Singapore Airlines recently expressed fears that the turbulent financial situation in most parts of the world is going to adverse impact the operations of the airline.
Goh Choon Phong, Chief Executive Officer of Singapore Airlines, said that there are possibilities that demand for Singapore Airlines flights to US and Europe may be impacted due to the global economic slowdown. Phong said that he believed there will be pressure, particularly for long-haul operations.
Phong, however, was optimistic that travel to Asian destinations has been growing, and business demand is still quite strong overall.
Echoing Phong’s concern, even Qatar Airways’ CEO Akbar Al Baker has also said that he expected that a strong recession will sap air travel demand.
It may be noted that a debt crisis in recent times has significantly slowed trade and travel in Europe, whereas the economic growth in the US is also sluggish.