Published: 22/03/2011 at 12:00 AM
Thailand is among the air travel markets most affected by the March 11 earthquake, tsunami and nuclear emergency in Japan.
The kingdom's passenger traffic connecting to Japan is valued at US$1.16 billion a year, involving 2.3 million passengers and accounting for 15% of Thailand's international air travel revenue, according to figures compiled by the International Air Transport Association (IATA).
The figures underline strong Thailand-Japan air travel links and the possible major impact on Thailand's tourism industry, which last year attracted 984,763 arrivals from Japan.
IATA director general Giovanni Bisignani warned there will be a major slowdown in the Japanese air transport market in the near term that could impact a number of key markets worldwide.
However, he cautioned that it is premature to assess the long-term impact of Japan's crisis on the global airline industry.
Japan is an important link in global air transport with a market value of $62.5 billion, representing 6.5% of scheduled traffic and 10% of total revenue of the industry.
Airlines operating in the Thailand-Japan sector including Thai Airways International have seen a slump in passenger numbers, particularly among those going to Japan, while local tour operators have reported 100% cancellation of tour packages to Japan.
The most exposed market to Japanese operations is China, where Japan accounts for 23% of its international revenues, according to IATA.
Taiwan and South Korea are equally exposed with 20% of their revenues related to Japanese operations, followed by Thailand (15%), the United States (12%), Hong Kong (11%) and Singapore (9%).
France is the most exposed European market at 7%, followed by Germany (6%) and the United Kingdom (3%).
Japan's domestic airline market, which generates annual revenue of $19 billion from 83 million passengers, is the most exposed in the aftermath of the crisis.
The extent to which these travel markets weaken will be largely shaped by what happens to the Japanese economy, stated the airline industry body that has 230 airline members.
Many economists are suggesting that reconstruction will drive an economic rebound, but the length of the downturn will depend critically on developments in the nuclear power situation.
IATA noted that since Japan produces 3-4% of global jet fuel and some of its refinery capacity has been lost due to damage caused by the earthquake, there is a supply restriction that could lead to higher jet fuel prices.
Effective air links with Japan are critically important, IATA said in the wake of reports that certain airlines may cut back or even stop flying to Japan due to the fall in demand or risks associated with the crisis.
"Our members are rising to the challenge of bringing relief supplies, equipment and people to Japan as well as connecting families affected by this tragedy," said Mr Bisignani.
Credit: Bangkok Post (www.bangkokpost.com)
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