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Old 29th October 2008 | 19:59
  #5 (permalink)  
Dai_Farr
 
Joined: Sep 2006
Posts: 21
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From: ex Ice Station Kilo
Different industries, as well as different sectors within a single generic industry, operate to what you might term fortune cycles. These cycles may or may not be in synch with each other.

House sales are dead but rentals are on the increase. In aviation, freight fortunes are not always in synch with the fortunes of passenger operations. I remember from the 1980s and '90s that different continents and countries peaked and troughed at different times. This particular recession, however, seems to be aligning every industry and every continent into synchronicity and into the deep brown sticky stuff all at once!!

From earlier recessions, the air freight arm is likely to do better than the passenger flying arm. Business people are more likely to fly economy whilst holidaymakers may think twice about venturing off far enough to warrant flying. Luxuries are the first casualties of a recession but are also the first "tonic" after a recession.

We now have the low costs. Sure, they were hit by rising fuel prices earlier this year, but it will be interesting to see if their enticing fares enable them to buck the traditional passenger flying trends as above.
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