Asian carriers to lead global growth in 2010

Singapore: Asian carriers are counting on an anticipated pick-up in economic activity in the region next year to help pull the aviation sector out of the doldrums.
While some airlines said they are starting to see signs of an upturn, industry watchers note that 2010 will be a challenging year.
2009 has been one of the most turbulent years for global airlines in history. The highly leveraged industry felt the impact immediately when credit markets froze - putting a squeeze on its operations.
Paul Ng, Global Head of Aviation, Stephenson Harwood, said: "The fact liquidity was scarce over this period impacts the airlines and the businesses that support the airlines with almost immediacy. So, they suffer very quickly and very deeply as a result of the credit crunch that started in 2008."
Global carriers have had to contend with a sharp drop in passenger and freight traffic which started with the global economic slowdown and was made worse by the H1N1 flu outbreak.
A recent report by the International Civil Aviation Organisation shows that world airline passenger traffic fell 3.1 per cent in 2009 making it the biggest drop in the aviation industry's history.
Total passenger traffic - both domestic and international - fell in all regions around the world, except for the Middle East, which posted a 10 per cent growth.
That took the attention away from volatile oil prices which fell from their peaks near US$140 a barrel to as low as US$40 before rebounding in the third quarter.
The roller coaster ride resulted in massive losses for carriers like Singapore Airlines which warned that it could record its first ever annual loss in its corporate history.
28/12/09 Timothy Ouyang/Channel NewsAsia

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Categories: Foreign Dec 2009, Indian Aviation- In General Dec 2009