Airlines suffered record drop traffic in 2009

International airlines suffered their biggest decline in traffic since 1945 last year as passenger demand fell 3.5 per cent, the International Air Transport Association said Wednesday. Freight also fell, by 10.1 per cent, as ' full-year 2009 demand statistics for international scheduled air traffic ... showed the industry ending 2009 with the largest ever post-war decline,' IATA said in a statement. 'In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen,' said Giovanni Bisignani, director general of the world's biggest airlines' association. 'We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business,' he added. Passenger traffic had improved in the final months of 2009, after a slump triggered by the financial and economic crisis. In December, passenger traffic increased by 4.5 per cent in December compared to the same month the previous year, and by 1.6 per cent over November, latest IATA data showed. While airlines had continued to cut capacity and flights, yields were still five to 10 per cent below 2008 levels by the end of last year. IATA predicted a slow recovery for cash-strapped carriers. 'Revenue improvements will be at a much slower pace than the demand growth that we are starting to see,' said Bisignani. 'Profitability will be even slower to recover and airlines will lose an expected $5.6 billion in 2010,' she added. The industry association warned last month that airlines faced another turbulent year after they racked up an estimated $11 billion in losses in 2009 despite a recovery in passenger traffic. 'We are ending an Annus Horribilis that rings to a close the 10 challenging years of an aviation Decennus Horribilis,' Bisignani told journalists last month. IATA represents some 230 carriers that account for more than 90 per cent of scheduled air traffic, but does not include most of the budget airlines.

BEPZA urges Toyota to invest in EPZs

Bangladesh Export Processing Zone Authority has urged Japan's Toyota Tsusho Corporation to invest in the export processing zones in the country. A three-member investment delegation from the TTC, headed by general manager Yasuhiro Miura visited Bangladesh Export Processing Zones Authority office in the city on Wednesday, said a news release. BEPZA executive chairman Jamil Ahmed Khan briefed the delegation members on the activities of BEPZA and present status of EPZs of Bangladesh. He also highlighted the fiscal and non fiscal incentives provided by BEPZA and requested the delegation member to explore the investment opportunity in the EPZs. The delegation members expressed their keen interest to invest in the EPZs, said the news release. AZM. Azizur Rahman, general manager (investment promotion) of BEPZA, was also present at the meeting.

Airlines suffered record drop in traffic

World airlines suffered their biggest traffic decline since 1945 last year, making 2009 the "worst year the industry has ever seen," and can expect only a slow recovery in 2010 , the International Air Transport Association said Wednesday. Passenger demand fell 3.5 percent while in the freight sector demand was down 10.1 percent. "Full-year 2009 demand statistics for international scheduled air traffic ... showed the industry ending 2009 with the largest ever post-war decline," IATA said in a statement. "In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, director general of an association that groups the world's biggest airlines' association. "We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business," he added. Bisignani warned that while the worst appeared to be over with the recovery in the global economic climate, airlines would have to keep their costs reined in during a "Spartan year" in 2010. Passenger traffic improved in the final months of 2009 , after a slump triggered by the financial and economic crisis. In December, passenger traffic increased by 4.5 percent in December compared to the same month the previous year, and by 1.6 percent over November, latest IATA data showed. While airlines had continued to cut capacity and flights, yields were still five to 10 percent below 2008 levels by the end of last year. IATA nevertheless predicted a slow recovery for cash-strapped carriers. " Revenue improvements will be at a much slower pace than the demand growth that we are starting to see," said Bisignani.

Bangladesh Biman gets new look today

A new-look Biman will show off today as the national flag carrier rebrands to emerge as a commercially viable airline by winning the hearts of domestic and international travellers, officials said yesterday. Prime Minister Sheikh Hasina is expected to unveil the new logo and livery of Biman, which offers promises to improve both the onboard and ground services. The premier is likely to see for herself the two leased aircraft -- Boeing 777-200 ER and Boeing 737-800 -- with the new livery and logo at Zia International Airport, said Muhammad Zakiul Islam, managing director and chief executive of Biman Bangladesh Airlines. The Biman MD said the new livery and modified logo of Balaka will be seen in the aircraft to be inducted in the coming days through lease and purchase. Three leased planes, which are likely to join Biman fleet this year, will get the new look. But DC-10 , Airbus and F-28 planes will bear the legacy of previous look of the 38- year old carrier. Under the rebranding move, Biman comes with the promises of offering what it calls ' hospitability', 'safety', 'reliability' and 'world class' services.

Asian shipping firms faces challenges

Asian shipping firms face "significant" challenges this year due to weakened earnings and limited access to capital, international ratings agency Fitch said Wednesday. "Weakened earnings, high committed capex ( capital expenditures) and restricted access to capital remain challenges for a number of rated shipping companies," it said in a statement. The majority of the seven Asian shipping companies under Fitch's ratings coverage "will continue to face significant operating and credit challenges in 2010 ," the agency said. Three companies are either on "negative outlook" or "negative rating watch", among them Indonesia's PT Arpeni Pratama Ocean Line and PT Berlian Laju Tanker, and Varun Shipping Company of India. "The oversupply of shipping capacity will continue to exert pressure on shipping rates and utilisation levels in 2010 ," Fitch said. Due to the long time needed to build new ships, the shipping industry is inflexible in terms of its ability to respond to the changing global supply and demand picture, analysts say. "The weak fundamentals in the global shipping markets have even affected domestic revenues of Indonesian and Indian shipping companies that benefit from cabotage laws", Fitch added. Cabotage restricts a nation's coastal trade only to ships belonging to that country.