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ve mature networks, large fleets, a global presence and
market access. Some traditional competitors are aggres-
sively trying to block our growth»
. Yet, Hogan went on,
«the combined force of Etihad Airways, with its seven
equity partners and its partners in codeshare, has created
a network of around 600 destinations”. According to Ho-
gan “in order to compete effectively, we need economies
of scale and differentiation»
.
Innovation in the global sector of hospitality
Michael Wale, Chairman of the EAME Division of Starwood
Hotels&Resorts Worldwide, stressed how essential it is, for
the hospitality sector (which can generate in just one year
turnover of 6.5 billion dollars, 10% of global GDP), that in-
novation is combined with maximising customer satisfac-
tion.
«The types of travellers are continually changing,»
Wale said,
«to the extent that in order to satisfy them all we
A call to innovation as an essential lever for competition
was also made by Gabriele Fontanesi, IAFEI Chairman and
head of the Congress organising committee, who, in his wel-
coming address, underlined how
«every economy must try
to always be competitive. Innovation and competitiveness
must be all-round imperatives».
Globalisation: the global economy and its trends
«It’s impossible to conceive of a modern economy without
innovation»
. So started, almost seamlessly with the intro-
ductory speeches, former Prime Minister Romano Prodi
who, in the opening substantive speech to the Congress, fo-
cussed on the changing world and the risks for markets. Ac-
cording to Prodi, the challenge for the global economy will
be China:
«The economy is rotating around China, which
has increasing influence on the international markets»
. Pro-
di then recalled that Beijing has chosen the London Stock
Exchange to list its own currency, the Renminbi, a sign of
the internationalisation of Chinese finance. The slowdown
in the Chinese economy is a worrying sign given that the
global economy is growing, but very slowly, at 2.9% in 2015
according to the forecasts presented by Prodi, lower than
the IMF’s prediction of 3.1%, while Europe will not do bet-
ter than 1.4% as it is affected by the Germany risk following
the Volkswagen scandal. Given these uncertainties and the
low level of inflation, Prodi said not to expect
«the end of
Quantitative Easing before the end of 2017»
, nor in Sep-
tember 2016 as announced by the ECB.
Regulation and growth
The need for a new approach to banking and financing re-
gulation was addressed by Fabrizio Saccomanni, Director
General Emeritus of the Bank of Italy and former Minister
of the Economy and Finance.
«Since the start of the glo-
bal crisis,»
he said
«banking and financing regulation has
generally intensified and global growth has been disap-
pointing. There are ‘fault lines’ in the international mone-
tary system causing global monetary and financial insta-
bility to the detriment of growth. The global crisis has left
us with slow growth and low inflation, with risks of ‘a cen-
tury-long stagnation’and deflation: for this reason expan-
sive monetary policies have been adopted. The G7 and emer-
ging countries have adopted different approaches, which
have led to inefficient management by the International Mo-
netary Fund. Therefore, a new approach is necessary, ba-
sed on consultation and monitoring procedures, which would
form the basis of a multilateral guide to cover both intere-
st and exchange rates, with the aim of minimising the risk
of destabilising impacts and financial cycles. This should
allow a reduction in the level of regulation, with the aim
of promoting its simplification and rationalisation.»
Innovate in a global sector: the case of aviation
«Aviation is global, not local,»
James Hogan, the Chair-
man and CEO of Etihad and Vice President of Alitalia ma-
de immediately clear in starting his talk.
«Etihad Airways
has only existed for 12 years. Our main competitors ha-
ve been flying for decades, even for generations. They ha-
7.
Roundtable Cloud - The no Land Economy;
8.
Romano Prodi,
Economist, former European Commission President and Prime Minister
of Italy;
9.
Fabrizio Saccomanni, Former Minister of Economy
and Finance of Italy;
10.
Lunch Time;
11.
James Hogan, President
and CEO Etihad Airways and Vice Chairman of Alitalia;
12.
Michael Wale, President EAME Division Starwood Hotels & Resorts
Worldwide Inc.;
13.
Marina Natale, Deputy
General Manager UniCredit Group;
14.
Alessandro Ovi,
Publisher and Editor MIT Technology Review
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IAFEI Quarterly | Issue 31 | 8