Latest news with #MarieOwensThomsen
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Business Standard
06-06-2025
- Business
- Business Standard
Airlines facing skewed value chain, profit margin never crossed 5%: IATA
IATA Chief Economist hope that any efforts to address making the airline value chain less skewed will surely be an example for other countries Press Trust of India New Delhi Airlines are grappling with a skewed value chain globally and historically, the profit margin has never crossed 5 per cent, according to IATA Chief Economist Marie Owens Thomsen. Also, she expressed hope that any efforts to address making the airline value chain less skewed will surely be an example for other countries. India is one of the world's fastest growing civil aviation market. At an interaction in the national capital this week, Thomsen said the skewed value chain for the global airlines industry is also a result of legacy policies. Thomsen is the Chief Economist & Senior Vice President Sustainability at the International Airport Transport Association (IATA), a grouping of over 350 airlines. "Nobody sat down from the beginning and said, I'm going to create a super skewed value chain and make sure that the airlines never make any money. "I don't think anybody had that intent. But unfortunately, that's sort of where we've ended up. And our industry globally has never made a profit margin in excess of 5 per cent," she said. While noting that all participants in the value chain make more money than the airlines, she mentioned about the oligopolistic pricing power among the aircraft manufacturers and the outsized market power of oil companies. "... then downstream, you know, notably here in India, maybe a very price competitive environment... our customers choose their airlines primarily on price. So the airlines are left completely squeezed between these two with very few ways out," she said. Further, Thomsen said that if the Indian government tries to do everything to create a less skewed value chain, and that becomes possible, then that would surely be an example to follow for every other country. For 2025, IATA has projected airlines to report a net profit of $36 billion and a profit margin of 3.7 per cent. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
06-06-2025
- Business
- Time of India
Airline Industry Value Chain: IATA Chief Economist highlights airlines' struggles with skewed value chain and low profit margins, ET Infra
Advt Airlines are grappling with a skewed value chain globally and historically, the profit margin has never crossed 5 per cent, according to IATA Chief Economist Marie Owens Thomsen Also, she expressed hope that any efforts to address making the airline value chain less skewed will surely be an example for other is one of the world's fastest growing civil aviation an interaction in the national capital this week, Thomsen said the skewed value chain for the global airlines industry is also a result of legacy is the Chief Economist & Senior Vice President Sustainability at the International Airport Transport Association (IATA), a grouping of over 350 airlines."Nobody sat down from the beginning and said, I'm going to create a super skewed value chain and make sure that the airlines never make any money."I don't think anybody had that intent. But unfortunately, that's sort of where we've ended up. And our industry globally has never made a profit margin in excess of 5 per cent," she noting that all participants in the value chain make more money than the airlines, she mentioned about the oligopolistic pricing power among the aircraft manufacturers and the outsized market power of oil companies."... then downstream, you know, notably here in India, maybe a very price competitive environment... our customers choose their airlines primarily on price. So the airlines are left completely squeezed between these two with very few ways out," she Thomsen said that if the Indian government tries to do everything to create a less skewed value chain, and that becomes possible, then that would surely be an example to follow for every other 2025, IATA has projected airlines to report a net profit of USD 36 billion and a profit margin of 3.7 per cent.
Mint
06-06-2025
- Business
- Mint
Airlines facing skewed value chain; profit margin never crossed 5 pc; IATA executive
New Delhi, Jun 6 (PTI) Airlines are grappling with a skewed value chain globally and historically, the profit margin has never crossed 5 per cent, according to IATA Chief Economist Marie Owens Thomsen. Also, she expressed hope that any efforts to address making the airline value chain less skewed will surely be an example for other countries. India is one of the world's fastest growing civil aviation market. At an interaction in the national capital this week, Thomsen said the skewed value chain for the global airlines industry is also a result of legacy policies. Thomsen is the Chief Economist & Senior Vice President Sustainability at the International Airport Transport Association (IATA), a grouping of over 350 airlines. "Nobody sat down from the beginning and said, I'm going to create a super skewed value chain and make sure that the airlines never "I don't think anybody had that intent. But unfortunately, that's sort of where we've ended up. And our industry globally has never made a profit margin in excess of 5 per cent," she said. While noting that all participants in the value chain make more money than the airlines, she mentioned about the oligopolistic pricing power among the aircraft manufacturers and the outsized market power of oil companies. "... then downstream, you know, notably here in India, maybe a very price competitive environment... our customers choose their airlines primarily on price. So the airlines are left completely squeezed between these two with very few ways out," she said. Further, Thomsen said that if the Indian government tries to do everything to create a less skewed value chain, and that becomes possible, then that would surely be an example to follow for every other country. For 2025, IATA has projected airlines to report a net profit of USD 36 billion and a profit margin of 3.7 per cent.
Time of India
04-06-2025
- Business
- Time of India
Aviation soars, but profits still on the ground
India's aviation sector is expanding rapidly, but overall profitability remains elusive—not just for Indian carriers, but globally as well, said Marie Owens Thomsen , chief economist, International Air Transport Association (IATA). IATA's latest outlook projects the global airline industry will earn just $7.2 per passenger in 2025, a slight improvement from $6.8 in 2024. West Asia leads with $27.2, followed by North America at $11.1, and Europe at $8.9. Asia Pacific, where India belongs, trails with a forecast of only $2.6 per passenger. While India-specific figures weren't shared, Thomsen said the country likely sits below the regional average due to high costs and competitive pricing. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates Undo
Business Upturn
04-06-2025
- Business
- Business Upturn
Praj, IATA, and ISMA Join Forces to Advance SAF Carbon Assessment and Certification in India
Pune, Maharashtra, India: India is taking decisive steps toward decarbonizing its aviation sector, with a SAF blending mandate targeting 1% by 2027 and 2% by 2028. In line with this national goal, Praj Industries, International Air Transport Association (IATA), and Indian Sugar & Bio-energy Manufacturers Association (ISMA) have signed a strategic Memorandum of Understanding (MoU) to drive the certification and adoption of Sustainable Aviation Fuel (SAF) in the country. The partnership will focus on conducting a comprehensive Life Cycle Assessment (LCA) of SAF derived from Indian sugarcane feedstock via the Ethanol-to-Jet (ETJ) pathway—a critical milestone in demonstrating the environmental and economic viability of indigenous SAF solutions. The MoU underscores the participants' shared commitment to sustainability and to reducing emissions in aviation—one of the world's most challenging sectors to decarbonize. Through this partnership, Praj, IATA, and ISMA aim to determine an accurate Carbon Intensity (CI) number for SAF produced using Indian sugarcane. CI measures the amount of greenhouse gas emissions produced per unit of energy generated (usually expressed in gCO₂e/MJ). This key metric for SAF determines how much cleaner the fuel is compared to conventional jet fuel. As part of the collaboration, the three participants will also work together to define and recommend a certification methodology suited to the Indian context. This framework will align with internationally recognized sustainability and emissions reduction standards, specifically the International Sustainability and Carbon Certification (ISCC) CORSIA and the Roundtable on Sustainable Biomaterials (RSB) CORSIA standard. 'India has immense potential to become a key player in sustainable aviation fuel. This collaboration leverages scientific rigor and global frameworks to ensure our SAF solutions meet the highest standards,' asserted Dr. Pramod Chaudhari, Founder Chairman of Praj Industries. Praj Industries has been actively advancing the development and commercialization of Sustainable Aviation Fuel (SAF) in India. In collaboration with Indian Oil Corporation Ltd. (IOCL) and AirAsia India, Praj successfully produced SAF from indigenous feedstock, showcasing its readiness for commercial deployment. Further strengthening its position, Praj's R&D facility, Praj Matrix, in Pune houses India's first integrated Sustainable Aviation Fuel (SAF) demonstration plant. 'Measurements and certifications are key building blocks in any market. Developing the SAF market in India will be accelerated and its global acceptance will be facilitated by progress in these areas that is tailored to Indian conditions. Through this MoU, we aim to ensure that SAF from India can contribute to the height of its full potential to global decarbonization goals,' said Marie Owens Thomsen, IATA SVP Sustainability and Chief Economist. 'India's record success globally via GOI's Ethanol Blending Programme has showcased the sugar industry's immense potential, and one of the best possible demonstrations of our capacity will be to become the single largest supplier of one of Asia's lowest carbon-intensive NextGen biofuels like SAF—ensuring a truly just energy transition,' said Deepak Ballani, Director General of ISMA. This landmark collaboration highlights India's commitment to pioneering sustainable aviation and lays a strong foundation for a low-carbon future, driving innovation and environmental stewardship in the global aviation sector. At the 81st IATA AGM, PM Shri. Narendra Modi highlighted India's push for Sustainable Aviation Fuel (SAF) to reduce emissions and promote green growth. He urged global collaboration and emphasized India's commitment to eco-friendly aviation infrastructure. In the photograph from left to right: Mr. Roshan Lal Tamak, Executive Director & CEO – Sugar Business DCM Shriram Ltd. (designated ISMA representative); Ms. Marie Owens Thomsen, SVP Sustainability and Chief Economist, IATA, and Mr. Atul Mulay, President – Bioenergy, Praj Industries. About Praj Industries Limited Advertisement Praj, India's most accomplished industrial biotech company, is driven by innovation, integration, and delivery capabilities. Over the past four decades, Praj has focused on environment, energy, and agri‐process industry, with more than 1000 customer references spanning more than 100 countries across six continents. Bio‐Mobility® and Bio‐Prism® are the mainstays of Praj's contribution to the global Bioeconomy. The Bio‐Mobility® platform offers technology solutions globally to produce the renewable transportation fuel, thus ensuring sustainable decarbonization through a circular bioeconomy. The Company's Bio‐Prism® portfolio comprises technologies to produce renewable chemicals and materials, promises sustainability while reimagining nature. Praj Matrix, the state‐of‐the‐art R&D facility, forms the backbone for the company's endeavours towards a clean energy‐based Bioeconomy. Praj's diverse portfolio comprises Bio‐energy solutions, Critical process equipment & skids, Breweries, Zero liquid discharge systems and High purity water systems. Led by accomplished and caring leadership, Praj is a socially responsible corporate citizen. Praj is listed on the Bombay and National Stock Exchanges of India. Click here for Media Contact Details Priyanka Watane (Chief Manager, Corporate Communications), Praj Industries, [email protected], +91-2066754000 Submit your press release Disclaimer: The above press release comes to you under an arrangement with Business Wire. Business Upturn takes no editorial responsibility for the same.
