India and China to lead global aviation, says departing IATA chief

Global aviation, which has struggled for earnings over four decades, now looks to China and India to boost profitability, said the International Air Transport Association at its annual meeting.


Asia-Pacific region is forecast to net US$2.1 billion profit in 2011 from a global cargo, representing 40 per cent of the total, said departing IATA chairman and CEO Giovanni Bisignani, adding that it is the only region to see demand outstrip its capacity.


Asia Pacific is hungry to expand, building 45 new airports in last five years, and 52 more planned by 2020, he said of a region predicted to produce 360 million more travellers by 2014, of which 210 million will be from China alone, with three of the five largest airlines by market value from the region.


Despite the sector pulling in $4 billion in combined profit in 2011, revenue has reached staggering heights over the year reaching $598 billion bringing an average return over the past 40 years of 0.1 per cent, Africa is forecast to have a net loss of $100 million, Mr Bisignani said of an industry he described as "fragile".


"After a decade of crisis and shocks, airlines today are safer, stronger, leaner and greener. But sustainable profitability remains elusive," he said, with 2011 hitting cargo of 48 million tonnes and passenger traffic of 2.7 billion.


By 2050, annual passenger traffic will grow five times to reach 16 billion and cargo by eight times to 400 million tonnes.
(Source:http://www.schednet.com)