5 Takeaways From the Skift Aviation Forum

13.11.2024 - 23:27 / skift.com / Trump / Robert Isom / Willie Walsh / Jay Shabat / Marty St George / Bob Jordan / Sara Nelson / Brian Sumers / Justice Department / St George

Leaders from across the aviation sector gathered in Dallas this week at the Skift Aviation Forum to share their thoughts on industry trends and developments. Here are some key themes that emerged from the discussions:

Their joint venturedidn’t survive an attack by the Justice Department, which successfully sued to dismantle it on antitrust grounds. But JetBlue President Marty St. George made clear that he still wants a partnership to bolster the airline’s network, and that the future partner could be … yes, American.

American’s Robert Isom hinted at the idea as well, with St. George mentioning the possibility of a restructured version of the dismantled joint venture — maybe along the lines of how American is currently working with Alaska Airlines on the U.S. West Coast.  

Several speakers addressed the potential implications of the U.S. presidential election earlier this month. IATA’s Willie Walsh was most upbeat, recalling that Trump’s first administration was generally friendly toward airlines. He specifically mentioned Washington’s Payroll Support Program (PSP), which rescued U.S. carriers during the Covid crisis.

Isom mentioned this too. On the other hand, Sara Nelson, who heads the largest U.S. flight attendant union, expressed caution about what the new administration might mean for the U.S. labor movement more broadly.

One possible change with Trump’s return is a more relaxed approach to antitrust enforcement, which could make airline mergers and joint ventures more likely.

More worryingly for carriers, tariffs could introduce new uncertainties, given air travel’s close association with international trade. Furthermore, a trade war between the U.S. and Europe could make buying Boeing and Airbus airplanes significantly more expensive.

Will the new administration remove federal incentives to produce more sustainable aviation fuel? Might a more Russia-friendly foreign policy lead to the reopening of critical Russian airspace? 

CEO Bob Jordan ran through some of the highlights of Southwest’s new turnaround plan, which will “transform the airline without leaving our values behind.” It’s adding premium seats, offering assigned seating, codesharing with Icelandair, revamping its Vacations product, scheduling overnight red-eye flights, and slicing time from its aircraft turns.

And, no, this was not a reaction to Elliott, the activist investment fund that demanded Jordan’s departure. Everything in the plan, Jordan insists, was under research and development “long before Elliott ever showed up.” However, Elliott’s actions did result in a boardroom shakeup.

Separately, pressed by interviewer Brian Sumers of the Airline Observer, Jordan seemed to hint that Southwest might soon become a member of IATA,