Shemaine Bushnell Kyriakides
Olivier Jankovec, Director General of Airports Council International (ACI) Europe—the airport counterpart to IATA—has a bird’s-eye view of the European aviation landscape. Right now, he has his sights set on Cyprus.
He was on the island last week to meet with Minister Vafeadis before Cyprus takes the helm of the EU presidency, a moment he calls “crucial” for the aviation industry.
“With the presidency of the EU by Cyprus, it comes at a crucial moment for our industry. For the past ten years, the focus of the EU has been decarbonization and sustainability, and that’s perfectly fine. But the problem is the EU has lost focus on making our industry competitive. Larger EU countries drive an agenda where aviation is important, but they’ve taken it for granted. There’s a real risk of marginalization if we focus only on sustainability. We have to focus on competitiveness too.”
Why Cyprus matters
For Jankovec, the stakes are high. The EU’s push for sustainable aviation, especially the adoption of sustainable aviation fuels, comes with “tremendous costs.”
“All new decarbonization initiatives will come with significant financial implications. No industry can shoulder these alone. We need political, economic, and financial support from the EU.”
He hopes the Cyprus presidency will emphasize air connectivity’s importance to the European economy and ensure that aviation and airports remain part of the EU’s competitive agenda.
“Airports are the economic lifeline of communities at the periphery of Europe. They connect those communities with the rest of Europe and the world. Airports are critical infrastructure for economic development. For every 10% increase in air connectivity, you see a 0.5% growth in GDP per capita. They are engines of economic activity and job machines.”
At the European level, airports facilitate about €851 billion in economic value, representing roughly 5% of GDP, and support 14–16 million jobs.
“Air connectivity is one of the essential instruments that make the single market function. Companies consider proximity to airports among the top five criteria when deciding where to establish facilities, so airports are crucial for attracting investment. And of course, they are increasingly important for tourism.”
The Airline Challenge
Attracting airlines to Cyprus isn’t as simple as offering a sunny welcome.
“Airlines have become much more agile. Low-cost carriers, which are driving growth in Europe, can reposition an aircraft in the blink of an eye if a route doesn’t deliver the expected return. Full-service carriers are increasingly following suit, especially now that consolidation is gaining momentum. Today, five major airline groups control 60% of the European market and choose among 700 airports. There’s a lot of competition.”
For Cyprus airports like Hermes, the strategy is twofold: improve airport operations and sell Cyprus as a destination.
“They work closely with tourism authorities to create an ecosystem that convinces airlines that there’s potential, even in the low season. Success depends on aligning all stakeholders—airports, tourism boards, the government—to show that people will come and be interested in Cyprus outside the summer months.”
The challenge is magnified by Cyprus’ size.
“Smaller airports serve smaller catchment areas, so airlines are naturally at a disadvantage compared to larger airports that have high demand. But it’s still a critical role.”
Sustainability vs. Affordability
Sustainability is a major focus for airports, and Hermes has been proactive.
“Airports are entrenched in their communities and need to manage their impact on the environment. Historically, we focused on noise and local impacts. But with the climate crisis, there’s a demand to reduce carbon emissions. Aviation represents 3–5% of global emissions, 14% of Europe’s transport emissions. We have a responsibility to decarbonize.”
ACI Europe’s Airport Carbon Accreditation program has helped airports measure and reduce emissions.
“Hermes is certified at one of the highest levels. Last year, the program helped airports reduce emissions by one million tons globally. In Europe, 22 airports are already net zero. This is significant progress.”
But travelers wonder if green initiatives will mean higher ticket prices.
“Do you think this will bring in more customers to fly through your airports? Is that why you’re doing it?” he’s asked.
“I hope so. Many airports are using sustainability as a marketing tool. But ultimately, travelers choose destinations and price. We’re often asked if all this green investment will make tickets more expensive. The short answer? It depends on technology and regulatory support. Keeping air travel affordable while decarbonizing is the industry’s big balancing act. The jury is still out on whether air transport will be cheaper. If we can already keep the affordability we have today, it will already be an achievement.”
Technology and Passenger Experience
ACI Europe helps airports improve passenger experience and embrace technology.
“The Airport Service Quality program allows airports to benchmark their service levels based on passenger feedback, while an innovation forum connects airports with startups for practical solutions.”
But challenges remain.
“Post-COVID, staffing is a challenge. Airport work requires shifts, weekends, and holidays, making it harder to recruit. Digitalization and automation can help, but we must maintain a human fac. Smart airports aim for seamless travel using technologies like biometrics for check-in, security, and boarding. Investment is critical, which depends on revenues and regulatory support. Europe lags behind Asia and the Americas in implementing these solutions due to regulatory constraints.”
Looking Ahead: A Greener, Smarter Industry
“Airports will be powered largely by renewable energy. Aircraft will increasingly use sustainable fuels. Ten years from now, small electric or hybrid aircraft may be common, and we hope hydrogen-powered aircraft will emerge. But all this comes at an unprecedented cost—€1.4 trillion to decarbonize aviation. We need EU support to maintain affordability while advancing sustainability.”
Cyprus as a regional hub? He’s cautious.
“The market is moving away from hub-and-spoke toward direct point-to-point connections. Growth is led by low-cost carriers, not traditional hub airlines. Hub models still work but require a strong hub-based airline, which Cyprus currently lacks.”
He also predicts major changes in airport jobs.
“AI is going to be everywhere. Young people interested in aviation should focus on AI. The challenge is scaling solutions across the entire airport network.”
Airports: More Than Just Buildings
“People see airports as big businesses, but they’re part of the community. They enable travel, cultural exchange, reconnect families, and create markets for companies. Airports are central to the European way of life, an instrument of soft power. Look at Dubai with Emirates or the US with American, United, Delta. Airports are core to building bridges, bringing people, cultures, and economies together. This role is only becoming more important amid today’s geopolitical and geoeconomic challenges.”
And when asked about his favorite airport?
“I love all ACI airports equally. What’s fascinating is seeing their transformation over the years, facilitating growth, and supporting communities. Airports are integral to national economies and to the lives of millions of travelers.”
