Airline industry to recovery in 2 years

08:21, June 04, 2010      

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The airline industry may recover in two years thanks to growth in markets outside Europe, the chief of the International Air Transport Association (IATA) said on Thursday.

IATA previously believed three years or more would be needed for recovery, as the revenue of whole industry dropped by 80 billion dollars, about 15 percent in 2009, said Giovanni Bisignani, chief of the association at a press briefing before IATA's annual general meeting next week.

The recovery will probably come earlier than pervious estimation within 2 years, said Bisignani, as "the economy is pushing again strongly, especially in areas outside Europe. "

Strong improvements were recorded in all regions except Europe in the first quarter of 2010, according to a report released by IATA on the same day.

In the first quarter, the net post-tax losses of a sample of 50 of IATA's 230 member airlines have seen more than 50 percent of reduction from 4.1 billion U.S. dollars 2009 to 2.0 billion U.S. dollars this year.

Bisignani also criticized the European Union (EU) for "loss of leadership" in dealing with the volcanic ash in April and asked the EU to compensate to some extent for the huge losses of 1.8 billion U.S. dollars that the airline industry suffered due to the airspace ban.

He said: "It took 5 days for EU to organize a conference call instead of a meeting. This is a very clear indication that governments and the European Commission did not understand what was going on."

"IATA is always against any kind of bailout, but in the case of volcanic ashes, I think we have to be compensated for the loss of revenue due to the fact that the airspace was closed," Bisignani said.

Source: Xinhua


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