Our 2013 retrospective, and Airbus breaking with tradition on A350 MSN2 , inspired me to take a look at what this dynamic industry might have in-store for 2014:
Some big regulatory changes will take place in 2014. In particular, CASA will need to guide the Australia’s airlines on the use of Personal Electronic Devices (PEDs) following changes to regulatory legislation by the FAA in the US and EASA in Europe. Currently Australian carriers are self regulating in this respect, but moving independently as a way to gain competitive advantage will only create headaches for crew in enforcing use on-board.
The war will continue until the end of the first half, bringing further revenue pressure to the Qantas and Virgin groups. Qantas has invested too much the public rhetoric behind in its strategy, to back away now would look like it was giving in. Not the best market image to present given its current financial position. Expect the Federal Government to make small changes to the level of single foreign ownership to the Qantas Sale Act.
The political future of Tony Abbott’s Government depends on their ability to deliver a courageous bipartisan policy decision. With a promise of a decision, a ‘government of no surprises’ will now need to deliver with a real commitment on Badgery’s Creek. This will come as a stage 1 single runway development, with no rail connection, because Abbott’s made it clear he doesn’t like trains. Also expect a change to the slot caps at Sydney Airport, starting with the 05:00-06:00am landing window.