09:19, 13 May 2009 | GMT +5
Airlines restructure assets as global crisis hits travel business
JEDDAH. May 13. KAZINFORM Airlines, impacted by the world financial crisis and turbulent fuel costs, have been restructuring their assets in the face of reduced traffic and high cost of operations. ?Some such (legacy) airlines have been resorting to measures like reducing the size of aircraft to destinations with reduced passenger loads, and using part of their fleet for charter services,? Peter Spencer, managing director of British airline bmi, told a press conference at the Jeddah Hilton on Monday night; Kazinform refers to the Arab News.

?Legacy carriers are experiencing a reduction in traffic volumes and have reported an overall drop in sales by 30 percent. Passenger traffic is down by 10 to 15 percent. As a result, some airlines have cut their capacity ranging up to 15 percent,? Spencer said, adding that the next nine to 12 months will be difficult for every carrier.
Spencer singled out the Middle East as an exception where the travel trade is not affected as much as in most of the Western world. ?The Middle East is doing well as is evident from the growth in our operations, especially to Saudi Arabia, Syria, Jordan, Lebanon and Egypt,? he added; Kazinform cites the Arab News.
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