Intra-Asia trade likely to lead recovery

Here’s some good news in these depressing times. Get ready to see Asia pick up the gauntlet and ride the revival wave. If cargo industry stalwarts are to be believed, Asia could very well be in the forefront of the recovery, thanks primarily to high domestic consumption.

Air Cargo Forum air freight Andrew Herdman Association of Asia Pacific Airlines Didier Lenormand positive economic growth

According to Andrew Herdman, director general of Association of Asia Pacific Airlines (AAPA): “Some Asian economies, notably China and India, are still seeing positive economic growth, led by strong domestic consumption. Governments across the region have introduced various measures to stimulate domestic growth.

“That should be sustainable, consistent with the need to redress the global imbalances in savings and investment that accompanied the preceding growth phase. Intra-Asian trade is also expected to recover more quickly than exports to Europe and North America.”

Herdman is not alone. A short time ago at the Air Cargo Forum (ACF) in Kuala Lumpur, where Asia was the focus of discussions on hope for the cargo sector, Didier Lenormand, Airbus freighter aircraft head of marketing pointed out that “worldwide growth (of freighters)” would be impacted by the economic crisis, but that Asia was in a better position to handle it. His reasons: the Asian market continued to be strong because of intra-Asia traffic – especially between the Indian sub-continent and Southeast Asia.

Lenormand went on to say that the “underlying factor would be its (Asia’s)large population. Asia is full of highly populated countries with a rising numberof middle class people that have muchpurchasing power…So, you (Asia) are notonly the producers of consumer goods)but you are also the consumers.”