International air traffic growth slows: IATA urge consolidation
03.05.08
International air traffic growth continued to slow in March, as the aviation industry struggled to cope with record fuel costs and the global credit crunch, the International Air Transport Association (IATA) said yesterday. IATA's director general has urged airlines to move towards consolidation, saying the industry's fortunes ‘have taken a major turn for the worse.’
Although aggregate international traffic grew by 4% in March, Asia-Pacific traffic growth fell to just 4.3%. This compared to growth of 15.4% for Middle East carriers - still sharply lower than the 20.4% posted a year earlier. In North America, international traffic increased 6.3%, but in Europe it rose 3.7%. Only Latin American traffic posted growth higher than last year - up 19.7%, boosted by strong demand.
And IATA director general and chief executive Giovanni Bisignani said: ‘Traffic only tells a part of the story. Astronomical oil prices are hitting the industry hard and the buffer of an expanding global economy has disappeared. The fortunes of the industry have taken a major turn for the worse.'
He noted that with ‘such dramatic shifts in the global economy, consolidation is critical. But it makes no sense that consolidation is limited to domestic partners. This is a global industry that needs to be run like a global business. The US-EU Open Skies Agreement second stage talks that open in May must deliver a modern approach to ownership rules.'
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