European airlines could go out of business, warns economist Brian Pearce
European airlines could go out of business because of the continent’s economic weakness, the aviation industry’s leading economist has warned.
By David Millward
11 Jun 2012
With the industry predicting that European carriers will lose £710m between them this year, Brian Pearce voiced fears that there could be some casualties.
Mr Pearce, chief economist of the International Air Transport Association, was pessimistic about the industry’s prospects in Europe.
“I think there is a serious risk to the financial viability of some airlines,” he said. “To an extent it depends on the economic outlook we see in Europe. We have already seen some airlines go out of business and there is a clear possibility it will continue.”
Casualties have included Spanair and Malev, the Hungarian national carrier.
Mr Pearce declined to be drawn on who else was at risk, although it is understood that weaker flag carriers could be in danger.