asian-airlines-face-capacity-surplus

Asian airlines face capacity surplus

Despite a looming global recession and softening demand, Asian airlines continue to increase capacity, hurting profits.

Edward Russell

September 29, 2008

Economists often say that recessions are good for business. They help companies cut the boom-year excesses, and those that survive, come out stronger and nimbler on the other side. But while US airlines are proactively cutting flights, Asian air carriers remain set on capacity growth even as the credit crunch intensifies.

Airlines worldwide are being slammed on two fronts. The global credit crunch has reduced passenger demand, especially that of lucrative business travellers. At the same time, fuel prices have risen dramatically, averaging $113 per barrel over the first eight months of the year, according to the International Air Transport Association IATA. As US lawmakers debated a $700 billion banking industry bailout last week,...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article per month from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222