Aviation industry to take three more years to recover: IATA

Kuala Lumpur: Airlines worldwide will continue to be in the "red" due to the global meltdown and may take more than three years to recover, an international aviation group said warning that the epicentre of the crisis is now in Asia.
Noting that the passenger and cargo traffic is going down globally, International Air Transport Association (IATA) is ready to announce its industry forecast for 2009.
Giovanni Bisignani, chief Executive Officer IATA, said that the forecast, to be announced in Associations general meeting on Monday, will be substantially worse than the March forecast of losses of $4.7 billion.
"We are in intensive care... The forecast seems more pessimistic than those presented in March," Bisignani told a press conference adding that the economy was not moving forward despite some optimism in the financial stock market.
"The economy has not started to run again, the industry is in a difficult position, its premium passengers have dramatically declined especially in Asia," he said.
The IATA chief said that crisis has also affected India and China, who had been drivers in the region.
Bisignani said after the September 11th incidents, the industry had lost seven per cent revenue and it took three years to recover.
"This situation is global and it will take more than three years to recover, it is difficult to see recovery of profits in the next few years," he warned.
04/06/09 Press Trust of India/Business Standard

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Categories: Indian Aviation- In General Jun 2009