Aviation on brink of a watershed
SINGAPORE – Opening the annual Low Cost Carrier Summit in Singapore this week, Centre for Asia Pacific Aviation chairman, Peter Harbison called on “governments to avoid shooting themselves in the foot by resorting to protectionism”.
“Preventing market access simply to protect an airline which may not be sustainable is to do just that,” he said.
He stressed that, “Now more than ever, enlightened attitudes are essential. That way we can focus on the opportunities for the future – and not get strangled by history.”
He argued that the government reflex to protect incumbents could only be self-destructive at a time like this. Moreover, “This is not simply another downturn and, good grief, this industry knows a lot about them. No, today we are poised on the brink of a watershed in aviation.
“When we hear of 20 percent-plus falls in premium traffic, that is more than just another statistic. It is ripping the guts out of the legacy model. If this persists another six months, airlines will be grounded.”
Ian Jarrett
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