International Air Transport Association (IATA) chief economist Brian Pearce said the growing economy in Asia is a good opportunity for the development of airlines in the region. "The outlook over the next 10 years is good for the industry and cargo but we need to overcome the difficulties in trade.“ "We’re also
International Air Transport Association (IATA) chief economist Brian Pearce said the growing economy in Asia is a good opportunity for the development of airlines in the region.
"The outlook over the next 10 years is good for the industry and cargo but we need to overcome the difficulties in trade.“
"We're also seeing lower capacity in passenger market due to weak business travellers on long haul market, which are associated with world trade. Many airlines are facing declining yields in the region, but it could be a temporary problem," said Pearce.
According to IATA, the growth of air travel and air cargo was closely linked to the expansion of international trade than the gross domestic product (GDP).
"IATA hopes the Bali trade deal will help to turn this situation around. Asia is the manufacturing center of the world and trade is important for economic development, so we need to see trade facilitation measures to get it moving again," he said.
Furthermore, Pearce said the Asean free trade, which is likely in 2015, should give a positive boost to airlines in Asia as more trades would be generated as countries lowered their trade barriers.