charging higher ticket prices. Is this justified?
its net zero emissions goal?
Menon: It is a function of demand and supply.
Menon: Asia’s carriers take their sustainability commitments
seriously. Together with the cooperation of all stake holders, we
will continue to work hard to manage our Carbon footprint in line AAA: History has shown us that crises have
with the ambitious long-term targets set out for the industry at often spawned the best inventions and inno-
the ICAO (International Civil Aviation Organisation). vations. Will we see more bio-fuelled planes?
AAA: I understand that the Asia Pacific region will constitute Will we have more satellite-based navigation
systems? Can we have integrated depar-
more than 40 per cent of global SAF demand. Do you envisage ture and arrival areas in a digitally enforced
production and supply meeting demand? airport?

Menon: Airlines are users of SAF and are committed to use up Menon: Yes. ICAO has all of the above on
every bit of SAF that is produced. Fuel efficiency is at the core the agenda and the industry is working to
of this industry. (But) It is a challenging environment for users make them a reality.
of fossil fuel like airlines. Alternatives are few and far between
for airlines. SAF needs to ramped up in terms of cost effective AAA: Do you see any scope for new airlines
supply. Much depends on governments with necessary policy taking to the skies in the region?
tools, investment and subsidies to ramp up supply. Fuel suppli-
ers who have the wherewithal, expertise and knowhow should Menon: There are already a few new airlines
spearhead the energy transition. in the region which underlines the resilience
AAA: We are seeing lower demand for both air and ocean of the industry.
volumes. Do you think there will be bumps in the road to AAA: Last but not the least, please elabo-
recovery for the cargo sector as well? rate on the opportunities you see and the
challenges you face in spearheading the
Menon: The Cargo market is often the weathervane of the global association.
economic picture. It is more susceptible to supply chain issues Menon: That the industry’s recovery coincides
and will be behind the curve for a while. with a looming recession, is a cause for con-

AAA: One of the operational constraints for airlines is manpower cern. The main challenges for airlines is the
shortage. Your take on this? overhang of debt coupled with the expanding
crack spread which is the highest it has ever
Menon: The softening Global Economic Outlook is happening in been. The opportunity is the pent-up demand
a tight job market, as employment rates are robust. Ironically, which underpins the resilience of the industry.

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