Titan Engineers Insurance hopes that airline manufacturers, which have been comparatively unscathed during the current recessionary times, can remain viable despite many Western airlines struggling to make money.
The view comes after Iata, the International Air Transport Association, announced that it had forecast losses in 2012 for European airlines at over £700 million. The airlines are suffering from a poor economic environment, problems with air traffic control management and the cost of green legislation.
On the plus side however, Titan notes that Iata still believes that global airline industry profit should remain unchanged at $3 billion for the year. North and South America are doing well, emerging economy airlines are showing increased demand and the cost of oil is coming down.
The net result is that airline manufacturer’s order books should remain strong over the coming years.
Chief Executive Officer of Titan Engineers Insurance, Basil Tsapralis, said:
“The big two manufacturers have been able to carry forward strong order books and the fear was, if a large number of airlines began to struggle, then orders might be cancelled. But with Europe’s woes being compensated by growth in other parts of the world, then this might be avoided.
“Europe’s airlines are suffering from a number of concurrent problems, not least the crisis in the euro zone, and the immediate future does look bleak for them.”
Titan Engineers Insurance is a leading broker in the UK. It has years of experience in matching clients with the most cost effective and appropriate policies in the marketplace.