As business travel to Japan tumbles by as much as 80 per cent, the International Air Transport Association (IATA) says it is too early to assess the long-term impact of the Japanese earthquake/tsunami and nuclear crises, but because the US$62.5 billion Japan market represents 6.5 per cent of scheduled worldwide traffic and 10 per cent of industry revenues, "the fortunes of the industry will likely not improve until the effect of a reconstruction rebound is felt in the second half of the 2011 year". The most-exposed international market to Japanese operations is China, where Japan accounts for 23 per cent of its international revenues, while Taiwan and South Korea are only slightly lower at 20 per cent.
Japan also produces three to four per cent of the global jet fuel supply, and some of this refinery capacity "has been lost due to damage caused by the earthquake," IATA said.
Higher jet fuel prices could result.
Already, business travel to Japan by Americans alone has tumbled and US industry experts do not expect it to recover until the nuclear problems are solved.
Andrew Menkes, chief executive of Partnership Travel Consulting, a US travel management company (TMC) says its figures show travel down 80 per cent.
Business travellers have cancelled their trips, he said, "because of potential exposure to radiation, challenges with the transportation and ground infrastructure, and lack of hotel space."
Meanwhile, police estimates now show more than 18,000 people died in the earthquake/tsunami tragedy and the estimated rebuilding/recovery cost for the country has risen to US$145 billion.
Japan's crises impact aviation
Latest News
Tuesday, 22 March 2011
As business travel to Japan tumbles by as much as 80 per cent, the International Air Transport Association (IATA) says it is too early to assess the long-term impact of the Japanese earthquake/tsunami and nuclear crises, but because the US$62.5 billion Japan market represents 6.5 per cent of scheduled worldwide traffic and 10 per cent of industry revenues, "the fortunes of the industry will likely not improve until the effect of a reconstruction rebound is felt in the second half of the 2011 year". The most-exposed international market to Japanese operations is China, where Japan accounts for 23 per cent of its international revenues, while Taiwan and South Korea are only slightly lower at 20 per cent.
Japan also produces three to four per cent of the global jet fuel supply, and some of this refinery capacity "has been lost due to damage caused by the earthquake," IATA said.
Higher jet fuel prices could result.
Already, business travel to Japan by Americans alone has tumbled and US industry experts do not expect it to recover until the nuclear problems are solved.
Andrew Menkes, chief executive of Partnership Travel Consulting, a US travel management company (TMC) says its figures show travel down 80 per cent.
Business travellers have cancelled their trips, he said, "because of potential exposure to radiation, challenges with the transportation and ground infrastructure, and lack of hotel space."
Meanwhile, police estimates now show more than 18,000 people died in the earthquake/tsunami tragedy and the estimated rebuilding/recovery cost for the country has risen to US$145 billion.
