Asia Pacific Airlines - Airlines in Asia Pacific

Tough Days Ahead Likely for Airlines in Asia Pacific - AAPA :

According to an agencies report, some airlines will not survive the worsening global economic situation, an industry association said on Wednesday, warning that the next 12-18 months will be 'extremely difficult' for Asia-Pacific carriers. Passenger demand as well as passenger numbers are falling as Americans and Europeans are curtailing travel plans as the current financial market turmoil undermines consumer confidence, said the Association of Asia Pacific Airlines (AAPA) in a statement monitored on its website. "The biggest challenge right now are the weakening passenger demand, particularly for First and Business Class travel, and the continuing uncertainty about the global economic outlook," said General Andrew Herdman, Director, AAPA.

Herdman further added, "Asian carriers are, therefore, bracing themselves for a period of continued turbulence, hopefully without losing sight of their long term strategic goals and future growth opportunities." He also informed that according to Turbulence Forecast the next 12-18 months will be extremely difficult times for airlines and some will be unable to survive the current crisis.

He added that the Association will remain extremely cautious about prospects for the airline industry in 2009. While fuel prices have recently declined, they are still 25 per cent higher than last year. The crisis, which began in the US sub-prime, or higher risk, mortgage sector, has been routing global financial markets and there are signs the impact is affecting other economic sectors such as manufacturing, tourism and property.