IATA Panel: JetBlue-United Collaboration, FedEx Investment in Istanbul, SAF Crisis, and Supply Chain Challenges Discussed
At the 81nd IATA Annual General Meeting, a high-level panel session addressed key issues shaping the future of the aviation industry. Moderated by CNN’s Richard Quest, the panel featured JetBlue CEO Joanna Geraghty, IndiGo CEO Peter Elbers, FedEx President and CEO Richard Smith, and Avianca CEO Adrian Neuhauser. The session focused on airline partnerships, sustainable aviation fuel (SAF), supply chain disruptions, and the global economic outlook.
🌐 “Consolidation Without Mergers”: JetBlue-United Collaboration
JetBlue CEO Joanna Geraghty shared details of the recently announced “collaboration” with United Airlines. Unlike a codeshare, this partnership includes four components: interline cooperation, integration of frequent flyer programs, slot allocation for United at JFK, and JetBlue’s ancillary revenue platform operating for United.
Geraghty emphasized that this collaboration differs from previous alliances with Spirit and American Airlines, which faced DOJ opposition: “This is not a merger—we are proceeding cautiously. We’ve learned what’s considered risky.”
Quest referred to such partnerships as “consolidation without consolidation,” highlighting how regulatory hurdles are reshaping consolidation trends in aviation.
✈️ Peter Elbers: European Expansion and Simple Codeshares
IndiGo CEO Peter Elbers discussed the significance of Europe-based codeshare deals with Air France, KLM, and Virgin Atlantic. “We fly to 91 domestic destinations in India. Integrating that network with our European partners offers more choices to customers,” he said.
He clarified that the agreements remain at a codeshare level, facilitating direct market access to Europe. Negotiations with former partners and executives were described as “interesting but constructive.”
🛫 Richard Smith: FedEx Establishes New Gateway in Istanbul
FedEx CEO Richard Smith emphasized the regionalization of global trade and a shift toward shorter transportation routes. He stated:
“We’re building a new gateway facility in Istanbul. The airport has plenty of land and major investments have been made. It’s an airport with strong growth potential and smart infrastructure planning.”
Smith added that Istanbul Airport’s scalable and well-designed infrastructure makes it a strategic hub for FedEx. This underlined the city’s growing role in global logistics and reaffirmed Turkey’s increasing significance in the regional air cargo market.
⛽ SAF Crisis: “Four Times the Cost, Not Sustainable”
The panel’s most intense discussion centered on the availability of SAF. Elbers noted the lack of SAF in India and argued that importing it at four times the cost via ocean freight is neither environmentally nor economically viable:
“Importing SAF at quadruple cost isn’t the answer. Local production could threaten food supply. The solution lies in technology and synthetic fuels.”
Geraghty, noting JetBlue was the first U.S. airline to use SAF, warned that current prices are unsustainable: “We’re a low-cost carrier. A few dollars can drive passengers elsewhere.” She called for government subsidies.
🪑 Supply Chain Struggles: Deliveries Delayed by 18 Months
Quest highlighted that new aircraft deliveries are delayed by up to 18 months, with compensation falling short. Geraghty explained that older aircraft remain in service due to delivery setbacks.
- JetBlue: Only 9 of 300 aircraft grounded
- Avianca: 7 of 140 aircraft grounded
- IndiGo: Around 40 of 430 grounded (down from 70 six months ago)
Elbers noted the situation has improved but remains concerning, attributing most grounded aircraft not to supply issues but to soft demand.
🌎 Economic Outlook: “Consumers Forgoing a Second Vacation”
Geraghty observed a slowdown in U.S. domestic travel, attributing it to fare hikes, security perceptions, and economic uncertainty. In February, travel spending declined while other categories remained stable.
Data also showed that Democratic-leaning states saw lower travel spending, while Republican-leaning states spent more. FedEx linked this to “vibes”—a mix of economic sentiment and social media influence.
♻️ Data and Digitalization: “Dataworks Is FedEx’s Digital Twin”
FedEx reported that all operational data is centralized in a massive data lake named Atlas, enabling route planning, customs processing, and delivery optimization through digital twin technology. Richard Smith stated:
“17 million shipments, 6% of U.S. GDP, $2 trillion in trade annually. If data is the new oil, we’re Saudi Arabia.”
✨ Lounge Strategy and Passenger Experience
Lounge services also came under discussion. JetBlue is developing a lounge for Mint and premium card passengers, while IndiGo offers limited lounge access on its Europe routes.
Elbers remarked, “We don’t need lounges for 2-hour domestic flights in India. But on European routes, if demand is there, we’ll evaluate.”
