10 Nov '11, 11pm

budget air travel It's adapt, or lose their place in the skies: The money is in the consumer's perception of val...

The real question is not whether airlines would survive another recession so soon after the 2008/2009 global economic meltdown, but how successfully each will adapt to the redefined aviation landscape. According to the International Air Transport Association, passenger numbers have increased but 2012 profit will fall from US$6.9 billion (S$8.9 billion) to US$4.9 billion. It means airlines are incurring higher costs or enjoying lower yields, or that capacity growth has outpaced demand. The prolonged volatility of the global market reaffirms the lessons of the previous downturn - lest they have been forgotten - and provides a respite for the airlines to re-strategise, at least for those who have wised up to knowing that, going forward, it cannot be business as usual. The market has shifted downward, leading to a flourish of budget carriers including joint-ventures and subsid...

Full article: http://www.todayonline.com/Commentary/EDC111111-0000008/I...

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