AVIATION


WE ARE HAVING TO DEAL


WITH THINGS LIKE GENDER PAY REPORTING AND MODERN SLAVERY


A4E's Janzen says this will “hopefully become a reality in future”, but there are considerable difficulties to overcome. Countries tend to be protective of their own airspace, especially for military reasons, so the idea of skies without borders – particularly with the Brexiting UK as part of it – might be a step too far for some countries.


PLANTING SEEDS It is not just competition between airlines and market forces beyond its control challenging the industry – technology is acting as a major disrupter. Some airlines have decided that it is better to take these tech upstarts under their wing, nurture and sometimes own them, rather than face them as a threat in future. IAG and others are investing in companies that may develop disruptive technology they probably would not be capable of creating in-house. In February, IAG invested in start-up US firm Volantio via its Hangar 51 programme, which seeds digital companies. IAG says Volantio’s platform Yana will allow airlines to identify passengers on full flights who are most amenable to taking alternative departures. Yana notifies these passengers well ahead of their flight and offers them


LOGANAIR: ‘WE ARE BACK ON TOP’


Boss Jonathan Hinkles talks to BBT about the airline's challenges and his plans for buyers


JONATHAN HINKLES, MANAGING DIRECTOR OF GLASGOW-BASED Loganair, had a difficult time in June when the carrier reported a loss of £8.93 million, its first in 17 years. It was an anomaly caused by a franchise agreement


with Flybe ending in September 2017, after which Flybe launched services on six of Loganair’s biggest routes. Flybe lost its shirt, abandoning the fight in March, but not before costing its former partner £6.8 million. Loganair has renewed its codeshare with British


Airways and introduced seven new routes. It expects a return to profit in 2019. “We are back on top of it this year, albeit that the world is not without its challenges,” Hinkles says.


84 SEPTEMBER/OCTOBER 2018


“A third of our cost base suddenly became one-third


more expensive after [the vote for] Brexit. It equates to a 10 per cent increase in overall costs. It’s challenging to be able to withhold that – the trading environment is such that you can’t pass that directly on to customers.” In addition to rising oil prices, Hinkles mentions


another, less obvious burden, namely regulation. “We are having to deal with things like gender pay reporting and modern slavery. It’s indisputable in its aims, but the amount of stuff you have to do is just going up.” Loganair now offers TMCs and buyers a direct


portal to avoid GDS charges. Hinkles says “20-plus” customers are already signed up. Loganair’s first scheduled flights from Carlisle airport are imminent and he believes the services from Belfast, Dublin and particularly Southend will attract business travellers.


Jonathan Hinkles, managing director, Loganair


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