Air cargo recovery will take up to three years

Air cargo firms are cautious about projected improvements in 2010, but almost all only foresee a return to 2007 peak levels within one to three years, according to the 2010 Global Air Cargo CEO Survey by consulting firm Oliver Wyman. "As the industry slowly emerges from the worst-ever demand crisis, key lessons learned are that faster response, added financial flexibility, more conservative capacity planning, and diversification of risk across markets and products are key elements to successfully manage in a downturn," says Niko Herrmann, a partner at Oliver Wyman. "Carriers in the future will require financial and network strength as well as enhanced organisational and management capabilities to get the best out of their cargo capacity." This year's survey of more than 30 CEOs of top global air cargo players found that, while the global economy may be showing signs of stabilisation, the recovery in the air cargo market is still fragile. The majority of growth is expected to come from China and North Asia, followed by the rest of Asia-Pacific, and air cargo providers plan to focus on these regions.