Behind the airline's success: where crucial decisions take flight

The discussion brought together experienced aviation experts: Allan Suimets, Head of Business Development at Marabu Airlines (and alumnus of the Estonian Aviation Academy); Brynjar Már Karlsson, Director of Business Services at Icelandair; and Dr. Sunder Raghavan, Professor of Finance at Embry-Riddle Aeronautical University . The session was moderated by Rudolf Živčic, Lecturer at the Estonian Aviation Academy, whose teaching areas include Revenue Management, Network Planning and Air Cargo.

The speakers discussed various topics related to commercial and financial activities of airlines. They touched on difficulties of sourcing aircraft, maintenance costs and safety implications, new trends in passenger purchase behaviour (e.g. the growing popularity of the Premium Economy class, shifts in lengths of stay at destination, etc), and continuous strive for optimization on both cost and revenue side of airline business (including use of AI tools with its pros and cons). One of the main discussion topics was naturally about people who make all this happen, their mindset and skills required to perform all of the above tasks.

It was emphasised that in the aviation industry, even the minor details can have major financial consequences. If an airline carrying several million passengers a year loses just one euro per passenger (due to a miscalculated strategic decision or negligence), the result is a seven-figure loss of revenue. Still, all panelists agreed that safety of operations is top priority and saving in this area will not bring any benefit, whether it is drop in on-time performance in the short term or increased maintenance costs in the medium- and long-term.

The airline’s head office is a place where decisions determining airline’s daily performance and long-term success are made, it is however usually least known to the general travelling public. Airline is typically seen as a place for pilots and flight crew, and not much a place for programmers, accountants, financial analysts, statisticians and engineers, while in reality all professions are vitally needed for smooth and effective planning and performing flight operations.

To support this point, the panellists shared examples of unexpected situations, where an innovative approach is needed. What does an airline do if an airport and its surrounding area cannot provide jet fuel? How should an airline adjust operations when a snowstorm cuts off road access to an airport, yet flights are able to continue? Such cases illustrate how "airline people behind the scenes” are critical in finding solutions with as little disruption or revenue loss as possible, when faced with unforeseen events.

In conclusion, speakers highlighted and agreed that the most valuable resource in aviation is people. Their knowledge, decision-making ability and passion keeps the industry moving forward. Referring to students, panelists stressed that aviation is a growing, dynamic and technologically advanced field that eagerly awaits new, motivated professionals not only to operate aircraft, but to run the airline.

To support this claim, according to Eurocontrol’s seven-year forecast from spring 2025, air traffic is expected to reach over 12 million flights by 2031. This represents almost 10% growth compared to 2024 figures. The demand for skilled aviation professionals will therefore continue to grow alongside the industry itself.

Many thanks to our guests for a great discussion, hope to welcome you again!