Some airlines will not survive the worsening global economic situation and there is an industry association warning that the next 12-18 months will be ‘extremely difficult’ for Asia-Pacific carriers.
The Association of Asia Pacific Airlines (AAPA) said in a statement passenger numbers are falling.
AAPA director-general Andrew Herdman said, ‘The biggest challenges right now are weakening passenger demand, particularly for first and business class travel, and continuing uncertainty about the global economic outlook.
‘The next 12-18 months will be extremely difficult times for airlines and some won’t survive the current crisis.’
He added that the association ‘remains extremely cautious about prospects for the airline industry in 2009’.
The hammer comes at the front end of the aircraft where the profit lies. That is where the numbers are declining the fastest.
British Airways said first- and business-class travel fell 8.65% last month as the credit crisis and economic slowdown led to job losses and tighter budgets in the City of London and on Wall Street. For an airline the profit is always in the front end.
AAPA is a trade association of international airlines based in the region.
Source: Straits Times