Air traffic : passengers flows and aircrafts movements decline since may

Signs of a slowdown in air traffic through Thailand’s six main airports clearly emerged last month as spiking fuel oil prices and low-season demand forced airlines to cut flights.

Passenger flows through Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, Chiang Rai and Hat Yai airports was 4.21 million last month, versus 4.56 million in May and 5.04 million in April, according to figures from Airports of Thailand Plc (AoT).

International passenger flows slowed from 2.89 million in May to 2.77 million in June. But the overall total for the first half was up a healthy 8.77% to 19.12 million.

Domestic passengers showed a dramatic slowdown, with growth of merely 1.79% in June (1.44 million), down from 9.71% in May (1.66 million).

Combined aircraft movements declined from 33,779 in April and 33,356 in May to 30,607 in June. […] (Bangkok Post)

The article emphasizes the fact that cumulative numbers  on the first 6 months remain positive, with a growth year-on-year. But it’s irrelevant. That’s the past. What is important is the change of the trend in may and june.

The party is over. Inflation leads to… deflation. That’s the fascinating beauty of the current economic situation.

People’s purchasing power is battered by higher prices of goods and services… disposable income is declining. Therefore, people have to cut some of their expenses.

And clearly tourism and air flights are non-essential expenses…

This situation forces airlines (already) to cut flights. That will lead to unemployment, less taxes paid, lower economic growth etc.

Again it shows perfectly the risks the world faces : a deflation-depression.

We will consume less, therefore companies will produce less, invest less, GDP growth will go down… and even in negative territory… leading to lower income… leading to falling prices… leading to write-off of overvalued assets… leading to lower income etc.

We have had an insane bullish run since many years… and many bubbles. Crisis times are coming now.

It’s just the beginning of the other side of the cycle.

A vicious cycle.

1 Response to “Air traffic : passengers flows and aircrafts movements decline since may”

  1. 1 Pin 24 July 2008 at 5:35 am

    Compare to Cambodia of annual visitors about 3 millions a year, they still have long way to go to be like Thailand.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

%d bloggers like this: