World economy and aviation.

[cosmo kramer]

In these difficult times it may seem a cynical question but never the less valid.

How do you think the world economy will be affected by yesterdays horrifying events? How do you think that may affect our industry?

My heartfelt sympaties to all victims and their families. And apologies for asking this cynical question.

[The Guvnor]

Yes, it's actually a very relevant question. Qantas have already said that due to the lack of confidence that will result from the financial markets in the aviation sector, they are now definitely not interested in a rescue deal for Ansett as they will be unable to find the refinancing required. BA shares closed at 210p yesterday, down over 20%; and both EZY and FR saw large falls in the values of their shares.

I think it will affect those carriers in the US and those that fly to the US the hardest; Americans tend to be insular at the best and we've seen their reactions to things like BSE, Foot and Mouth and the Gulf War where they stayed away in droves.

Add to that increased cost of fuel and security, and I think that the halcyon days of aviation came to a grinding halt yesterday.