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Last week it started with a analysis by the German Association for Environment and Nature (BUND), hitting the headline news claiming that seven of the 14 regional airports in Germany would be expendable. Which was a welcome story for the media. While I still hope that they come to senses, I am afraid that history shows their sole focus on populism (next election) and hypocrisy. Including their attempts to distract from their failures managing the ongoing Corona crisis.
More articles and posts surfaced this week that airports should be privatized.
Focus on votes reminds me too much on “shareholder value”, being accused to have a sole short-term profit-maximization interest and none for long-term success, sustainability or social responsibility. Same stupid.
Today the headline news is about the Thuringian president of their Court of Auditors recommending the closure of Erfurt-Weimar Airport, building on the above analysis.
Closing Erfurt-Weimar Airport? And others Regionals?
As you may recall, 2009/10, I’ve been managing Marketing, Press/P.R. and Corporate Communications at the Erfurt Airport, one of the seven now questioned. Which is my example of why German airports fail thanks to populistic airport bashing by the local politicos and most of the media. And an idiotic, short-sighted focus on “outgoing” holiday charter flights. I am adamant about my justified opinion that given a positive support and strategy, the airport would be worth a million passengers and an economic operation. If they’d cash in on incoming.
Back 10 years ago that was the reason I made the name change from Erfurt to Erfurt-Weimar possible from Marketing budget. Just before the shortsighted politicos – lead by then Minister for Traffic (“C.C.”) who saw it more important to invest into streets and highways – decided to “strategically” end all support for scheduled flights, which I had recommended to replace Munich-service with a sole Lufthansa- but without Star Alliance codesharing, with a KLM-service to Amsterdam to be connected to the world. With having compiled justification and statistical data supporting the case.
As I wrote three years ago, airports must embrace their changing role – which many airport managers and owners fail upon. And that is simply another example where the Corona crisis highlights the shortcomings. These shortcomings have been there before. We have too many “good weather managers” that keep running a company (beyond just airline, airport) and have no vision for it, no strategy. They handle day-to-day work and live inside their microverse without understanding or concern about the bigger picture.
Should they now close Erfurt-Weimar (or either of the other questioned airports), it is a direct result of the local stakeholders failing to envision, demand and support a long-term sustainable strategy for the airport. And giving the public airport bashing by the stakeholders, I wouldn’t justify scheduled flights to Erfurt-Weimar either. It’s an example how short-sighted stakeholders run an economic driver into the ground. And just an example how politicos don’t think and guide, but brainlessly worship an implied public (voters) opinion and not act but only react to developments (incl. Corona).
CYA in action: Cover Your Ass. Don’t think, don’t move, don’t risk.
Strategic Indecision and Short Sight
As I’ve written in the two Food for Thoughts in December, there is the Financial Impact of Air Travel for the regions and their economy. If you understand and focus on the need for “incoming”, passengers coming into the region, bringing money to the region. Instead of the sole “outgoing” focus we see with most airports in the “developed countries”. And without this, there is no valid argument to invest into the airport, is there? But with a strategy, it makes sense to invest. Not to subsidize!
The other post in December was about Why Airlines Keep Failing, which is mostly the same reason why airports keep failing to live up to their expectations. No strategy, no stakeholder management (politicos, industry, media, public opinion, etc.). Erfurt-based Thuringian state development agency funding travel for delegations from Berlin, instead supporting the subsidized flights from and to Erfurt. Politicos publicly promoting to travel to Erfurt and Thuringia flying from Frankfurt, Berlin or Leipzig, then taking the train. And even with a Biathlon World Cup taking place in Thuringian Oberhof, places like Weimar, Eisenach and the Thuringian Forrest recreation are, travel to Thuringia not coming through Erfurt in their empty heads.
Scheduled Incoming vs. Charter Outgoing
Again ,there is no reasoning to invest into an airport that only looks at outgoing summer charter flights. The money leaves the region and benefits the destination. Why would I subsidize that?
Without a strategic vision to use an airport incoming as an asset to connect the world to the region and cash in on the incoming air travel, it is a logical consequence to shut down an airport and write it off. In turn, you write off an asset for your region. If I call anything short sighted, this is a very good use case.
I keep explaining “seasoned airport managers” that airports need three foci.
- Connection with the global hubs and connectivity there
At Erfurt, it was a barrel burst to have a flight into Munich by Cirrus Airlines as “partner of Lufthansa”, but with only some Lufthansa code-share, but not even Star Alliance. It was why I very quickly promoted to replace that one with a KLM-Amsterdam-service. With very promising talks ongoing until the political stakeholders decided to shelve all support for scheduled flights. A good reason to end my work there. Aside me being told later that the discussions ceased as they called my number, reaching someone not able to communicate in English.
So connectivity to global hubs with code-sharing and/or interlining must be prime on any regional airport’s agenda. - Strategic Point-to-Point travel
Depending on commercial and strategic regional relations, direct flights between economic partner regions can and should be established. - Local Support
With “airport bashing” being too common, it is vital to promote the airport as a partner for the region. As a vital infrastructure to improve commerce and industry, incl. but not limited to tourism!
And yes. Summer charter flights are nice to have, and may contribute to the revenue, but they are commercially and strategically not a priority.
The Kolibri Offer
KOLIBRI.aero is looking for funding of the development of first and further bases. With seven aircraft, maintenance, infrastructure and several hundred jobs a € 15 million funding is needed. No subsidies but a bold investment with minimized residual risk, to be paid back with interest. Investment into local infrastructure will reflect long-term commitment. Further development of profit centers being part of the plans. Should you know airports being interested in such a joint development having regional funds to provide the capital but also demand for the new routes, we are happy to discuss details.
Food for Thought
Comments welcome!
Is it really “new thinking”? Last December, pre-Corona, I outlined 
The main reason, I see consulting, outsourcing and cloud computing critical is the development of information silos. Not you own the important information, but “someone else”, someone outside your company. It can be a consultant, it can be a service company or an IT-system.
My first experience with cloud computing was Sabre, Amadeus, but SAP was my personal experience with the SAAS model and it’s most negative repercussion. Good for the software provider, bad for the user. You bind yourself to the ecosphere of the software provider. For good or for bad. To change later is being made so difficult and expensive, it’s virtually impossible. Where the data might still be available, the computing “rules” are mostly not, you have to reengineer from scratch – there is a big consulting industry out there, specializing on such jobs, usually not talking about thousands in cost but millions.
Recent developments and posts really bug me. Don’t the writers of those posts recognize the cognitive dissonance? Yes, we must think positive. But there is a clear distinction between thinking positive and whitewashing or daydreaming. We have a crisis at hand and the “positive signals” aren’t as “positive” as those posts try to make them look like. They look at the marketing messages on the surface but fail to look the slightest bit deeper.
Yes, as you can see in the archive of my 
I know, being a German and having taken residence with the family in Germany for the pandemic, I am somewhat biased on what happens here and especially Lufthansa. And that makes me puke. No, I can’t say that nicely.!["We are Listening. And We're Not Blind. This is Your Life. This is Your Time!" [Snow Patrol - Calling in the Dark]](https://foodforthought.barthel.eu/wp-content/uploads/2020/01/CallingintheDark.jpg)
Following my shared experience on 
There are four ways I do scheduled appointments at good RW conferences. First two options are exhibitors, where it is possible to either have a scheduled meeting, or try to “drop in”. The third option is “networking events”, usually dinner, where delegates meet. While many stick together with there “known friends”, I found those the most valuable to stroll around and look for new faces. The final option then is to meet people on the exhibition floor or infront of the session rooms.
Online, the website offered to “connect” and set up meetings with delegates, exhibitors and speakers. What they totally failed to replicate in the virtual world is the “casual networking”, which is the most important: On RW conferences, I don’t approach the speaker asking for an appointment, but I approach the speaker after his speech. I also make use of the coffee or lunch breaks to meet people in a casual scenario. Or talk during a conference session I don’t attend “outside” over a cup of coffee.
Now at the virtual conference, most “delegate profiles” were merely the registration data (company, name, title). I wasn’t allowed to put my mail-contact into the public description. Why can’t I see, entering the floor, how many are there? Who is there? Who looks for networking?
Call Quality, Disruptions
What it does keep reminding me is that for 2002, in the wake of 9/11, we had the very same discussion. And I brought in a video-conferencing-specialist to speak at ITB Travel Technology Congress. And while the big players added video conference rooms to their portfolio, they turned to dust-bins quickly. I know, c’mon, that was 20 years ago. And we simply don’t tend to learn from history. There’s all the young smart-asses leaving university. They have no experience with extensive travel, their live has been virtual, they are still to learn the lessons.
The last issue is emotional, psychological. Which we found out post-9/11 already. There is the factor of “importance” when you are send to travel to meet your client. And I do not speak about the true importance to show your flag at your client. But the perceived importance for the traveler.
Naaaw. No it won’t. I have video calls with my family when traveling, my mom living 600 km away, friends around the world. And especially during the lock-down I keep with my network attending webinars, video and voice-only conference and one-on-one calls. And can’t wait to see all my counterparts in person either on conferences, on business trips and visits. Video-calls replace phone calls. But they don’t have what it takes to replace the real face-to-face.
A few days ago someone on the media compared Corona to the “new measles. Ever since I use the analogy and sure gave it some thoughts how that will impact our industry.
To date, the PTBs communicate in the sense to stop the virus. That is crap and they should know it. The time of containment has been missed, see above. So it is not about stopping it, but to 
To which he replied: “I couldn’t agree more. I have seen the same firsthand when it came to [product] engineering. Initially we were going to work with an established manufacturer and have them make modifications for us. That was quite the trip down the rabbit hole, and more trouble than it’s worth. Now we’ll get [products] that were custom engineered for us, from the ground up.”
In direct conversation, one of the later board members of Air Berlin told me, the airline would not kick the bucket because the new CEOs wouldn’t have good ideas, but because they failed on the heritage. The existing “networks”, afraid of the change, afraid to loose their job, torpedizing the management.
As addressed in 
Dinosaurs …
Doing a staged setup and focusing to stake our own claims, select strategic bases aggressively outselves, we can establish the company for a mere €30 million. € 15 million per additional base with seven aircraft and hundreds of (secure) jobs. A fraction of the food the dinosaurs demand to survive. Condor now half a billion? What evolutionary wonders we could achieve with that money.
Bill Cumberlidge addressed P2F shortly in the ISHKA webinar. As the need for quick transport increases, the belly-freight in passenger aircraft has gone missing. That increases the demand for classic freighter aircraft. But keep in mind that this is a temporary peak only.
The main issue there seems not to be the demand for conversions exceeding the available resources, companies with the experience in such conversions.
While there is a current peak, promising a use of lots of large freight aircraft (A380, B747, B777, B767, A330, A300, etc., etc.) that demand bubble will last maximum one year.
But how many containers does a single container giant today transport? And how many of those can you put onboard an A380 or B747? There were a lot of hurray and self-praise of airlines that one aircraft transported 500,000 masks to somewhere. Whereas the population there is a multiple of that number. Airfreight is expensive and a drop on a hot stone.
Another, very standard “fallback idea” is the “End-of-Life”-strategy to cannibalize the surplus aircraft for spare parts. Given the immense surplus of 150-240-seat aircraft, this bubble is instantly doomed. In several expert discussions I heard 50%, even up to 70% of the fleets to be grounded. Recovery of likely 80% within two years. Let’s say we decommission 20%. Which ones? Where? Who starts?
Cognitive Dissonance: Who Pays the Bill