Airline bankruptcies set to double
Reuters warns that airline bankruptcies around the world are set to double over the winter to at least 70 for the year, according to the DG of the European Regional Airlines (ERA) industry body. “We are now up to around 35 (bankruptcies) this year. I see at least that number over the winter,” Mike Ambrose said. He added that the current climate for airlines was “far more significant, far more far-reaching” than the period after the attacks on New York in 2001, describing the current year as a “year of hell.” “At 9/11 there was a terrorist attack that created a loss of confidence in safety. This is far more pernicious – it is a loss of confidence in investment,” he said. “There are a major set of problems – such as governments shoring up banks – that go way outside aviation and take longer to resolve.” Ambrose called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay more for carbon emissions could add E6m a year to the cost of a typical regional airline.
Prahok @ October 9, 2008