Global airlines will offer 7% less seats

Mumbai: Global airline capacity will be trimmed by around 7% —or 59.7 million seats — by the last quarter of 2008, compared with the same period last year, predicts a report by Official Airline Guide (OAG), a UK-based international aviation data firm.
The decline will be consequent to a 7% drop in the number of flights for October, November and December.
And as airlines cut unprofitable flights to fight high oil prices, several allied industries are also expected to be affected.While the decline is at its severest in the US — which will account for almost one third of the slowdown — Asia will not be spared.
The continent will see a 13% decrease in capacity, which according to OAG, is equivalent to a 3-year setback in growth.
It may be recalled that most of the boom in aviation over the past decade had come from Asia. India too has witnessed capacity reduction over the past few months, as the price of aviation turbine fuel (ATF) skyrocketed.Steve Casley, chief operating officer of OAG, said in a statement, “The projected 13% drop in Asian seat capacity is a significant metric that may have wider impact. From OAG’s statistics, it looks quite possible that we may be facing a far more severe global downturn than we have experienced before.”
07/08/08 Nirmal John/Daily News & Analysis

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Categories: Foreign Aug 2008, Indian Aviation- In General Aug 2008