CIT Group president of transportation finance, C Jeffrey Knittel, said (16-Nov-2011) the European sovereign debt crisis does not appear to be significantly affecting overall passenger traffic in Europe so far, although some weakness in internal traffic of the most affected countries has been reported. Mr Knittle said CIT expects this situation to remain in 2012. Emerging markets continue to provide opportunity for growth in the commercial aviation industry, with CIT reporting impressive growth in Latin America in particular. [more - original PR]
CIT Group: Soverign debt crisis has not significantly affected European traffic
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Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.