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AAPA: Asian airlines continue to take optimistic view on future growth prospects despite challenges

4-Nov-2011 8:17 AM

Association of Asia Pacific Airlines (AAPA), ahead of the 55th Assembly of Presidents of AAPA, stated (03-Nov-2011) AAPA carriers remain "extremely vigilant" about the immediate threats to growth and profitability associated with a potential slowdown in the global economy and fuel prices that have already risen 40% this year. AAPA noted that while strong domestic spending is ensuring that key Asian economies remain resilient, there is growing concern about the possible impact of further financial instability in Europe and the US moving into 2012. Commenting on the outlook, AAPA director general Andrew Herdman said: “Asian airlines continue to take an optimistic view on future growth prospects, which is reflected in ambitious fleet expansion plans, as well as the establishment of a number of new carriers of varying business models. The traditional distinctions between full service network carriers, and low cost carriers focusing solely on short haul point to point routes, have become increasingly blurred over time. The recent development of a number of new joint-ventures between traditional carriers and new entrants, seeking to combine their respective strengths and tap new markets is testimony to this trend. As always, the key to success will be efficient execution, regardless of the chosen business model.” [more - original PR]