Interview with Manuel Panadero López
Director of Institutional Relations at Globalia Corporación Empresarial
Interview with Manuel Panadero López
Director of Institutional Relations at Globalia Corporación Empresarial
Manuel Panadero, one of the key figures in air transport in Latin America and Europe, has dedicated his career to the transport sector for more than six decades. A civil engineer and economist, he started in consultancy and moved on to the Administration, where he held key roles as Director General of Land Transport (1982) and Secretary General of Transport Services. He led milestones such as the liberalisation of the air sector, the 94-98 RENFE contract-programme and the LOTT, laying the foundations for today's transport.
After his tenure at the Ministry, he joined Marsans Internacional, then moved to the General Management of Air Europa, and finally to the Institutional Relations Directorate at Globalia, advising in the passenger transport sector and contributing to the success of Air Europa. Passionate about his profession, he has successfully reinvented himself at every stage.
As Director of Institutional Relations at Globalia, how do you manage the dialogue with government bodies and industry associations to ensure the growth and stability of the group in a highly regulated and competitive environment?
Fundamentally and with regard to sectoral aspects in Spain, we work within associations such as ALA as an airline, ASEATA as a handling operator and from a more global perspective as a member of EXCELTUR and of course the CEOE through its Councils and Commissions and above all the Tourism, Culture and Sport Councils and the Transport and Logistics Council.
Without prejudice to this, and as a Group and its companies, we maintain relations with regulators and controllers, respecting their actions, but also making them aware of our opinions, in the event that the specific sector may not have a common consensual position, with an ongoing relationship, although in sectoral issues the work is fundamentally through associative channels.
Air Europa is a key player in the tourism and aeronautical industry. How do you work in institutional relations to maintain a balanced regulation that allows competitiveness in a global market in constant evolution and with increasingly strict regulatory requirements?
Bilateral agreements are negotiated by the States, and today the dominant trend is liberalisation and openness to operators as a general rule, as opposed to the past of limiting it to the so-called flag carriers of the countries.
As a result, the lobbying work of airlines in other countries to push for the opening of bilateral agreements, obtain extra-bilateral frequencies, etc., has largely disappeared and they have concentrated on working with their authorities to prioritise the negotiations of some destinations over others.
In Spain, liberalisation has long since become the guideline for air transport policy and consequently the company's relationship is one of collaboration with the Authority for the best management of available frequencies and we believe that, with this collaboration, a correct and objective system of frequency allocation has been achieved in which the company's image of responsibility and transparency favours the relationship with the Aeronautical Authority.
Air Europa was born in Spain in 1986 as a charter company to bring tourists to Spain and later also for domestic charter flights. It was the first company to break the monopoly of scheduled air transport in Spain after the liberalisation of 1993, becoming a scheduled airline, and today, with just over 50 aircraft, it is a network company with its hub in Madrid and is a key company in the relationship between Europe and Latin America.
Digitalisation and e-commerce have transformed travel sales. How do you work with institutions to ensure that companies like Air Europa can innovate their business model without regulatory restrictions that hinder competitiveness and adaptability to new trends in the tourism market?
EU policy in Europe offers almost total freedom and flexibility to do so and to define the business model, on condition that what is offered freely and transparently is complied with, in addition to the regulations on passenger protection.
Therefore, this section is not something that is in question and is the object of dedication of the companies and their institutional relations area, without prejudice to any interpretative discrepancies that may arise in which the work to be done is to seek mutually acceptable interpretations before entering into conflict.
With regard to other non-EU countries, the task concentrates on explaining the advantages of the liberalisation system in terms of management and marketing, ultimately in favour of passengers and the popularisation of air transport as a mode of transport, trying to convince them of the elimination of bureaucratic rigidities that are currently meaningless.
Sustainability in aviation is a global challenge. How does Globalia participate in forums and negotiations with international entities to promote sustainable fuel policies, emissions reduction and strategies that allow Air Europa to align itself with environmental regulations without losing operational efficiency and competitiveness?
Indeed, this is an absolutely relevant issue in air transport, and net zero emissions in 2050 is a global commitment to which Air Europa is a party.
Globalia, mainly through Air Europa and its operator Air Europa Express, participates as a full member of IATA, ALA and Sky Team and consequently of the commitments of these international associations, IATA and Sky Team, in decarbonisation.
In Spain, our work is channelled through ALA and other organisations such as the Alliance for Air Transport Sustainability, without prejudice to the efforts made in its operation by both Air Europa and Groundforce, the brand of our Handling companies.
We defend that environmental sustainability is only possible with economic sustainability and that it must be achieved through the technology of manufacturers and the use of sustainable fuels, whose production must be stimulated and their use encouraged through initial subsidies, just as renewable energy technologies, solar, wind, etc. were to achieve their development at competitive costs and, ultimately, this decarbonisation will only be viable, socially and economically, with incentives and without penalties or flight restrictions.
The COVID-19 pandemic had a profound impact on tourism and aviation. What was the role of institutional relations in managing aid, relaxing regulations and negotiating with governments to mitigate the economic impact on companies such as Air Europa and Halcón Viajes?
The work of institutional relations focused on, in agreement with the corresponding authorities, facilitating the return flights of passengers out of their countries and humanitarian flights, as well as the provision of health material such as masks and respirators at the request of the competent bodies and, once the flights had resumed, facilitating maximum prevention for passengers and crews.
Negotiations for economic support to overcome the crisis outside the global economic, operational, labour, etc. support negotiated with the Government through the CEOE, in whose positions we participate through the Institutional Relations area, were carried out by the general management of the company supported by the economic and legal areas, as in other companies.
Globalia Handling S.A. manages airport assistance services. How do institutional relations influence the obtaining of licences, concessions and compliance with airport regulations to guarantee the continuity and expansion of the company in strategic markets?
Our Handling operator currently concentrates all its activity in Spain, where it has consolidated its position as the company with the largest market share. We do not rule out expanding abroad, but this is not currently the priority.
In Spain, passenger handling is liberalised but ramp handling is limited in terms of the number of operators and the selection process is carried out by AENA, the airport operator, through a tender with specifications previously discussed with the potential handling operators and which is becoming increasingly objective and therefore more competitive and transparent, so that the scores have little margin for subjectivity.
The intervention of an Institutional Relations Directorate, always hand in hand with the Directorate General, is based on making the objectives of the activity transparent, convincing of the company's alignment with those of AENA and reinforcing the link of transparency and credibility.
Obviously, with specifications such as those indicated, this leaves little or no margin for winning tenders, but it does contribute to ensuring that the activity throughout the period of the authorisation is carried out in a climate of cooperation and understanding, contributing to the alignment of the interests of the authorising and authorised parties.
Spain is one of the world's leading tourist destinations. How does Globalia work with public administrations to strengthen the country's tourism promotion and ensure that companies are key players in attracting international travellers?
Globalia, through Air Europa, carries out promotional campaigns with the Tourism Departments of the different Autonomous Communities, as well as with Turespaña, using its own advertising media and especially the devices on the planes, where the individual screens have special relevance. These campaigns are for tourism to Spain and domestic tourism, but it also has agreements to promote tourism from the European countries with which it connects, especially Latin America, to American destinations such as Peru, the Dominican Republic, etc. through agreements with the Ministries of Tourism of these countries, and this is a win-win experience with very positive results.
Competition in the airline industry is fierce, how do institutional relations work to ensure that fare regulation, passenger rights and competition rules allow for a balance between consumer protection and the operational viability of airlines such as Air Europa?
Indeed, there is probably no other sector with such transparent and strong competition and at the same time with oligopolistic or monopolistic suppliers and very strong regulatory pressure on passenger rights, as well as environmental aspects.
These regulations are increasingly international, in the case of the European Union they are established by European Regulations or Directives and where opinions are conveyed through airline associations at both supranational and national level to their Authorities and this work is increasingly important as it is what helps to establish the delicate balance in which airlines operate and therefore the work within the associative framework to achieve sectoral consensus and consensual approaches to legislative bodies is essential.
Sustainable mobility is a priority on the European agenda. How does Globalia collaborate with national and EU institutions to adapt to the new sustainable transport regulations and ensure that companies such as Air Europa and Globalia Handling comply with environmental objectives without affecting their operations?
Fundamentally by agreeing within the framework of the associations on the consensus to be transferred to the regulators with a clear explanation of the technological possibilities, the socio-economic repercussions of the possible decisions and their real environmental effects and, without prejudice to this, adopting operational and investment measures in the company's own area to reduce emissions and additional environmental impacts such as noise, for example.
Both Air Europa and Globalia Handling's Groundforce joint ventures are pleased to be at the forefront of the digital and ecological transformation in this case with the fleet renewal to the most sustainable aircraft on the market and the use of sustainable fuels as well as operational improvements.
We do regret that, after more than 25 years, the European Union bodies have given birth to a rudimentary Single European Sky, far from what is desirable, which makes the possible 10% reduction in emissions, shorter flight times and fewer delays and cancellations unfeasible, but this does not prevent us from continuing to work for a more socially, economically and environmentally sustainable future.
The relationship with trade unions and workers is key in a group like Globalia. How are labour negotiations, collective agreements and strategies to guarantee stability and staff satisfaction without compromising business competitiveness managed from the point of view of institutional relations?
In reality, it is the management of what is traditionally known as Human Resources that maintains this relationship, which is playing an increasingly important role in the management, attraction and conservation of talent and, where appropriate, Institutional Relations are an element at the service of this area, especially in the case of conflictive situations to explain the company's positions to regulators and authorities.
Air Europa has been part of important negotiations in the airline industry. How has Globalia worked with competition authorities and regulators to secure strategic operations, such as acquisitions or alliances, that strengthen the airline's position in the international market?
The negotiation to which I believe reference is made is a negotiation between the properties of the interested companies that reached agreements subject to approval and, while this was being processed, maintaining absolute independence between the parties.
It was up to the buyer to manage the authorisation and Air Europa was responsible for providing all the information requested and did so.
Apart from this process, Air Europa's growth has been organic, with no acquisitions or mergers subject to competition.
What are the main regulatory challenges that Globalia will face in the coming years and what strategies should be implemented from institutional relations to ensure that the group can grow and consolidate itself in an increasingly demanding and competitive environment?
Undoubtedly the main challenge is to respond to environmental requirements while maintaining economic sustainability and this is a sector challenge which, in terms of regulation, must be faced collectively by the sector and which, once the regulation is approved, requires business actions for compliance and this is what Air Europa is facing with actions such as the renewal of its fleet with the most modern and sustainable models on the market and positioning itself in the purchase of sustainable fuel, the only possible way with the existing technology for the decarbonisation of the sector.
In this regulatory process, the institutional relations area is at its most active with other companies, seeking consensus and with regulators and legislators, explaining the necessary triad of social, economic and environmental development, without which the process would have serious difficulties in culminating successfully.
And obviously always in a context of fierce competition between companies, taking on the increasingly demanding consumer regulations and not taking responsibility for the non-compliance of airports or those responsible for navigation and air traffic control.
Looking to the future, what do you think Globalia's role will be in the evolution of tourism and aviation, and how can institutional relations influence the configuration of a more sustainable, digitised and efficient sector in the coming years?
Mobility has been the driving force of development ever since societies moved from sedentary to nomadic lifestyles, and its growth is unstoppable, as history shows, and its slowdown - COVID - 19 has been a striking example - leads to a social and economic crisis.
This is why the future is not less about mobility, but about sustainable mobility, and this is the challenge facing air transport and its commitment to net zero emissions by 2050.
At Air Europa we are convinced that, with our alliances and agreements, we will be, as we are becoming, an important part of the communication between Europe and America, especially Latin America and the Caribbean, and an important part of the connection, via Madrid, between Asia and Latin America, thereby strengthening the role of Madrid Barajas and with it Madrid and Spain in international communications.
And explaining this mission and this reality of which, perhaps because of the rapid growth, there is not enough awareness, is one of the tasks of the institutional relations area in particular at Air Europa and Globalia.
We are deeply grateful to Manuel Panadero for sharing his valuable experience and knowledge in this interview. His career has been key in the evolution of transport and tourism in Spain, Latin America and Europe, contributing decisively to the modernisation and liberalisation of the sector. His strategic vision and his ability to promote change have left an indelible mark on connectivity and the development of mobility, enabling sustainable and competitive growth in the tourism industry. His legacy, marked by commitment, innovation and excellence, continues to inspire new generations of professionals.
The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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