November 9, 1981

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International Air Transport

Cargo Traffic Strong, but Profitability Elusive

Cargo traffic has remained surprisingly strong throughout the worldwide recession and the U. S. air traffic controllers action, but yields have been so weak that almost no cargo service is profitable, and airlines are seriously questioning the future viability of all-cargo aircraft.

International Air Transport

Commuters Predict No-Growth Year

Commuter airlines, staggered by an economic recession and the effects of the air traffic controllers walkout, are predicting flat or negative growth in 1981 after more than a decade of growth that averaged more than 10% per year. Several commuter airlines already have failed because their highly leveraged financial situations could not handle flat or falling traffic and revenues.

International Air Transport

Non-Major Airlines' Success Continues

Non-major airlines have survived and prospered throughout 1981, despite circumstances that have made them more vulnerable than larger airlines to recession and the air traffic control situation. Despite the problems, non-major airline traffic increased 35% in September while major airline traffic decreased 6.8%, and non-major airlines’ market share increased from 5.2% a year ago to 6.9% in September, a market share increase of more than 30%.

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International Air Transport

Boeing Aircraft Project Moves Forward

Seattle—Boeing Commercial Airplane Co. is continuing its assault on all fronts of the commercial aircraft market in its effort to be entrenched in almost all size and range categories when the next round of airline equipment buying begins.

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International Air Transport

New Business in Reengining Transports Forecast

Commercial engine manufacturers are planning for a long-term growth market characterized by the need to replace or reengine aging transports, despite forecasts of a bleak capital investment picture in 1982. The effect of currently stabilized fuel prices and the air controllers situation on powerplant business is uncertain, but both General Electric and Pratt & Whitney believe the demand for more energy efficiency on either reengined or new aircraft will be a controlling factor in the 1980s.

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International Air Transport

SAS Will Emphasize Business Travel Market

Stockholm—Scandinavian Airlines System expects to reverse the financial losses of the past two years with a new approach to marketing, geared to capturing the business travel market to and within Scandinavia and turning away from other travel markets.

International Air Transport

Administration Sets International Goals

Washington—The Reagan Administration will encourage international air transportation competition consistent with existing laws and will collaborate closely with the U. S. aviation industry to develop practical positions for bilateral negotiations.

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International Air Transport

Digital Avionics Unaffected by Downturn

Los Angeles—Avionics manufacturers that supply the air transport industry with advanced cockpit displays and flight management equipment report the present depressed state of commercial transportation is not affecting production or development of new digital avionics.

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November 161981

November 9, 1981

November 9, 1981

Cargo Traffic Strong, but Profitability Elusive