News
A flying guess
The aviation industry has weathered a difficult year, and experts predict that 2009 will bring no significant improvement.
According to Giovanni Bisignani of the International Air Transport Association (IATA), "Airline stocks are down 60 per cent on last year, and we have had to suspend 31 airlines from our $360 billion financial systems because they could not pay their bills."
But what does all this mean for migrants? The main noticeable impact will be on the number of carriers flying to and within popular emigration destinations such as New Zealand. Qantas is reducing services across its domestic network, potentially cutting its 114 flights per week across New Zealand by 29; however, this shortfall may be replaced by Qantas' budget airline, Jetstar, which has applied to fly domestically in New Zealand. Moreover, Air Canada has also warned of capacity cuts, noting that demand has been soft on its UK and US trans-border routes.
So although prices may fall with airlines scrambling for a declining number of passengers and paying less for aviation fuel than they were at the dizzy heights of last year's black gold rush, if the number of routes is slashed airlines might find a way to keep some fares sky high.
04 March 2009