Airline industry facing its 'worst ever crisis'

A pan-European airline organisation has warned that the industry is a "long way off" recovering from the downturn.

The European Regions Airline Association (ERA), which represents 62 intra-European airlines, reported a decline in passenger demand of 10.7 per cent for the period January to March 2009 compared to the same period in 2008.

However, the association has seen a sharp rise in new members joining in recent months, reflecting recognition on the part of the industry of the importance of collective action in such challenging times.

Six new airlines have signed up to ERA membership in the last three months and a total of 14 companies, including associate and affiliate members, have joined since the beginning of the year.

ERA director general Mike Ambrose said, "Whilst these traffic figures reflect the anticipated downturn in passenger demand, intra-European airlines are renowned for their enthusiasm and fighting spirit.

"Industry recovery is a long way off, but the best way to face these difficult times is through cooperation and unity.

"Airlines and other companies in the supply chain have recognised this, and are seeing ERA as a vital tool to achieve progress and move their business forward."

He added, "The industry is facing its worst ever crisis and costs have been cut back as far as they possibly can while yields are continuing to decline.

"Yet the need to steer regulators away from inefficient and unnecessary cost burdens and towards more beneficial projects still remains.

"The need to work together through collective action and a unified voice has never been so important."

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