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ENRIQUE BELTRANENA Redefining Low-Cost the Mexican Way at Volaris from LONDON to QUIETER ABETTERWAYTOFLY

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ENRIQUE BELTRANENA Redefining Low-Cost the Mexican Way at Volaris from LONDON to QUIETER ABETTERWAYTOFLY REGIONALS Why history could LEISURE Lines blur with CARGO Implications for freighter repeat itself at US feeder airlines Europe’s budget brigade fleet as market recovery falters STRATEGY FOR AIRLINE BOARDROOMS WORLDWIDE OCTOBERXXXXXX 20152014 flightglobal.com/airlines INTERVIEW ENRIQUE BELTRANENA Redefining low-cost the Mexican way at Volaris FROM LONDON TO QUIETER ABETTERWAYTOFLY. boeing.com/commercial Boeing commercial airplanes are quieter than ever, significantly reducing noise near airports. They’re also the world’s most fuel-efficient airplanes, cutting greenhouse gas emissions by up to 25%. And the Boeing ecoDemonstrator program is accelerating the development and use of new technologies to further minimize aviation’s environmental footprint around the world. That’s a better way to fly. URXWHVRQOLQHFRP Plan your 2016 Route Map Routes regional events unite aviation professionals ZLWKDPDUNHWVSHFLȴFIRFXV Connect with decision makers dedicated to \RXUUHJLRQDQGFDSWXUHWKHLQWHUHVWRILQȵXHQWLDO LQGXVWU\SOD\HUVWRGHYHORSQHZDLUVHUYLFHV ([FOXVLYHFRPELQDWLRQR΍HU 5HJLVWHUIRU\RXUVHOHFWHGUHJLRQDOHYHQWV DQG:RUOG5RXWHVE\WKHVW2FWREHU WRWDNHDGYDQWDJHRIGLVFRXQWHGUDWHV 7RUHJLVWHUIRU\RXUFKRVHQUHJLRQDO HYHQWSOHDVHFRPHWRVWDQG1DW :RUOG5RXWHVRUYLVLWURXWHVRQOLQHFRP 5RXWHV$PHULFDV Routes Asia 5RXWHV(XURSH San Juan, Puerto Rico 0DQLOD3KLOLSSLQHV .UDNµZ3RODQG Ȃ)HEUXDU\ Ȃ0DUFK Ȃ$SULO )RUPRUHLQIRUPDWLRQFRQWDFWVDOO\DQQHFROOLQV#XEPFRP CONTENTS VOLUME 31 NUMBER 8 REGIONALS Why history could LEISURE Lines blur with CARGO Implications for freighter repeat itself at US feeder airlines Europe’s budget brigade fleet as market recovery falters AB INTERACTIVE STRATEGY FOR AIRLINE BOARDROOMS WORLDWIDE OCTOBERXXXXXX 20142015 6 Fresh new look for flightglobal.com flightglobal.com/airlines BRIEFING AMERICAS 8 Fresh blood may be good for United EUROPE 9 Battle lines drawn across Irish Sea ASIA 10 Challenging new start for Malaysia INTERVIEW 11 Jetstar focuses after Hong Kong KO ENRIQUE BELTRANENA FINANCE Redefining low-cost the Mexican way 12 No cure for the summertime blues at Volaris INSIGHT 13 Bumpy road to Russian consolidation FREIGHT FALLOUT page 34 COVER STORY SPECIAL REPORT 14 Forward thinker REGIONALS A tight rein on costs and clever 22 Back in the house After restructuring, US regional digital marketing has allowed units prosper and could head down the subsidiary path Enrique Beltranena to steer Volaris 24 ACMI ache Europe’s wet-lease carriers face shrinking into profit and onto a solid path to markets, forcing them into hybrid operating models growth in Mexico and beyond 27 Regional forecast A market in transition HOW TO CONTACT US 28 Regional airline rankings Our survey of the top 100 [email protected] 32 Snapshot Traffic by operator category and regions LONDON OFFICE Phone +44 (0)208 652 3842 Airline Business editor Max Kingsley-Jones FEATURES REGIONAL REPETITION Flightglobal premium news editor Graham Dunn page 22 Flightglobal premium CARGO news managing editor Niall O’Keeffe 34 Widebodies Recovery stalls SINGAPORE OFFICE Phone +65 6 780 4314 36 Rankings Our annual freight operator survey Asia managing editor Greg Waldron LEISURE WASHINGTON OFFICE 39 Fresh packaging Charter and low-cost carrier sectors Phone +1 703 836 8052 Americas managing editor Stephen Trimble converge in Europe LEADERSHIP DISPLAY ADVERTISING ENQUIRIES Phone +44 (0)208 652 3469 42 Winning formula WestJet boss Gregg Saretsky Key accounts manager Grace Hewitt FLIGHTGLOBAL PUBLISHING MANAGEMENT ANALYSIS Chief operating officer Philippa Edward Executive director content Max Kingsley-Jones 44 Q2 results Emerging problems despite fuel relief Publisher Stuart Burgess SUN SEEKERS 46 Certain uncertainties Factoring variables into SUBSCRIPTION ENQUIRIES page 39 Phone +44 (0)1444 445454 demand projection Download our 2015 media planner at: FORUM Flightglobal.com/mediacentre 49 AEA chief Khan do it alone Finding middle ground Airline Business is published monthly by Reed Business between carriers and policymakers Information. © Reed Business Information Ltd 2015. 51 A tale of two purchases Keeping up with Google ISSN 0268-7615 (Print) ISSN 2059-3449 (Online). Printed in the UK by William Gibbons and Sons Ltd. 52 Executives on the move Appointments Annual Subscription Rate: US$198/£124 Periodicals postage paid at Rahway, NJ. Postmaster send COMMENT changes to Reed Business Information, c/o Mercury International Ltd, 365 Blair Road, Avenel, NJ 07001. 54 Qantas on the bounce For a full listing of RBI magazines, BPA visit reedbusiness.com INTERNATIONAL FLYING KANGAROO flightglobal.com/airlines page 54 Eliminate credit card fees Powering Travel PaymentTM New revenue streams UATP.COM [email protected] Competitive market intelligence Self-funding programs flightglobal.com/airlines October 2015 | Airline Business | 5 AIRLINE BUSINESS INTERACTIVE FRESH NEW LOOK FOR FLIGHTGLOBAL.COM he 900,000 visitors to ■ Streamlined news channels Visitors to flightglobal.com can Flightglobal’s free website to enable you to find relevant create a profile by registering Tevery month are discover- content more quickly and con- for free which enables youto ing a new look to our online offer- figure your email needs based access richer, more in-depth ing with the launch of the rede- on your interests content including analyses, signed flightglobal.com. ■ An upgraded search function digital editions and multi- Over the last five years, Flight- ■ Article pages that now offer media content. Check out all global has gone through some you additional data insight based the new features of our new exciting changes as we have on the topic site at: flightglobal.com expanded our services to help you keep on track and analyse Key improvements include streamlined news channels industry developments. We wanted to reflect those changes on our free-to-use web- site and provide a clean and sim- ple design that allows you to access our products, services and world-renowned content. Key improvements brought by the new flightglobal.com include: ■ A simplified menu to help you find all the information you need, from news to products and services ■ Mobile-friendly features, so you can navigate our content more effectively from any tablet or mobile device EVENTS AIRLINE BUSINESS DAILY FG CONFERENCES ROUTES ACROSS GLOBE Flightglobal’s upcoming conference line-up includes topics ranging from ur Airline Business Daily host for the 10th Route Develop- capital Belfast is hosting Routes aeropolitical and aviation programme will take in ment Forum for the entire Ameri- Europe in 2017. The 12th Routes infrastructure issues to Othree of the Routes cas region, says UBM. This will Europe will be held at Belfast’s finance and the latest regional airline/airport network- mark the second visit of the net- Waterfront Conference Centre on alliance developments. This planning events next year, as well work-planning community to Las 23-25 April 2017. year’s Aviation Partnership as the World Routes forum in Vegas in recent years, as the As usual, we will produce daily Summit takes place in Chengdu, China. USA’s self-styled “party capital” papers throughout next year’s Amsterdam, while our Following on from this year’s hosted World Routes in 2013. World Routes event, which takes second New Generation of success at Routes regional forums, Meanwhile the Northern Irish place in Chengdu on 25-27 Sep- Airline Passenger Systems Airline Business Daily will be pub- tember 2017. The World Routes conference is held in lished at Routes Americas in forum returns to Europe in 2017, London. Both events are on Puerto Rico, Routes Asia in Manila when it will be hosted by the 29-30 September. Our US and Routes Europe in Krakow. Spanish city of Barcelona. round of the Ascend Finance These events take place on 17-19 Flightglobal is UBM Live’s offi- Forum programme arrives in February, 6-8 March and 24-26 cial partner for the Routes events. San Francisco on 12 April next year, respectively. We exhibit at all the events to November. Meanwhile the Routes organiser UBM Live demonstrate how the Flightglobal third AEA Leadership has announced that Routes Dashboard offers the best net- Summit, in partnership with Americas 2017 will be take place work-planning tools through our Flightglobal, takes place in in Las Vegas on 13-15 February. fleet and route data products, as Antwerp on 15-16 October. The city’s convention and visi- well as our premium news and Flightglobal.com/events tors authority and McCarran Shutterstock Most Wanted/Rex analysis service. International Airport will play Vegas awaits for 2017 forum flightglobal.com/Routes 6 | Airline Business | October 2015 flightglobal.com/airlines Geneva Airport A new pier dedicated to wide-body aircraft Geneva is famous for its unique high-yield market: an ideal mix of business people, international delegates, expatriates, upmarket tourists and aɞuent local consumers 7o help airlines serve their customers eɝciently, reliably and comfortably, Genève Aéroport is launching a new pier dedicated to wide-body aircraft • High-tech building, natural light concept, eco-friendly • 6 dedicated stands for wide-body aircrafts • Design by Rogers Stirk Harbour + Partners 7his maMor investment reȵects our commitment to quality and service, international reputation and openness to the world [email protected] www.gva.ch/b2b BRIEFING AMERICAS EDWARD RUSSELL WASHINGTON DC Fresh blood may be good for United Sudden departure of chief executive Jeff Smisek could be positive step as US major seeks to tackle range of challenges resh blood in the C-suite of
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