SARS, 9/11, Oil Prices, Recession and now Swine flu

Any event that affects global sentiments, will affect the aviation industry without any doubt… That is what I get to derive from what has been happening to this lucrative industry over the past decade or so.

We had the 9/11, the deadliest terror attack on American soil which suddenly sent shock waves around the world making people to fear air travel. A few years later came SARS that proved even more deadly. These two incidents in history saw a big lull in global air traffic. Drastically bringing down revenues and air traffic. Reports say that in September 2001, when a larger part of the global fleet was grounded temporarily, the decline was in air traffic was 13.9%.

IATA’s outlook for the current year has not been very encouraging either to the aviation players.  The economic slowdown has prompted travelers to spend every penny more wisely. An estimated 30 to 35% of all the cargo is transported via air. IATA’s director general Giovanni Bisignani had commented that “2009 is shaping up to be one of the toughest ever years”.
The fall in crude prices has done no good except for a few airlines who have managed to stay in the black. But a majority of the players are still running in the red zone. In a recent interview Bisignani has said “It’s not the end of the recession, but we may have found the floor.” .. Floor all right…. But how low is that floor ??!

Now given all this, we have another threat.. In comes the Swine Flu from the pig farms of Mexico. Thanks to the heavy consumption of bacon and pork across North America, these regions have thickly(really thick) bred pig farms. This has given rise to the probability of infections being passed onf rom swine to the humans. Air travellers around the world have been issued safety warnings. Major MNC in Mexico have issued warnings to their workforce in Mexico as well as people going there. Airports have started using thermal scanners to detect infections. Generic flu vacines are the thing of the day in the pharma markets. Govenrments and Organisations around the world have started to gather vaccines adn medicines on a large scale.Now what have we go on our hands… Is it going to be another threat that the Airlien industry will shrug off ?! Yeah U bet they will shrug it off succesfully.


~ by technolect on April 30, 2009.

2 Responses to “SARS, 9/11, Oil Prices, Recession and now Swine flu”

  1. Hey all, found this site, it has updates and general info on the swine flu outbreak sorted by country (ie US, Mexico, New Zealand, Europe) seems quite good…

  2. hey muthu!! A good read da. i got to know some information about the recession happening in the aviation industry and what were/are the major factors impacting the industry. 🙂

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