Asia Pacific Airlines Forge Ahead in Post-Recessionary World

Published on : Thursday, November 14, 2013

AAPA AirlinesInnovative Asia Pacific airlines continue to forge ahead in a post recessionary world, with the region’s carriers having played a pivotal role in the reshapingof the industry over the past five years. Heightened competition from within and outsidethe region and persistently high fuel costs continue to exert pressure on Asia Pacific
carrier profitability, but regional economic growth and strong passenger demand createcause for overall optimism. As a result, delegates gathering for this year’s Association ofAsia Pacific Airlines (AAPA) Assembly of Presidents meeting in Hong Kong over the nexttwo days are expected to be in a positive frame of mind.

 

With its reputation for innovation further strengthened through strategic realignments and
multi-faceted airline offerings, the Asia Pacific air transport industry has proved itself to be
extremely resilient in recent years. Both network and low cost carriers, along with other
innovative airline business models have widened offerings to the region’s travelling public,
with a cross fertilisation of ideas amongst competitors with different business models
significantly narrowing many of the earlier product and pricing differentials. Indeed, the
region’s leading network carriers continue to invest heavily in improvements to premium
class cabins, whilst low cost carriers are now launching long-haul services with some
premium class offerings at extremely competitive prices.

 

Although there are some signs that the worst of the slump in air cargo demand in recent
years is now over, Asia Pacific carriers with major dedicated freighter fleets look forward
to the growth in world trade returning to pre-recessionary levels in order to achieve
meaningful returns on their investments in the latest generation freighter aircraft. Whilst
the long-term outlook for air freight remains encouraging, profitability for Asian carriers
with major freighter fleets will continue to be negatively impacted by the current overhang
of excess freighter capacity. AAPA does not see a fundamental shift in the commitment to use air freight to ship high value and time-sensitive goods. The current situation is
simply a reflection of sluggish international trade flows, which are similarly affecting the
maritime freight industry.

 

“With international passenger traffic growing steadily and the world economy gradually
pulling out of recession, Asia Pacific carriers have good reason to be optimistic. Having
tightly controlled costs and invested heavily in the latest generation of fuel efficient aircraft
in recent years, airlines from the region are well equipped to compete vigorously amongst
themselves and with carriers from outside the region,” said Andrew Herdman, Director
General, Association of Asia Pacific Airlines. “Achieving a broader recovery in the air
freight business of Asian carriers is a more prolonged process, which will very much
depend on world trade growth rates returning to more normal levels.”

 

AAPA continues to play a critical role in addressing the key issues that affect the efficient
operation of all carriers in the Asia Pacific region.Safety, Security, Environment,
Passenger Facilitation, Taxes and Infrastructure are all of common concern to Asia
Pacific carriers.  AAPA Is Dedicated to ensuring a strong, efficient and profitable Asia-Pacific air transport industry for the long term to support wider economic and social development.

 

Source:- AAPA Airlines

 

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