AIRLINES CONTINUE TO PARK UP AIRCRAFT

There are some industries that are at the coal face of the real world and transportation is one of them. While Chinese government and the media tell us that China, our supplier of every imaginable piece of junk, will continue to enjoy 6% plus growth in its economy, it is in stark contrast to what is happening to ships and airplanes. Every large Asian port has huge empty container ships by the dozen anchored in the harbors awaiting word of their fate and the deserts of California and Arizona are becoming bloated with planes, including 747-400′s that may never ever again soar the skies.

Rates are still continuing to tank and even the measures many airlines have already taken, some of the weak may well end up in the hanger in the sky sooner rather than later. The fact is trade may never be the same again as most countries’ own preservation requires them to look after their own best interests rather than do the touchy-touchy/feely-feely thing and handle this recession globally. Our tax revenues continue to shrink as companies move into huge losses and millions more people start claiming unemployment benefits. Funny isn’t it, the government is hell bent in throwing good money after bad at the finance industry while holding the big three auto manufacturers to ransom thus forcing millions of additional Americans from Main Street to join the dole queues?

When the world finally settles down, I think India and China’s will have a diminishing role in the new global economy that will evolve However my prediction is there will be huge two way trade between western countries. This bodes well for the airlines, because they can truly flourish if their bellies are full on the outward journey and well as the inbound. For the last fifteen years trade has been one way a very unhealthy situation for them.

Tags: 747-400, Airlines, China, India, Main Street, Transportation