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GENEVA: International air traffic growth continued to slow in March
as the industry was hit by soaring fuel costs and the global credit
crunch, the International Air Transport Association said on Friday.
As a result, IATA’s chief urged airlines to
move towards consolidation, saying the industry’s fortunes “have
taken a major turn for the worse.”
Compared to a year ago, international traffic
grew only 4.0 percent in March.
IATA noted that the slowdown, particularly in
Asia-Pacific traffic growth to just 4.3 percent, was significant as
the region’s booming economies had been expected to “immunise
them [against] the US slowdown.”
Middle East carriers continued to post a
double-digit growth of 15.4 percent but this was still sharply lower
than the 20.4 percent posted a year earlier.
In North America, international traffic
increased 6.3 percent while Europe rose 3.7 percent.
Only Latin American traffic posted
higher-than-expected growth of 19.7 percent, boosted by strong
demand.
“Traffic only tells a part of the story.
Astronomical oil prices are hitting hard and the buffer of an
expanding economy has disappeared. The fortunes of the industry have
taken a major turn for the worse,” IATA director General and Chief
Executive Giovanni Bi-signani said.
He noted that with “such dramatic shifts in
the global economy, consolidation is critical.”
Consolidation in the United States, where Delta
Airlines and Northwest Airlines unveiled a $17.7-billion merger
plan, is welcome, he said.
“But it makes no sense that consolidation is
limited to domestic partners. This is a global industry that needs
to be run like a global business. The US-EU Open Sky Agreement
second stage talks that open in May must deliver a modern approach
to ownership rules,” he said.
The “Open Skies” accord allows airlines
greater freedom to fly between Europe and the United States,
replacing restrictive arrangements agreed upon many years ago.
British Airways said Wednesday it was examining
closer cooperation with US carriers American Airlines and
Continental Airlines but gave no additional information.
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