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Hogan’s comments have come after the recent announcement by Etihad Airways of a 24 per cent strategic equity investment in Jet Airways, the second largest airline in India.
Delivering the fifth annual Airneth Lecture to aviation industry executives, policymakers and researchers in Amsterdam, Hogan said the major shift occurring in the global economy is impacting significantly the air transport industry, requiring airlines to reshape their networks and enter new partnerships in order to remain competitive.
He said markets which would benefit most from the continued growth in air transport would be those in ‘aviation-friendly jurisdictions’ in which governments recognised the economic contributions of airlines and the technological advances and capabilities of aircraft.
“Legacy markets are growing, but at a slower pace. Emerging markets are surging. Traffic patterns and demographics are changing. Traditional air transport hubs are declining in prominence, with growth constrained by inadequate infrastructure and ingrained political resistance to change.”
Hogan said the airline industry is entering a new phase of consolidation, as no single carrier could satisfy the global growth in passenger traffic.