IATA projects $1.5 billion loss for Indian aviation industry in 2009
24 Oct 2009
The Indian aviation industry will suffer a collective loss of $1.5 billion in 2009 with Air India accounting for the most of it, according to the International Air Transport Association (IATA).
IATA director general and CEO Giovanni Bisignani said at a press conference in New Delhi on Friday that the major markets of India and China would see a substantial increase in losses.
Bisignani, however, did not elaborate on the national carrier's losses and, in response to a question as to what steps he would prescribe for the carrier, he said they have a great management team and did not need IATA's suggestions.
He said the aviation industry worldwide would be in the red from commercial operations in 2009 to the extent of $11 billion, which meant the Indian industry would account for 11 per cent of the global losses.
He added that though and economic upturn was beginning to be seen particularly in Asia, to the benefit of travel and freight volumes, yields remain much weaker than what had been anticipated and oil prices were higher.
He said that though the worst was over, recovery would be a long story with an estimated $80 billion of losses to be recovered by the global aviation industry, which would take at least three to four years.
Regarding the issue of strike by the pilots of Jet Airways and Air India, he said there had been strikes all over the world and in the difficult times a better understanding between managements and the employees would be expected.
He pointed out that though aviation infrastructure was a problem, user charges and airport development fee were also problematic.
