Oil costs to push some Asian airlines under
Thursday, 12 June 2008
SINGAPORE, June 11 (AFP): Record-high oil prices have sparked the biggest crisis in the Asian airline industry since the SARS scare, and analysts say some carriers are likely to go under if prices do not let up soon.
They say many of the region's airlines are ill-prepared to cope with the price surge, which saw oil top 139 dollars per barrel last week amid wide expectation prices will only keep rising in the months ahead.
"No one is going to escape this crisis unscathed," said Derek Sabudin, an analyst from the Sydney-based Centre for Asia Pacific Aviation constancy.
They say many of the region's airlines are ill-prepared to cope with the price surge, which saw oil top 139 dollars per barrel last week amid wide expectation prices will only keep rising in the months ahead.
"No one is going to escape this crisis unscathed," said Derek Sabudin, an analyst from the Sydney-based Centre for Asia Pacific Aviation constancy.