Source: http://www.iata.org/NR/rdonlyres/250BD608-E428-4A49-B833-20C0E5B99344/0/industry_times_january2009.pdf
- International airlines saw a fall of 13.5% in cargo traffic in November and a drop of 4.6% in passengers as business shrank across the industry, the carriers' grouping IATA said on Tuesday.
- This has been the sharpest decline since 9 /11.
- The airline industry sees revenues tumbling & hundred of thousands of jobs being at risk.
- With the drop in passengers (in actual terms) the airlines are operating at 73%.
And this scenario is expected to intensify. - Further in America - which includes the United States, Canada and Mexico - carriers saw a decline of 14.4% in cargo and 4.8% in passengers.
- Europe recorded an 11% slump in cargo and 3.4% in passengers as the major markets for its airlines - intra-continental, the North Atlantic and Asia - all sunk deeper into economic woes.
- Despite the fall in oil prices and a low demand scenario for oil that will keep the price of oil soft, the industry is estimated to generate losses to the tune of US$ 2.5 billion in next year.
With an objective to look into the future with intent and focusing on the possible upside of this downturn, the following seems to come to mind quite naturally. The present global economic downturn has its share of positives, some more apparent than others, and these would surface in different forms and stages, in the journey out of this downturn.
- Spurt in entrepreneurship
- Re-surfacing of the systemic view and future - option portfolio approach
- Protecting of Growth Initiatives - Elevate, consolidate & redirect innovation funding
- Refocusing on value and what it means to, / the customer
- Demand & supply balance
- Opportunity for creating changes - long term impact
- Focus and emphasis on renovation and repair
- Re-skilling of oneself
- Rationalization - Balance of credit to cash from a consumers perspective
- Opportunity for people to collaborate remotely (work and social)
- Reduction in office space - focus on increase in productivity
- A closer scrutiny of the functioning of the corporate & board governance
- Re-modelling of business to take long term strategic positions
- Improve Cost Discipline
- Enhanced fiscal discipline awareness & emphasis on drivers of growth, cash flow & value
- Organizational restructuring (not rationalization) for efficient focus on Cash, Core People (not Processes), Delivery and Growth
From an individual & firm perspective these are the positives that the downturn has to offer
