On Monday, Peter Harbison, the executive chairman of CAPA said in an iconic show of television that the two major aviation indicators are pointing that a downturn of economy is coming up.
He said that the declining demand in air cargos which was actually at its peak last year might sum up as decrease in economy because the air cargos are not just forward indicator of aviation industry but also contribute a major part to overall economy. Peter Harbison said that cargo has been declining very steeply and this had suggested that the economy wouldn’t be looking so good.
Also, due to the deadlock between the two largest economies of the world i.e. China and US trade and technology war, a few economists fear about the global recession on the doorstep. As per the reports of International air Transport Association, the demand of the global markets of air freight has fell by 4.7% as compared to the same time period of the last year. IATA has also mentioned that the declined export orders are not just because of trade tensions between US and China but also the Brexit deal and these situations might remain persistent for the upcoming few months.
Harbison said that he thinks if we leave aside the grounding of 737 max planes and take an assumption that the problems would get rectified within 6 months, there was absolutely a peak in orders of the aircraft in the previous year which should have cyclically preceded the situation.
After the crash and grounding of 737 aircrafts which are best selling planes of Boeing, The Paris Air Show was going to set a pavilion for Boeing too to reveal their highly anticipated technology and new models but for now Boeing has shelved those ideas due to some security and safety concerns.
Alberto Strayer is World Industry Insights editor-in-chief. He is responsible for all business related editorial products. Alberto years ago, he joined World Industry Insight as a senior staff writer. Alberto spent the initial decade of his career with the publication covering business. Due to his efficiency and eye for detail, Alberto achieved the best performer of the year for consecutive 2 years. Alberto earned a Bachelor’s Degree in magazine production and editing. He loves to travel and explore the world in his free time.