Airbus: Air traffic in Spain to nearly double by 2030

[News_Editor]

Airbus: Air traffic in Spain to nearly double by 2030

2012-02-09 20:11:23 GMT+7 (ICT)

BLAGNAC, FRANCE (BNO NEWS) -- A new forecast released on Wednesday by European aircraft manufacturer Airbus suggests air traffic in Spain will almost double by 2030, requiring Spanish airlines to buy as many as 400 new passenger planes over the next 20 years.

For Spanish airlines, Airbus estimates the number of passenger planes with more than 100 seats will increase from 244 aircraft in 2010 to a total of 441 aircraft in 2030. Of the current fleet, 203 aircraft are expected to be replaced with more eco-efficient types and 197 aircraft are to be bought for growth to, from and within the Spanish market.

"Having a strong and vibrant aviation sector will make a real contribution to the short, medium and long term health of the Spanish economy, providing a real contribution to GDP, jobs and attractiveness for investment through international connectivity," said Rafael Alonso, Executive Vice President of Customer Affairs at Airbus.

The vast majority of the 400 new aircraft, approximately 317 of them, are expected to be narrow-body aircraft which seat up to 250 passengers. About 58 others are expected to be wide-body aircraft, seating between 250 and 400 passengers, while the remaining 25 aircraft are expected to be jumbo jets.

"Spain is a preferred destination for many international air travelers and as well one of the main hubs that connect Europe with Latin America," Alonso said, adding that low cost carriers will also play an important role in increasing passenger traffic in Spain.

-- © BNO News All rights reserved 2012-02-09

[geriatrickid]

In order for Spanish air traffic to increase there has to be the following;

1. Disposable income

2, Funds available to purchase equipment

3. Viable airlines

Spain is in serious economic straits. Young people are facing historic unemployment rates. Disposable income available for travel is evaporating. Businesses have curtailed business travel. It will take years to recover.

Spanish financial institutions don't have the money to safely fund equipment leases and purchases.

Spanair shut down. Other Spanish flag airlines are struggling.

Airbus is blowing smoke.

[Carib]

In order for Spanish air traffic to increase there has to be the following;

1. Disposable income

2, Funds available to purchase equipment

3. Viable airlines

Spain is in serious economic straits. Young people are facing historic unemployment rates. Disposable income available for travel is evaporating. Businesses have curtailed business travel. It will take years to recover.

Spanish financial institutions don't have the money to safely fund equipment leases and purchases.

Spanair shut down. Other Spanish flag airlines are struggling.

Airbus is blowing smoke.

There is one "small" factor you overlooked and that is the fact that Spain is in the top 5 of the most visited countries in the world, some 55 million tourist visit the country each year. As a jump of point to south america it is more and more developing too. I think that airbus doesn't blow that much smoke, we are talking a 20 year program here, and half of the 400 new planes are replacements of the current fleet.

[geriatrickid]

In order for Spanish air traffic to increase there has to be the following;

1. Disposable income

2, Funds available to purchase equipment

3. Viable airlines

Spain is in serious economic straits. Young people are facing historic unemployment rates. Disposable income available for travel is evaporating. Businesses have curtailed business travel. It will take years to recover.

Spanish financial institutions don't have the money to safely fund equipment leases and purchases.

Spanair shut down. Other Spanish flag airlines are struggling.

Airbus is blowing smoke.

There is one "small" factor you overlooked and that is the fact that Spain is in the top 5 of the most visited countries in the world, some 55 million tourist visit the country each year. As a jump of point to south america it is more and more developing too. I think that airbus doesn't blow that much smoke, we are talking a 20 year program here, and half of the 400 new planes are replacements of the current fleet.

Yes, Spain is a popular destination, and both Madrid and Barcelona are two of the busiest airports in Europe. However,Spain is on the verge of a financial meltdown and it has a banking system teetering on collapse. As of last December, the Bank of Spain indicated that bad loans in the Spanish banking system were 7.4% of all loans. This is a 17-year high and is still rising. The Spanish banks just don't have the liquidity to put up big euros.

This is what the BBC reported;

Property price and house prices do not appear to have bottomed and the deterioration of the economy warns of the downside risks.

The government fund for bank restructuring (FROB) has already injected 30 billion euros into the banks. The EBA says Spanish banks need to raise another 26 billion euros in capital in the first half of 2012. Spain's new economics minister has indicated that Spanish banks may put aside another 50 billion euros (about 4% of GDP) aside for provisions for bad property loans.

It takes a few years to deliver a plane. Orders have to be financed first. I doubt there will be too many orders in the Spanish pipeline over the next few years. Without those orders, manufacturers have to drop their pants even further to gain Asian and Middle Eastern purchase orders. In the aircraft industry, one cannot predict the next 5 years let alone 10 years. Look at what happened when fuel prices jumped a few years ago, along with the financial market meltdown; new equipment orders crashed for a couple years.

AB is scrambling to present good news as Boeing recovers and is making some big sales in Asia and as it manages the bad PR of the wing cracks in the AB 380 series.

[Credo]

GK, I think you got this wrong. It sounds like the condition Spain is in, they will need some of those big planes to get the people out before the eventual collapse.