Flying High in Turbulent Economic Times

Both the U.S. Federal Aviation Administration (FAA) and the International Air Transport Association (IATA) predict tough economic times for the aviation industry through 2009. At the recent forecast conference in Washington, D.C. the FAA reported that commercial aviation will face a sharp decline in activity in the near term, with a return to growth over the long term. The FAA attributes this to both domestic and global economic factors. IATA noted the the global GDP will decrease by 1.9 % in 2009 in what they call the "deepest recession since the 1930's. As a result, the demand for passenger and cargo services will decrease. In particular, IATA predicts that cargo traffic will fall by 13%, passenger traffic by 5.7% and airlines revenues by 12%.

Fortunately, the outlook is not completely grim. Both agencies note that airlines will save money in the wake of lower fuel prices. IATA reported that fuel prices should cut this year's fuel bill by $52 billion to 25% of operating costs. Additionally, the industry is shrinking in response to the global economy with a 6% cut in capacity forecast.

So what is the aviation community to do? As someone once told me, this is an opportunity disguised as a challenge. Times like these foster innovation, creativity and force an industry "overhaul." Executives must evaluate process efficiencies and ensure that every dollar is maximized. Employees are stretched and asked to give more of themselves while vendors are faced with reevaluating their value propositions and investing in new business development initiatives.

AAAE aims to provide the aviation community with timely, professional forums to enhance airport executives' industry knowledge and offer important training and networking opportunities that foster business development. With nearly 100 industry meetings each year in the U.S. and abroad, attracting some 15,000 airport and aviation executives, AAAE is the leader in the airport industry.

Now that I have given my sales pitch, let me just say that Poznan, Poland will be the place to be July 7-9, 2009. We have organized an ambitious, substantive agenda that will provide airports, air carriers and aviation professionals with an opportunity to exchange ideas and develop new strategies for flying high during these turbulent economic times. Case studies, presentations and panel discussions from leaders within the international community will provide attendees with cutting-edge solutions. Plus, central Europe is beautiful in the summer.

Do zobaczenia wkrotce! (See you soon)