Cargo decline "unprecedented"

Asia - Plummeting cargo figures are "unprecedented and shocking", and truly indicative that the world is deep in the throes of a global recession, said IATA director general and CEO Giovanni Bisignani.

In a monthly traffic report, IATA said cargo traffic in December plummeted by 22.6% compared to the same month a year earlier. Full year traffic contracted 4% compared to a 4.3% growth in 2007.

"The 22.6% freefall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade," said Bisignani. "Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9%."

Asia Pacific carriers, accounting for 45% of international cargo, led the December decline with a 26% contraction compared to the previous year.

"2009 is shaping up to be one of the toughest years ever for international aviation. The 22.6% drop in international cargo traffic in December puts us in unchartered territory and the bottom is nowhere in sight," said Bisignani. "Keep your seatbelts fastened and prepare for a bumpy ride and a hard landing."

Andrew Herdman, director general of the association of Asia Pacific Airlines (AAPA) echoed Bisignani's sentiments after the association found December volumes falling some 24%.

"With no sign of any respite amidst the global economic downturn, Asia Pacific airlines are braced for another extremely difficult year ahead," he said.

In light of the dire economic situation, it was imperative for players to band together and call for structural changes to the industry, IATA said.

"We don't want bail-outs. But we need to change the ownership rules. Almost every other business ha the freedom to access to global capital and the ability to merge across borders where it makes sense. To manage in this crisis, airlines need the same management tools," Bisignani said.