Asian airlines prepare for further turmoil from Iraq war
Asian airlines prepare for further turmoil from Iraq war
Agence France-Presse, Hong Kong
Asian airlines are preparing to suspend flights and divert
aircraft from Middle East routes as they brace for turbulence
from a U.S.-led war against Iraq.
The carriers are still recovering from the global economic
downturn in 2001 and the fallout from the Sept. 11 terrorist
attacks. Again, they find themselves on the verge of a potential
crisis.
Asia-Pacific airlines plan to divert their aircraft from
airspace near the Iraq combat zone and flights to some Middle
East destinations have been or will be suspended.
But more importantly, they are also fretting that a war will
dampen overall demand for travel, even in areas distant from the
looming war.
Australian flag carrier Qantas said Tuesday it was expanding
plans to force staff to take leave over the coming months in
response to a fall off in demand because of the conflict. The
move is equivalent to reducing staff numbers by 2,500 out of a
total of 37,000.
Qantas Airways chief executive Geoff Dixon said the company is
considering permanent staff cuts if passenger volumes fall more
than expected.
"More and more people are showing a reluctance to travel in
the existing environment," he said in a memo to staff.
Qantas bookings from Japan and Britain have been particularly
hard hit and Dixon has warned total passenger volumes could fall
15-20 percent during the war.
From Thursday Thai Airways will suspend its services to Kuwait
and Bahrain, although three other Middle East destinations are so
far unaffected. The airline has also seen a rush of booking
cancellations in other services.
"Thai has experienced passenger flight cancellations for
flights to be operated within the next two weeks at approximately
10 percent," the airline's commercial executive vice president
Tasnai Sudasna said in a statement.
Thai executives also said Asian business is also being hurt by
a mysterious and deadly atypical pneumonia blamed for the deaths
of at least six people.
Korean Air said it will suspend flights to Dubai and Cairo
when war breaks out. It has also decided to suspend 29 flights to
San Francisco, Honololu, Chicago and New York until the end of
May.
"If the situation gets worse, we will work out stronger
measures for cost reduction and restructuring," a Korean Air
official said.
Asia's largest carrier Japan Airlines (JAL) said last week it
was reducing flights to Indonesia and France in the next two
months in response to a drop in demand.
"We have decided to change plans as demand for some
international flights has slackened due to weakening sentiment
over the economy and the Iraq situation," JAL said.
China's largest carrier Air China suspended flights to Kuwait
on February 16, citing concerns about mounting tensions in the
Gulf.
"I don't know when the flights will be resumed," said one of
the airline's ticket sales agents in Beijing.
Air India announced Tuesday it is canceling 22 weekly flights
to Bahrain, Kuwait and Damam in Saudi Arabia.
The Indian civil aviation ministry estimated this would cost
the airline about 1.1 billion rupees (US$22.9 million) in lost
revenue, though it did not specify a timeframe. Avoiding Iraqi
airspace for all Air India's west-bound flights is expected to
add 90 minutes to flight times and add over $20 million to fuel
bills.
Other regional airlines, including Singapore Airlines and Hong
Kong's Cathay Pacific are continuing normal flights for now but
said they have plans to ensure their flight paths would avoid any
potential conflict zone.
Cathay Pacific spokeswoman Maria Yu said the airline may
cancel flights to Dubai, Riyadh and Bahrain once a war starts.
Flag carrier Garuda Indonesia said it may reduce its flights
to Europe once conflict starts.
"If the load-factor drops to between 30 and 40 percent, what
would be the use to continue the service (to Europe)?" Garuda
president director, Indra Setiawan, was quoted by the state
Antara news agency as saying last week.