KUALA LUMPUR – Asia Pacific airline leaders gather in Taipei for the annual AAPA Assembly of Presidents this week, with the industry facing severe turbulence.
The dramatic slowdown in the global economy has seriously impacted passenger demand. At the same time, fuel prices remain volatile and other cost burdens continue to grow.
Nevertheless, the industry always stays focused on its number one priority of maintaining safety standards at the very highest level.
Asian carriers are responding promptly and effectively to meet the latest series of challenges facing the industry, retiring older aircraft and trimming unprofitable routes as networks are realigned with changing demand patterns.
Member airlines are also seeking further operational efficiencies, by working together with industry partners, to reduce unnecessary costs throughout the business.
“Growth forecasts for Asia Pacific economies are being progressively revised downwards, as the global economic slowdown begins to bite hard,” said Andrew Herdman, Director General of AAPA.
“In the past few months, we have seen demand for both passenger and cargo traffic fall sharply. These are extremely difficult times for airlines around the world, and some will not weather the current storm. ”
Herdman added, “Fresh thinking is also needed for further structural reform, especially regarding ownership and control issues.”
