Logistics & Transportation

World - IATA chief expects further airline mergers

Source: Euclid Infotech - Procurement News, 12 April 2010

Giovanni Bisignani, director-general of the International Air Transport Association, said that further mergers among airlines are essential in order to cut costs and improve competitiveness in an industry seen sustaining combined losses of US$2.8 billion this year. He called for regulatory support for barrier-free mergers across borders, explaining that different legal frameworks have hindered extensive global industry consolidation.

IATA said that airlines were climbing out of recession with strong rises in passenger travel and cargo in February. Passenger demand in February 2010 was up 9.5% from a year earlier, while supply increased by only 1.9%.

Indonesia - Regional and domestic airlines eyeing 8.8 million passengers

Source: Bisnis Indonesia, 15 April 2010

National and Asean airlines will compete for the overseas flight market in Indonesia, which is projected to reach 8.8 million passengers in 2015. Director of Air Transportation at the Ministry of Transportation Tri S. Sunoko revealed the competition would take place when the Asean open sky policy came into effect.The national airlines could seize a significant market share after several airlines scheduled to order new narrow-bodied and wide-bodied airplanes.

The Ministry of Transportation would protect national airlines by only opening five international airports to foreign airlines' unlimited-quota flights. However, Asean foreign airlines would be prohibited from flying domestic routes from the five international airports. The airports are Polonia (Medan), Soekarno-Hatta (Jakarta), Juanda (Surabaya), Ngurah Rai (Bali), and Sultan Hasanuddin (Makassar).

India - Air traffic grows 20.54% in Jan-Mar

Source: Euclid Infotech, 16 April 2010

Passenger numbers for India's domestic air carriers jumped 20.54% in the Jan-March quarter. A total of 12,032,000 passengers flew in the Jan-March quarter as compared with 9,982,000 in the same quarter last year. Analysts say the growth is on account of sustained recovery in the air travel industry as corporate and leisure travel is gaining momentum.

The hike in passenger traffic is likely to have a positive impact on the financial health of the air carriers, most of which have been reeling under heavy losses for last two years. Industry watchers say the revival in the economy has resulted in more travel by air. This, together with cost cutting and rationalisation of routes by carriers, has boosted their load factors and improve financial performances.

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