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PwC: Airline Sector Comments

By Rob Starr, Content Manager,

Roger de Peyrecave, PwC Head of Airlines commented recently on the airline industry saying that carriers needed to re-evaluate how and where they can initiate ways to become more efficient. He suggested they could gain insights from other capital intensive industries such as the automotive sector, on how they have managed to achieve long term sustainable changes.

“The airline sector was showing signs of distress even at the start of the year, particularly those in the ‘squeezed middle’ – those lacking clear market differentiation,” Peyrecave said. “For carriers to remain successful, they will have to continue to focus on achieving significant cost reduction, harness an appropriate return on capital and see how they can achieve step changes in mature markets as well as tapping into emerging ones.”

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