Europe is quietly looking around at the deluge of bad news coming from the US. There seems to be a sense of impending doom coming from the USA – bad news on bad news. For the UL the news is even worse as the UK economy starts to tank badly. The value of the UK economy once the largest in the world is now rivaling that of Italy having fallen below France. The Financial Times slammed Gordon Brown in its editorial sections on December 12, 2008. For Germany there is quiet acceptance of the situation. The largest economy of Europe is taking a softly quiet approach. However Angela Merkell has her work cut out for her. Few smiles at conferences these days.
For travel for next year – we are seeing cut backs across the board.
Even the Low Cost Carriers will be cutting capacity led by Ryanair. Although in a cursory review of their schedule I noticed that Ryanair has been playing favorites. Where as flights used to start in the hubs of Stansted and Dublin many of them now start at cheaper airports on the mainland of Europe. Another way to save money. All sectors are cutting back capacity. There is almost no one who is growing. Belt tightening all way round. While the economists are saying that the recession will be over in June – I remain unconvinced. I believe that the uptick will only happen at the end of the year or more likely in Q1 of 2010.
In the coming weeks and months I will be picking on stories that will indicate how this recession is driving innovation and fundamental changes in the fabric of the Aviation, Travel and Tourism sectors.
Not a happy situation for all of us but this is the time for opportunity.
Cheers
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