The document discusses the results of a survey of airline CEOs conducted by PwC. According to the survey:
- Airline CEOs believe three main trends will transform their industry over the next five years: shifts in global economic power, technological advances, and demographic changes.
- Airline CEOs are more optimistic about revenue growth prospects than CEOs in other industries. However, their optimism is tempered by the volatility of the airline business.
- In the short term, airline CEOs are pursuing a balanced approach to growth focused on new markets, existing markets, pricing, and product/service innovation. However, over-reliance on price strategies and lack of innovation could pose risks.
Aviation Finance '' Fasten Your Seatbelt ''Seda Eskiler
The aviation industry is experiencing record levels of aircraft orders driven by several factors:
1) Airlines' desire to replace aging fleets and reduce fuel costs with more efficient new aircraft models.
2) Growth in emerging markets is fueling demand for air travel and more planes.
3) Low cost carriers are replicating successful business models and driving more orders.
4) Some orders contain speculative elements as airlines seek competitive advantages through new technologies.
While there are genuine business needs behind many orders, the record backlogs will be a challenge to finance as traditional banks retreat and costs rise. New investors may provide opportunities for deploying capital in aircraft assets.
The document provides an overview and analysis of PwC's 2015 Aerospace Manufacturing Attractiveness Rankings. The United States ranked first in the global rankings due to its large aerospace industry size, despite moderate rankings in costs and infrastructure. Florida ranked first among US states. The summary identifies several key issues facing the aerospace industry, such as talent recruitment and retention, innovation pressures, globalization opportunities and challenges, and infrastructure needs. It also provides examples of strategies companies are taking to address these issues.
Khan Mohd Eshtiaque, is currently a Masters in Management student at IE Business School. Previously, he interned as an M&A summer analyst at BDO's corporate finance division in Dubai, where he worked in deals in a variety of sectors including, natural resources, healthcare, facilities management, technology, real estate, utilities and agribusiness. Prior to that, Eshtiaque interned at the Private Banking department of HSBC.
The 2015 Aon Asia Market Review summarizes insurance trends in Asia in 2014 and provides an outlook for 2015. In 2014, the construction insurance market saw continued downward pressure on rates driven by abundant insurer capacity and competition for market share. The outlook for 2015 construction insurance remains positive, with anticipated new infrastructure projects and delayed 2014 projects reaching financial close. However, continued downward pressure on rates is expected as insurers aggressively compete for business in the region.
PwC Aerospace & Defense 2012 Year In Review and 2013 ForecastDouglas Burdett
The document summarizes the performance of the top 100 aerospace and defense companies in 2012. Key points include:
- Commercial aerospace performed strongly, driving overall revenue growth of 4% and record orders despite declines in defense spending.
- Boeing had the largest revenue increase at $13 billion due to strong commercial aircraft sales.
- Sequestration cuts impacted defense spending in 2013, and companies face pressure to improve productivity and transparency.
- Commercial aerospace is expected to see continued growth in 2013 with over 600 new aircraft deliveries, while defense revenues decline 4-5%.
Aviation Finance '' Fasten Your Seatbelt ''Seda Eskiler
The aviation industry is experiencing record levels of aircraft orders driven by several factors:
1) Airlines' desire to replace aging fleets and reduce fuel costs with more efficient new aircraft models.
2) Growth in emerging markets is fueling demand for air travel and more planes.
3) Low cost carriers are replicating successful business models and driving more orders.
4) Some orders contain speculative elements as airlines seek competitive advantages through new technologies.
While there are genuine business needs behind many orders, the record backlogs will be a challenge to finance as traditional banks retreat and costs rise. New investors may provide opportunities for deploying capital in aircraft assets.
The document provides an overview and analysis of PwC's 2015 Aerospace Manufacturing Attractiveness Rankings. The United States ranked first in the global rankings due to its large aerospace industry size, despite moderate rankings in costs and infrastructure. Florida ranked first among US states. The summary identifies several key issues facing the aerospace industry, such as talent recruitment and retention, innovation pressures, globalization opportunities and challenges, and infrastructure needs. It also provides examples of strategies companies are taking to address these issues.
Khan Mohd Eshtiaque, is currently a Masters in Management student at IE Business School. Previously, he interned as an M&A summer analyst at BDO's corporate finance division in Dubai, where he worked in deals in a variety of sectors including, natural resources, healthcare, facilities management, technology, real estate, utilities and agribusiness. Prior to that, Eshtiaque interned at the Private Banking department of HSBC.
The 2015 Aon Asia Market Review summarizes insurance trends in Asia in 2014 and provides an outlook for 2015. In 2014, the construction insurance market saw continued downward pressure on rates driven by abundant insurer capacity and competition for market share. The outlook for 2015 construction insurance remains positive, with anticipated new infrastructure projects and delayed 2014 projects reaching financial close. However, continued downward pressure on rates is expected as insurers aggressively compete for business in the region.
PwC Aerospace & Defense 2012 Year In Review and 2013 ForecastDouglas Burdett
The document summarizes the performance of the top 100 aerospace and defense companies in 2012. Key points include:
- Commercial aerospace performed strongly, driving overall revenue growth of 4% and record orders despite declines in defense spending.
- Boeing had the largest revenue increase at $13 billion due to strong commercial aircraft sales.
- Sequestration cuts impacted defense spending in 2013, and companies face pressure to improve productivity and transparency.
- Commercial aerospace is expected to see continued growth in 2013 with over 600 new aircraft deliveries, while defense revenues decline 4-5%.
2015 Flight Global and PwC Top 100 Aerospace CompaniesDouglas Burdett
The document discusses the annual Top 100 analysis of the aerospace industry by Flight International and PwC. It finds that 2014 was another boom year for the industry, with all-time sales records and double-digit growth. However, the coming period may present more challenges due to economic uncertainties in countries like Brazil, India, Russia, and potentially China. Even so, the industry would still be in strong shape even if half of the large aircraft order books were canceled. The analysis provides details on the financial performance and position of the top 20 companies in the industry.
The Canadian aerospace industry is the 5th largest in the world and employs approximately 80,000 people. Two of its largest companies, Bombardier and Pratt & Whitney Canada, have significant global market shares in regional aircraft and small gas turbines. While the industry faces challenges such as currency fluctuations and skills shortages, it also benefits from strong government support for research and development.
The document discusses the annual Top 100 report from PwC that analyzes the 2013 financial performance of major aerospace companies. It finds that the industry has experienced steady revenue growth averaging 5.6% per year since 2005, showing the ongoing strength of the civil aviation market. Boeing maintained its top position with record revenue and profit in 2013, while Airbus also saw strong growth. Overall, the top 20 companies accounted for over 75% of the industry's revenue and profits. The outlook remains positive, though economic uncertainties could pose challenges in the coming years.
Miami University 2016 Harvard Financial Analyst Symposium Competition FinalistMichael T. Loffredo
This document provides an analysis of Expeditors International of Washington, Inc. It begins with an investment thesis that Expeditors faces challenges including inflated earnings estimates, decreasing global trade, margin compression, and a loss of management. It then provides an overview of the company and industry dynamics. Performance headwinds for Expeditors are discussed, including unsustainable margins from port strikes. A valuation analysis is presented using comparable companies and a discounted cash flow model, arriving at a target price of $40. The document concludes with a recommendation to sell Expeditors.
The document provides a financial and strategy analysis of Jaguar Land Rover. The financial analysis uses the CORE approach to examine the context, overview, ratios, and implications of Brexit on JLR's revenue. The context discusses the political, economic, social and technological factors affecting JLR. An overview of the financial statements and key trends is presented. Various ratios analyze profitability, liquidity, solvency, and investors' viewpoint. The strategy analysis examines JLR's strategy in relation to industry forces and implications of Brexit on strategy. Expansion plans are discussed, and it is recommended that JLR focus expansion and prepare for potential Brexit impacts through its new Slovakia plant.
Our analysis of the 2012 financial performance of the top 100 aerospace companies sees no change in the top 10 companies, but includes some new names from China and Russia. While merger and acquisition activity was subdued after the 2008 financial crisis, 2012 saw a rebound in dealmaking activity as companies seek to diversify their business. Overall profitability for the industry is strong and higher than historical norms, as aviation continues to grow faster than the global economy. The report predicts that consolidation within the aerospace supply chain is likely to continue in the coming years.
Aircraft wheels are generally overlooked yet important component of an aircraft landing gear system providing the necessary structural strength and support to the tyres
This new edition of Beacon consists of Industry analysis of Defence, Brand Analysis of Royal Enfield, Case study of Hippo, Surrogate Advertising as the concept of the month.
The Indian aviation industry has faced many challenges in recent years including high fuel prices, overcapacity, and periods of subdued demand growth. Most airlines have high debt burdens and liquidity constraints. The government has taken steps to allow foreign investment in airlines and direct fuel imports, but these may not fully address the industry's fundamental problems. Over the long term, airlines need to improve their cost structures and the industry needs better alignment of capacity and demand to restore pricing power. Traffic growth has been steady, but intense competition has reduced yields and profits in the face of high costs exacerbated by high fuel prices and a weak rupee.
Aerospace and Defence Sector Diversification | ACMAIndia ACMA
Over the years the years, Indian auto component players have strongly integrated themselves into the global automotive supply chain primarily through their established manufacturing processes and world-class quality. They have been the torchbearers of Indian auto industry’s success story and a case study for our frugal manufacturing skills. The auto component sector has been the face of “Make in India” drive for more than a decade.
Indian defence and aerospace sector is fast emerging as the sunrise sector and will take the centre stage in government’s “Make in India” drive. The government’s push for indigenization in defence and growing interest from global commercial aerospace players to source from Indian suppliers, have opened up multiple supply chain opportunities for Indian private players.
We strongly feel, ACMA members are best positioned to grab these opportunities in the sector due to their proven manufacturing capabilities. The Indian auto component players have all the right ingredients in place to repeat the success story of automotive in aerospace & defence sector. This is the right time for the ACMA member companies to devise a clear strategy and come out with an action plan for the sector.
In this context, KPMG had been appointed by ACMA to assist them in their endeavour towards diversification into aerospace & defence. Our efforts have received overwhelming support from the global aerospace & defence companies and have been
successful in positioning ACMA as the right partner for the global OEMs and Tier1s who are looking at sourcing from India.
We are glad to jointly release the Aerospace & Defence sector diversification report with KPMG. The report captures the sector’s landscape, opportunities, challenges and outlines the road map for the ACMA members who are aspiring to be a part of the sector. We hope you will find this document useful and informative in planning your next steps.
The automotive industry is undergoing significant transformation driven by new technologies, changing consumer preferences, and stricter regulations. Original equipment manufacturers and suppliers must navigate these challenges by strategically managing investments across regions with varying economic conditions, developing new connected and autonomous vehicle technologies, and improving fuel efficiency to meet stricter emissions standards. While traditional combustion engines will remain dominant, automakers must work with new technology partners to develop innovative features that enhance the customer experience. Risk-taking on new materials and powertrain technologies will be necessary to improve performance within regulatory requirements. Successfully navigating this period of disruption will require strategic agility from all industry players.
Employment and salary trends in the gulf 2015Sitha Sok
- The Gulf region continues stable economic growth despite lower oil prices, with most firms maintaining or increasing employment. Healthcare and education are the fastest growing sectors.
- Governments are increasing pressure on employers to hire more nationals to address high youth unemployment. This nationalization challenge is most significant in Oman and Saudi Arabia.
- Competition for talent is driving average salary increases across the Gulf to their highest levels since the financial crisis. Construction saw the highest pay rises while healthcare and education saw some of the lowest.
- The UAE remains the most attractive destination for expatriates, though Qatar's popularity is declining. Oman saw more expatriates leaving due to new restrictions on job switching.
The document provides an overview of Jordan's economy in 2014, covering various sectors. It discusses how the economy continued recovering from the global downturn, with growth forecast at 4.5%. The banking sector showed robust performance with rising lending and maintained profits. Large-scale projects in infrastructure, tourism and real estate were expected to drive growth in the construction sector. The industrial sector remained important for GDP and employment. Tourism revenues increased 11.1% and the sector focused on niche markets like wellness and religious travel. Telecoms saw increased smartphone and data use despite tax hikes on voice services in 2013.
The document summarizes employment and salary trends in the Gulf region. It finds that while economic growth has remained stable, the decline in oil prices has begun to impact the oil and gas sector through some downsizing. Healthcare and education have seen the most growth in job creation across countries. Nationalization policies pushing companies to replace expatriates with local citizens remains a major challenge, especially in Saudi Arabia and Oman. Overall salaries increased at their highest rates since the financial crisis in 2014 and are projected to continue rising in 2015, with Oman seeing the highest increases. The UAE remains the most attractive location and highest retaining country for expatriate workers in the region.
The document provides an overview and outlook of the commercial airplane market from 2012 to 2031. Some key points:
- Boeing forecasts a demand for 34,000 new airplanes valued at $4.5 trillion over the period. 68% (23,240) will be single-aisle airplanes, reflecting growth in emerging markets and low-cost carriers.
- The largest markets will be Asia Pacific demanding 12,030 airplanes and Europe demanding 7,760 airplanes.
- Global economic growth is expected to average 3.2% annually, driving 5% growth in passenger traffic and 5.2% in cargo traffic.
- Airlines are optimizing fleets and utilization in response to high and volatile fuel
The document discusses a strategy for D-Motors to improve its financial performance. It recommends rebranding to target younger customers, leveraging predictive analytics to improve business insights, and flattening the corporate structure. A 5-year plan includes rolling out new technologies, expanding marketing, and achieving 49% revenue growth and 29% profit growth.
This document discusses growth capital strategies and valuation multiples for private companies. It states that transaction multiples for deals over $25 million with a validated 5-10X growth plan typically range from 4 to 12X EBITDA and 1 to 5X revenue. Multiples vary based on factors like revenue, margins, assets, and market opportunity. While historically only large companies and startups received growth capital, new sources are now available to help small and medium businesses scale up, creating wealth opportunities for founders.
Mc Kinsey & Company - The road to 2020 and beyondLionel Martins
The document discusses trends in the global automotive industry and projections out to 2020. It finds that while overall profits for automakers have recovered since the financial crisis, their sources have shifted significantly. Profits are increasingly coming from emerging markets like China rather than Europe, Japan, and South Korea. By 2020, emerging markets are expected to account for about two-thirds of total industry profits. China alone will be responsible for over half of the projected $25 billion increase in profits industry-wide by 2020. North America remains profitable but established markets in Europe and Asia will see little profit growth. The key challenges automakers face are complexity/costs, adapting to diverging regional markets, meeting digital demands, and a shifting competitive landscape.
The document discusses the priorities and challenges facing automotive industry executives. It finds that while executives are optimistic about strategic initiatives to strengthen competitiveness, less than 20% feel prepared to respond to continued market volatility or implement key operational and technology projects. Executives cited securing talent and improving data management and analytics capabilities as top priorities. The document provides an overview of views across automakers, retailers, suppliers and finance on navigating challenges and opportunities in areas like regulations, customer demands and resource access.
The document summarizes the key priorities and challenges for automotive industry executives based on a survey of 125 global executives. The survey found that while executives are optimistic about strategic initiatives to strengthen operations and gain competitive advantages, less than 20% feel prepared to implement initiatives or respond to market volatility. Specifically, executives cited challenges securing talent and strengthening data management/analytics capabilities to drive efficiencies. They also lack confidence in adapting to changing consumer demands and an evolving regulatory environment.
2015 Flight Global and PwC Top 100 Aerospace CompaniesDouglas Burdett
The document discusses the annual Top 100 analysis of the aerospace industry by Flight International and PwC. It finds that 2014 was another boom year for the industry, with all-time sales records and double-digit growth. However, the coming period may present more challenges due to economic uncertainties in countries like Brazil, India, Russia, and potentially China. Even so, the industry would still be in strong shape even if half of the large aircraft order books were canceled. The analysis provides details on the financial performance and position of the top 20 companies in the industry.
The Canadian aerospace industry is the 5th largest in the world and employs approximately 80,000 people. Two of its largest companies, Bombardier and Pratt & Whitney Canada, have significant global market shares in regional aircraft and small gas turbines. While the industry faces challenges such as currency fluctuations and skills shortages, it also benefits from strong government support for research and development.
The document discusses the annual Top 100 report from PwC that analyzes the 2013 financial performance of major aerospace companies. It finds that the industry has experienced steady revenue growth averaging 5.6% per year since 2005, showing the ongoing strength of the civil aviation market. Boeing maintained its top position with record revenue and profit in 2013, while Airbus also saw strong growth. Overall, the top 20 companies accounted for over 75% of the industry's revenue and profits. The outlook remains positive, though economic uncertainties could pose challenges in the coming years.
Miami University 2016 Harvard Financial Analyst Symposium Competition FinalistMichael T. Loffredo
This document provides an analysis of Expeditors International of Washington, Inc. It begins with an investment thesis that Expeditors faces challenges including inflated earnings estimates, decreasing global trade, margin compression, and a loss of management. It then provides an overview of the company and industry dynamics. Performance headwinds for Expeditors are discussed, including unsustainable margins from port strikes. A valuation analysis is presented using comparable companies and a discounted cash flow model, arriving at a target price of $40. The document concludes with a recommendation to sell Expeditors.
The document provides a financial and strategy analysis of Jaguar Land Rover. The financial analysis uses the CORE approach to examine the context, overview, ratios, and implications of Brexit on JLR's revenue. The context discusses the political, economic, social and technological factors affecting JLR. An overview of the financial statements and key trends is presented. Various ratios analyze profitability, liquidity, solvency, and investors' viewpoint. The strategy analysis examines JLR's strategy in relation to industry forces and implications of Brexit on strategy. Expansion plans are discussed, and it is recommended that JLR focus expansion and prepare for potential Brexit impacts through its new Slovakia plant.
Our analysis of the 2012 financial performance of the top 100 aerospace companies sees no change in the top 10 companies, but includes some new names from China and Russia. While merger and acquisition activity was subdued after the 2008 financial crisis, 2012 saw a rebound in dealmaking activity as companies seek to diversify their business. Overall profitability for the industry is strong and higher than historical norms, as aviation continues to grow faster than the global economy. The report predicts that consolidation within the aerospace supply chain is likely to continue in the coming years.
Aircraft wheels are generally overlooked yet important component of an aircraft landing gear system providing the necessary structural strength and support to the tyres
This new edition of Beacon consists of Industry analysis of Defence, Brand Analysis of Royal Enfield, Case study of Hippo, Surrogate Advertising as the concept of the month.
The Indian aviation industry has faced many challenges in recent years including high fuel prices, overcapacity, and periods of subdued demand growth. Most airlines have high debt burdens and liquidity constraints. The government has taken steps to allow foreign investment in airlines and direct fuel imports, but these may not fully address the industry's fundamental problems. Over the long term, airlines need to improve their cost structures and the industry needs better alignment of capacity and demand to restore pricing power. Traffic growth has been steady, but intense competition has reduced yields and profits in the face of high costs exacerbated by high fuel prices and a weak rupee.
Aerospace and Defence Sector Diversification | ACMAIndia ACMA
Over the years the years, Indian auto component players have strongly integrated themselves into the global automotive supply chain primarily through their established manufacturing processes and world-class quality. They have been the torchbearers of Indian auto industry’s success story and a case study for our frugal manufacturing skills. The auto component sector has been the face of “Make in India” drive for more than a decade.
Indian defence and aerospace sector is fast emerging as the sunrise sector and will take the centre stage in government’s “Make in India” drive. The government’s push for indigenization in defence and growing interest from global commercial aerospace players to source from Indian suppliers, have opened up multiple supply chain opportunities for Indian private players.
We strongly feel, ACMA members are best positioned to grab these opportunities in the sector due to their proven manufacturing capabilities. The Indian auto component players have all the right ingredients in place to repeat the success story of automotive in aerospace & defence sector. This is the right time for the ACMA member companies to devise a clear strategy and come out with an action plan for the sector.
In this context, KPMG had been appointed by ACMA to assist them in their endeavour towards diversification into aerospace & defence. Our efforts have received overwhelming support from the global aerospace & defence companies and have been
successful in positioning ACMA as the right partner for the global OEMs and Tier1s who are looking at sourcing from India.
We are glad to jointly release the Aerospace & Defence sector diversification report with KPMG. The report captures the sector’s landscape, opportunities, challenges and outlines the road map for the ACMA members who are aspiring to be a part of the sector. We hope you will find this document useful and informative in planning your next steps.
The automotive industry is undergoing significant transformation driven by new technologies, changing consumer preferences, and stricter regulations. Original equipment manufacturers and suppliers must navigate these challenges by strategically managing investments across regions with varying economic conditions, developing new connected and autonomous vehicle technologies, and improving fuel efficiency to meet stricter emissions standards. While traditional combustion engines will remain dominant, automakers must work with new technology partners to develop innovative features that enhance the customer experience. Risk-taking on new materials and powertrain technologies will be necessary to improve performance within regulatory requirements. Successfully navigating this period of disruption will require strategic agility from all industry players.
Employment and salary trends in the gulf 2015Sitha Sok
- The Gulf region continues stable economic growth despite lower oil prices, with most firms maintaining or increasing employment. Healthcare and education are the fastest growing sectors.
- Governments are increasing pressure on employers to hire more nationals to address high youth unemployment. This nationalization challenge is most significant in Oman and Saudi Arabia.
- Competition for talent is driving average salary increases across the Gulf to their highest levels since the financial crisis. Construction saw the highest pay rises while healthcare and education saw some of the lowest.
- The UAE remains the most attractive destination for expatriates, though Qatar's popularity is declining. Oman saw more expatriates leaving due to new restrictions on job switching.
The document provides an overview of Jordan's economy in 2014, covering various sectors. It discusses how the economy continued recovering from the global downturn, with growth forecast at 4.5%. The banking sector showed robust performance with rising lending and maintained profits. Large-scale projects in infrastructure, tourism and real estate were expected to drive growth in the construction sector. The industrial sector remained important for GDP and employment. Tourism revenues increased 11.1% and the sector focused on niche markets like wellness and religious travel. Telecoms saw increased smartphone and data use despite tax hikes on voice services in 2013.
The document summarizes employment and salary trends in the Gulf region. It finds that while economic growth has remained stable, the decline in oil prices has begun to impact the oil and gas sector through some downsizing. Healthcare and education have seen the most growth in job creation across countries. Nationalization policies pushing companies to replace expatriates with local citizens remains a major challenge, especially in Saudi Arabia and Oman. Overall salaries increased at their highest rates since the financial crisis in 2014 and are projected to continue rising in 2015, with Oman seeing the highest increases. The UAE remains the most attractive location and highest retaining country for expatriate workers in the region.
The document provides an overview and outlook of the commercial airplane market from 2012 to 2031. Some key points:
- Boeing forecasts a demand for 34,000 new airplanes valued at $4.5 trillion over the period. 68% (23,240) will be single-aisle airplanes, reflecting growth in emerging markets and low-cost carriers.
- The largest markets will be Asia Pacific demanding 12,030 airplanes and Europe demanding 7,760 airplanes.
- Global economic growth is expected to average 3.2% annually, driving 5% growth in passenger traffic and 5.2% in cargo traffic.
- Airlines are optimizing fleets and utilization in response to high and volatile fuel
The document discusses a strategy for D-Motors to improve its financial performance. It recommends rebranding to target younger customers, leveraging predictive analytics to improve business insights, and flattening the corporate structure. A 5-year plan includes rolling out new technologies, expanding marketing, and achieving 49% revenue growth and 29% profit growth.
This document discusses growth capital strategies and valuation multiples for private companies. It states that transaction multiples for deals over $25 million with a validated 5-10X growth plan typically range from 4 to 12X EBITDA and 1 to 5X revenue. Multiples vary based on factors like revenue, margins, assets, and market opportunity. While historically only large companies and startups received growth capital, new sources are now available to help small and medium businesses scale up, creating wealth opportunities for founders.
Mc Kinsey & Company - The road to 2020 and beyondLionel Martins
The document discusses trends in the global automotive industry and projections out to 2020. It finds that while overall profits for automakers have recovered since the financial crisis, their sources have shifted significantly. Profits are increasingly coming from emerging markets like China rather than Europe, Japan, and South Korea. By 2020, emerging markets are expected to account for about two-thirds of total industry profits. China alone will be responsible for over half of the projected $25 billion increase in profits industry-wide by 2020. North America remains profitable but established markets in Europe and Asia will see little profit growth. The key challenges automakers face are complexity/costs, adapting to diverging regional markets, meeting digital demands, and a shifting competitive landscape.
The document discusses the priorities and challenges facing automotive industry executives. It finds that while executives are optimistic about strategic initiatives to strengthen competitiveness, less than 20% feel prepared to respond to continued market volatility or implement key operational and technology projects. Executives cited securing talent and improving data management and analytics capabilities as top priorities. The document provides an overview of views across automakers, retailers, suppliers and finance on navigating challenges and opportunities in areas like regulations, customer demands and resource access.
The document summarizes the key priorities and challenges for automotive industry executives based on a survey of 125 global executives. The survey found that while executives are optimistic about strategic initiatives to strengthen operations and gain competitive advantages, less than 20% feel prepared to implement initiatives or respond to market volatility. Specifically, executives cited challenges securing talent and strengthening data management/analytics capabilities to drive efficiencies. They also lack confidence in adapting to changing consumer demands and an evolving regulatory environment.
#KPMG Manufacturing outlook 2014. #SCM transparency, cost insight and supply chain integration is main focus for global manufacturers. Development of S&OP will help to achieve these goals.
http://bit.ly/CEO-Survey-jan15
Selon la 18e édition de l’étude mondiale annuelle « Global CEO Survey » de PwC, dans le cadre de laquelle plus de 1 300 dirigeants ont été interrogés, 37 % d’entre eux estiment que la croissance mondiale sera meilleure en 2015, contre 44 % l'année dernière. Cependant, ils restent confiants dans leur capacité à générer une croissance du chiffre d’affaires de leur propre entreprise (39%, un niveau identique à celui de l’année dernière).
Les dirigeants soulignent que les menaces auxquelles ils sont confrontés ont augmenté ces trois dernières années : ils insistent notamment sur la montée en force de la concurrence, avec un marché qui devient sans frontières et l’arrivée de nouveaux concurrents issus de secteurs d’activité différents.
Pour rester compétitifs, les dirigeants identifient trois leviers essentiels : la transformation digitale, le renforcement des partenariats et la diversité des talents.
Les résultats de cette étude sont rendus publics aujourd'hui à l'ouverture du Forum économique mondial à Davos, en Suisse.
Pour cette 18e édition de l’étude mondiale annuelle de PwC « Global CEO Survey », 1 322 interviews ont été conduites dans 77 countries entre septembre et décembre 2014. 459 entretiens ont été menés en Asie-Pacifique, 455 en Europe, 147 en Amérique du Nord, 167 en Amérique latine, 49 en Afrique et 45 au Moyen-Orient.
PwC's 18th Annual Global CEO Survey 2015: Exploring the importance of technol...James Woodworth
Rethinking the business you’re in
We live in an era of unprecedented digital change – the type of change that’s reshaping the relationship between customers and companies, breaking down the walls between industry sectors and, by extension, prompting forward-thinking CEOs to question the very business they’re in.
Watch this short video to hear about what CEOs had to say on the global economic outlook and their own growth prospects for the months and
One year ago business leaders’ feelings towards growth were sombre across the globe. A year later, and while Australian CEOs are feeling mildly more up-beat than their global peers, significant concerns still remain.
This year, we asked executives about their thoughts across key issues including partnerships, digital, talent and diversity, growth, capabilities, tax and regulation.
There is a dichotomy of perspectives across the board – with CEOs seeing as many threats to their business today as there are opportunities.
This document summarizes key findings from PwC's 18th Annual Global CEO Survey. The survey interviewed over 1,300 CEOs from 77 countries. Some of the main findings include:
1) 61% of CEOs see more opportunities for their businesses today than three years ago, while 59% see more threats. Many CEOs believe they can adapt to changing conditions.
2) CEO confidence in their own business growth prospects remains high despite concerns about the global economy and rising business risks. CEOs in Asia Pacific, North America, and the Middle East see the most opportunities.
3) To succeed, CEOs must focus on creating new opportunities through digital technologies rather than relying solely on market-led
This document summarizes the key findings of the 2022 FP&A Trends Survey. Some of the main findings include:
1) While 76% of FP&A teams feel they deliver strategic value, only 16% consider themselves high performing and 16% struggle to keep up with demands. Too much time (45%) is spent on low-value activities like data management.
2) For FP&A to truly function as strategic advisors, they need to spend more time (currently only 33%) on high-value activities like scenario planning and driving change.
3) Many organizations still struggle with data quality issues, as 31% lack a single trusted data source. However, those using AI/ML were more
The insurance industry is undergoing fundamental transformation as it comes up against the impact of new regulation, new technology, accelerating shifts in consumer demand and mounting competition from digitally-enabled new entrants. In the face of so many disruptive challenges, it’s important not to lose sight of the huge opportunities they’re creating for insurers. Companies from other industries will be looking to your risk insight and expertise to help them navigate an increasingly complex and uncertain business and geopolitical landscape. You’re also in the pole position to capitalise on the new generation of analytics, sensor connectivity, and machine learning technologies that are set to revolutionise our lives. To make the most of these opportunities, it’s important to look beyond the traditional boundaries of the insurance business to embrace new ways of working, new ways of interacting with customers, and whole new possibilities in what your business can deliver.
CSC's 2015 Aerospace and Defence Market Survey (in association with AIA)Pavandeep Virk
Perspectives of A&D Leaders on Key Business
and Technology Trends:
- Pricing pressures and government regulations affect R&D
- Demand for product innovation and modernization grows
- Cybersecurity threats and costs rise
- Skills shortage continues
Pav Virk
pvirk@csc.com
CSC - 2015 A&D Survey (in association with AIA)Pavandeep Virk
Perspectives of A&D Leaders on Key Business
and Technology Trends:
- Pricing pressures and government regulations affect R&D
- Demand for product innovation and modernization grows
- Cybersecurity threats and costs rise
- Skills shortage continues
Pav Virk
pvirk@csc.com
The State of Logistics Outsourcing; 2009 Third Party Logistics StudyDennis Wereldsma
This report presents findings from the 2009
Fourteenth Annual Third-Party Logistics
Study, conducted in mid-2009. This study
examines the state of the global market
for 3PL services and explores key issues
affecting the industry: economic volatility,
the IT capability gap and the challenges of
supply chain orchestration.
The race is on
Clearly, Canadian executives are feeling that the race is on; but it remains to be seen whether they act quickly enough and with the right focus to effectively transform and evolve. Among our findings:
75 percent of CEOs agree that the next three years will be more critical to their industry than the previous 50 years;
74 percent of CEOs believe their company will remain largely the same in the next 3 years;
98 percent are concerned about the loyalty of customers;
13 percent feel confident that they are fully prepared for a cyber-event.
The survey summarizes perspectives from aerospace and defense (A&D) industry leaders on business and technology trends. Key findings include:
1) Demand for commercial aircraft is high driven by growth in emerging markets, however pricing pressures are increasing the focus on cost containment and continuous innovation.
2) Government defense budgets are uncertain which is decreasing investment in research and development, though cybersecurity remains a priority.
3) Technologies like cloud computing and modernizing applications are priorities to improve efficiency amid skills shortages in the industry's workforce.
Global Capital Confidence Barometer | How can you reshape your future before ...EY
The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agendas — EY framework for strategically managing capital. It is a regular survey of senior executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. Our panel comprises select global EY clients and contacts and regular Thought Leadership Consulting contributors.
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1. www.pwc.com/transport
Strategic sights set
on transformation
and innovation
PwC Global Airline CEO Survey 2014
Transformation and growth p4
/ Three trends that will transform the airline business p4
/
Keeping an eye on the “threat radar” p10
/ Delivering transformative change p12
/
Securing the future workforce p19
/ Overcoming the headwinds p20
/
Demonstrating value and impact p22
82%of airline CEOs are confident about
airline industry revenue growth over
next 12 months.
See page 2
60%of airline CEOs are planning to
change their technology investment
programmes. 29% already
have programmes underway or
completed.
See page 16
2. Report highlights 2 Delivering
transformative
change 12
The airline CEO change journey 12
A new technology-enabled customer
relationship 15
A future focus on R&D and
innovation 16
Gaining value from consolidation
and alliances 17
Lifting the planning horizon 18
Securing the future workforce 19
Transformation
and growth 4
Three trends that will transform the
airline business 4
Greater confidence in growth 6
The immediate horizon - routes to
growth 8
Keeping an eye on the “threat radar” 10
Overcoming the
headwinds 20
Barriers to growth and innovation 20
Demonstrating value and impact 22
Methodology 24
Contacts 24
3. 1PwC Global Airline CEO Survey 2014
The focus for the survey is the economic, technological and demographic trends that are
transforming the airline sector worldwide. The survey sits alongside PwC’s 17th Annual Global
CEO Survey, which covers all industries. Where relevant, we highlight comparisons between the
responses of airline CEOs with the wider CEO population covered in the most recent global
survey.
The survey provides an insight into executive thinking about how airlines are set to respond to
important transformative trends. The survey findings and commentary are supplemented by
some short ‘next big thing’ perspectives from CEOs that took part, as well as a series of ‘PwC
viewpoints’ on the main change challenges facing the industry.
PwC works with many airlines and other organisations in the aviation sector. This survey is just
one part of the dialogue that we have on current and future industry challenges. We welcome
follow up on any topics that are of interest.
Julian Smith Jonathan Kletzel
Global Transportation Logistics Leader U.S. Transportation Logistics Leader
Introduction
Welcome to our PwC Global Airline CEO Survey 2014. We’re pleased to
have conducted this research with the support of IATA (International Air
Transport Association) and sincerely thank the 39 IATA member CEOs
around the world who shared their thinking with us.
4. Transformative trends
According to our analysis, airline CEOs expect
technological advances, shifts in the global
economy and demographic changes to
transform their business over the next five
years. Airline CEOs are much more conscious
of the potential impact of the changing global
balance of economic power on their sector than
CEOs in other industries – 82% of airline CEOs
see it as having a transformative effect in the
next five years compared with 59% of all CEOs.
Similarly, 77% expect technological changes to
transform their business over the next five
years.
Responding to the trends
Airline CEOs are responding to these
transformative trends with major change
programmes. An important current focus is
addressing talent challenges and related
changes to organisational structure and design.
The industry faces a growing shortage in
qualified pilots and increasing competition
from other sectors for skills across a range of
emerging needs. Organisation reform
continues to be important to achieving a lower
cost base and further organisational design
changes will also be needed if airlines are to
become more customer-centric.
Report highlights
82%of airline CEOs are
confident about
airline industry
revenue growth over
next 12 months
(vs 68% all CEOs).
85%of airline CEOs
express caution and
remain concerned
about the possibility
of a slowdown in high
growth markets or
continued slow or
negative growth in
developed economies.
71%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their data
management and
data analytics and
26% already have
programmes
underway or
completed.
Source: Airline CEOs – PwC Global Airline CEO Survey
2014. All CEOs - PwC 17th Annual Global CEO Survey
Key results
at a glance
5. 3PwC Global Airline CEO Survey 2014
A future emphasis on data analytics
and RD
As we look further ahead, airline CEOs are
prioritising changes in their use of data
analytics and improvements in their RD and
innovation capabilities. 71% of airline CEOs
are developing future strategies or have
concrete plans for changes to their data
management and 67% are putting a similar
emphasis on RD and innovation. But airline
CEOs are conscious of an RD-deficit or lag
compared with other sectors, with 92%
identifying it as an area that they are not
well-prepared for.
Technology triggers new customer
and product opportunities
Technology is expected to transform product
and pricing strategies. Rapid advancements in
technology platforms, mobile connectivity and
customer expectations are creating the
conditions for airlines to extend and deepen
direct relationships with end customers.
Securing more direct relationships offers the
prize of margin enhancement as well as greater
customer loyalty. Better and more sophisticated
use of data analytics will also pave the way for
a transition from strictly capacity-driven
pricing to customer-driven pricing based on a
personalized and desirable mix of products and
services.
Sights are set on consolidation
Given the challenges to cross-border mergers in
the airline industry, it is not surprising that
only 3% of airline CEOs in our survey envisage
using MA as a main route to growth in the
coming year. However alliances and joint
ventures (JVs) remain a priority, with 18%
seeing them as a key route to growth in the
coming year. But looking over a longer time
horizon, nearly two thirds (63%) say they are
developing future strategies or have concrete
plans for changes to their MA, JV and
alliance strategies. Airline CEOs face a
threefold challenge in this area. How to get
better value from existing alliances and JVs?
How to move from alliance-like cooperation
and JVs into true merger-like benefits? And,
where permissible, how best to deliver full
benefits from mergers? Greater consolidation
in the industry is ultimately crucial for
generating better performance and higher
margins.
Policy concerns continue to loom
large
The policy barriers that lie in the way of
consolidation and other moves are a continuing
source of concern for airline CEOs. Over-
regulation is seen as a concern by 92% of them
compared to 72% of all CEOs. Similar views
are expressed about an ‘increasing tax burden’,
consumer protection policies and the
protectionist stances of national governments.
Infrastructure frustrations are a particular
barrier to greater efficiency. Inadequate
infrastructure was cited as a concern by 79% of
airline CEOs compared to 47% of all CEOs.
67%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their RD
and innovation
capabilities,and 11%
already have
programmes
underway or
completed.
66%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their
customer growth and
retention strategies,
and 23% already have
programmes
underway or
completed.
63%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their
organisational
structure and design,
and 29% already have
programmes
underway or
completed.
92%of airline CEOs are
concerned about their
readiness to deliver
RD compared to
72% of global CEOs.
92%are concerned that
over-regulation is a
threat to growth,
including 56% who
are ‘extremely
concerned’.
68%of airline CEOs want
to be focused on a
long-term planning
horizon (five years or
more). Their sights
are raised further
forward than global
CEOs,of whom only
48% desire a planning
horizon of five years
or longer.
Source: Airline CEOs – PwC Global Airline CEO Survey
2014. All CEOs - PwC 17th Annual Global CEO Survey
6. Three trends that will transform the
airline business
Every minute of every hour of every day vast
quantities of people and goods are moving
around the world by air. More than three
billion people and 50 million metric tons of
cargo were transported by air in 20131
. Air
transport plays a vital role in business, trading
and personal relationships within and between
all regions of the world.
The dynamics of world aviation are intimately
linked to economic, technological and
demographic changes. And in the view of
airline CEOs, current megatrends on each of
these fronts are set to transform the airline
business. Three trends – shifting global
economic power, technological advances and
demographic changes – were identified in our
survey as likely to have a profound impact on
the future shape of the industry.
Given the importance of aviation to world
business, it is not surprising that airline CEOs
are much more conscious of the impact of the
changing global balance of economic power on
their sector than CEOs in other industries –
82% of airline CEOs see it as having a
transformative effect compared with 59% of all
CEOs.
Global economic realignment will interact with
demographic shifts - the third of the
megatrends identified by the CEOs. In
particular, the fast emergence of a new middle
class in developing countries will add to
aviation demand. Together these two trends
will change the dynamics of how people and
trade move by air around the world with new
flows, new routes and a shift in emphasis
between existing routes. Over the next twenty
years, the airline industry is expecting to triple
or quadruple its services in order to serve the
demand for air travel and cargo services. This
appears to be generated by the expansion of
the middle income classes in Asia-Pacific and
emerging economies in Latin America, Middle
East and North Africa (MENA) and Sub
Saharan Africa.2
Transformation
and growth
1 IATA Industry Facts and Statistics, June 2014
2 Profitability and the air transport value chain, IATA Economics Briefing No 10, June 2013.
7. 5PwC Global Airline CEO Survey 2014
Also uppermost in airline CEO minds is the
transformative impact of technological change.
Breakthroughs in the frontiers of research and
development are opening up new opportunities
for businesses and individuals. A perpetual
flow of ideas and innovation is creating ever
more powerful enabling technologies.
Technological advances carry huge potential
for airlines, both ‘above the wing’ in their
relations with customers and ‘below the wing’
in managing the supply chain, operations and
maintenance.
One of the foremost advances in technology is
the rapid advance of mobile-connected devices.
The number of mobile-connected devices is
expected to exceed the world’s population
during 2014 and, reflecting demographic
trends and shifting global economic activity,
the Middle East and Africa will have the
strongest mobile data traffic growth of any
region at 70% CAGR in the period to 2018,
followed by Central Eastern Europe at 68%
and Asia Pacific at 67%3
. As we discuss later in
this report, the rise of personal smart-enabled
mobile connectivity has the potential to
transform the airline-customer relationship.
What’s the next big thing
to impact your business?
“Technology, in all
its ways to
exchange with the
customers, before,
during and after
the flights. It will
change the way of
travelling.”
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 1 CEOs identified three transformative global trends
Q: Which of the following global trends do you believe will transform your business the most over the next five years?
(top three trends Airline CEOs named)
Shift in global
economic power
82%
59%
Technological
advances
Demographic
shifts
77%
81% 41%60%
All CEOsAirline CEOs
3 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013–2018
8. Transformation and growth
Greater confidence in growth
There’s a mood of optimism among airline
CEOs. An overwhelming majority are confident
about both the industry’s and their own
company’s prospects for revenue growth in the
immediate and near-term future (figures 2 and
3). Indeed, airline CEOs are in a significantly
more bullish mood about the outlook for their
industry than we found with all CEOs in our
overall global CEO survey (figure 2).
It’s an encouraging sign as the industry and
many individual companies are emerging from
a very difficult period, or in some cases still
facing difficulties. Although passenger volumes
have been expanding robustly, cargo still faces
some headwinds with little advance for cargo
volumes on 2010 levels and for cargo revenues
on 2007 levels. Nonetheless, IATA anticipates
aggregate revenues for the industry in 2014 of
US$746bn compared with $US564bn in 2010.4
But the optimism is tempered somewhat when
airline CEOs review the outlook for their own
company’s revenue growth. Although they are
still overwhelmingly optimistic, they are a little
more cautious than their counterparts in other
sectors (figure 3). Indeed, when we drill down
inside the results we find that the proportion
who are ‘very confident’ is significantly lower
than among all CEOs – 28% of airline CEOs
compared to 39% of all CEOs.
Compared to many other sectors, the airline
business can be very volatile and, despite
the current overall revenue growth and
strengthening profitability, airline CEOs will no
doubt be conscious of the fragility of their profit
margins. There is a great variance between
carriers with many still in loss-making mode
and the aggregate profit margin for the industry
as a whole remains weak. It was just 0.9% of
revenues in 2012 and 1.5% in 2013. Although
it is forecast to grow to 2.4% in 2014, this
remains significantly lower than the 3.1% of
20105
or the levels necessary to exceed costs of
capital and provide desired returns on invested
capital to shareholders.
4 IATA Industry Facts and Statistics, June 2014
5 Ibid.
Airline CEOsAll CEOs
Confident about revenue
growth over next 12 months
Confident about revenue
growth over next three
years
68%
79%
82%
85%
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 2 CEO confidence about their industry’s prospects for revenue growth
9. 7PwC Global Airline CEO Survey 2014
What’s the next big thing
to impact your business?
“Emerging middle
class in developing
countries will start
to travel around
the globe.
Exponential
increase in
demand.”
Airline CEOs All CEOs
Confident about revenue
growth over next 12 months
Confident about revenue
growth over next three
years
79%
87%
85%
92%
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 3 CEO confidence about their company’s prospect for revenue growth
10. Transformation and growth
The immediate horizon - routes to
growth
In the short term, airline CEOs are balancing
a number of strategies fairly evenly in their
pursuit of growth. They are more likely
than CEOs as a whole to be looking at new
geographic markets as well as existing markets
as a main target for growth in the next 12
months.
This reflects the overall optimism about growth.
But CEOs will need to be very careful to
avoid delivering overcapacity into the market.
Capacity discipline has been an important
part of the turnaround story for US airlines
– stabilising capacity and matching it with
relatively slow demand growth. In contrast,
overcapacity looks to be a danger in some other
parts of the world, especially in Asia.
CEOs should also be very conscious of the
danger of using price as the main way of
targeting market share. There are signs that
airlines are recognising the limits of price-based
strategies alone and are now seeking to increase
the emphasis on wider value. Product and
service innovation is identified by just under a
quarter (23%) of airline CEOs as a main way to
achieve growth.
But this is substantially short of the emphasis
that product and service innovation gets
in other industries with 35% of all CEOs
identifying it as their main strategy for growth.
Despite pockets of innovation, the airline
industry has yet to fully explore a broader range
of service and business models to encourage
competition on many different dimensions,
beyond price.
Given the constraints on mergers and
acquisitions in the airline industry, very few
see MA as a main opportunity for growth but
nearly one in five see new joint ventures or
strategic alliances as being important. We look
at this in more detail later in the report.
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 4 Airline CEOs are balancing a number of growth strategies in the short term
Q: Which of the following do CEOs see as the main opportunity to grow their business in the next 12 months?
Increased share in existing markets
Product/service innovation
New geographic markets
New joint ventures and/or strategic alliances
Mergers and acquisitions
Airline CEOs
All CEOs
0 5 10 15 20 25 30 35
32%
30%
24%
35%
24%
14%
18%
9%
3%
11%
12. Transformation and growth
Keeping an eye on the “threat radar”
The move towards a more optimistic growth
outlook among airline CEOs is matched by a
constant vigilance over the threats to growth.
The industry is highly volatile and particularly
sensitive to economic downturns and oil price
changes. It’s not surprising then to find that
optimism about economic growth is offset by
awareness of the implications of any threat to
growth and that worries about energy costs top
the list of business threat concerns.
Nearly half (46%) of airline CEOs expect
economic growth to improve in the next 12
months with only 5% expecting a decline. They
are slightly more optimistic than CEOs as whole
– among whom 44% predict improvement. But
they are also more attuned to downside risks
than CEOs as whole. 85% of airline CEOs are
concerned about the possibility of a slowdown
in high growth markets or continued slow
or negative growth in developed economies,
including 28% being ‘extremely concerned’
about such developments. In both cases this is
a higher level of concern than among all CEOs
(figure 5).
What’s the next big thing
to impact your business?
“Open sky policy,
air space control
and airport
infrastructure.
These are the major
hurdles to my
business
development.”
6 Data from Platts and IATA.
But the proportion of airline CEOs that are ‘very
concerned’ about the overall economic risks
in figure 5 is overshadowed by much greater
concern about a series of other more specific
‘business’ and ‘macro-economic‘ threats to
growth (figures 6 and 7). Worries about energy
costs head the list of threats on the airline
CEO risk radar. Seventy four per cent of airline
CEOs are ‘extremely concerned’ about this risk
compared to just 21% of all CEOs (figure 6).
Fuel is the largest single cost item for the
global airline industry. Despite continued
improvements in engine and airframe
technologies which have dramatically improved
fuel efficiency, jet fuel accounts for around a
third of operating costs. The average price of
jet fuel per barrel rose from US$34.7 in 2003 to
US$126.7 in 2008. It has moderated somewhat
since and is expected to average around
US$123 in 2014.6
There is a greater threat intensity in the minds
of airline CEOs compared to CEOs in other
industries. This is highlighted by the much
higher proportion of ‘extremely concerned’
ratings. Airline CEOs are far more likely to
judge leading threats as a high concern than
other CEOs. It is especially evident for fuel
costs but it is also a consistent pattern running
across all the risks where comparative scores
are available.
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 5 The economic risk radar
somewhat concerned | extremely concerned
Airline CEOs
All CEOs
Continued slow or negative growth in
developed economies
Slowdown in high-growth markets
85%
85%
70%*
65%*
13. 11PwC Global Airline CEO Survey 2014
This heightened concern – about factors such
as skills availability, cybersecurity, market
entrants, labour costs, exchange rate volatility,
and a range of government regulatory
issues – reflects the challenging and complex
environment in which international aviation
operates. The competitive and cost environment
is intense. Rivalry, new entrants, customer and
supplier bargaining power and the threat of
substitutes for air travel are all very real and
potentially powerful forces.
The international nature and the unique set
of historical treaties that govern commercial
aviation increases regulatory complexity while
new challenges such as cybersecurity pose
additional risks given the interplay of airline
travel with national security and the part played
by personal identity checks. But a particularly
striking feature of the top risks identified by
airline CEOs is the number of them that stem
directly from government or regulatory policy.
The top six listed in figure 7 is taken from a
longer list of 11 threats, of which four are
principally macro-economic risks and seven
are government policy risks. Only one of the
macro-economic risks – exchange rate volatility
– makes it into the top six. Instead, five of the
top six are government policy-related. Clearly,
there is much that government policy can do
to either ease growth concerns for the industry
or place barriers in its way. We discuss this in
more detail in a later part of this report.
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 6 Top six ‘business’ threats to growth
Proportion of CEOs “extremely concerned” about the following potential ‘business’ threats to their organisation’s growth
prospects.
High or volatile energy costs
Availability of key skills
Cyber threats including lack of data security
Rising labor costs in high-growth markets
New market entrants
Shift in consumer spending and behaviors
Airline CEOs
All CEOs
0 10 20 30 40 50 60 70 80
37%
74%
21%
19%
37%
14%
34%
19%
34%
10%
32%
15%
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 7 Top six policy / macro-economic threats to growth
Proportion of CEOs “extremely concerned” about the following potential economic and policy threats to their
organisation’s growth prospects.
Over-regulation
Increasing tax burden
Exchange rate volatility
Disproportionate consumer protectionist policies*
Inadequate basic infrastructure
Protectionist tendencies of national governments
Airline CEOs
All CEOs
* Not asked of all CEOs
0 10 20 30 40 50 60 70 80
58%
58%
32%
38%
53%
25%
45%
42%
17%
39%
17%
14. Delivering
transformative
change
The airline CEO change journey
Air transport is one of the industries that have
transformed the world. But many inside and
outside the sector might argue that it has
been slow to transform itself. Over the past
30 to 40 years the airline industry as a whole
has generated one of the lowest returns on
invested capital among all industries.7
This
situation has persisted across many market
cycles and shows only limited signs of changing
on a global basis.
Of course, new business models, such as low
cost travel, have come into the mix and there
is a great variance in profitability from airline
to airline. An analysis of airlines generating
average EBIT margins of 8% or more shows
that outstanding profitability is not related to
specific business models.8
Instead, a variety
of factors explain each instance of high
profitability, of which individual comparative
cost-advantage is a key one.
7 Op. cit. Profitability and the air transport value chain.
8 IATA Vision 2050, 2011, p 14.
15. 13PwC Global Airline CEO Survey 2014
Not surprisingly then, a great deal of the
airline CEO change journey in recent times has
focused on trying to get the cost base down
to a level that is competitive with the best in
the particular industry segment the airline is
operating in. Over two thirds (69%) of airline
CEOs in our survey have implemented a cost-
reduction initiative in the past year and 64%
have plans to start new ones in the coming
year. But interestingly, this is little different
from CEOs in other industries where the same
percentage plan such initiatives and, indeed,
slightly more (76%) have been carrying them
out in the past year.
Responding to transformative
trends
We asked airline CEOs to tell us what specific
changes they are undertaking or planning in
order to capitalise on the three transformative
trends of global economic shifts, technological
advances and demographic change. The results
show an industry that is already augmenting
its current focus on organisational structures
and design with an emphasis on technology
investments and talent (see ‘now’ stage of
figure 8).
63%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their
organisational
structure and design
and 29% already
have programmes
underway or
completed.
Source: Airline CEOs – PwC Global Airline CEO Survey 2014
Figure 8 Responding to the megatrends – data analytics, technology, RD and MA come to the fore in the future
The airline CEO change journey - % of CEOs making changes in each area (top three ranking)
Now
Tomorrow
Future
Bubbling
under
1
36%
43%
38%
22%
29% 38%
34%
19%
29%
27%
34% 33%
33%
19%
12%
2 3
4
Big changes underway
or completed
Change programmes
with concrete plans
Next big change
strategies being
mapped out
Areas where airline
CEOSs recognised need
for change
Talent strategies
Technology
investments
Organisational
structure/design
Corporate
governance
Organisational
structure/design
Investment in
production
capacity
Customer growth
and retention
strategies
Use and
management of
data and data
analytics
Technology
investments
RD and
innovation
capacity
MA, joint
ventures or
strategic alliances
Approach to
managing risk
RD and
innovation
capacity
MA, joint
ventures or
strategic alliances
Channels to
market
16. Organisational structure reforms continue
to dominate in the near-future. Much of the
focus of structural change so far has been
to drive down the cost base, but we also
expect organisational reforms to increasingly
reflect the need for airlines to organise
themselves around the customer. Organisation
structure and design heads the list of change
programmes with ‘concrete plans’ in figure 8,
alongside productivity measures and strategies
for customer growth and retention.
But when we asked airline CEOs to identify the
strategies they are mapping out further into
the future, the emphasis switches. Heading the
‘future’ list in figure 8 is data analytics, which
is set to prove increasingly important not just
for market segmentation, revenue and price
modelling but also for flight and operational
planning. CEOs are also planning a greater
focus on activities that could produce a step-
change in the industry – technology investment,
greater use of RD and innovation, and MA,
JVs or alliances.
This is a significant change of emphasis –
the 33% of airline CEOs who say they are
developing future plans for RD and innovation
capacity changes is three times as many as
the 11% who have such initiatives underway
or completed at present. A shift of the same
magnitude is reported by CEOs in their plans
for MA, JVs and alliances. Technology
investment is also getting slightly more future
emphasis as figure 8 shows.
We gave airline CEOs the opportunity to
identify strategies that might not be on their list
of actual current or future change programmes
but that they recognised were areas where
there is a need for change. Again RD and
innovation, as well as MA, JVs and alliances,
feature on this list, this time alongside the need
to have a better approach to risk management.
Clearly many CEOs see the need for more
sophisticated control and risk management
tools to help with scenario planning as well as
day to day risk management processes.
Readiness for change
The change challenge facing airline
CEOs is considerable, not least because
many themselves acknowledge that their
organisations are not yet ready to make
changes. Figure 9 highlights a number of
key areas where a big majority of airline
CEOs feel that their organisations are not
well-prepared. Foremost among these are
RD, HR and IT. Only 8% of airline CEOs
report that their organisations are well-
prepared when it comes to RD compared
with 28% of all CEOs. A further 44% say
they are ‘somewhat prepared’ but this is still
fewer than the 52% among other CEOs. It’s
a similar pattern with HR and IT change.
When it comes to other change topics, such
as procurement and sourcing and customer
service, the assessment of airline CEOs of
their organisational readiness is more in line
with CEOs in other sectors.
Delivering transformative change
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 9 Airline CEOs don’t feel their organisation are wellprepared for transformational change
in many key areas
Q: To what degree is your organisation prpared to make changes in the following areas in order to capitalise on
transformative global trends?
RD
HR
IT
Procurement and sourcing
Customer services
Airline CEOs
All CEOs
* Percentage giving responses other than ‘well-prepared’ – i.e. ‘somewhat prepared’, ‘not prepared’,
‘prefer not to say’ or ‘don’t know’.
0 10 20 30 40 50 60 70 80 90
92%
72%
86%
66%
65%
75%
72%
67%
69%
66%
% saying not well-prepared *
17. 15PwC Global Airline CEO Survey 2014
A new technology-enabled customer
relationship
Rapid advancements in technology platforms,
mobile connectivity and customer expectations
create the conditions for airlines to extend and
deepen direct relationships with end customers.
A direct technology-enabled customer
relationship offers a range of opportunities
to enhance the customer experience before,
during and after the flight, and thus promote a
more personalised and differentiated service.
But it is also a potentially highly significant
development in an industry where distribution
channels have been largely indirect. Computer
Reservation System (CRS) services provided
by Global Distribution Services specialists
(GDSs), travel agents and freight forwarders
all stand between airlines and end customers.
Without investment in emerging technologies,
these intermediaries can erode the value
creation available to airlines. Creating stronger
relationships, either through direct channels
or by leveraging NDC (New Distribution
Capability) and other enhancements to
indirect channels, offers the prize of margin
enhancement as well as greater customer
loyalty.
Greater personalisation of the customer
journey becomes possible through the use of
technology. Airlines are already using mobile
technology for flight updates, check-in and
recovery from irregular operations. The goal
will be to go far beyond this and turn the
passenger experience into one where the
passenger feels informed, in control and is
empowered to manage their travel easily
and instantly. Better and more sophisticated
use of data analytics will also enable airlines
to optimise pricing and service to different
customer segments and even to strictly
individual customers, enabling a transition
from capacity-driven pricing to customer-driven
pricing based on a personalised and desirable
mix of products and services.
66%to their customer
growth and
retention strategies
and 23% already
have programmes
underway or
completed.
56%to their channels to
market and 26%
already have
programmes
underway or
completed.
71%to their data
management and
data analytics and
26% already have
programmes
underway or
completed.
PwC viewpoint: Putting the
passenger first
While many airlines are “customer focused”,
most retain a “product centric” operating
model. High performing airlines of the
future will need a new “customer centric”
business model. This transformation will
impact almost all elements of the airline,
including talent, organisational structure,
business processes and enabling
technologies.
A new consumer reality has emerged,
defined by an anywhere/anytime/any device
expectation of accessibility and engagement.
To address this new state of “persistent
digital engagement”, airlines will need to
develop fluency in mobile and social
technologies, and will need to better
collaborate internally across groups that
have traditionally worked separately from
one another.
Properly executed, these new capabilities
will drive increased customer loyalty, better
operating performance, increased revenues
and lower costs.
Airline CEOs are
developing future
strategies or have
concrete plans for
changes ...
18. A future focus on RD and
innovation
Developing a stronger future RD and
innovation capacity is becoming a priority
for many airlines. Two thirds (67%) of airline
CEOs are developing future strategies or have
concrete plans for changes to their RD and
innovation capabilities and 11% already have
programmes underway or completed. As we
saw earlier, RD is the single biggest area
that airline CEOs recognise that they need to
improve on with IT not far behind.
Airline travel has benefited from many
innovations but they have often come from
aircraft, engine and other manufacturers rather
than airlines themselves. For example, fuel
efficiency has doubled in the last forty years
and engine-specific fuel consumption has
improved by 30% since 2010 alone. But in those
same forty years, the end-to-end shipping time
for goods by air has remained unchanged, at six
to seven days. At the World Cargo Symposium
in March 2014 before retiring as IATA’s Global
Head of Cargo, Des Vertannes challenged
the industry to cut the end-to-end air freight
shipment time by 48 hours by the year 2020, to
enhance the competitiveness and value of air
cargo.9
The lack of focus on innovation has been a
significant factor in commoditising the air
travel product. Change, where it has come, has
been incremental rather than transformational.
In some cases, old practices have not been
questioned. The disappearance of the Malaysian
aircraft MH370 has been the catalyst for
serious debate to occur about how aircraft
are monitored as they fly around the globe.
In a world where our every move seems to be
tracked, often with data recorded and stored
in the cloud, but commentators have expressed
disbelief that the airline industry still has to rely
on the search for a ‘black box’ to discover such
vital information.
Innovation has as much a part to play ‘below
the wing’ as it does ‘above the wing’. It is also
relevant to airlines’ business models, people,
processes and technologies. While significant
opportunities exist to reduce costs and
improve operations, many airlines continue
to defer investment in technology and other
transformative initiatives.
Innovation goes beyond the passenger
experience and is also relevant to airline’s
business models, organizational and tax
structures, processes and technologies. Due
in part to low profit margins airlines have
historically been unable or unwilling to
significantly invest in transformative changes to
their business, leaving a reluctant dependence
on legacy systems and related processes.
Today’s airline CEOs appear to understand the
need to break out of this cycle by prioritising
investment in RD which should help
differentiate themselves in a highly competitive
environment.
PwC viewpoint: Creating the
“Connected Airline”
Many airlines now find themselves at a
crossroads. They can continue to chip away
at inefficiencies and realise small,
incremental improvements, or they can
apply advanced technologies and achieve
step function advancements in operational
and financial performance.
Further enabled by more recent advances in
networking and mobile devices, the
“connected airline” is now not just a
concept, but a reality.
The connected airline ties together mission
critical processes, data and related systems,
including reservations, maintenance, crew,
revenue management and flight control, to
improve decision-making and resolve
operational problems in the short-term and
reduce costs and increase revenue in the
long-term.
Delivering transformative change
60%to their technology
investment
programmes and
29% already have
programmes
underway or
completed.
67%to their RD and
innovation
capabilities and
11% already have
programmes
underway or
completed.
Airline CEOs are
developing future
strategies or have
concrete plans for
changes ...
9 IATA Press Release No.: 23, Cargo Growth Trend Pauses, 5 May 2014
19. 17PwC Global Airline CEO Survey 2014
Gaining value from consolidation
and alliances
Over a quarter (26%) of airline CEOs in our
survey report that they entered into a new
strategic alliance or joint venture in the last 12
months, and nearly a fifth (18%) see new JVs
and alliances as their main opportunity to grow
their business in the next 12 months. This latter
figure is exactly twice as many as in our global
survey of CEOs in all sectors.
The emphasis on JVs and alliances arises,
in part, because of constraints on full-scale
MA among airlines. These stem primarily
from airline-specific restrictions on foreign
investment not experienced in most other
industries. Thus, only 3% of airline CEOs in our
survey envisage using MA as a main route to
growth in the coming year compared to 11% of
all CEOs.
But 63% of airline CEOs are developing future
strategies or have concrete plans for changes
to their MA, JV and alliance strategies and
11% already have such programmes underway
or completed. Airline CEOs face a threefold
challenge in this area. How to get better value
from existing alliances? How to gain merger-like
benefits from JVs? And, where permissible, how
best to deliver full benefits from mergers?
Greater consolidation in the industry is
ultimately crucial for generating better
performance and raising margins to a level
where they can deliver adequate returns for
investors. It has been given added momentum
by the recent wave of mergers among US
airlines and similar formations of holding
groups in Europe and Latin America. But
regulatory barriers still typically stand in the
way of mergers as a principal route to cross-
border consolidation.
63%of airline CEOs are
developing future
strategies or have
concrete plans for
changes to their
MA,JV and
alliance strategies,
and 11% already
have programmes
underway or
completed.
The result has left airlines focusing on the
marketing and facilities-sharing gains of
alliances and the deeper capacity, price
planning and revenue management benefits
of JVs that enjoy anti-trust immunity benefits.
Ownership structures are also emerging that are
characterised by a complex array of minority
equity stakes between airlines, stopping short of
full ownership.
Alliances and multiple minority ownership
structures both raise governance issues and
bring with them the danger of complicated
decision-making. This can be a barrier to
delivering full value from initiatives. Even
where airlines have been able to take full
ownership they have sometimes been slow to
deliver gains from possible synergies, even as
basic as shared back office functions.
PwC viewpoint: Removing barriers
to consolidation and growth
The industry continues to be hindered by
fragmentation. Greater consolidation in the
industry is ultimately crucial for generating
better performance and raising margins. But
persuading governments to remove the
regulatory barriers to full-scale MA
remains a tough task. Regulators will need
to be convinced that national, economic,
labour and broader societal interests will be
advanced, rather than threatened, by
greater cross-border consolidation. Likewise,
governments must transform their view on
commercial aviation from an easy source of
revenue to a catalyst for broader economic
growth. Today’s competitive playing field is
growing more uneven as some governments
increase taxation and regulation while
others not only lower taxation but invest in
airport and other supporting infrastructure
projects.
20. Lifting the planning horizon
Planning horizons pose a difficult dichotomy
for airline CEOs. They need to take a long-term
view, especially given the investment cycle for
new aircraft and how those assets are leveraged
and utilised. But the nature of the business
requires a great deal of focus on quarter by
quarter management, especially for those
airlines facing profitability and other financial
challenges.
Despite these challenges, it appears that outside
of the many crises they have to manage, airline
CEOs are succeeding in looking further ahead.
Our CEO survey shows that airline CEOs see
themselves as being more successful than CEOs
in other sectors in taking a longer view. And
they want to raise their sights still further.
Nearly half (49%) report that they already work
to a five year or more planning horizon – that’s
significantly more than the third (32%) of
all CEOs (figure 10) who say the same thing.
Three fifths (59%) of airline CEOs see a five
year or more horizon as the ideal compared to
only 48% of all CEOs.
A longer term view not only fits better with the
investment cycle for new aircraft but also would
enable airlines to implement a technology
renewal strategy similar to their fleet renewal
strategies. Mission critical systems, such as
reservations, maintenance, crew, and revenue
management are all very strategic in nature
and typically have a life cycle of 10-20 years.
A holistic and longer term IT strategy would
enable airlines to avoid dependence on
outdated technology that has been an historical
characteristic of the industry.
Delivering transformative change
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 10 Airline CEOs are seeking to lift their planning horizons
Airline CEOs
All CEOs
Three years or less | 5 years or more
All CEOs (current)
(ideal)
32%63%
48%45%
Airline CEOs (current)
(ideal)
49%44%
59%28%
Q: What is your current planning horizon and what is the ideal time horizon?
21. 19PwC Global Airline CEO Survey 2014
Securing the future workforce
Running an airline is a labour-intensive
business. Airlines are highly dependent on
their staff, particularly skilled employees such
as pilots and technical personnel. Behind fuel
costs, labour is the single largest operational
cost. One of the biggest issues CEOs face is
managing this cost, often in a highly unionised
environment, and at the same time securing a
supply of future talent to fill the skilled roles
they need to take their organisations forward.
Changing the balance of the workforce to
match the changing needs of the airline is
an important challenge for CEOs and their
top management teams. In the past, airline
executives would tend to pursue a career in
the industry or, indeed, inside a single airline.
Today’s and tomorrow’s airlines require a much
more fluid and multi-disciplinary range of skills
and experience. They face stiff competition
from other highly developed and well-paid
sectors. Competition for scarce personnel will
also contribute to rising wage pressures.
A global shortage in skilled pilots is already
affecting many airlines’ operations and strategic
plans. Pilot gaps are reported to be forcing
schedule cancellations and migration of crew
around networks to cover rosters.10
Looking
ahead, Boeing’s long-term market outlook
forecasts that 498,000 new commercial
airline pilots and 556,000 new maintenance
technicians will be needed to fly and maintain
the new airplanes entering the world fleet
over the next 20 years.11
But the retirement of
experienced pilots is not being offset by a ready
pipeline of trained replacements.
88%of airline CEOs have
changes to their
talent strategies
underway, planned
or are developing
strategies for
change.
Leadership skills are in demand and are also in
short supply. On top of this, future innovation
has the potential to accelerate shifts in the mix
of skills required. As airlines increasingly focus
on merchandising and retailing strategies, new
skill sets will be required. And as passenger
expectations continue to rise, new customer
service capabilities, including the incorporation
of social media and interactive platforms, will
be necessary.
PwC viewpoint: Securing the
leaders of tomorrow
Effective workforce planning needs to be a
central element in airline strategies if they
are to overcome the adverse demographic
trends affecting their own workforces and
the talent sources they traditionally draw
upon.
To minimise increases in labour costs
airlines will need to develop new strategies
to attract and retain pilots in an increasingly
competitive global market. These may
include securing a pipeline through
agreements with regional and smaller
airlines, investing in or partnering with
local governments in internal developmental
academies, and re-negotiating existing
collective bargaining agreements to remove
or modify restrictive provisions.
To better capitalise on new opportunities
that require skills in emerging fields,
including social, mobile, cloud, analytics
and retailing; airlines should increase
recruitment in leaders from other industries
that bring expertise in leading practices
outside of the airline industry.
And better diversity strategies will help
airlines widen the available talent pool and
improve recruitment across entry and all
other levels across the organisation.
10 Airline Business, June 2014.
11 2013 Boeing Pilot Technician Outlook.
22. Overcoming the
headwinds
Barriers to growth and innovation
The airline industry is an international and
global business. But regulation remains
predominantly national or regional. Taxes,
infrastructure provision and cost, state aid and
regulatory costs vary considerably from
location to location. The result is that
competition across the industry is conducted
on an uneven playing field. On top of this,
restrictions on foreign ownership inhibit
consolidation in the sector.
Some governments and competition authorities
are becoming more willing to let market
consolidation happen, although this is often
restricted to distress situations. Government
policies towards airlines have become more
liberalised but airlines operate in what is still
only a semi-liberalised market. In contrast,
competition in shipping - a competitor to
airlines on the cargo side - is fully liberalised.
There are few barriers to exit and
consolidation, nationally as well as
internationally.
Not surprisingly in this context, airline CEOs
are much more concerned about the policy
barriers to growth than their counterparts in
other sectors. Over-regulation is seen as
concern by 92% of them compared to 72% of
all CEOs (figure 11). Similar views are
expressed about an ‘increasing tax burden’,
consumer protection policies and the
protectionist stances of national governments.
Infrastructure frustrations are a particular
barrier to greater efficiency. Inadequate
infrastructure was cited as a concern by 79% of
airline CEOs compared to 47% of all CEOs. In
some locations, governments have prioritised
airport infrastructure while in other places
airport development has been constrained.
This not only results in bottlenecks but is also
another contributor to an uneven international
playing field.
Air traffic control is another key infrastructure
concern. Airspace is global but airspace
provision and control is largely national. A
global interoperability standard remains a
politically distant hope. And the European
Commission’s ‘single European sky’ initiative
has been very slow to progress, mired in
political debates over the transfer of European
airspace management from 39 national
authorities to one single central entity.
23. PwC Global Airline CEO Survey 2014 21
Government policies
towards airlines have
become more liberalised
but airlines operate in
what is still only a
semi-liberalised market.
92%
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 11 Regulatory constraints are a significant headwind to growth in the airline industry
Q: How concerned are you with regards to the following list of potential policy threats to your organisations growth
prospects?
Airline CEOs
All CEOs
somewhat concerned | extremely concerned
* not asked of all CEOs.
Over-regulation
Inadequate infrastructure
Protectionist tendencies of
national governments
Government response to fiscal
deficit and debt burden
Government response to
environmental concerns
Increasing tax burden
Disproportionate consumer
protection policies*
79%
74%
74%
72%
87%
82%
72%
47%
54%
71%
70%
24. Demonstrating value and impact
Overcoming the political and regulatory
barriers outlined in the previous section will
require a considerable effort and a shift in
political will. Genuine collaboration between
the airline industry and governments, focused
on shared, long-term goals, will need to
combine with greater international consensus.
If airlines are to be successful in persuading
governments to dismantle or alleviate some of
the policy barriers that can have a negative
impact on the industry, they in turn also need
to step up their communication of how their
activities contribute positively to social and
economic good.
Most CEOs already recognise that business has
social as well as financial responsibilities. They
believe it’s important to balance the interests of
different stakeholders, rather than focusing
solely on investors, employees and customers.
And they understand that this entails
measuring the full impact of their company’s
activities - across social, environmental, fiscal
and economic dimensions.
Measuring a company’s total impact shows
management the full impact it’s making. So, for
example, it shows a company’s social effect on
the health and education of the communities in
which it operates; its environmental effect on
the air, land and water; its fiscal effect on the
public coffers; and its economic effect in terms
of the value it adds or the number of jobs it
creates.
As figure 12 shows, airline CEOs are broadly in
line with CEOs in other sectors in their
appreciation of this and other statements about
their businesses wider social and economic
role. But, given the importance to the industry
of reforms in government policies and better
international policy cohesion, airline CEOs may
feel that they need to go beyond the standard
set by other CEOs and increase their
communications in this area.
Overcoming the headwinds
25. 23PwC Global Airline CEO Survey 2014 23
Genuine collaboration
between the airline
industry and
governments, focused on
shared, long-term goals,
will need to combine
with greater
international consensus.
Source: Airline CEOs – PwC Global Airline CEO Survey 2014. All CEOs – PwC 17th Annual Global CEO Survey
Figure 12 Most CEOs believe business has a social as well as a commercial role
Q: To what extent do you agree or disagree with the following statements?
Airline CEOs
All CEOs
agree | agree strongly
The purpose of business is to balance the
interests of all stakeholders
Measuring and reporting our total
(non-financial) impacts contributes to our
long-term success
Improving workforce and board diversity
and inclusion is important for my business
It’s important for us to measure and try to
reduce our environmental footprint
Satisfying societal needs beyond those
of investors, customer and employees,
protecting the interests of future generations
is important to busines
67%
72%
92%
74%
77%
69%
74%
82%
80%
76%
26. Methodology and Contacts
Julian Smith
Global Transportation Logistics Leader
+49 211 981 2167
julian.l.smith@ru.pwc.com
Jonathan Kletzel
US Transportation Logistics Leader
+1 312 3717946
jonathan.kletzel@us.pwc.com
Stefan Stroh
Partner Strategy, Head of European
Transport Travel
+49 69 97167 423
stefan.stroh@strategyand.pwc.com
Bernd Roese
Global Airlines Airports Leader
+49 69 9585 1162
bernd.roese@de.pwc.com
Bryan Terry
US Transportation Logistics Director
+1 678 419 1540
bryan.terry@us.pwc.com
Peter Kauschke
Director, Global Transportation Logistics
+49 211 981 2167
peter.kauschke@de.pwc.com
Editorial, research and project team
Bryan Terry
Peter Kauschke
Tobias Pütter
Editorial contribution
Scott Likens
Bernd Roese
Stefan Stroh
Richard Wysong
The content of this report is based on an online survey among 39 airline CEOs around the world.
All quantitative information was collected on a confidential basis. The survey was done in close
collaboration with the International Air Transport Association (IATA). While most questions
follow the exact questionnaire of PwC’s 17th Annual Global CEO Survey, some questions have
been added or modified to address the special environment of the airline sector.
PwC’s extensive network of airline experts and specialists has provided input into the analysis of
the survey.
Note: Not all figures add up to 100%, due to rounding of percentages and exclusion of ‘neither/
nor’ and ‘don’t know’ responses.
For further information on the survey content, please contact: