Akal Air News : Signs that 2009 will be a much better year than 2008.

Signs that 2009 will be a much better year than 2008.
Despite all the doom and gloom surrounding the credit crunch, airline failures and growing unemployment, some analysts are predicting that 2009 will be a much better year than 2008.

The reasons for these unexpected predictions are based on simple trends:

Oil prices are declining and this trend looks set to continue, reducing the single greatest burden on an airline’s balance sheets. The dollar is also declining, meaning that aviation costs (lease rates, fuel etc.) that are usually expressed in dollars are also declining.

Aircraft are becoming available in the lease market and these are on more reasonable terms, allowing airlines to acquire new aircraft at acceptable prices to service new and growing routes. Charter airlines are being steadily chased out of the short haul market by the low cost carriers, into medium haul routes not explored before. This segmentation of the market will help to stabilise charter operators in the face of fierce competition.

Although distressing, recent airline failures have meant that seat capacity has been significantly reduced, whilst demand has been maintained, meaning that more passengers will be chasing fewer seats.

The message is simple: if an airline can survive the winter of 2008, then it can expect a bumper year in 2009.

with thanks : www.akalair.com