Peter Harbison, executive chairman of the Centre for Asia Pacific Aviation has tipped a ''couple of dark years for the aviation business'' and warned airlines that currency instability was one of the biggest threats faced.
At the Aviation Outlook Asia conference, he warned airlines against complacency, saying there is ''no airline in this region'' and ''probably for most of the world too'' that can be confident of ''being here this time next year''.
He said that as well as coping with slowing demand from the corporate travel segment, airlines also will need to deal with volatilities in foreign currencies that will directly impact their hedging strategies.
He said currency instability "has created massive problems for airlines in terms of their risk management, in terms of their hedging."
Andrew Herdman, director general of the Association of Asia Pacific Airlines, told delegates ''everything has fallen off the cliff''. He said even though oil prices have halved to around US$70 dollars a barrel, revenue outlooks for carriers remains ''extremely gloomy''.
Aircargo Asia Pacific
Login
