Profitability a challenge for AAPA members – but not the only one
AirCargo archive stories issue 234
Thursday, 29 January 2015
Association of Asia Pacific Airlines (AAPA) member carriers reported “significant” growth in both cargo and passenger traffic during their recent assembly in Tokyo.
But while the mood of the meeting - including future prospects - was definitely upbeat, no-one was downplaying the challenges ahead.. “With Asia continuing to rise on the global stage, the long term prospects for the region’s carriers are still very positive,” said Andrew Herdman (left), AAPA’s director general.
But, he noted, there was heavy pressure on the airline leaders “to make decisions that ensure this optimistic outlook becomes a reality.
“For many, a return to profitability in the near future is a particular challenge that is not made any easier by the current series of economic and political uncertainties prevailing around the world.”
Safety was a major topic at the meeting, its priority status borne out by recent incidents in Indonesia and the Philippines.
One of the challenges under discussion during the Tokyo gathering, Herdman reported, was the need for more attention to infrastructure. Although Asia Pacific airlines continue to invest heavily in the latest generation of fuel-efficient aircraft to meet traffic growth demands, there is an increasing concern about the need for corresponding long term investments in related aviation infrastructure, including airport terminals, runways and air navigation services, AAPA members noted in a post-assembly report.
Governments have key roles to play in coordinating such investments and ensuring that the necessary regulatory oversight of the industry keeps pace with growth, they said.
Environment remains another key issue for Asia-Pacific carriers, with industry committed to sustainability targets including 1.5 per cent annual fuel efficiency improvements and the development of a global market-based measure to achieve carbon-neutral growth from 2020 onwards.
No less important as a priority for many Asia Pacific carriers is an early return to profitability. Collectively, Asian carriers have seen a dip in yields this year as a result of intense market competition and signs of surplus capacity.
AAPA member airlines are reviewing their fleet and network development plans while maintaining a tight rein on costs in a bid to restore profitability and sustain further investments for the future.
On a more positive note, the leaders reported that after many years of stagnant market conditions in the wake of the global financial crisis, air cargo volumes are picking up.
Herdman said that AAPA continued to play a critical role in addressing the key policy issues that affect all carriers in the Asia-Pacific region, including safety, security, infrastructure, environment, passenger facilitation, and “unjustified taxation”.
AAPA is the trade association for scheduled international airlines based in the Asia Pacific region. Its permanent secretariat is in Kuala Lumpur, complemented by representation in Brussels and Washington.
On the web: www.aapairlines.org
Profitability a challenge for AAPA members – but not the only one
AirCargo archive stories issue 234
Thursday, 29 January 2015
Association of Asia Pacific Airlines (AAPA) member carriers reported “significant” growth in both cargo and passenger traffic during their recent assembly in Tokyo.
But while the mood of the meeting - including future prospects - was definitely upbeat, no-one was downplaying the challenges ahead.. “With Asia continuing to rise on the global stage, the long term prospects for the region’s carriers are still very positive,” said Andrew Herdman (left), AAPA’s director general.
But, he noted, there was heavy pressure on the airline leaders “to make decisions that ensure this optimistic outlook becomes a reality.
“For many, a return to profitability in the near future is a particular challenge that is not made any easier by the current series of economic and political uncertainties prevailing around the world.”
Safety was a major topic at the meeting, its priority status borne out by recent incidents in Indonesia and the Philippines.
One of the challenges under discussion during the Tokyo gathering, Herdman reported, was the need for more attention to infrastructure. Although Asia Pacific airlines continue to invest heavily in the latest generation of fuel-efficient aircraft to meet traffic growth demands, there is an increasing concern about the need for corresponding long term investments in related aviation infrastructure, including airport terminals, runways and air navigation services, AAPA members noted in a post-assembly report.
Governments have key roles to play in coordinating such investments and ensuring that the necessary regulatory oversight of the industry keeps pace with growth, they said.
Environment remains another key issue for Asia-Pacific carriers, with industry committed to sustainability targets including 1.5 per cent annual fuel efficiency improvements and the development of a global market-based measure to achieve carbon-neutral growth from 2020 onwards.
No less important as a priority for many Asia Pacific carriers is an early return to profitability. Collectively, Asian carriers have seen a dip in yields this year as a result of intense market competition and signs of surplus capacity.
AAPA member airlines are reviewing their fleet and network development plans while maintaining a tight rein on costs in a bid to restore profitability and sustain further investments for the future.
On a more positive note, the leaders reported that after many years of stagnant market conditions in the wake of the global financial crisis, air cargo volumes are picking up.
Herdman said that AAPA continued to play a critical role in addressing the key policy issues that affect all carriers in the Asia-Pacific region, including safety, security, infrastructure, environment, passenger facilitation, and “unjustified taxation”.
AAPA is the trade association for scheduled international airlines based in the Asia Pacific region. Its permanent secretariat is in Kuala Lumpur, complemented by representation in Brussels and Washington.
But while the mood of the meeting - including future prospects - was definitely upbeat, no-one was downplaying the challenges ahead.. “With Asia continuing to rise on the global stage, the long term prospects for the region’s carriers are still very positive,” said Andrew Herdman (left), AAPA’s director general.
