Not Easy to Govern an Airline

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There is a position that all ambitious airline employees dream of, that of Executive Chairman of an
airline. And yet, on reflection, is it such an enviable profession? The constraints both internal to the
company and related to its environment, in the midst of which it must evolve, can make life
impossible. Listing them is a real headache, but we can at least sketch the most conspicuous ones.

Ecology
Taking it into account has changed the air transport environment, which until now had to evolve by
focusing on its economy and safety. This is something to occupy the mind of any leader. We must
now add this new constraint which, without us really seeing it coming, is increasingly influencing the
ecosystem in which all carriers must operate. No exploitation programme can be envisaged without
taking this into account. It even influences the composition of fleets and of course the lines to be
served. And it will only increase in the years to come.

The unions
They are very powerful in this sector of activity. Antagonizing a category of staff can completely seize
an airline. However, corporations are varied and have different expectations. Of course, the pilots’
unions are by far the most powerful, so much so that in the not-so-distant past, United Airlines pilots
took the helm of the major American operator, with a disastrous result. No airline manager will
admit to doing without sometimes endless discussions with the unions because any of them,
including the most modest jobs, I am thinking of baggage handlers among others, can put their
company at a standstill.

Manufacturers
The almost endless growth of air travel is leading to a bottleneck for manufacturers. Airbus, for
example, delivered only 73 aircraft in September, a drop in the bucket compared to the 8,000 to
9,000 aircraft ordered. At this rate, it will take nearly 10 years of production to meet the demand and
during these ten years the manufacturer will receive several thousand additional orders. And there is
no chance for airlines to compensate for the European manufacturer’s delivery delays by turning to
Boeing, which is in a very difficult situation for quite some time. It should be added that engine
manufacturers are also unable to keep up with the production rate. It must be said that new devices
are more and more efficient and that they are more and more complex to build. In short, how can
you manage a medium-term operating program when you are unable to know the delivery dates of
the aircraft? This difficulty is not the least to be solved by the bosses of the companies

Controllers
At least in Europe, they are the terror of the operators. At any time and for any reason, they can go
on strike. However, in Europe there are many control centres: more than 40 and spread over the
various states that must be crossed to get from one point to another in this continent, which is
ultimately small, at least geographically. And each country has a different management of this wage
body, which means that the risk of disruption of operations is multiplied by the political and
economic conditions of each state. The United States has had to deal with such problems, but they
were brutally solved by President Reagan in the early 1980s. The European political situation is much
more complex.

The States
Governments cannot help but stick their noses into air transport and therefore very often into the
management and direction of airlines. They impose new constraints, often administrative, at their
leisure and they use this sector of activity to bring money into the public coffers without these
contributions being used to modernize air operations. We have also seen traffic rights granted to
carriers only to sell military equipment. And I’m not talking about the companies that are often
subject to transporting politicians for free or employing pseudo leaders to house friends.


In short, running an airline is certainly prestigious, intellectually very interesting, sometimes
financially comfortable, but it is certainly not a sinecure.

The Difficult Situation of Northern Carriers

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There was a time, not so long ago, when Nordic airlines were the envy of other European operators.
It was the time when SAS (Scandinavian Airlines System) could be named the best airline in the world
in the mid-1980s and when Finnair was weaving its network between Europe and Asia by transiting
passengers through Helsinki. It should be remembered that these Nordic companies are among the
oldest in the world. SAS was founded in 1946, Icelandair in 1937 and even Finnair in 1923.
Despite difficult climatic conditions and very limited domestic markets, at least in terms of the
number of potential customers, these operators have managed to stand the test of time by
becoming models of regularity and customer reception. Unfortunately, times have changed a lot,
except for Finnair, which seems to be doing well.


Like all traditional operators, these airlines took the full brunt of the assault on “low-cost” carriers in
the mid-1990s, when European airspace was opened. The new entrants, with their model of minimal
services, additional revenues, modern aircraft, and staff managed without bearing the weight of
seniority, have been able to display totally unbelievable or even uncredible prices to traditional
carriers. The latter were used to selling a high price to a limited but loyal clientele a product that was
expensive to operate but which had proven its reliability. However, here we are, on their markets,
individuals often from foreign countries capable of operating on their territories by charging rates
that the traditional companies were unable to compete with because their production costs, their
mode of operation and even their culture were incompatible with the new proposals.


So, the old operators tried to resist and let’s say it they did so with quite a bit of success until the
damage caused by Covid. SAS, to name but one, found itself in a very difficult situation with the great
complexity of a capital split between 3 countries, one of which, Norway, announced its withdrawal.
And no one has come forward to join a company considered to be aging, even if this is not true. This
is what led it to fall under the Peter Pan forks of Chapter 11, which, by the way, allowed it to
restructure, but also to attract the Air France/KLM group, largely saved by public funds, to become a
conqueror again. Thus, the fierce independence of SAS was largely dented by the fact that it
belonged to the Franco-Dutch carrier.


In the middle of the Atlantic, in Iceland, the “low costs” had to bend the knee to reality. While
Icelandair continues its good way, the new entrants only make a brief visit. Recently, on September
25, the company PLAY, created in July 2019, filed for bankruptcy and stopped its activities almost
without notice. Its model was to sell transatlantic flights at discounted prices with a stop in Reykjavik.
Of course, the geography was respected because almost all flights between Europe and North
America pass over this island. Except that Icelandair uses the same model but using traditional
methods, in particular in terms of its distribution method. It may seem old-fashioned to continue to
go through GDSs and travel agents, except that to free yourself from them and penetrate the market,
you have to make considerable commercial investments just to buy positions in social networks. And
customers are starting to be wary. They no longer want to buy tickets without finding their carrier,
especially since these new companies are often undercapitalized and only have the cash flow built up
by customers who are forced to pay for their tickets very far in advance to benefit from fares that are
unable to bear the cost prices. This is how PLAY customers will always be able to frame their ticket,
which will make them a bitter memory.


The same adventure happened to the passengers of WOW, also an Icelandic company, created in
November 2011 and which was liquidated under the same conditions as PLAY on March 28, 2019. We
could also mention PRIMERA AIR, which filed for bankruptcy on October 2, 2018, or even the long-
haul part of NORWEGIAN, which was also shut down in 2020.

That’s a lot. The reputation of Nordic carriers for seriousness is very seriously dented. For a long time,
southern European airlines were singled out for their erratic management, now operators in
northern Europe are facing the same symptoms. Air transport is a particularly difficult activity and its
growth should not make us forget that to launch a new carrier, you need to have strong backs.

The Future Giants Of Air Transport

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We are used to the ever-increasing figures of air transport, wholesale and for the year 2025, 5 billion
passengers, 1,000 billion dollars in turnover, more than 15,000 aircraft in regular operation by 1,200
carriers, 800 of which carry 98% of the market. And growth continues at the same rate of 5% per
year, which leads to a doubling every 15 years, despite the formidable environmental lobby, the main
enemy of this mode of transport. I note, however, that despite this continuous growth, air transport
produces a constantly decreasing proportion of CO² compared to other economic sectors on the
planet. It is now below the 3% mark and the figure will inevitably decrease with the arrival of a new
generation of aircraft, better airspace management and a constantly increasing average size of
aircraft.
This growth will not be driven by traditional carriers, which will continue to grow below 4% year after
year, but by new entrants. The domination of the Western world will gradually disappear in favor of
Asian, and even African, operators. Two carriers attract attention.

Turkish Airlines
It is not an Asian carrier and not a European one either. Before the year 2000, the Turkish national
airline was not talked about although it was born in 1933. But under the impetus of Racep Tayyip
Erdogan, then Prime Minister, orders for aircraft intensified and airport facilities were renovated
with the construction of Istanbul’s new airport, capable of handling 150 million passengers, twice the
capacity of Europe’s largest airport, Roissy Charles de Gaulle. So where will the company stop?
It has built a considerable network from its hub that serves 352 destinations, more than the 350 of
American Airlines, currently the world’s largest airline group. It operates 490 aircraft and has placed
orders for 352 new aircraft. This will give it the means to expand. It has already become a serious
competitor for Gulf carriers by positioning itself in their market of connections between Asia and
other continents.
This strategy has been very successful because with a turnover of $22.7 billion in 2024, 10 times that
of 20 years earlier, it has generated a net profit of $3.64 billion that would be the envy of many. This
is enough to open up the means for him to achieve his ambitions.

Indigo
This Indian carrier never ceases to amaze. Created much more recently, in 2005, it is now managed
by Pieter Elbers, the former CEO of KLM, who came into conflict with Benjamin Smith, the head of
the Air France/KLM group. There is no doubt that he will not stop taking his revenge against the
Europeans who, in the end, preferred a Canadian to head one of the three major airline groups on
the continent. Admittedly, Indigo is for the moment much smaller than Turkish Airlines, at least in
economic terms: 10 billion dollars in turnover, for a positive result of 860 million dollars. But the
operational figures are impressive: 434 aircraft in operation for 126 destinations mainly located in
the Indian subcontinent and more than 100 million passengers carried. What is impressive are the
company’s ambitions materialized by the most extraordinary order of aircraft: 1,016 to be said,
admittedly to be delivered spread over several years. But in this order there are now long-haul
flights. In other words, Indigo’s projects will not be limited to India or even to Gulf destinations.
Europe is undoubtedly in Pieter Elbers’ sights.


We could add other Asian carriers and in particular Air Asia and especially the Indonesian Lion Air,
which it should be remembered was the first victim of Boeing’s failures with the loss of the first B737
Max for which the manufacturer had blamed the operator at the time.

Just by looking at the distribution of the considerable aircraft orders, around 18,000, by recalling that
the average value of an aircraft is 100 million dollars, we can see very well that the growth of air
transport will be brought by the countries located around the Indian Ocean. However, these are not,
for the moment at least, permeable to ecological pressures.

What Is the Purpose of an Airline?

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This question leads to an obvious answer: to transport passengers. Of course, this is its primary
vocation and the success of air transport is the most striking demonstration of this. Nearly 5 billion
passengers in 2025 and a demand that continues to grow. Let’s remember that the inhabitants of
more than 2/3 of the planet still do not have access to this mode of transport and as soon as they
can, they rush to it. He only has to look at the tremendous evolution of air travel in India, where the
company Indigo, for example, has placed an order for 500 aircraft with an average capacity of nearly
200 seats and has taken an equivalent option. So, there is no doubt that airlines have a unique
vocation: to transport passengers or cargo with planes. But that’s not all, and if you take a closer
look, an airline has other vocations.

Low costs

Basically, they are the only carriers whose sole function is to transport passengers. They have
considerably developed the layers of clientele and we owe them a very large part of the
development of tourism but also of over tourism, which is becoming a real concern. This type of
company must be economically profitable because “low costs” have nothing to expect from the
public authorities. There remains the case of Ryanair, which has built a large part of its prosperity by
charging the regions and airports that wanted to host its flights. This strategy worked because in the
end the passengers brought bring a much higher added value than the contributions paid to the
company. This is an example where without necessarily being part of his vocation, a carrier can
revive a region or even develop a country. At least this is what we can see between Europe and some
North African countries.

Legacy airlines

These are the traditional airlines. They created air transport by using the protection of states, which
in turn use them as a means of prestige, but also as a means of diplomatic pressure and even internal
politics. The 197 countries of the world, two of which are only observers at the UN, the Vatican and
Palestine and two are not registered, Taiwan and the Cook Islands, all or almost all have their own
carriers. Even very small states like Monaco have their own helicopter company. The traditional
companies have also evolved a lot and the States have gradually disengaged, at least as far as their
participation in the capital is concerned. Many investment funds have replaced the States without
the latter having given up on keeping control of their national carriers. Many have kept enough
shares to sit on the board of directors and influence certain decisions. Most of them have also largely
supported their national operator financially during the Covid period.


Traditional airlines are the vectors of traffic rights between states and they represent an essential
part of a country’s sovereignty. This is how air carriers become a real tool in the service of countries’
foreign policy, or even a means of camouflaging espionage activities, as we have seen in the past.
They are also the means for some governments to conduct their domestic policies. Ecological
constraints are often put forward to camouflage electoral objectives. It is easier and more effective
to constrain air transport to please the effective environmental lobby rather than to attack other
sectors of activity that are much more a source of pollution, such as textiles for example. But it is
easier for a government to administratively limit air transport, and first of all the national airline,
rather than looking into other sectors of activity that are more difficult to control.
And finally, airlines can become an effective means of pressure in the event of conflict. Preventing
flights between countries is relatively easy, all you have to do is remove traffic rights and not receive
the aircraft of the companies concerned.

Basically, a traditional company has many more functions than transporting passengers. It is the
symbol of a country’s independence. Without its own airline it does not really exist, but the
development of its national carrier as is the case in the Gulf countries immediately gives an influence
that could not be achieved by other means.


This is one of the reasons why air transport still has many years of growth ahead of it.

GDS Are Big Profiteers of AI

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GDS (Global Distribution Systems) are not new in the world of air transport. Created by the major
airlines between the late 1970s and the early 1980s, following the deregulation of American air
transport decided by President Carter in 1978, they have established themselves as the essential tool
of distribution by linking travel agents to carriers’ inventory systems.


It worked so well that traditional airlines, in great difficulty following political uncertainties and the
arrival of “low-cost” competitors, gradually sold their stakes at a very high price in order to
compensate for the drift of their accounts. However, these companies, which had become economic
nuggets, were bought by investment funds that were quick to sharply increase the royalties that are
paid by the carriers. This is how, believing they were getting a good deal, the creators of the GDS
found themselves caught in a spiral from which they are trying to escape. To do this, at the request
of its members, IATA, which is an association of airlines, has developed a new protocol called NDC
(New Distribution Capability) in order to speak directly to travel agents without going through the
GDS. However, the widespread use of NDC takes time, a lot of time. A very small number of
companies have installed it. In short, it is far from being fully operational.


Meanwhile, the GDSs have been very concentrated. To date, only 3 major players dominate the
market: Amadeus, Sabre and Travelport. They gradually absorbed the original GDSs such as Galileo or
Système One and became the property of investment funds. Amadeus, for example, is more than
50% owned by 10 funds, the rest being on the stock exchange. Therefore, it is necessary to maintain
a high stock market price to ensure the profitability of the large amounts disbursed. It is therefore
unthinkable for the GDS to lose control of a sector of activity, air transport, which is growing steadily
by 5% per year and which will pass this year or next the turnover of 1,000 billion dollars with 5 billion
passengers. Let’s think that if growth continues and there is no reason for it to stop, in 2035 there
will be around 9 billion passengers who will generate a turnover close to 2 trillion dollars.


So, in order not to lose this manna, the GDSs have also embarked on the NDC protocol and they have
become pillars of it. Whether they like it or not, carriers will still have to use their services. But it
would be surprising if this stopped at the traditional range of products provided by the GDS. The
arrival of AI (Artificial Intelligence) will open up opportunities for them that we can think they will try
to take advantage of. I am talking about the famous Data, in fact the information that passes through
their hands. Because except for direct sales made by airlines, mainly via the Internet, all other
transactions go through GDSs. Even the “low costs”, who are totally reluctant to this mode of
distribution, are coming to it. This is how the GDSs will pass through their pipes a colossal amount of
information on air transport customers, but also on the ancillary services included in the NDC
protocol. Unlike airlines that will only know their own users, GDSs will have a global and detailed
view of the market.


The capabilities of Artificial Intelligence will certainly allow them to shape this mass of information
and so why not sell it to the players, the companies, who could thus have practical and effective
information not on their own customers, but on competitors? Of course, personal data will still be
protected and will remain confidential, at least that is what we can hope, but the statistics and their
processing will remain the property of the operators who collect them. This information will be of
considerable value because it concerns the part of the population most likely to consume. Let’s
imagine that a monster like Amazon gets its hands on a very large GDS, given its computing power
and the quality of its engineers, they will be able to make a considerable profit from it. Finally, if they
use the possibilities offered by AI, the remaining GDSs will become not only essential in the
distribution of air transport, but a key tool for operators’ decision-making. The latter will find
themselves obliged to buy them if they do not want to be inferiority to their competitors.


Air transport will inevitably evolve both under environmental constraints, but also with new technical
capabilities and the intelligent processing of the data contained in PNRs, in other words not the
reservation files that record the markets of origin, destinations, and purchasing behavior. We haven’t
finished talking about it again.

Lufthansa Group’s Full Content Is Now Available on APG Platform

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LUFTHANSA GROUP’s NDC connection is now available on the APG Platform, APG’s NDC portal.
APG, the world’s largest and most successful airline representation network with over 100 offices globally, is
partnering with Lufthansa Group, to offer Lufthansa Group’s full content via the APG NDC platform, without
any surcharge.

“APG is excited to leverage its integration via Travelsoft, who has been recently certified as a Lufthansa
Group’s Travel Tech Provider and to bring Lufthansa Group’s full content offering to 3,000+ worldwide partner
travel agencies through the APG Platform. Travel partners will have access to the Lufthansa Group full content
with Lufthansa (LH), Brussels Airlines (SN), Swiss International Air Lines (LX), Austrian Airlines (OS), Discover Airlines
(4Y), and Air Dolomiti (EN) as well as interline with the Joint Venture partners Air Canada and United Airlines
and benefit from exclusive fares through the NDC channels, not available anymore in GDS EDIFACT, such as
Economy Light and Business Saver.” said Héloïse Parrain, APG Platform Director.

Heinrich Lange, Lufthansa Group’s Vice President Digital Retailing, said: “It is great to welcome APG to our
NDC Partner Program as we share the common goal to develop comprehensive NDC-powered solutions
to modernize travel retailing. NDC enables us to improve our service delivery, creating a smooth and
tailored customer experience while ensuring access to competitive pricing and special offers. We are
looking forward to drive the continued industry transformation together.”

Under this new connection, APG Platform provides an end-to-end shopping and booking solution to
thousands of travel agencies in 140 countries, including the possibility to manage after-sales operations
such as cancellation, refund and void. It is also possible to add ancillary services (bags, seats, etc.) and to
change an itinerary or travel date onto the APG Platform.

With 44 carriers available, offering the best fares, APG Platform is a ticketing platform which can assist
travel agents to generate additional revenue by enlarging their catalogue and by selling air and non-air
ancillaries combined. Uniquely, the APG Platform is promoted and supported in over 150 countries by the
APG Network. The APG Platform is under the newest XML technology and follows all IATA standards.
With APG Platform, NON-IATA and IATA agencies can find the best offers in full transparency on all the
routes operated by an airline. They can also combine airline tickets with non-air products, such as hotels,
car rentals, and ancillary services (baggage, special meals, sport equipment, assistance, Wi-Fi access,
lounge access, etc.).

ABOUT LUFTHANSA GROUP
The Lufthansa Group is an aviation group with operations worldwide. It plays a leading role in its European home market.
With 101,709 employees, the Lufthansa Group generated revenue of EUR 37,581m in the financial year 2024.
The Lufthansa Group consists of the business segments Passenger Airlines, Logistics, MRO and Additional Businesses. The Passenger Airlines business segment includes, on the one hand, the network airlines Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines and ITA Airways. As part of a multi-hub strategy, they offer their passengers a broad range of flights from their hubs in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome. Lufthansa Airlines also has close relationships with the regional airlines Lufthansa CityLine, Lufthansa City Airlines and Air Dolomiti as well as Discover Airlines, the Lufthansa Group’s holiday airline. Edelweiss, the leading Swiss holiday airline, has a close relationship with SWISS.

Eurowings also belongs to the Passenger Airlines business segment. This airline provides a comprehensive range of point-to-point connections for short- and medium-haul destinations, in particular from German-speaking countries.

ABOUT APG
With over 30 years’ experience in airline distribution and over 100 offices globally, APG is the world’s largest and most successful airline representation network, partnering with over 200 valued airline clients. APG offers a holistic approach to airline distribution, offering not only airline representation but also interline e-ticketing solutions, fare filing and settlement support services, all aimed at maximising an airline’s revenue potential. APG is always at the forefront of distribution development and our latest APG NDC Platform will assist airlines unlock the benefits of NDC distribution.

Our new APG Cargo services are also gaining worldwide interest from airlines including our APG Cargo Interline solution, cargo GSSA services and total cargo management solutions.

The APG Network is indeed, “The World’s Leading Network for Airline Services.”

Please visit our website www.apg-ga.com or follow us on LinkedIn and Facebook @APGNetwork

Media Contact: f.despreaux@apg-ga.com

The end of “low-costs”

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The title is a bit provocative, but the question deserves to be asked. Of course, “low-cost” carriers are
not going to disappear, but their product and their way of operating are in line with the methods of
traditional airlines and moreover, the latter have also largely evolved their operation towards the
“low-cost” model. From then on, and at least as far as short and medium-haul flights are concerned,
there will be only one hybrid model for which it would be wise to find a name.


For quite some time now, the difference between the two concepts has tended to shrink. Incumbent
carriers have been quite easy to adopt the Spartan service on board their flights, especially for
economy classes. They have not yet become accustomed to cashing in the additional services on
board, because the flight crews do not want to handle the money, unlike those of the “low-cost”
whose remuneration comes from this source. The density of seats is more or less identical, i.e.
traditional airlines have adopted an increasingly small space between rows in order to squeeze more
and more people on board. It was also a somewhat mandatory response to the reduction in fares in
order to reach the prices posted by the “low-cost”.


The aircraft are identical and the fleets of traditional carriers are modernizing, thus matching the
performance of their competitors. And so it is that the arrival on the market of the latest generation
of twin-engine single-aisle aircraft, which make it possible to carry out much longer flights, such as
transatlantic flights, will further accentuate the uniqueness of the model even on what must be
called long-haul flights.


So what is left to differentiate the two concepts? First of all, there is still a clear difference in the
operation of the aircraft, the “low-cost” are still looking for and rotating more than the traditional
airlines in short and medium-haul flights. To do this, they have to make faster U-turns and sometimes
put online a program so tense that the last flights of the day are very often late. The management of
on-board staff is also different, with “low-cost” workers being paid largely on a performance basis
and with much more restrictive working conditions than those of their colleagues in traditional
carriers. This does not mean, however, that they are not ultimately paid as well as their counterparts.
But in the end, all these differences are fading. And economic results are affected. Regular airlines
have made considerable efforts to improve their financial performance, i.e. they have improved their
performance at a time when prices were tending to rise, including among “low-cost” airlines. Gone
are the miraculous results of the “low-cost” and first of all on the American market. Spirit Airlines
has just filed for Chapter 11 bankruptcy, and Southwest shareholders are railing about falling profits
at a time when the major U.S. carriers are posting record profits. It is not certain that the same
phenomenon will not occur in Europe and why not in Asia. Basically, the “low-cost”, whose concept
is not so recent, are becoming gentrified, while the “low-cost” are making commendable efforts to
lighten up.


So to become more competitive, the “low-cost” are starting to adopt traditional systems, especially
for their marketing. We now see them entering the classic mode of issuing banknotes in order to be
distributed by the GDS and the BSP traditionally used by the incumbent operators and even enter the
“low-cost” system that they did not want to hear about at any price.
We can see that the rapprochement between the two concepts is being finalized, each copying the
best in the others. As a result, the term “low-cost” has less and less meaning. Who is now going to
find a name to describe the operators of short and medium-haul flights so that the public is aware of
this development?

Air North Appoints APG as GSA in Key Global Markets

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APG, a global leader in airline representation, is pleased to announce that Air North, Yukon’s airline, has extended its partnership with APG and appointed the company as its General Sales Agent (GSA) in China, Finland, Hong Kong, Portugal, Singapore, South Africa, Thailand, Türkiye, and the UAE.

As Air North’s GSA, APG will oversee all sales and marketing activities in these markets, ensuring comprehensive and dedicated representation of Air North’s services. These services include scheduled passenger flights across Yukon and northern Canada, offering safe, reliable, and efficient connectivity to remote communities and key destinations.

Air North is also a partner of APG Airlines, meaning that tickets for Air North flights can be issued globally using APG Airlines (GP) as the validating carrier, allowing seamless access to Air North’s network in all markets worldwide.

“We are delighted to strengthen our collaboration with Air North and expand their international presence,” said Richard Burgess, President of APG Network. “Through our global network, we will provide dedicated sales and marketing support to ensure Air North’s services reach a wider audience across these key regions.”

“Air North, Yukon’s Airline has experienced significant growth in our international business since our relationship with APG,” said Denis Parry, Director Agency, Packaged Products & Sales Distribution. “As we expand our presence in additional markets, we look forward to continued growth and success.”

ABOUT AIR NORTH                                        

Founded in 1977 and headquartered in Whitehorse, Yukon, Air North is the largest airline in the Yukon and a key connector for northern communities. The airline operates scheduled passenger services, charter flights, and cargo operations, offering safe and reliable travel within Yukon and to destinations across Canada. Air North is known for its commitment to community service, safety, and connecting remote regions with the rest of the world.

ABOUT APG

With over 30 years’ experience in airline distribution and over 100 offices globally, APG is the world’s largest and most successful airline representation network, partnering with over 200 valued airline clients. APG offers a holistic approach to airline distribution, providing not only airline representation but also interline e-ticketing solutions, fare filing, and settlement support services, all aimed at maximising an airline’s revenue potential.

Always at the forefront of distribution innovation, APG also enables airlines to unlock the benefits of NDC distribution through APG Direct Connect.

Furthermore, APG Cargo services are gaining strong global interest, offering cargo GSSA services, cargo Interline, and total cargo management solutions.

APG Network is truly “The World’s Leading Network for Airline Services.

Learn more at www.apg-ga.com and follow us on LinkedIn and Facebook @APGNetworkOfficial.

Media Contact: f.despreaux@apg-ga.com

How do airlines differ?

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Pieter Elbers, CEO of India’s IndiGo, which has placed the largest order for aircraft ever with 1,021
planes all at Airbus, pointed out that the only real difference between airlines was the quality of the
crew. Is this really true?

Air transport is organised in such a way that all operators have the same opportunities because they
are ultimately dependent on the same rules, regardless of their country of origin. This is the only way
to be able to exchange passengers and goods from one country to another and this is what has
greatly contributed to the rapid development of this activity.
Looking at the details a little, we can see that the carriers have, in total, few possibilities to express
their originality. They use the same aircraft because, whether they are produced by Airbus or Boeing,
their performance is more or less identical: the same speed, the same ranges, the same type of
comfort, the same safety qualities. In addition, they fly to the same major airports, they use the same
distribution techniques: GDSs and they finance their fleets using the same methods: partly by
purchasing and partly by leasing from the major leasing companies.

In short, the fundamentals of air transport are available to all airlines, but the customization
capabilities between operators remain infinite. Just like with 7 notes of music, you can compose an
infinite number of works, from the most mediocre to the absolute masterpieces.
Of course, the first differentiation comes from the market in which the company operates. In this
sense, the major American carriers hold a privileged position. But what can be said about an airline
like Turkish Airlines, which for a long time was almost non-existent in the world concert and has
become almost unavoidable between the European market and Asian and even African destinations?
How can we explain the eminent position held by Gulf carriers when they do not have a natural
market?

In fact, with the same tools and facilities, airlines can still customize their offering significantly.
First of all, by the cabin fittings. Depending on whether you want to position yourself in the “low cost”
or the high-end, the choice of cabin composition is essential and manufacturers have understood this
well because they deliver aircraft that comply with the specifications of the airlines who can decide
on the entire range of interior equipment from the number, layout and comfort of the seats but also
the galleys and leisure equipment. To this personalisation, we must of course add the quality of the
services served on board, which can make a big difference, especially for long-haul flights. We now
see more and more frequent flights of more than 15 hours.

And then there are an infinite number of factors linked to the great complexity of air transport. The
regularity of operations and their ability to respect their schedules remain particularly important for
customers’ choice, especially when journeys are made with connections at very large airports.
And how can we miss the rates that remain such a determining factor for the choice of many
customers. Curiously, however, these vary from day to day or even hour to the next according to the
fluctuations imposed by the “yield managers”.

Let’s take for example a transatlantic journey that will vary from 7 to 11 hours of flight. Carriers are
violently competing in this economically profitable market. Several dozen carriers share this cake
with roughly the same number of seats offered by operators on each side of the Atlantic. The aircraft
are identical, the airports are common to all, the schedules are very comparable and the fares are
subject to the “yield managers” who use the same IT tools. And yet the flight experience is very
different depending on whether you use an American or European carrier and even with strong
differentiations if only between European airlines. Each of the operators strives to respond first to
the wishes of its main market and the expectations are not the same on both sides of the ocean.
Companies are making great efforts to personalize their product and moreover they are essentially
advertising their personalization, especially since the end of Covid which marked the end of the race
for the lowest prices. So how can we explain this unfortunate practice of “code share” which consists
of putting flight numbers of a European company on a route operated by an American carrier and
vice versa? How can a commercial approach based on the personalization of one airline be justified if
it ends with a flight operated by another that also differentiates itself in a different way? I admit
that I have a lot of difficulty, not only to understand this practice, but to accept it as a customer.
It seems that this is a factor of profitability. Why not, but then you might as well sell the carrier’s
flights directly without camouflaging the reality. The “Interline” agreements between carriers that
allow these exchanges between companies have existed since 1948 and they work very well.

APG selected by El Al as General Sales Agent in Singapore

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APG is delighted to announce that it has been selected by EL AL Israel Airlines as their General Sales Agent (GSA) in Singapore. This strategic partnership underscores APG’s commitment to providing comprehensive sales and marketing services to leading airlines globally.

APG will be responsible for the promotion and sales of EL AL’s flights and services throughout Singapore. This collaboration aims to enhance EL AL’s presence in the region, offering Singapore travelers increased access to EL AL’s extensive network and superior services.

“We are delighted to be chosen by EL AL Israel Airlines as their GSA in Singapore” said Sandrine de Saint Sauveur, President & CEO at APG INC. “This partnership is a testament to our expertise and dedication in the aviation industry. We look forward to leveraging our local market knowledge and global reach to support EL AL’s growth in Singapore.”

“We warmly welcome the partnership between EL AL and APG in Singapore ” said: Mr. Adi Levy, ELAL Regional manager Asia

ABOUT EL AL
EL AL, founded in 1948 as Israel’s national airline, operated its first scheduled flight in 1949. In 2003, it became a public company listed on the Tel Aviv Stock Exchange.

Together with its subsidiary San D’Or, EL AL serves over 50 international destinations in more than 30 countries. Codeshare and interline agreements further extend its global reach. The airline operates a fleet of 47 Boeing aircraft and has agreements to lease and purchase up to 12 Boeing 787s and 31 Boeing 737 MAX aircraft in the coming years.

Headquartered at Ben Gurion Airport, EL AL reflects Israel’s values of innovation and care, with 5,000 employees delivering its signature Israeli hospitality.

For the fourth year in a row, EL AL received the 2024–25 APEX Five Star Global Airline Award for inflight service, based on feedback from over one million flights. In 2024, EL AL flew 6.6 million passengers. Its frequent flyer program, Matmid, has over 3.2 million members

ABOUT APG
With over 30 years’ experience in airline distribution and over 100 offices globally, APG is the world’s largest and most successful airline representation network, partnering with over 200 valued airline clients. APG offers a holistic approach to airline distribution, offering not only airline representation but also interline e-ticketing solutions, fare filing and settlement support services, all aimed at maximising an airline’s revenue potential. APG is always at the forefront of distribution development and our latest APG NDC Platform will assist airlines unlock the benefits of NDC distribution.

Our new APG Cargo services are also gaining worldwide interest from airlines including our APG Cargo Interline solution (Cargo IET), cargo GSSA services and total cargo management solutions.

The APG Network is indeed, “The World’s Leading Network for Airline Services.”

Please visit our website www.apg-ga.com or follow us on LinkedIn and Facebook @APGNetwork

Media Contact: f.despreaux@apg-ga.com