Aviation: 2006 Proves Tough Year from Governments and Travellers but a Real Boon for Aircraft Makers.

Ascend Announces Aviation Industry Winners and Losers for 2006

LONDON -- It's been a turbulent year for the aviation industry and against this backdrop some have inevitably faired better than others. So it's time to take a look at just who can claim a "First Class" year, and whose flight #2006 has been effectively "Cancelled"?

Who else to take a look back over the past year to discover the best and the worst of 2006, but Ascend, the world's leading provider of information and consultancy to the global aerospace industry. Ascend has assessed the numbers, considered the news and digested the forecasts to uncover who has soared in 2006, and who has been grounded.

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The Winners: clear for take-off

China Southern Airlines claims the top spot on Ascend's winners' rostrum. The world's fastest expanding airline has taken delivery of 43 aircraft in 2006 - fully 30% more than its next closest rival US carrier Southwest Airlines.

Industry stalwarts Boeing and Airbus share Ascend's Business Class award. Boeing is recognised for orders for the 787 and 737, and Airbus for its expansion in China, and orders for the A320.

The final spot amongst the winners and the Upgrade accolade goes to business jet manufacturers. The sector is booming, air taxi services are taking off across Europe and North America, and manufacturers have received orders for over 1000 jets in 2006.

Gehan Talwatte, Managing Director, Ascend, says: "China Southern Airlines' success underscores just how rapidly the industry is expanding in China. The sustained growth is driving the global industry, and China Southern Airlines is outstripping everyone.

"When it comes to the Business Class award we just couldn't split the world's two major aircraft manufacturers. Despite its well publicised troubles, Airbus has pulled off a very successful 2006. It is extremely well positioned in China, and orders for the A320 have been flooding in. On the other hand, when Boeing first unveiled the 787 many commentators wondered if there really was the gap in the market that the aircraft was designed to fill. Boeing's been proved right and secured substantial orders from around the world."

The Losers: a bumpy ride

Rather than a buyer for their national airline, all that the Hungarian government has managed to muster this year is an Ascend gong. Hungary has now tried - and failed - six times to privatise its national carrier Malev. With a price tag for the entire airline of now just over $740,000, Malev's $140m debt is keeping plans for a sale grounded.

Says Talwatte: "The situation in Hungary is becoming farcical. Despite being up for sale for about the price of a two-bedroom flat in central London, no-one is prepared to buy Malev. It is losing money fast, hitting Hungarian tax payers hard, and it is difficult to see a way out for the government."

This year the "Delayed" award goes to not just one but all the world's airlines. Soaring oil prices in 2006 have hit airlines hard, with fuel bills up around 35-45% on 2005.

Finally, Ascend's loathsome "Rerouted" award will have to be borne by travellers in India. The country's creaking infrastructure cannot cope with the boom in aviation, with crowded airports causing severe delays. The Indian government has now even resorted to levying a $3.50 congestion charge per ticket on domestic travellers.