It is an alarming situation around us for all sectors.. during this recession... no depression.. no downturn.. whatever we call it.. we tend to be talking in Billions of dollars only.. wonder.. what is going to happen to all the government fundings that shall go in.. & who shall get in line for becoming the next richest people..
Here is an article which had come in Star News paper.http://biz.thestar.com.my/news/story.asp?file=/2009/3/25/business/3549559&sec=business
GENEVA: World airlines are set to lose US$4.7bil this year as a result of the global recession that has shrunk passenger and cargo demand, the International Air Transport Association (IATA) said.
IATA had estimated in December the industry would lose US$2.5bil in 2009.
“The state of the airline industry today is grim. Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago,” director-general Giovanni Bisignani said yesterday.
“The relief of lower fuel prices is overshadowed by falling demand and plummeting revenues. The industry is in intensive care.”
IATA, which represents 230 airlines, also raised its estimate of international airline losses in 2008 to US$8.5bil, from its previous US$8bil estimate.
The Swiss-based body said its latest forecast was based on a view that the economy and air transport demand would hit bottom by mid-2009 and then start to recover.
“We do expect better prospects toward the end of this year or the beginning of 2010,” Bisignani told a news conference at Geneva airport.
Leading airlines have slashed fares to encourage continued travel and unveiled a range of cost-cutting measures to stay afloat throughout an economic slump.
Fares should stay low throughout the year while airlines compete for the business that remains until global economic activity rebounds, Bisignani said.
Asia-Pacific carriers will continue to be hardest hit by global economic turmoil and are expected to post losses of US$1.7bil, against the earlier forecast loss of US$1.1bil in 2009, according to IATA.
Carriers in North America were expected to deliver the “best performance” among the world’s regions with an estimated US$100mil profit, IATA said, crediting their strength to early capacity cuts and relatively little fuel hedging that has permitted them to benefit from sliding oil prices.
And European carriers are expected to lose US$1bil in 2009 as a result of the recession that will continue to drag down both economy and premium demand worldwide. — Reuters