Airline Profits - Vol III - Issue 13 - Mar-Apr 2017

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Volume III—Issue 13

A Magazine for Aviation Leaders & Influencers

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FEATURED

Is Selling Seats the Best Way to Airline Profitability? More articles inside...

Does Warren Buffett’s Investment Predict Airline Future Performance?

Edition: March-April 2017

Are Record Airline Profits Just Illusive?

Can US, UK Ban on Electronics Actually Harm Flight Safety?



Volume III—Issue 13

March-April 2017

Airline Profits

Contents 6

Editorial: Is It About Tim e to Reinfor ce Ethics in the Airline Industry?

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Profile: W or ld Air line Indu str y: What Did the Last Decade Reveal?

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Perspective: Does W ar r en B u ffett’s Investment Predict Airline Future Performance?

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Performance: Ar e Recor d Air lin e Pr ofits Just Illusive?

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Paradigm: Is Sellin g Seats the B est W ay to

Airline Profitability?

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Platform: Can US, UK B an on Electr onics Actu ally Harm Flight Safety?

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HEAD OF PROGRAMS: Kofi Sonokpon kofi.sonokpon@airlineprofits.com PUBLISHED BY: Airline Profits Publications CP 53506 CSP Norgate Saint-Laurent, QC, Canada H4L 5J9 magazine@airlineprofits.com

All rights reserved. No part of this publication may be reproduced, duplicated, stored in any retrieval system or transmitted in any form by any means without prior written permission of the Publishers. Airline Profits is the fir st a v ia tion m a g a zin e dev oted to im p r ov ing airline effectiveness and profitability. It is a bi-monthly publication. Airline Profits is a v a ila ble in m u ltiple for m a ts: on line, m ob ile, digital, Kindle and print. The online and mobile versions are free to all aviation and non-aviation subscribers. The digital, Kindle and print formats can be ordered via www.airlineprofits.com from the magazine page. A Kindle version can also be acquired through Amazon worldwide.

Airline Profits is a tr a dem a r k of M a ck so n Av ia tion. Š2015-2017 Airline Profits ISSN 2368-7800 (Print)

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Airline Profits

March-April 2017

Volume III—Issue 13

Editorial Is It About Time to Reinforce Ethics in the Airline Industry? Kofi Sonokpon editor@airlineprofits.com

Welcome to the 13th edition of Airline Profits, we hope you are not superstitious and that you will read through this issue of the magazine. If you are one of our regular readers, you probably know that the core message of Airline Profits is the need to rethink the airline business from the ground up along with its supporting technology. In this article, however, we are going to discuss some serious matters pertaining to airline human resources. As we all know, aviation is mainly about people and even more so commercial air transport. The main focus of this article is to highlight a series of recent and past events, which have raised serious doubts about the brand of ethics and behaviors we all should want the aviation community to represent. In the past, it was essentially outsiders who used to target aviation and commit unlawful acts such as the hijacking of commercial airplanes. The extreme case in that regard was the tragedy of September 11, 2001, in the USA. In recent years, it is rather insiders who have abused their privileges to engage in reproving or unlawful acts. The most tragic case is the Germanwings pilot who crashed a plane in the Alps, killing hundreds of passengers and himself. Beyond these tragic cases, which

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There are far too many good people in the aviation industry, professionals who are truly there to serve. Therefore, it is important not to let some isolated and rotten cases corrupt and harm the whole aviation community.

caused much consternation inside and outside the aviation community, there are more and more instances of rather concerning behaviors, which need to be dealt with more drastically than not.  The first instance is about crew members showing up drunk before their flight;

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The second instance is about crew members smuggling narcotics or precious metals on their flights;  The third instance is about crew members embarking extra passengers on a fully packed flight and having them to stand up throughout;


Aircraft cabin. Photo Credit: DigiProduct



The fourth instance is about crew members discriminating against passengers due to prejudice about race or religion;  The fifth instance is about baggage handlers knowingly mishandling passenger luggage; The sixth instance is about reservation agents hanging up on prospective passengers. There may be more examples, in fact, much more than have been mentioned in this article. In any case, it is about time to reinforce ethics guidelines already in place within the airline industry. Furthermore, it may be important that governing and legal bodies such as ICAO, IATA consider further standards for nonnegotiable ethics and behaviors, which can be strictly enforced. There are far too many good people in the aviation industry, professionals who are truly there to serve. Therefore, it is important not to let some isolated and rotten cases corrupt and harm the whole aviation community.

Airline Profits

March-April 2017

Volume III—Issue 13


“ The time is always right to do the right thing. ― Martin Luther King, Jr.

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Airline Profits

March-April 2017

Volume III—Issue 13

Profile World Airline Industry: What Did the Last Decade Reveal? In the past two years, we have often analyzed some specific airlines based on our benchmarking tool, the Airline Profits Sustainability Index (APSI). In this and subsequent editions, we are going to be reviewing the airline industry either globally or regionally. We will now begin this exercise with the review of the world airline industry over the decade, which ended in December of 2015. The main objective of this analysis is to highlight the contribution of the airline industry while sharing any peculiarities the data reveals about airline profitability. Review of Operational Results Aircraft Departures and Distance

Flown Between 2006 and 2015, the number of aircraft departures grew steadily from 28.5 to 34 million, a near 20% increase over that span of 10 years. Over that same period, the distance flown also increased

The number of passengers flown has increased by 56.89% over the decade under consideration. Beginning at 2.25 billion in 2006, the number of air travelers reached a record 3.53 billion at the end of 2015. Plainly speaking, airlines have flown about half of humanity in just ten short years.

consistently year over year from 32.9 to 46.2 billion kilometers, a

40.4% increase. This literally means that not only were more and more airplanes taking off from various airports around the world, but they also carried passengers and cargo payloads much farther and more often than 10 years earlier.

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Airline Passenger Traffic and Capacity 2015. Plainly speaking, airlines

The number of passengers flown has increased by 56.89% over the decade under consideration. Beginning at 2.25 billion in 2006, the number of air travelers reached a record 3.53 billion at the end of

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have flown about half of humanity in just ten short years. Revenue passenger kilometers (RPK) soared by 58.50% between 2006 and 2015 going from 4.16 trillion to 6.6 trillion. Whereas, airline


Aircraft on approach. Photo Credit: DigiProduct

capacity expressed in terms of avai- reading 204.1K in 2015 from 168.8K 64.85% to reach a 766 billion US lable seat kilometers (ASK) also grew by 49.54%, going from 5.49 trillion to 8.21 trillion, despite some fluctuation between 2006 and 2010. Cargo Traffic

As far as cargo is concerned, the increase between 2006 and 2015 was 30.67%, starting with 38.8 million to 50.7 million tonnes of freight. In that same period, the freight traffic increased by 20.91%

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revenue tonne kilometers. Having reviewed the operational results of the world airline industry, let’s now turn to the financial results over the decade under consideration, namely 2006 to 2015.

dollars in 2014, followed by a slight drop to 720 billion in 2015. The aggregated operating revenues amounted to 6.1 trillion US dollars over that 10-year period, representing a record, almost double

that of the preceding decade. Review of Financial Results Operating Profits Operating Revenues Despite some fluctuations between Operating profits went from 15 billion in 2006 to reach several re2006 and 2010, airline operating revenues increased substantially by cords: first, 27.6 billion in 2010,

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Airline Profits

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Volume III—Issue 13

Profile

18.1 billion in 2013 and 38.8 billion US dollars in 2015. Overall, the increase from the beginning to the end of the decade was an exceptional seven-fold,

despite constant fluctuations and deep losses totaling 30.5 billion over the 2year period covering 2008 and 2009. It also appears that the 10-year period ending 2015 has been the most profitable decade ever in the history of the airline industry with cumulative net

Overall, the increase from the beginning to the end of the decade was an exceptional seven-fold, despite constant fluctuations and deep losses totaling 30.5 billion over the 2-year period covering 2008 and 2009. It also appears that the 10-year period ending 2015 has been the most profitable decade ever in the history of the airline industry with cumulative net profits of 98 billion US dollars.

profits of 98 billion US dollars. 26.1 billion dollar loss in 2008, the deepest in airline

Net Margin

history, the 10-year period covering 2006 to 2015 was

As far as margins are concerned, it is a different story. Despite operating revenues in trillions of dollars, it was only in 2015 that the net margin ever surpassed 3.1% to reach 5.4%. The average net margin for the decade was less than 2%.

by far the most productive and the most profitable decade for commercial aviation. Although operating revenues were extremely high, net profits and margins were very low. This suggests that airlines worldwide still have a long way to go before they can

Summary

achieve a healthy financial status, which is necessary

Despite the spike in oil prices, which led to a huge

for their continued growth and sustainability.

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Opportunity

“Every adversity, every failure, every heartache carries with the seed of an equal or greater benefit.” — Napoleon Hill

Airline Profits

March-April 2017

Volume III—Issue 13


“ The truth of the matter is that you always know the right thing to do. The hard part is doing it.

― Gen. H. Norman Schwarzkopf

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Airline Profits

March-April 2017

Volume III—Issue 13

Perspective Does Warren Buffett’s Investment Predict Airline Future Performance? In a very surprising move, billionaire investor Warren Buffett acquired significant stakes in the four US major airlines, namely: American Airlines, Delta Air Lines, United Airlines and Southwest Airlines. In this edition of Airline Profits, we are offering our perspective as to what these unexpected transactions may really mean for the American airline industry.

From the start let’s recall that many wealthy people, including Mr. Buffett, CEO of Berkshire Hathaway also known as the Oracle of Omaha, and Sir Richard Branson, the founder of the Virgin empire, have invested in the airline industry and have lost a great deal of money. It might be fair to state that they made money in other industries, but their venture into the airline business was a disaster. The bitter taste that experience left in their mouth led them to make caustic or sarcastic comments about the airline industry. For instance, Sir Richard Branson offered the following advice: “If you want to be a millionaire, start with a billion dollars and launch a new airline.” Warren Buffett went even further by questioning the intelligence of

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From 2001 to 2009, US airlines have collectively lost 65.03 billion dollars. The following six years (2010 to 2015) have seen their cumulative profits skyrocket to $48.12 billion. Such financial performance and growth potential are too strong to ignore. the Wright Brothers when he stated: “The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money. Think airlines. Here, a durable competitive advantage has proven elusive since the days of the Wright brothers.

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Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.” And here we are many years later to learn that Mr. Buffett who is revered by most would be investors,


Investment analysis dashboard. Photo Credit: DigiProduct

suddenly changing his mind and

as his profession. This explains

direction from Mr. Buffett really

investing close nearly US $10 bil-

why airline stocks went up follo-

mean for the airline industry?

lion in four US airlines. This is not

wing the announcement of

only surprising but also puzzling,

Berkshire Hathaway taking posi-

considering what he said in the

tions in the airline industry again.

What caused Warren Buffett to change his mind regarding the airline industry?

past about the airline business. The The same stocks went slightly first reaction is that the financial

down when Mr. Buffett suggested

In a recent interview with CNBC,

market followed, as it usually does that he did not intend on increa-

Mr. Buffett stated that ‘’he likes airsing his stakes in these airlines. The lines because they just got a bad in a stock. The main reason for that main questions which are worth century out of the way.’’ Said diffewhen the Oracle of Omaha invests

is the strong reputation Mr. Buffett pondering are the following:

rently, the financial performance of

has established as a savvy investor.

What caused Warren Buffett to

the US major airlines over the past

change his mind about the airline

7 years tend to indicate some signi-

The Oracle of Omaha was reported to have started investing from the

industry?

ficant improvements compared to past century of existence.

age of 11 and had chosen investing What can this sudden change of Airline Profits

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Airline Profits

March-April 2017

Volume III—Issue 13

Perspective

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For instance, apart from Southwest Airlines that can

dorsement not just for these airlines, but for the US

boast about posting profits for 44 consecutive years,

airline industry as a whole. It also appears to be a seal

the journey of the other three airlines has been one of of approval for the changes, which have led to the heavy losses and bankruptcies. From 2001 to 2009, US airlines have collectively lost 65.03 billion dollars. The following six years (2010 to 2015) has seen their cumulative profits skyrock-

et to $48.12 billion. Furthermore, the combined profits for 2016 and 2017 are projected to reach nearly $40 billion. Such financial performance and growth potential are too strong to

Mr. Buffett’s recent position’s in the four major US airlines can be viewed as a strong endorsement not just for these airlines, but for the US airline industry as a whole.

ignore. Investors including previously skeptic ones cannot help it, but to reconsider their perception of the US airline industry. phenomenal financial performance highlighted earWhat can Mr. Buffett stakes mean for the airline

lier. Put differently, Mr. Buffett liked the recent performance of these airlines. However, can that be con-

industry?

sidered an anticipation of the US airline’s future perAs highlighted earlier Warren Buffett who was considered the richest man in the world for several years is known to be a very successful investor. And for that reason, the financial market follows him very closely. On that basis, Mr. Buffett’s recent position’s in the

formance? Yes, in a sense, but can one be 100% sure that such spectacular growth will be sustained over the coming years and decades? And that is the million dollar question no one including Warren Buffett can be 100% sure to have the right answer to.

four major US airlines can be viewed as a strong en-

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Initiative

“Initiative is doing the right thing without being told.” — Victor Hugo

Airline Profits

March-April 2017

Volume III—Issue 13


Airline Profits

March-April 2017

Volume III—Issue 13

Performance Are Record Airline Profits Just Illusive? In the past edition of Airline Profits, we have discussed the financial performance of the African airline industry. In this issue, we are dealing with the record airline profitability, which was anticipated since 2014. Were there record profits in 2014? Following the IATA’s Global Media Day held in December 2014, many headlines touted the exceptional financial year the airline industry was about to experience worldwide. Indeed, the industry was expected to achieve a cumulative record of

US$19.3 million dollars. For an industry, which was accustomed to losing huge amounts of money, the prospect of turning in profits and let alone record profits was very exciting, not just to the airlines, but to all stakeholders. To airline

The much-touted record performance was mainly contributed by one region: North America with US air carriers having earned billion dollars in record profits over several quarters.

executives, it meant that they were doing the right things. And doing the right things is the essence of

leadership, according to Peter Drucker. To airline employees, this meant the possibility of better compensation and benefits. To the airline customer, this meant the expectation of lower fares. To the air-

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line investor, this meant the poten- ther the forecast of record profits in tial for bigger return on in-

2014 was predicated upon unex-

vestment. To the politician, this

pectedly lower oil prices.

was the perfect opportunity to call

It does appear in retrospective that

out the airline industry and claim

the lower oil prices did not im-

better services and pricing for his

mediately translate into cheaper jet

or her constituency.

fuel. The reason being that most

In any case, the anticipation or ra-

airlines had already paid for the

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3D bar chart. Photo Credit: DigiProduct

fuel when the prices were still high. 11.2 billion dollars. The other reAs a consequence, the much-

The Middle East too did break a

gions, namely Europe, Asia-Pacific, record, but with only 100 million

expected record profits fell short by Africa, Latin America and the

more than 2012. With the IATA fo-

2.6 billion dollars, well below the

Middle East had performed better

recast published last December,

19.9 billion US dollar forecast.

in the decade preceding 2014. The

2016, then 2017 are not going to be

Therefore, the airline industry

exceptional results were reported

record years for any regions, al-

posted a collective 17.3 billion at

only in 2015 with 35.3 billion US

though the cumulative global air-

the end of 2014. And that was

dollars in net profits, of which

line profits will remain high.

much less than the record profits of North America alone accounted

Hence, the much-touted record

2013 at 18.1 billion US dollars.

performance was mainly contri-

for 60.9% with an unprecedented

There was indeed some exceptional 21.5 billion. Apart from that, only

buted by one region: North Ameri-

results set, but only at the regional

Europe had a record performance

ca with US air carriers having ear-

level. It turned out that the only

with 7.5 billion. That represented

ned billion dollars in record profits

region which made record airline

only 1.1 billion more than their pre- over several quarters.

profits was North America with

vious record of 2007.

Airline Profits

March-April 2017

Volume III—Issue 13


“ Speculation is only a word covering the making of money out of the manipulation of prices, instead of supplying goods and services.

― Henry Ford

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Airline Profits

March-April 2017

Volume III—Issue 13

Paradigm Is Selling Seats the Best Way to Airline Profitability? At first, this question may sound controversial, considering the fact that the entire century-old airline industry has been built around selling seats. However, the rationale behind the question will become clearer as you consider the following fundamental questions. Why do airlines and especially schedule airlines sell seats? Why did the first airline choose to sell seats? Is selling seats the best way for an airline to make profits? So let’s begin with the first question. Why do airlines and especially schedule airlines sell seats?

If you were indeed shocked by the title of this article, chances are you have never asked nor considered this question before. You would agree that this is a practical illustration of things, which are often taken for granted in busi-

The SPT Airboat Line ceased operations less than five months after its inaugural commercial flight on January 1, 1914. The main reason was that the airline ran out of subsidies and obviously, the revenues generated through seat sales were not sufficient to sustain the operations.

ness or in life in general. One may offer a generic answer: “Well, every airline I know of is selling seats, so I guess that is why all the other airlines are doing the same.” And the generic answer is true, at least partially. The true reason why airlines sell seats to fill their flights is because, the very first airline, the St-Petersburg Tam-

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pa Airboat Line (SPT Airboat Line) sold seats. Had Percival E. Fansler, the entrepreneur who started that airline chosen a different business model, chances are that would still be around today. As a matter of fact, Mr. Fansler considered other means, which are al-

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so widely spread across the airline industry today, namely: auctions and subsidies. As you may already know, the SPT Airboat Line ceased operations less than five months after its inaugural commercial flight on January 1, 1914.


Aircraft seats in cabin. Photo Credit: DigiProduct

The main reason was that the air-

Why did the first airline choose to take into account the fact that air-

line ran out of subsidies and ob-

sell seats?

viously, the revenues generated through seat sales were not sufficient to sustain the operations.

Now, let’s consider why Percival E. Fansler chose to sell seats? An obvious answer to that question is

And with very few exceptions, that that all other means of transportais still the reality within the airline

tion did and do sell seats. The ra-

industry across the globe, a little

tionale might have been that what

more than a century later.

is widely accepted as common

With that said, Mr. Fansler deserves all the credit for having come up with a powerful, innovative and far-reaching vision from which the airline industry was born.

Airline Profits

practice for travel by boat, train, or bus might as well apply to air travel. That line of reasoning in itself may not be wrong. However, it most probably didn’t back then

line operations are arguably the most capital intensive means of mass transportation. Is selling seats the best way for an airline to make money? Let’s move to the next question: is selling seats the best way for an airline to be making money? Most probably not. Firstly, that has been proven well enough by Fansler‘s SPT Airboat Line going bankrupt in less than five months. Secondly, the fact that airlines have felt the need to supplement ticket sales

and up to this very day still doesn’t

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Airline Profits

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Paradigm with a plethora of often arbitrary ancillary fees, in

The recent wave of record profits has done nothing to change that perspective. It may be important to note order to make ends meet, clearly indicates that the that the exceptional financial performance of the past business model is not sound enough to sustain onthree to four years was the result of externallygoing profitable airline operations. Finally, the widescontrolled cost savings instead of self-generated revepread use of frequent flyer programs to incite custo- nue-driven profits. And that is certainly an unsustaimer loyalty is yet another point, which highlights the nable position, which tends to confirm that selling fact that selling seats is not a right business model for seats has proven its limits long enough for airline leaders to start questioning the soundness of their busiairlines. ness models. Finally, the solution to this chronic issue Summary cannot be a one-size-fits-all approach. However, it will take a rethinking effort in order to question all Although Percival E. Fansler was a visionary in launching the very first The exceptional financial performance scheduled, commercial airline at the of the past three to four years was the beginning of 1914, it is safe to suggest result of externally-controlled cost that the basic business model he apsavings instead of self-generated plied was not effective enough to enrevenue-driven profits. And that is sure continuous operations and profitability. Unfortunately, the airline bucertainly an unsustainable position, siness recipe, which led to the demise which tends to confirm that selling of the St-Petersburg Tampa Airboat seats has proven its limits long enough Lines less than five months after its for airline leaders to start questioning inaugural commercial flight, has been the soundness of their business models. copied worldwide with little or no improvements. Subsequently, the fipre-conceived and widely accepted assumptions so nancial results of the airline industry with very few prevalent in the airline business to determine a more exceptions have been overall mediocre compared to congruent and profitable business model. At Airline other industries. For instance, the view that the airProfits, we are convinced that the time for rethinking line business model makes no economic sense was the airline business is now. also vividly highlighted by billionaire investors like Warren Buffett and Sir Richard Branson, based on If you like this article, you may also like our upcotheir own experience with the airline industry. A ming book series on airline business and technology. 2012 article by The Economist sums it up well by staYou can request a free synopsis of the first book in ting that “Airlines are wonderful generators of prothe series via our contact page at fit—for everyone except themselves. Even in good www.airlineprofits.com/contact-us. times, their margins are as thin as a boarding pass…”

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Business

“Business is not just doing deals; business is having great products, doing great engineering, and providing tremendous service to customers. Finally, business is a cobweb of human relationships.” — H. Ross Perot

Airline Profits

March-April 2017

Volume III—Issue 13


“ The aim of marketing is to know and understand the customer so well that the product or service

fits him and sells itself.

― Peter Drucker

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Airline Profits

March-April 2017

Volume III—Issue 13

Platform Can US, UK Ban on Electronics Actually Harm Flight Safety? As a shocking surprise and wake-up call to the aviation community, including airline passengers, the USA followed by the UK have decided to ban electronic devices larger than cell phones as carry-on items on board airplanes. This measure applies to some specific airports and airlines, which connect passengers traveling from North Africa and the Middle East to the USA or the UK.

Based on the fact sheet released by the US Department of Homeland

Security, this is part of security enhancement measures based on evaluated intelligence, which suggests the likelihood of terrorist groups smuggling explosives inside various consumer electronic devices. While it is within the rights of any

Most electronic devices powered by lithium batteries are classified as dangerous goods and thus are recommended not to be transported in checked luggage.

sovereign state to decide what measures can improve their security, the ban and guidelines do raise

hance safety or security?

some serious questions as far as

Why impose on airlines to fly dan-

flight safety is concerned.

gerous goods against flight safety

Why impose on airlines to fly dangerous goods against flight safety guidelines? Does the US, UK ban on electronic devices really en-

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guidelines? Indeed, most electronic devices powered by lithium batteries are clas-

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sified as dangerous goods and thus

are recommended not to be transported in checked luggage. The reason being that lithium battery can catch fire or explode inflight. Therefore, the International Civil Aviation Organization (ICAO) under the Annex 17 to the Chicago


Passport on immigration desk. Photo Credit: Photodune

convention has issued guidelines in order to ensure passenger and flight safety. Thus, by imposing on airlines to carry dangerous goods in aircraft cargo instead of in cabin where they are recommended to be carried, if at all, these new measures may actually put those targeted flights in danger of experiencing either lithium battery fire or explosions mid-air. The consequences of such potential occurrences may be both devastating and fatal to the passengers and the crews. So, it appears that the stated enhanced security measures have overlooked these serious flight safety concerns. It is also important to highlight that this move by the US Department of Homeland Security comes in sharp contrast with the FAA’s Safety Alert for Operators SAFO 16001, which was published on January 1, 2016, based on a long-standing collaboration between the FAA, ICAO,

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and various aviation stakeholders. So clearly, this ban on electronic devices goes against well-documented guidelines, which ensure flight and passenger safety. Does the US, UK ban on electronic devices really enhance safety or security? Having discussed flight safety concerns, the next question to be asked is: do these new measures really enhance security and safety? And the answer is: it is doubtful that they contribute to any improvement of existing safety and security measures. For instance, under the Annex 17 to the Chicago Convention, the ICAO mandates the systematic scanning of all portable electronic devices.

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Platform

Let’s assume that an ill-intentioned passenger was

not adding any value to enhance the safety and secu-

able to smuggle unlawful material inside a portable

rity mandates and guidelines already in place under

electronic device, which has not been detected by the

the purview of the international civil Aviation Orga-

scanners at a given airport. In such a case it makes

nization (ICAO).

little or no difference whether that unlawful device is stored in a carry–on or a checked luggage. So clearly, a much more logical and understandable measure should have been to fix or upgrade airport scanning devices and procedures, if they were deemed not advanced enough to deal with increasing threats. The current ban is doing nothing of that nature.

On the contrary, by requesting airlines to systematically carry lithium-battery powered electronic devices in checked luggage, which are normally stowed in the cargo area, these controversial measures may prove to be more harmful to flight and passenger safety, because of potential fire or explosion hazards in flight caused by lithium batteries.

Another extreme alternative would have been to temporarily ban all electronic devices on all flights, re-

gardless of their origin, until all applicable scanners and procedures have been upgraded. That would not have been welcomed by the general public and the air travel community, but flight safety and aviation security should always be the highest priori-

We hope that all sensible aviation stakeholders around the world would urge US and UK Governments to lift their ban before that proves harmful to innocent airline passengers and crews.

ty. In which case, no chances are being taken to allow compromised electronic devices

We hope that all sensible aviation stakeholders

on board any flights departing from any airports. The around the world would urge US and UK Governrecent US and UK measures are also a clear departure ments to lift their ban before that proves harmful to from that customary notion of enhanced security and innocent airline passengers and crews. It is simply unreasonable to impose measures, which can comsafety. In summary, it does appear that the recent decision

promise the safety of hundreds of air passengers.

taken by US and UK Governments to ban electronic devices at selected airports and airlines are in reality

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“ Service is the rent we pay for the privilege of living on this earth. ― Shirley Chisholm

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Imagination

“Logic can get you from A to B. Imagination will take you everywhere. ” — Albert Einstein

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March-April 2017

Volume III—Issue 13


“ When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us. ― Alexander Graham Bell

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“ The best way to find yourself is to lose yourself in the service of others.

―Mahatma Gandhi

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Customers

“Always think of your customers as suppliers first. Work closely with them, so they can supply you with the information you need to supply them with the right products and services.” — Susan Marthaller

Airline Profits

March-April 2017

Volume III—Issue 13


“ The right thing to do never requires any subterfuge, it is always simple and direct.

― Calvin Coolidge

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