Airlines & Airports

Issues currently affecting the Airlines and Airports sector include:

Who controls your customer?

The route to market for airlines is almost as important as the routes you fly. With traditional carriers adopting complex systems of web, travel agent, consolidator or alliance partner and low cost carriers adopting a web only approach, knowing who owns the customer relationship and how you maximise the benefit for the lowest cost is one of the keys to future profitability. Combining effective IT systems with customer relationship management is where PwC can help.

Green airlines & customers?

There’s no escaping it - aircraft emit pollution! But what can you do to reduce the impact of flying on the environment and thereby be more attractive to the ever-greening of the modern customer? Carbon limits are coming and being carbon neutral will soon become the norm. Our Carbon Markets team advises on how to enter the carbon trading world cost effectively and on how to present your company to the markets and your customers.

Is the security queue working for you?

Queuing for the security checks at airports is here to stay and it means dead time for passengers. Airports rely on passengers spending time and money in the departure lounges as a core part of their revenue streams. The new model for airports will need to make the security queue both enjoyable and rewarding for customers, airports and airlines. Our supply chain experts have the ideas to help solve this conundrum.

Win / win financing structures

Aircraft cost many million dollars and attract significant capital allowances and other tax deductions. Structuring an aircraft acquisition or lease to take advantage of capital allowance capacity often available in finance institutions can be the most cost effective way to minimise interest costs or lease costs. Our experts can introduce you to finance houses with tax capacity and advise on possible structures for your next aircraft acquisition.

Dollars, Euros or Sterling?

Running an airline is a multi currency activity. Whether it’s buying or leasing an aircraft and buying fuel in dollars, or selling tickets and paying the wages in euros planning to avoid the pitfalls of the foreign exchange markets is a key function for any airline. Fuel hedges, currency swaps and interest rate caps or collars combined with good forward planning are all an essential part of the mix that our treasury experts can guide you through.

Market consolidation – player or spectator?

The global marketplace in both airlines and airports is shrinking. Cross border competition for airlines continues to intensify and the established national carriers are being challenged on short & medium haul routes by low cost competitors. Consolidation in airlines and airport operators is getting feverish as the demand for travel, tastes for new short & long haul destinations and the development of regional airports fuels market growth.

For further information and to find out how PricewaterhouseCoopers can help you address these and other issues affecting the Airlines & Airports sector please contact Roger de Peyrecave on +44 (0) 1727 892 106, or Guy Gillon on + 44 (0) 20 7213 5164.