Analysts: Airlines must review fleet, labour plans as trade wars escalate

Airlines need to begin looking closely at their fleet management and labour plans in anticipation of a “downward spiral” in the air transport market caused by global trade tensions, consulting firm ICF said. The warning follows similar concerns by industry officials. Airbus CCO Christian Scherer raised the possibility of “tsunami effect” caused by the trade conflicts between the US and other major economies, especially China. Speaking at the IATA AGM, he said retaliatory tariffs could raise fares and aircraft costs. To prepare for a potential crisis, fleet management, especially the balance between owning and leasing aircraft, or having the option to defer or accelerate deliveries to better react to overcapacity, needs to be studied by airlines, ICF VP Jared Harckham said. <br/>