Far East challenge is major threat to established airlines – Kehoe

ENVIRONMENT concerns and competition from the East are the key challenges facing the civil aviation sector in the future, the boss of Birmingham Airport has said.

Paul Kehoe, chief executive of the airport, told delegates attending the British American Business Council conference in Birmingham that the issues affected airlines and airports on both sides of the Atlantic.

“Hydrocarbons are going to be an important part of our future and we also have to deal with the move of power eastwards.” he told the event.

He was supported by Bob Schumacher, managing director UK and Ireland for United Airlines, who agreed strong competition to established carriers would come from the Middle East and Asia.   

“The global network has changed.  No one carrier can provide the networks that are needed, hence the rise of strategic partnerships, joint ventures and hybrid firms,” he said.

Chris Weir, director, research and technology of Aero Engine Controls in Birmingham, said the rise of competition from Asia meant airlines would have to focus on lower costs.

“We now need a step change in technology which will require a huge investment,” he told the event.