THE aviation industry in the post-pandemic era is not short of challenges, ranging from keeping airfares affordable, especially during festive seasons when profit margins are “razor-thin”, to having adequate and committed workers, said panellists at the Changi Aviation Summit on Monday (Feb 19).
Malaysia’s Transport Minister Anthony Loke highlighted affordable flight tickets as a “big” issue, especially for his country where 50 per cent of traffic movements are in domestic travel.
Kuala Lumpur recently started to impose a ceiling price on airfares for domestic flights shortly before the festive seasons, in order to make it affordable for Malaysians travelling back to their hometowns.
This, however, would erode airlines’ already very low profitability.
The Malaysian government has to balance the industry’s interest against social needs, said Loke. Therefore, it is making good on the difference between the airfare airlines should be charging without state intervention and the price cap imposed.
He also made the point that with the industry needing to invest continually in airport infrastructure, a funding mechanism is essential for investors to recoup their investments.
“We will have to strike a balance to let the private sector take the lead, and at the same time reduce the burden on the government,” said Loke.
He was one of the four panellists at the roundtable discussing aviation challenges in the post-pandemic world.
During the session that was held at the Sands Expo and Convention Centre, International Air Transport Association director-general Willie Walsh spoke about the planning challenges that many airlines encounter due to supply chain disruptions and faulty engine problems.
He also voiced frustrations about airlines not being able to offer the capacity required to meet demand due to shortages in spare parts caused by supply chain disruptions.
A significant number of aircraft is expected to remain grounded till 2025, said Walsh.
Inadequate aircraft aside, the industry is facing a manpower shortage, he said. The aviation industry needs about 480,000 technicians to maintain aircraft and some 350,000 pilots by 2026, but attracting talent has proven to be difficult.
Walsh noted that the industry has not succeeded in convincing more women to join as technicians, mechanics, engineers and pilots.
Luis Felipe de Oliveira, the director-general of Airports Council International World, the trade association of the world’s airports, said the industry needs to “automate as much as we can” and continue to invest and provide training to workers.
Loke noted that Malaysia’s policies are focusing more on technical training, even as the sector also faces difficulties in retaining talent.
“One of the challenges is related to Singapore. Many of our skilled workers prefer to work in Singapore because of the strong currency. It’s a challenge for us to retain our skilled workforce,” he said.
Loke also cited the experience of a local Malaysian airline to highlight the importance of work discipline and commitment. The carrier had 50 cabin crew members calling in sick during the recent Chinese New Year period, which caused major disruptions to its operations.
Separately, in response to a report on how some 300,000 seats per month are being wasted across the Asia-Pacific by airlines unable to secure airport slots, Malaysia and the Philippines said they do not favour domestic or local airlines over others in assigning slots.
Some carriers have said they are not obtaining slots because national airlines are given priority so as to hasten their recovery.
The Philippines’ Transportation Secretary Jaime Bautista said during the panel: “We treat everyone fairly. We do not favour domestic or local carriers over the others.”
