Asian carriers worst hit by recession

Asia-Pacific carriers may have been worst hit by the global recession, but the region is growing so significantly all indications are they will be the biggest market within the next five years. This is according to Giovanni Bisignani, CEO and director general of the International Air Transport Association (Iata), who says that while the US is currently the biggest market in the world, the capacity of the Far East means they can expect double-digit growth in years to come. “Asia-Pacific was worst hit by the recession and fuel hedging losses at the end of 2008, but the region’s carriers are the first to benefit from reviving Asian economic growth and the modest restocking of inventories in the West.” With expected losses for the coming months at about $3.6 billion, the launch of a massive recovery programme is paying off. “China and much of the Asia- Pacific region did not expect the economic downturn to hit them so hard. When the credit crunch started in the US many thought that it was just going to affect the US and Europe,” said Bisignani. “But China has hit back and one can already see that they are recovering quickly.” According to Bisignani the growth in the Asia-Pacific region brought with it many opportunities for other regions, especially the US and Europe. “Airlines need normal commercial freedoms to merge where it makes sense and to access markets and global capacity like any other business. Governments need a wakeup call to create a policy framework that supports a competitive air transport sector capable of driving economic expansion.”