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Tourism
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2002-09-11 11:51:02-04
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Asian Airlines doing Well
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As opposed to the paranoia that grips the US airlines, Asian airlines are filled with local and international customers
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The aftershocks of 911 have been felt throughout the world but most particularly in the United States, the site of the four hijacked airliners which were used as flying bombs. But in Asia a different scenario has unrolled. First Asia was not targeted in the 911 attacks, even though Afghanistan is a part of Central Asia. Bear in mind there is East Asia, Southeast Asia and even North Asia. A vast expanse of land where the terrorist threat is minimal and one-year later airline analysts are trumpeting their horns about how well Asian airlines are doing. Dragonair, Catrhay Pacific, Singapore Airlines and Thai Airways International are certainly right up there in terms of profitability compared to American and European airlines analysts say. The advantages going to Asia are that it was not affected as severely as the western world in the 911 fallout and therefore passenger confidence in flying to Asia has not sustained a dip. Another factor is that Asian airlines had already begun tightening their belts following the 1997-98 financial crisis. The benefits of lower fuel costs also helped propel Asian airlines profits in the first half of this year. Additionally, cargo volumes have been rising rapidly and cargo yields have been hitting double digits which would counter a short-term oil price rise spike if Iraq were invaded. Another plus is the proliferation of non-Arab suppliers of oil. Russia, Venezuela and Central Asia countries are all producing a significant quantity of oil as opposed to conditions in the 1960s and 1970s. Whatever political developments ensue, Asian airlines are apparently headed for increased profitability in 2003.
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