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.