ID :
26945
Tue, 10/28/2008 - 02:07
Auther :
Shortlink :
http://m.oananews.org//node/26945
The shortlink copeid
Airlines to lose over 5.2 billion dollars: I.A.T.A.
New Delhi, Oct 27 (PTI) Global airline industry is
expected to lose more than an estimated USD 5.2 billion this
year as international passenger traffic has substantially
declined despite a fall in oil prices by half.
Airlines in the Asia-Pacific region, including India and
China, experienced a sharp fall of 6.8 percent in September
compared with the same month last year.
The latest figures were released by the International
Air Transport Association (I.A.T.A.) at the Freedom Summit in
Istanbul, which concluded Sunday, with the global airline
body asking governments to take urgent steps to help the
industry and do away with archaic rules.
"The deterioration in traffic is alarmingly fast-paced
and widespread. We have not seen such a decline in passenger
traffic since S.A.R.S. in 2003," said I.A.T.A. chief Giovanni
Bisignani at the Summit.
"Even the good news that the oil price has fallen to
half its July peak is not enough to offset the impact of the
drop in demand. At this rate, losses may be even deeper than
our than our forecast of USD 5.2 billion," he said, adding
that airlines in all major regions reported shrinking of
passenger traffic.
On the cargo front, the Asia-Pacific region's carriers
reported a 10.6 percent decline, the "most alarming drop"
experienced by the largest players in the market, the I.A.T.A.
said in its latest report.
Up to August, the drop in international passenger traffic
was isolated to Asia-Pacific carriers. "The economies of the
region's two major growth markets-- China and India-- slowed
and Japan saw industrial production drop five percent, the
I.A.T.A. figures showed.
The cargo market saw the "worst decline since the
technology bubble burst in 2001", the report said.
Pointing out that the crisis facing the industry was
deepening, the I.A.T.A. Director General and C.E.O. said "but
unlike other companies, they are denied some basic commercial
freedom-- access to markets and to global capital-- that could
help them manage their business in this difficult time."
He said a "web of 3,500 bilateral air service agreements"
governing the international air transport "denies market
access until specifically agreed. And the ownership clauses
that are contained in these agreements preclude merger across
borders."
In this context, Bisignani pointed towards the banking
industry and said it was accessing global capital and carrying
out mergers.
On the other hand, "airlines are not asking for handouts
(bailout packages). But today's crisis highlights the need for
airlines to be able to run their businesses like normal global
businesses," he argued at the Freedom Summit which is being
attended by government representatives of 15 countries
including India.
At the Summit, I.A.T.A. circulated a paper for these
governments to examine solutions within the bilateral system
that could be quickly implemented to expand opportunities for
airlines to access markets and global capital. PTI A.R.C.
RKM
NNNN
expected to lose more than an estimated USD 5.2 billion this
year as international passenger traffic has substantially
declined despite a fall in oil prices by half.
Airlines in the Asia-Pacific region, including India and
China, experienced a sharp fall of 6.8 percent in September
compared with the same month last year.
The latest figures were released by the International
Air Transport Association (I.A.T.A.) at the Freedom Summit in
Istanbul, which concluded Sunday, with the global airline
body asking governments to take urgent steps to help the
industry and do away with archaic rules.
"The deterioration in traffic is alarmingly fast-paced
and widespread. We have not seen such a decline in passenger
traffic since S.A.R.S. in 2003," said I.A.T.A. chief Giovanni
Bisignani at the Summit.
"Even the good news that the oil price has fallen to
half its July peak is not enough to offset the impact of the
drop in demand. At this rate, losses may be even deeper than
our than our forecast of USD 5.2 billion," he said, adding
that airlines in all major regions reported shrinking of
passenger traffic.
On the cargo front, the Asia-Pacific region's carriers
reported a 10.6 percent decline, the "most alarming drop"
experienced by the largest players in the market, the I.A.T.A.
said in its latest report.
Up to August, the drop in international passenger traffic
was isolated to Asia-Pacific carriers. "The economies of the
region's two major growth markets-- China and India-- slowed
and Japan saw industrial production drop five percent, the
I.A.T.A. figures showed.
The cargo market saw the "worst decline since the
technology bubble burst in 2001", the report said.
Pointing out that the crisis facing the industry was
deepening, the I.A.T.A. Director General and C.E.O. said "but
unlike other companies, they are denied some basic commercial
freedom-- access to markets and to global capital-- that could
help them manage their business in this difficult time."
He said a "web of 3,500 bilateral air service agreements"
governing the international air transport "denies market
access until specifically agreed. And the ownership clauses
that are contained in these agreements preclude merger across
borders."
In this context, Bisignani pointed towards the banking
industry and said it was accessing global capital and carrying
out mergers.
On the other hand, "airlines are not asking for handouts
(bailout packages). But today's crisis highlights the need for
airlines to be able to run their businesses like normal global
businesses," he argued at the Freedom Summit which is being
attended by government representatives of 15 countries
including India.
At the Summit, I.A.T.A. circulated a paper for these
governments to examine solutions within the bilateral system
that could be quickly implemented to expand opportunities for
airlines to access markets and global capital. PTI A.R.C.
RKM
NNNN
