struggling
11th Feb 2009, 00:03
More Turbulence for Aviation
Transferred without comment from the Qantas pilots' website, is the following post by the outgoing AIPA President.
According to the aviation press; the aviation industry hit severe turbulence in 2008 and is bracing for a hard ride in 2009 as the global financial crisis continues to dent demand for air travel.
"Fighting for Survival
Airlines in the new year will be focused on survival,
rather than growth. There are different factors at work in 2009.
Oil prices are going to stay below those levels that they reached
in 2008.
Consolidation is going to happen and I think the focus for a lot of players
is going to be on survival.
Airlines are expected to collectively incur $US5 billion ($7.3 billion) in
losses in 2009 due to the economic crisis, according to the International
Air Transport Association (IATA).
"The outlook is bleak," IATA director Giovanni Bisignani said recently.
"The chronic industry crisis will continue into 2009.
"We face the worst revenue environment in 50 years."
About 30 carriers collapsed in 2008, which is more than after the September
11, 2001, terrorist attacks in the US, Mr Bisignani has noted.
Airline Consolidation.
Airlines in Australia and abroad will look to consolidation in the year
ahead to create growth synergies and cut costs, analysts predict.
However, Qantas will be on the look out for a new partner after announcing
in December that its $8 billion planned merger with British Airways (BA) had
fallen out of the sky.
Under the Qantas Sales Act, the Australian carrier is required by the Qantas
Sales Act to maintain its main operational base and headquarters in
Australia, and for its chairman and two-thirds of it board members to be
Australian citizens. This could also have further complicated the merger
talks."
A Way to Win?
It appears to me that inorder for Qantas to comply with the Sale Act, its bilateral air route treaties, and use the necessary innovating financial instruments probably required to facilitate global consolidation, Qantas Staff may hold the key? If they choose to embrace ESOP, the Company may just be able to pull it all together and the Company yet sail out the otherside of the storm with blue sky ahead?
Anyone wishing to know more about why Employee Ownership may be an idea those time should visit: AEOA Discussion Forum - Getting Political Support for ESO (http://aeoa.org.au/0024/_forum/topic.asp?TOPIC_ID=414)
Hmmm! might fly when the economy has recovered, but who want's to buy airline stock at this time? :ok:
Transferred without comment from the Qantas pilots' website, is the following post by the outgoing AIPA President.
According to the aviation press; the aviation industry hit severe turbulence in 2008 and is bracing for a hard ride in 2009 as the global financial crisis continues to dent demand for air travel.
"Fighting for Survival
Airlines in the new year will be focused on survival,
rather than growth. There are different factors at work in 2009.
Oil prices are going to stay below those levels that they reached
in 2008.
Consolidation is going to happen and I think the focus for a lot of players
is going to be on survival.
Airlines are expected to collectively incur $US5 billion ($7.3 billion) in
losses in 2009 due to the economic crisis, according to the International
Air Transport Association (IATA).
"The outlook is bleak," IATA director Giovanni Bisignani said recently.
"The chronic industry crisis will continue into 2009.
"We face the worst revenue environment in 50 years."
About 30 carriers collapsed in 2008, which is more than after the September
11, 2001, terrorist attacks in the US, Mr Bisignani has noted.
Airline Consolidation.
Airlines in Australia and abroad will look to consolidation in the year
ahead to create growth synergies and cut costs, analysts predict.
However, Qantas will be on the look out for a new partner after announcing
in December that its $8 billion planned merger with British Airways (BA) had
fallen out of the sky.
Under the Qantas Sales Act, the Australian carrier is required by the Qantas
Sales Act to maintain its main operational base and headquarters in
Australia, and for its chairman and two-thirds of it board members to be
Australian citizens. This could also have further complicated the merger
talks."
A Way to Win?
It appears to me that inorder for Qantas to comply with the Sale Act, its bilateral air route treaties, and use the necessary innovating financial instruments probably required to facilitate global consolidation, Qantas Staff may hold the key? If they choose to embrace ESOP, the Company may just be able to pull it all together and the Company yet sail out the otherside of the storm with blue sky ahead?
Anyone wishing to know more about why Employee Ownership may be an idea those time should visit: AEOA Discussion Forum - Getting Political Support for ESO (http://aeoa.org.au/0024/_forum/topic.asp?TOPIC_ID=414)
Hmmm! might fly when the economy has recovered, but who want's to buy airline stock at this time? :ok: