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Airline
Privatization
Good for Tourism
According
to the Center for Asia Pacific Aviation
(CAPA), the region’s aviation markets
have strengthened significantly in 2004
creating a conducive market for airline
privatization. Barring unforeseen external
events and despite high fuel costs, the
Sydney-based PATA member believes a wave
of airline privatization’s is likely
as governments across Asia Pacific reassess
their strategic position on aviation and
airline ownership.
This
could benefit airports and the rest of the
tourism industry. “Many governments
will seek to take advantage of good market
conditions to reduce their holdings in airlines,
concentrating instead on supporting hub
and secondary airports and on feeding tourism
infrastructure,” said CAPA Managing
Director Mr. Peter Harbison.
According to CAPA, smart money may begin
to leave the aviation sector as deregulation
continues. “As airline entry barriers
are lowered, private airline entrepreneurs
(including several start-up low cost airlines)
will look to quickly realize investment
gains during the expected boom conditions
over the next 18-24 months,” said Mr.
Harbison.
Airline privatization will be a key theme
in CAPA’s upcoming Asia Pacific &
Middle East Aviation & Tourism Outlook
2005 conference at Suntec, Singapore, January
23-25. The Second Annual Asia Pacific Low
Cost Airline Symposium 2005 will take places
immediately afterwards, January 26-27, at
the same venue.
(BTN/PATA)
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