Asian air routes might soon see airplane glut

Some aircraft orders planned for Asian routes, the fastest growing in the world, may be deferred or even cancelled, the International Air Transport Association (IATA) has warned.
The record amount of new orders placed in the past two years could lead to excess capacity since the aircraft are to be delivered from this year onwards, when revenue and demand growth has already peaked for this cycle, IATA noted in its latest economic analysis.
Aircraft deliveries over the next five years will be concentrated in booming markets, especially China and India, where there is great potential for demand growth to absorb new capacity additions.
Although IATA said the chance of excess capacity throughout the entire industry was "low", it cautioned that certain regions, such as Asia and the Middle East, and individual routes from Europe to Asia are particularly at risk.
13/02/07 Boonsong Kositchotethana/Bangkok Post, Thailand

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Categories: foreign feb 2007, General Aviation feb 2007