(May 19): Asian airlines need government support to cope with the more than doubling of jet fuel prices that otherwise risks some carriers collapsing like US-based Spirit Airlines Inc, according to the new head of the region’s industry body.
Wong Hong, who took over as the director general of the Association of Asia Pacific Airlines (AAPA) last month, said carriers needed varying levels of help and relief, from direct financial support to being able to cut flight schedules without negative consequences.
“Nobody wants to see any airline getting into a situation like what we are seeing with Spirit,” Hong said in an interview. “If those things were to happen before governments take action, that would be a pity.”
Spirit shut down operations earlier this month after buckling under the weight of surging fuel prices.
Asian airlines have received mixed, but limited levels of support since the Iran war started in late February. Malaysia has offered extensions and exemptions on a range of airport fees, while India has reduced duties on jet fuel to ease mounting pressures.
Meantime, Hong Kong airlines haven’t received any support so far, and nor has state-controlled Air New Zealand Ltd, despite forecasting a large full-year loss that has forced it to accelerate cost cuts.
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The AAPA’s Hong pointed to airlines receiving government criticism for cutting flights as a further example of a need for more understanding from authorities.
“If governments can engage and better understand,” he said. “The airline ecosystem is very critical. You don’t want any airline to collapse.”
The AAPA does expect lower levels of profitability, fewer passengers to fly amid high ticket prices and reduced capacity for 2026.
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The trade body counts members including Singapore Airlines Ltd, Cathay Pacific Airways Ltd, Air India and Qantas Airways Ltd among its 18 members. Wong said he hopes the association can convince the first mainland Chinese airline to join during his tenure.
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