The global outlook series on Airlines provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the air transportation industry, underlines market fundamentals driving growth, and shaping challenges, highlights trends in air traffic (passenger, and cargo), analyzes fleet dynamics, and studies the implications of the ever rising fuel costs, and the deep-seated impact of war and terrorism. The reader stands to gain a sneak peek into noteworthy airline business trends, latest technological trends, and the recent mergers, acquisitions, and corporate developments changing the industry’s landscape. Regional markets briefly discussed and annotated with 45 invaluable tables, and accompanying graphs/charts, include the US, Canada, Mexico, Japan, Europe, Czech Republic, France, Italy, Russia, UK, Asia, Australia, China, India, Malaysia, Latin America, Chile, Middle East, and Africa. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 346 companies worldwide.


TABLE OF CONTENTS

AIRLINES	GOS-014
A GLOBAL OUTLOOK, JANUARY 2009


                                      CONTENTS


  1. Overview                                                              1
      Global Airlines in 2008                                              1
       Global Airline Industry to Incur Huge Losses                        1

        Table 1: Global Airline Market (2003-2008): Fuel Expenditure
        in US$ Billions                                                    1

        Table 2: Global Airline Market (2008): Profit/ Loss in US$
        Millions by Region - North America, Europe, Asia-Pacific,
        Middle East, Latin America, and Africa                             2

       Consolidation to Transform Industry                                 2
       Credit Crisis to Affect Lending Channels                            2
      Outlook for 2009                                                     3
      Economic Development - The Engine of Air Travel Growth               3
      Airlines Lift Surcharges Following Drop in Oil Prices                3
      Airport Retailing to Remain Buoyant                                  3
      In-Flight Entertainment and Connectivity - Gaining Prominence        3

       Table 3: Global In-flight Entertainment and Connectivity
       Market (2007): Annual Market in US$ Million for North
       America, Europe, Asia-Pacific, and Middle East & Africa             4

       Market for In-Flight Broadband Services to Expand                   4
      Airlines on Weight Loss Regime!                                      4
      Industry's Commitment Towards Eco-Friendly Drive Remains
       Unchanged                                                           5
      US-EU Open Skies Agreement - Towards an Unfettered Aviation
       Industry                                                            5
      New Concepts Pushing the Global Airline Industry                     5
       E-Ticketing                                                         5
       Bar-Coded Boarding Passes (BCBP)                                    6
       E-freight                                                           6
      Aircraft Industry Mirrors Trends in Air Travel                       6
      Declining Costs and Improving Efficiency                             6
      Increasing Fuel Cost Invigorating New Aircraft Deliveries            6
      Fractional Ownership - An Emerging Business Option                   7
      Business Flying Expanding Phenomenally                               7
      Engine Market - Mirroring the Growth                                 7
      Weakening US Dollar - A Bane for Airbus                              7
      High Fuel Prices Cuts Profitability of Most International
       Airliners                                                           8
      Alliances: Cost-effective Method to Increase Scope and Reach         8
       Star Alliance: A Major Force                                        8
       Oneworld: Shrinking the World                                      9
       SkyTeam                                                             9
       Wings                                                               9
      Congestion - The Core Problem at Airports                            9
      Helicopters - Braving Winds of Turbulence                            10
      Aircraft Leasing: Mainstay for Emerging Asian Aviation Industry      10
       Finance or Capital Lease                                            10
       Operating Lease                                                     10
      Environmental Issues - Increasing Focus                              10
      Regulatory Trends in the Aircraft Industry                           11
      Airline Traffic - Analytical Review by Freight and Passenger
       Transport                                                           11
       Freight Traffic                                                     11

        Table 4: Global Airlines Market (2006): Cargo in Million
        Metric Tons by Select Airport City - Memphis, Hong Kong,
        Anchorage, Seoul, and Tokyo                                        11

        Table 5: Leading Air Cargo Airlines in the Global Market
        (2005 & 2006): Freight Ton Kilometers (FTKs) in Million for
        Air France/KLM, American Airlines, Asiana, British Airways,
        Cathay Pacific, China Airlines, Emirates, FedEx, Korean Air,
        Lufthansa Group, Malaysia, Northwest Air, Qantas, Singapore
        Airlines, and United Airlines                                      12

        Table 6: Global Airlines Market by Geographic Region - USA,
        Canada, Japan, Europe, Asia-Pacific (excluding Japan),
        Middle East & Africa, and Latin American Markets
        Independently Analyzed with Annual Freight Traffic in
        Billions of Freight Ton Kilometers (FTKs) for Years 2004
        through 2009                                                       12

        Table 7: Global Airlines Market (2005 & 2009): Percentage
        Breakdown of Annual Freight Traffic in Billions of Freight
        Ton Kilometers for USA, Canada, Japan, Europe, Asia-Pacific,
        (excluding Japan), Middle East & Africa, and Latin America         13

       Passenger Traffic                                                   13
        Classification                                                     13
         First Class                                                       13
         Business/Executive Class                                          13
         Economy/Tourist Class                                             13

          Table 8: Global Market Analysis for Airline Passenger
          Traffic by Geographic Region - USA, Canada, Japan, Europe,
          Asia-Pacific (excluding Japan), Middle East & Africa, and
          Latin American Markets Independently Analyzed with Annual
          Figures in Billions of Revenue Passenger Kilometers (RPKs)
          for Years 2004 through 2009                                      14

          Table 9: Global Airlines Market (2005 & 2009): Percentage
          Breakdown of Annual Passenger Traffic in Billions of
          Revenue Passenger Kilometers for USA, Canada, Japan,
          Europe, Asia-Pacific, (excluding Japan), Middle East &
          Africa, and Latin America                                        15

          Table 10: Global Airlines Market (2006): Number of
          Passengers in Millions by Select Airport City - Atlanta,
          Chicago, London, Tokyo, Los Angeles, Dallas, Paris,
          Frankfurt, Beijing, and Denver                                   15

          Table 11: Global Leading Airlines by System Traffic
          (2008): Revenue Passenger Kilometers (RPKs) in Billion for
          Air Canada, Air France KLM, American, British Airways,
          Cathay Pacific, Continental, Emirates, and Others                16

          Table 12: Global Leading Airlines by System Traffic
          (2007): Revenue Passenger Kilometers (RPKs) in Billions
          for Air Canada, Air France KLM, American, Beria, British
          Airways, Cathay Pacific, and Others                              16

          Table 13: Global Airline Market (2007): Operating Revenues
          of Select Airlines in US$ Billion                                17

          Table 14: Global Leading Airlines by International Traffic
          (2006): Revenue Passenger Kilometers (RPKs) in Billions
          for Air France/KLM, British Airways, Lufthansa, Singapore
          Airlines and Others                                              17

          Table 15: Leading Low-Cost Carriers in the Global Market
          (2006): Fleet Size for Air Berlin, AirTran, easyJet, Gol,
          JetBlue, Ryanair, Southwest, TAM, US Airways, and WestJet        18

          Table 16: Leading Low-Cost Carriers in the Global Market
          (2006): Passenger Traffic and Revenue Passenger kilometers
          for Air Berlin, AirTran, easyJet, Gol, JetBlue, Southwest,
          US Airways, and WestJet                                          18

          Table 17: Global Non-US Airline Market (2005): Number of
          Passengers in Thousands by Airline - Japan Airlines,
          Qantas Group, Alitalia, and Others                               19

          Table 18: Leading Airlines in the Global Non-US Airline
          Traffic Market (2005): Freight Ton Kilometers (FTKs) in
          Million for Korean Air, Cathay Pacific, Cargolux, and
          Others                                                           19

          Table 19: Leading Airlines in the Global Non-US Airline
          Traffic Market (2005): Revenue Per Kilometers (RPKs) in
          Billion for Japan Airlines, Qantas Group, Cathay Pacific,
          and Others                                                       20

          Table 20: Global Airline Market (2005): Operating Revenues
          of Select Airlines in US$ Billion                                20

  2. Technological Trends                                                  21
      Current Icing Potential - A Tool to Prevent In-Flight Icing          21
       NASA Develops a New Acoustic Control Technique                      21
      Diesel - A Substitute to Avgas                                       21
      Research & Development in Aircraft Industry                          22

  3. Mergers and Acquisitions                                              22

  4. Strategic Corporate Developments                                      36

  5. Product/Service Launches                                              70

  6. A North American Perspective                                          95

  6a. United States                                                        95
      Overview                                                             95

       Table 21: Top Ten Airlines in the US (2006): Revenues in US$
       Billion for AirTran, Alaska Air, American, Continental,
       Delta, JetBlue, Northwest, Southwest, United, and US Airways        95

      Fuel Crisis and Drop in Demand Force Mayhem in the Market            96
      Additional East Coast Routes to Save Costs in the US                 96
      Airlines to Ground Large Number of Aircraft                          96
      Lower Oil Supports US Airlines to Survive Credit Crisis              96
      Airlines Lift Surcharges to Europe Following Sliding Jet Fuel
       Prices                                                              97
      2009 Might Witness More Capacity Cuts                                97
      US Airline Sector Witness More Bankruptcies and Consolidation        97
      Consolidation Hurts Distributors                                     97
      Decline in Domestic Capacity to Balance Rise in International
       In-take Capacity                                                    98
      Technological Developments                                           98

       Table 22: US Air Carriers Freight Revenue by Category -
       Domestic and International Markets Independently Analyzed
       with Annual Figures in Billions of Revenue Ton Miles (RTMs)
       for Years 2003 through 2008                                         98

       Table 23: US Leading Carriers International Traffic (2006):
       Number of Passengers, Available Seat Kilometers (ASKs),
       Freight Ton Kilometers (FTKs), and Revenue Per Kilometers
       (RPKs) for American, Continental, Delta, Northwest, United,
       and US Airways                                                      99

       Table 24: Leading Carriers System Traffic in the US (2006):
       Revenue Passenger Kilometers (RPKs) in Billion for American,
       United, Delta, Continental, Northwest, Southwest, US Airways,
       America West, JetBlue, Alaska, AirTran, ExpressJet, and
       SkyWest                                                             99

       Table 25: Leading Carriers Domestic Traffic in the US (2006):
       Freight Ton Kilometers (FTKs) in Million for ABX Air, Delta,
       United, American, Northwest, and UPS                                100

        Table 26: Leading Regional & Specialty Carriers Traffic in
        the US (2005): Number of Passengers in Thousands for US
        Airways, Allegiant, Shuttle America, and Others                    100

       Table 27: Airlines Market in the US (2005): Percentage of
       Flights with On-Time Arrivals by Airline - AirTran, Alaska,
       America West, American, Continental, Delta, JetBlue,
       Northwest, Southwest, United, and US Airways                        100

      Airfreight Market - Facing Competition from Integrated Carriers      101

       Table 28: National Air Carriers in the US (2005): Percentage
       Breakdown of Freight Traffic for Atlas, Polar, Gemini,
       Evergreen, Arrow, and Others                                        101

      Effects of Deregulation                                              101

       Table 29: Regional and Specialty Air Carriers in the US (2005
       and 2008*): Percentage Breakdown of Freight Traffic for
       Airborne Express, Southern, Tradewinds, Kalitta, Florida
       West, and Others                                                    102

       Table 30: Leading Airlines in the US Domestic Carrier Market
       (2006): Percentage Breakdown of Revenue Passenger Miles for
       American, United, Delta, Southwest, US Airways/America West,
       Continental, Northwest and Others                                   102

      High Fuel Prices Erode Profitability of US Airliners                 102
      Budget Airlines Vs Full-Service Airlines in the US                   103
      Outlook                                                              103

  6b. Canada                                                               103
      Overview                                                             103
      Serious Blows & Intense Competition                                  103
      Growth Impeding Factors                                              104
      Leading Players - Competition                                        104
      The Competition Act - Dissolving Monopoly                            104
      Pressure Towards Open Sky Policy - Role of Canadian Chamber of
       Commerce                                                            104

  7. Mexico                                                                104
      Overview                                                             104

       Table 31: Leading Airports by Passenger Traffic in Mexico
       (2006): Percentage Breakdown by Airport - Cancun,
       Guadalajara, Mexico, Monterrey, Pto Vallarta, and Tijuana           105

  8. Japan                                                                 105
      Underdeveloped Tourism - The Major Bottleneck                        105
      Airline Sector - Fall and Rise                                       105
      Emergency Aid and Impact                                             106
      Outlook                                                              106

  9. A European Perspective                                                106
      Overview                                                             106
      Passenger Traffic                                                    107

       Table 32: Leading Airlines in Europe (2007): Passenger
       Traffic and Revenue Passenger kilometers for Air France,
       Finnair, Alitalia, British Airways, Deutsche Lufthansa, and
       Others                                                              107

      Freight Traffic                                                      107

       Table 33: Leading Airlines in Europe (2007): Total Freight
       Ton kilometers (TFTKs) and Available Seat Kilometers (ASKs)
       for Air France, Air One, Finnair, Alitalia, British Airways,
       and Others                                                          107

       Table 34: Leading Air Cargo Airlines in Europe (2005):
       Freight Ton Kilometers (FTKs) in Million for Air France/KLM,
       British Airways, Cargolux, Lufthansa Group, and Martinair           108

      Passenger Traffic at Smaller Airports                                108
      Trends & Issues                                                      108
       Block Exemption Renewal                                             108
       Regulations: A Brief Overview                                       108
       Infrastructure Issues                                               108
       EU Approves European Aviation Safety Agency                         108
       Eurocontrol: A Brief Note                                           109
       Business Travelers: Changing Preferences                            109
      Strategic Developments                                               109
       Centralwings and Germanwings Join Forces                            109
       Aeroflot Acquires Arkhangelsk                                       109

  9a. Czech Republic                                                       109
      Overview                                                             109

  9b. France                                                               110
      Overview                                                             110

  9c. Germany                                                              110
      Overview                                                             110

  9d. Ireland                                                              110
      Overview                                                             110

  9e. Italy                                                                110
      Overview                                                             110

  9f. Poland                                                               111
      Overview                                                             111

       Table 35: Airline Market in Poland (2006): Major Carriers by
       Number of Passengers and Percentage Market Share for Air
       France, British Airways, Centralwings, EasyJet, Germanwings,
       LOT Polish Airlines, Lufthansa, Ryanair, SkyEurope, WizzAir,
       and Others                                                          111

  9g. Russia                                                               111
      Air Travel Demand to Escalate                                        111
      Russian Aircraft Vs. Western Aircraft - A Comparison                 111
      Import Duties - Impact on the Growth of Small Players                112
      Competitive Scenario                                                 112
      Outlook                                                              112

  9h. Spain                                                                112
      Overview                                                             112

  9i. Switzerland                                                          113
      Overview                                                             113

  9j. United Kingdom                                                       113
      Overview                                                             113
      Low Demand and High Costs Distress Industry                          113
      BAA's Leadership Under Scanner                                       113
      Online Reservations: Low Cost Airlines Heading the Pack              114
      National Air Traffic Control - Privatization                         114

  10. Asia-Pacific                                                         114
      Airlines Resist Asia-Wide Trend of Passenger Traffic Declines        114

       Table 36: Asian Airline Sector (2007): Percentage Breakdown
       of Total Revenues by Passenger, Cargo and Other for AirAsia,
       Air China, Cathay Pacific, Korean Air, Malaysia Airlines,
       Singapore Airlines, and Thai Airways                                115

      Airlines Clip Fuel Hedges to Save on Oil Costs                       115
      Premium Air Travel Gaining Grounds in Asia                           115
      Asian Airports Facing Congestion                                     115
      Outsourcing Creating Opportunities for Independent MRO Service
       Providers                                                           116

  10a.Australia                                                            116
      Overview                                                             116
      Deteriorating Financial Crisis Force Airlines to Slash Services      116
      Deregulation - The Impact                                            117
      Entry of Impulse Airlines and Virgin Blue Airlines - Major
       Breakthroughs                                                       117
      Regional Airline Segment - Growing in Leaps & Bounds                 117
      Competitive Scenario                                                 117
      Strategic Developments                                               117
      Outlook                                                              117

  10b.China                                                                118
      China's Airline Industry Challenged by Faltering Global Economy      118
       Industry Reforms                                                    118
       Deregulation                                                        118
      International Investments & Associated Apprehensions                 119
      Commercial Aviation - Making it Big                                  119
      Consolidation - Gathers Momentum                                     119
      Big Three Vs New Entrants                                            119
      Underdeveloped Air Cargo Business - The Effect                       119

       Table 37: Chinese Air Cargo Market (2007): Percentage
       Breakdown by Region - Central Southern China, Eastern China,
       Northern China, Northeastern China, Northwestern China, and
       Southwestern China                                                  119

       Table 38: Chinese Cargo Transport Market by Leading Airline -
       Hong Kong International, Beijing Capital International,
       Shanghai Hongqiao, Guangzhou Baiyun International, Shanghai
       Pudong International, and Shenzhen International
       Independently Analyzed With Annual Figures in '000s of Metric
       Tons for Years 2003 through 2008                                    120

      Airline Passenger Traffic - Scaling New Heights                      120
      Outlook                                                              120
      Major Airports                                                       120

  10c.India                                                                121
      Current Scenario                                                     121

       Table 39: Scheduled Passenger Traffic in India (2007):
       Percentage Market Share by Leading Carriers -Jet Airways +
       Jet Lite, Kingfisher + Air Deccan, Indian, Spicejet, and
       Others                                                              121

      Rigid Fuel Procurement Cost Structure                                121
      Industry to Enhance Efficiency to Curtail the Effect                 121
      Future Remains Optimistic                                            122
      Crisis Brings Competitors Together                                   122
      Lack of Lenders May Result in Canceling Orders for New Aircrafts     122
      Budget Carriers in Trouble                                           122
      Challenges to Reckon With                                            123
      FDI Guidelines for Indian Aviation                                   123
      The Role of AAI and Civil Aviation Ministry                          123

  10d.Korea                                                                123
      Competitive Scenario                                                 123

  10e.Malaysia                                                             124
      Competitive Scenario                                                 124

       Table 40: Aerospace Market in Malaysia (2006): Imports of
       Airplanes, Aircraft Parts, and Helicopters in US$ Million           124

  10f.New Zealand                                                          124
      Competitive Scenario                                                 124

  10g.Singapore                                                            124
      Competitive Scenario                                                 124

  10h.Taiwan                                                               125
      Overview                                                             125
      Cross Strait Flights to Accelerate Industry                          125
      Competitive Scenario in China Bound Air Travel Market                125

       Table 41: Leading Airlines by Passengers in Taiwan (2007):
       Percentage Market Share China Airlines (CAL), Cathay +
       Dragonair, Eva, and Others                                          125

       Table 42: Leading Airlines by Cargo Carrier in Taiwan (2007):
       Percentage Market Share for China Airlines (CAL), Cathay +
       Dragonair, Eva, and Others                                          125

  10i.Thailand                                                             126
      Infrastructure and Competitive Scenario                              126

  10j.Vietnam                                                              126
      Overview                                                             126
      Competitive Scenario                                                 126
      Government's Initiative to Improve Infrastructure                    126

  11. A Latin American Perspective                                         126
      Airline Industry: Bucking The Trend                                  126
       Airline Freight Traffic                                             127

        Table 43: Leading Air Cargo Airlines in Latin America and
        Caribbean (2005): Freight Ton Kilometers (FTKs) in Million
        for Aerolineas Argentinas, Aeropostal, LAN Airlines, Tampa
        Colombia, and Varig                                                127

      Outlook                                                              127

  11a.Argentina                                                            127
      Overview                                                             127

  11b.Brazil                                                               127
      Crisis in Brazilian Air Transportation Sector                        127

       Table 44: Leading Airports by Passenger Traffic in Brazil
       (2006): Percentage Breakdown by Airport - Brasilia, Confins,
       Fortaleza, Guarulhos, Rio-Galeao, and Sao Paulo                     128

  11c.Chile                                                                128
      Overview                                                             128

       Table 45: Leading Airports by Passenger Traffic in Chile
       (2006): Percentage Breakdown by Airport - Santiago Int'l
       (AMB), El Tepual, Cerro Moreno and Others                           128

  12. A Middle East Perspective                                            128
      Overview                                                             128
      Middle Eastern Airlines Sector, the Brightest Spot in the
       Overall Airlines Market                                             128
      Private (Business) Aviation Sector on Rise                           129
       Middle East MRO Sector to Boom                                      129
       Privatization of Airlines Gains Momentum in the Middle East         129
      Protected Markets in Arab Nations - The Major Bottleneck             129
      Saudi Arabian Airlines Vs Air Emirates - A Comparative Analysis      130
      Strategic Developments                                               130

  12a.Israel                                                               130
      Infrastructure and Competitive Scenario                              130

  12b.United Arab Emirates                                                 130
      Airline Industry Continues to Head for Huge Losses                   130
      Carriers Slash Prices                                                130

  13. An African Perspective                                               131
      Overview                                                             131
      Outlook                                                              131


 PRODUCT OVERVIEW

      Commercial Aircraft                                                  132
       Narrow Body Aircraft                                                132
       Wide Body Aircraft                                                  132
      General Aviation Aircraft                                            132
       Turboprops                                                          132
       Ultra Light Aviation                                                132
       Rotorcraft                                                          132
      Military Aircraft                                                    132
      Engines and Parts                                                    132


 GLOBAL DIRECTORY