| DEIPI Group Launches Dubalu's Enterprise Social Network Platform IT News Online 15, 2012 /PRNewswire/ -- DEIPI Group today announced the launch of its new enterprise socialnetwork platform called Dubalu Business. Private and public social networks, e-commerce and online marketing tools are the primary components of Dubalu's ... See all stories on this topic » | ||
| Tech Tools to Ease the Strain of the Nomadic Life TechNewsWorld Just as you'd try to choose a hotel on the right side of the tracks whenever possible to avoid a mugging during a post-prandial evening stroll, say, it's now worth spending some effort protecting your Internet browsing and email traffic from a hacker ... See all stories on this topic » | ||
| Colasoft Capsa PC Magazine Network administration involves troubleshooting that isn't readily apparent to the eye: data packets, wireless signal strength, bottlenecks and so on. This is why it's important to have network analysistools that can provide insight into what's ... See all stories on this topic » | ||
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| 'Internet Study Halls' Could Double in 2012-2013 School Year, Chegg Announces IT News Online "We're seeing students take back their education, empower themselves and look outside their schools for technology, tools and resources to help them succeed." The surveys, both of which were conducted in July 2012, looked at college students' study ... See all stories on this topic » | ||
| Iran threatens to disconnect from the Internet MarketWatch “According to the email our cyber experts sent to our teams, they believe a hacker tool Metasploit was used. The hackers had access to our VPN. The automation network and Siemens hardware were attacked and shut down. I only know very little about these ... See all stories on this topic » | ||
| Free Car Insurance Rate Quote Tool Is Now Available Announces CarsByOwner ... Virtual-Strategy Magazine This is changing with the advent of the Internet and tools like CarsByOwner.net offer, and it helps consumers make informed decisions. For the original version on PRWeb visit:http://www.prweb.com/releases/ See all stories on this topic » | ||
| JobGoRound.com Finds Indeed Most Popular Job Search Site Virtual-Strategy Magazine The Internet is growing increasingly crowded with job search tools—but a new poll from JobGoRound.com sheds light on the online career services that are the most popular among job applicants. Denver, CO (PRWEB) August 15, 2012. As the Internet ... See all stories on this topic » |
www.AlfaBloggers.com Co-Branded Blogging and Social Media Content Creator Team
Thursday, 16 August 2012
HP delivers network and storage virtualisation tools to drive cloud computing
Cloud computing's most over-hyped terms
| HP Tools Simplify VM, Private Cloud Chores InformationWeek The three software elements--HP Ethernet Virtual Interconnect, HP Multitenant Device Connect, and HP StoreVirtual virtual storage appliance--automate and simplify the movement of virtual machines and data in the cloud. Manually moving application ... See all stories on this topic » |
| Gartner: Cloud computing's most over-hyped terms Network World RELATED: Gartner: Hype could hurt cloud adoption. XaaS: Nine 'everything-as-a-service' companies to watch. "The cloud" is a broad term that encompasses many different technologies, similar to the way the Web or the Internet have many different aspects ... See all stories on this topic » |
| Gartner: Cloud computing's most over-hyped terms PC Advisor "The cloud" is a broad term that encompasses many different technologies, similar to the way the Web or the Internet have many different aspects to it, Gartner says. And many of the individual aspects of the cloud computing industry each have their own ... See all stories on this topic » |
Cloud Computing Security Risk Is Impossible to Eliminate
The past couple of years have been tough for those defending the security of cloud computing and those trying to establish secure cloud infrastructures for themselves. For the most part, there have been DDOS attacks or defacements designed to embarrass or punish site owners.
However, even considering only websites or services from which hackers actually took over accounts, stole data or money, or planted malware to help steal data or money from others, the list of security failures is long and distinguished: Google, LinkedIn, Twitter, Hotmail, Global Payments (credit-card clearinghouse for Visa, MasterCard and others), Federal Express, Zappos, a host of local bank and police agencies, and the China Software Developer Network (which, all by itself, lost personal information on 6 million users to a single hacker named Zeng).
True, some of those victims offer services with access too restricted and services too limited to be considered "cloud." Except for the potential booty (money, data or notoriety), cloud and non-cloud services look pretty much the same to criminals trying to crack them open.
During 2010, only 4 million user accounts were compromised by hackers; in 2011 hackers penetrated 174 million accounts (thanks, Anonymous), according to the Data Breach Investigations Report published by Verizon in March. If anything, 2012 is going to be even worse, according to anti-virus/security vendor Kaspersky Labs.
All that hackery did generate tons of publicity, plenty of vocal outrage from victims, diluvian volumes of frettage from pundits and solemn warnings from security companies thrilled to find themselves center stage in a drama they've been narrating all but unheard for years.
Despite all that noise, it's odd to realize that the incident with the greatest potential to cause a change in attitude among users and IT is the hack of a single reporter's backup account on Apple's consumer-oriented iCloud storage service.
It wasn't even a cool hack. It barely qualified as social engineering.
Due only to the weak identity verification of Apple and Amazon, Wired reporter Mat Honan suffered what he described as his own digital death and dissolution. Not only did hackers get into his email and iCloud accounts, but they also used the data-sync connections among Honan's all-Apple suite of personal devices to wipe out all his backup data in the cloud. They deleted everything from his MacBook and iPhone, leaving him with no easily recoverable copy of any of his data, most of which was valuable to only him.
"In the space of one hour, my entire digital life was destroyed. First my Google account was taken over, then deleted," he explained in a piece for Wired explaining "How Apple and Amazon Security Flaws Led to My Epic Hacking." "Next my Twitter account was compromised, and used as a platform to broadcast racist and homophobic messages. And worst of all, my AppleID account was broken into, and my hackers used it to remotely erase all of the data on my iPhone, iPad, and MacBook."
Details of the attack are telling, but have been left out to annoy the readership into even more outrage at the poor security/customer service of Apple and Amazon. (They're actually in "Anatomy of a Successful Personal Hack," if you haven't read them elsewhere, follow the link to be appalled by them.)
Cloud Computing Security Risk Is Impossible to Eliminate,Cloud Computing ,Security Risk
True, some of those victims offer services with access too restricted and services too limited to be considered "cloud." Except for the potential booty (money, data or notoriety), cloud and non-cloud services look pretty much the same to criminals trying to crack them open.
During 2010, only 4 million user accounts were compromised by hackers; in 2011 hackers penetrated 174 million accounts (thanks, Anonymous), according to the Data Breach Investigations Report published by Verizon in March. If anything, 2012 is going to be even worse, according to anti-virus/security vendor Kaspersky Labs.
All that hackery did generate tons of publicity, plenty of vocal outrage from victims, diluvian volumes of frettage from pundits and solemn warnings from security companies thrilled to find themselves center stage in a drama they've been narrating all but unheard for years.
Despite all that noise, it's odd to realize that the incident with the greatest potential to cause a change in attitude among users and IT is the hack of a single reporter's backup account on Apple's consumer-oriented iCloud storage service.
It wasn't even a cool hack. It barely qualified as social engineering.
Due only to the weak identity verification of Apple and Amazon, Wired reporter Mat Honan suffered what he described as his own digital death and dissolution. Not only did hackers get into his email and iCloud accounts, but they also used the data-sync connections among Honan's all-Apple suite of personal devices to wipe out all his backup data in the cloud. They deleted everything from his MacBook and iPhone, leaving him with no easily recoverable copy of any of his data, most of which was valuable to only him.
Details of the attack are telling, but have been left out to annoy the readership into even more outrage at the poor security/customer service of Apple and Amazon. (They're actually in "Anatomy of a Successful Personal Hack," if you haven't read them elsewhere, follow the link to be appalled by them.)
Cloud Computing Security Risk Is Impossible to Eliminate,Cloud Computing ,Security Risk
How to Be Positive ; steps which will help you
All thought, good and bad, is creative and tends to lead to a material thing. That is why we must learn to be more positive. The environment and all the experiences in life are the result of habitual and predominant thoughts.
Negative thoughts can tell us about something that needs attention. So, thoughts lead to discovering what needs to be done and one can think positively or negatively to take care of it. Many people fail to see a negative occurrence as a learning experience and continue to feel victimized and helpless, ultimately blaming others for what they drew to themselves.
Remove All Negative Influences
1 Avoid negative influences. Even if it's a family member or close friend, do not tolerate anyone's bad behavior. Steer clear from it so that it will not rub off on you.
2 Replace negative thoughts with something positive. Look for the benefit in every situation. There are pros and cons to most situations and you get to choose which you will focus on. If you're thinking something that isn't pleasant, think the opposite. If you do this long enough, it will make a huge difference. Say "I can!" more than "I can't!".
3 Smile smiling will get rid of all negative thoughts, and will spread the positive-ness around to everyone around you.
Surround Yourself With Positive Influences
1 Use the Law of Attraction Your activity and thoughts are positive or negative like magnets. As you avoid dealing with a problem, then it continues as is - or gets worse - your own negativity may rule the day. But, the more you think positively, then the more proactively you will act and reach goals of ways to overcome and accept your positive options - and that will bring its reward.
2 Surround yourself with positive activities. Whether it's watching movies or shopping with your friends, try to occupy your day in a positive way. For example, entertainment should always be positive. A funny movie makes you laugh whereas a sad movie will make you cry and/or feel bad.
3 Find an optimistic quote or saying and keep it in your wallet or pocket at all times for a quick reference.
4 Focus your imagination and efforts on becoming that new positive person. It is much easier to effect change if you just put your mind to it and change your thoughts. We can't always control things that happen in our lives, but we can, with some effort, control what we think in our minds.
5 Create your life from within. If you want more success, focus on all the ways that you are already successful. If you want more love, focus on all the people that already care about you and the abundance of love you have to give to others. If you want to create greater health, focus on all the ways that you are healthy, and so on and so forth.
6 Imagine that you're already a positive person and you love your life. The only thing between you and your desire to be happy is one single fact: You are not happy because of how you think. This little known fact keeps many from reaching their goal of happiness. If you keep thinking things like "My life sucks!", then your life will seem like it really is that bad.
Identify a Problem and Set Goals
1 Admit that there are problems. You can't change the way you think if you can't identify the problem. Accept the facts, if you have been negative or inactive. This will make it easier for you to become positive!
2 Make goals. Goals give you a more positive outlook on life. People who are bored with life and feel stuck are usually feeling depressed. Setting goals helps people move forward.
Start small with your goals. Don't shoot for the moon right away.
Surround Yourself With People You Love
1 Appreciate your friends! Appreciate the people in your life who have stood by you through thick and thin. Enlist their support to help you become more positive, and in the process you will probably help them too. Friends help each other through the good times and bad. Feel positive about them and feel lucky to have good friends in your life.
Tips
Realize that it is really all in our mind! What goes on in your mind can really determine your actions and decides whether you're positive or negative. If you always think negative thoughts, you're always going to turn out to be a negative person. It is better to think about positive thoughts.
Think of the cup as half full and filling up!
Making progress is success. If you are positively engaging events within yourself - in your thoughts - then there is no goal in which you can not make progress. Your engaged goals are powerful!
Think about what you want (that's a goal), not about what you don't want (that's worry). Goal driven activity requires positive thinking.
Be sure to cultivate positive thinking for purposeful reasons - to enhance the quality of your life and the lives of others.
Print these instructions and keep them for reference.
Don't give up. Good habits can replace bad ones by continuous perseverance.
Hang around negativity and you'll become negative. Hang around positive people and you will become and be like them!
Remember that you’re in control of your thoughts. If you’re thinking negative, you can change it anytime by thinking about something positive.
Getting your blood flowing by exercising increases your energy. When you have energy, you think positive.
Every morning look at yourself in the mirror and think about five good qualities you have.
Try meditating. This will make your mind sharp and fill you with positive ideas.
Smile at strangers. Although this may seem a little weird, it actually makes you feel more positive and happy. You may even brighten that other person's day.
Listen to music. It's a great way to remain positive.
Volunteering. Helping others leads to a happier outlook on life.
Best Ways to add Clicksor ads on WordPress websites and many more ads Refferals
Clicksor ads are becoming popular with time and people tend to give them place on their website. It is easy to add Clicksor ads on your WordPress website
Using Plugin
Clicksor offers WordPress plugin. You can download the official plugin from Clicksor website. After downloading install as normal WordPress plugin.It is easiest way of adding advertisements but not the best way.
You can use Text widgets to place advertisements from this network on the sidebar. Follow below procedure to do this
Log into your Clicksor publisher account
Create an advertisement using the Adsetup
Copy the generated code
Log into your wordpress website
Go to Appearance –> Widgets
Drag and place a text widget on the sidebar where you want to place the ads
Paste the advertisement code
It is best way as it does not involve usage of plugin and you have control over the placement of ads.The procedure is also very simple to implement.
Editing Template File
This is perhaps the most complicated way to placing the ads and is not recommended.You can edit your template file and paste the code (at place where you want to place your ads).If you want to place ads near to header then edit header.php file.If you want to follow this way contact me for details.
Clicksor review
Adding BidVertiser to WordPress Blog
Adding Chitika to WordPress Blog
Adding Adbrite ads to WordPress blog
Shoogloo Network ads on WordPress website
VCommission ads on WordPress website
Adding Dynamic Oxygen ads to WordPress
WordPress text Widget increases website performance
Adding Google plusone button to WordPress without plugin
3 Best WordPress performance plugins working together
More cracks found in Airbus A380 wings
Airbus has insisted its A380 superjumbo is safe to fly, after the discovery of another set of cracks in the wings. It's the second time in a fortnight that hairline cracks have been found in the world's largest jetliner, which airlines began flying four years ago. The European planemaker says it will develop inspection programmes.
And Reuters sources say European safety authorities will order airlines to inspect the most heavily-used A380s in the next few days. Airbus said the cracks were found on a number of "non-critical" brackets inside the wings of two aircraft, during routine two-year inspections - and similar faults showed up in five other aircraft in early January. But the aircraft aren't grounded, and Howard Wheeldon, Senior Strategist at BGC Partners says Airbus or the operating airlines wouldn't be flying the planes if they were unsafe.
Howard Wheeldon, Senior Strategist at BGC Partners, saying (English): "I don't think we should be worried at all because I think the commitment to the aircraft from the manufacturer and the words that they've used this week are supportive that this aircraft is very safe and should continue to fly." The A380 has had a bumpy ride due to development problems and the blowout of a Rolls Royce engine on this Qantas-operated A380 in November 2010. The news of the wing cracks hasn't had much impact on shares in Airbus' parent company EADS. But after Airbus had a record year in 2011, selling significantly more planes than rival Boeing, it will need to solve this issue quickly if it hopes to repeat its success this year.
And Reuters sources say European safety authorities will order airlines to inspect the most heavily-used A380s in the next few days. Airbus said the cracks were found on a number of "non-critical" brackets inside the wings of two aircraft, during routine two-year inspections - and similar faults showed up in five other aircraft in early January. But the aircraft aren't grounded, and Howard Wheeldon, Senior Strategist at BGC Partners says Airbus or the operating airlines wouldn't be flying the planes if they were unsafe.
Howard Wheeldon, Senior Strategist at BGC Partners, saying (English): "I don't think we should be worried at all because I think the commitment to the aircraft from the manufacturer and the words that they've used this week are supportive that this aircraft is very safe and should continue to fly." The A380 has had a bumpy ride due to development problems and the blowout of a Rolls Royce engine on this Qantas-operated A380 in November 2010. The news of the wing cracks hasn't had much impact on shares in Airbus' parent company EADS. But after Airbus had a record year in 2011, selling significantly more planes than rival Boeing, it will need to solve this issue quickly if it hopes to repeat its success this year.
Guest Blogging Guidelines GUEST BLOGGING GUIDELINES
We’ve had a fair amount of interest from people who want to share guest posts on Aerosoft Blogger, and as such, have created these guidelines to help you. Remember that these are guidelines . . . we’re looking for bloggers who can express themselves and challenge our worldwide audience to be affected, to think, and be moved to respond by what they read here.
Only article of the highest quality content will be considered. If you are unsure, read about 3-4 random articles and get a feel for my writing style and how I structure articles. You will soon spot a trend on how I construct my posts.
And if you are trying to submit an article about some new “get rich” scheme that you and your wife created, don’t even bother! I don’t care how “proven” it is.
Topics
We’re open to articles on almost everything pertaining to blogging, making money online, internet marketing, social media marketing, social commentary, economics, human reAerosofts, and business development. Submissions must be 100% original content.
Sub Headings
Subheadings are great for breaking up your posts, and help make them easier to read. Use the bold or h 2 / h3 tags to wrap your subheadings.
Images
Images are great for grabbing a reader’s attention. If you can’t come up with an image that directly relates to what you’re writing about, think of abstract images that may illustrate your point.
NOTE: If you aren’t able to find an image, we’ll do it for you.
Post Length
Typically, posts can be of any length as long as they convey the message. I do recommend you have a minimum of 600 words. Keep in mind that posts that are too long or too short can be daunting for readers,
Editing
We regularly edit posts submitted to Aerosoft Blogger by our contributors and guest bloggers. We reserve the make corrections or edits of your article as necessary.
Exclusivity
In submitting a post to Aerosoft Blogger, we shall assume that the post you’re writing is exclusively for use here. We ask that you not submit duplicate articles or use any submitted work elsewhere.
In-post Links
We will allow links in your articles if they are relevant to the topic you’re writing about. We do ask that you link to any of your Aerosofts in order to give proper attribution. Linking to your blog or website is okay ONLY if directly relevant to the topic. Excessive linking is prohibited and anything that reeks of spam will be removed / rejected.
Byline / Signature
We want to help promote you as the author of your article, and as such, provide an opportunity to include a byline/signature on your posts. This may not be used as ad space. We are encouraging you to let people know who you are and what you do. We allow up to 2 links, but they may not be affiliate links or point to junk sites that are solely designed for promoting affiliate links.
Promotion
Your assistance in partnering with us to promote your featured, guest article is appreciated.
We sincerely thank you for your interest in wanting to write for us. We will make this a positive experience for you.
Only article of the highest quality content will be considered. If you are unsure, read about 3-4 random articles and get a feel for my writing style and how I structure articles. You will soon spot a trend on how I construct my posts.
And if you are trying to submit an article about some new “get rich” scheme that you and your wife created, don’t even bother! I don’t care how “proven” it is.
Topics
We’re open to articles on almost everything pertaining to blogging, making money online, internet marketing, social media marketing, social commentary, economics, human reAerosofts, and business development. Submissions must be 100% original content.
Sub Headings
Subheadings are great for breaking up your posts, and help make them easier to read. Use the bold or h 2 / h3 tags to wrap your subheadings.
Images
Images are great for grabbing a reader’s attention. If you can’t come up with an image that directly relates to what you’re writing about, think of abstract images that may illustrate your point.
NOTE: If you aren’t able to find an image, we’ll do it for you.
Post Length
Typically, posts can be of any length as long as they convey the message. I do recommend you have a minimum of 600 words. Keep in mind that posts that are too long or too short can be daunting for readers,
Editing
We regularly edit posts submitted to Aerosoft Blogger by our contributors and guest bloggers. We reserve the make corrections or edits of your article as necessary.
Exclusivity
In submitting a post to Aerosoft Blogger, we shall assume that the post you’re writing is exclusively for use here. We ask that you not submit duplicate articles or use any submitted work elsewhere.
In-post Links
We will allow links in your articles if they are relevant to the topic you’re writing about. We do ask that you link to any of your Aerosofts in order to give proper attribution. Linking to your blog or website is okay ONLY if directly relevant to the topic. Excessive linking is prohibited and anything that reeks of spam will be removed / rejected.
Byline / Signature
We want to help promote you as the author of your article, and as such, provide an opportunity to include a byline/signature on your posts. This may not be used as ad space. We are encouraging you to let people know who you are and what you do. We allow up to 2 links, but they may not be affiliate links or point to junk sites that are solely designed for promoting affiliate links.
Promotion
Your assistance in partnering with us to promote your featured, guest article is appreciated.
We sincerely thank you for your interest in wanting to write for us. We will make this a positive experience for you.
Wednesday, 15 August 2012
Around 40 airlines closed worldwide because of recession
The revenues of the industry are going to decline from US$525 billion (last year) to $455 b in 2009. The industry is already reeling under a $200 b debt
The International Air Transport Association (IATA), the world trade body representing the airline industry, has some 230 airlines as members, having 93 per cent of scheduled international air traffic. Giovanni Bisignani, who joined the IATA as director general and CEO in 2002 and is credited with reshaping and refocussing the organisation, spoke to B S Arun of Deccan Herald in New Delhi recently.
Excerpts:
The economic meltdown has taken a toll on Indian aviation industry. How badly is the industry across the world affected?
The revenues of the industry are going to decline from US$525 billion (last year) to $455 b in 2009. The industry is already reeling under a $200 b debt. Europe has suffered big losses to the tune of $3.8 b, Asia $3.6b and US $2.6 b. Our revised global financial forecast has predicted airline losses totalling $11 b in 2009. This is $2 b more than the previously projected $9 b loss due to rising fuel prices and exceptionally weak yields.
How long will it take for the recovery? Is the worst over?
After the 9/11 incident due to which the industry suffered losses of $20 b, it took three years for the sector to recover. Now the situation is worse. We don’t have a growing economy in most parts of the world. We feel the worst is over but it will take longer to recover, may be 3-4 years. The bottom line of this crisis is: the combined 2008-09 losses at $27.8 b is larger than the impact of 9/11.
How far has the industry taken the hit in India?
Indian carriers will lose $1.5 b in 2009, which includes Air India’s losses of over $1 b. India and China will see increase in losses.
What is the recessionary effect on passengers and cargo globally?
Passenger traffic is expected to decline by 4 per cent and cargo by 14 per cent for 2009. Yields are expected to fall by 12 per cent for passenger and 15 per cent for cargo. The fall in passenger yield is led by the 20 per cent drop in demand for premium travel. Cargo utilisation remains at less than 50 per cent despite the removal of 227 freighters from the global fleet. There is little hope for an early recovery in yields in either the passenger or cargo markets.
In addition to these, aviation turbine fuel prices are still ruling high adding to the costs. There is no justification for higher prices as oil prices have fallen. Worldwide, airlines have lost $11 b in fuel bill in 2009 and $16.8b in 2008.
How many airlines have been closed down because of losses due to recession?
At least 40 airlines have shut shop. They are distributed equally across continents.
What do you foresee for the industry in 2010?
IATA expects losses to continue into 2010 with the industry expected to report a $3.8 b net loss. Passenger demand is expected to contract by 8 per cent to 2.06 b travellers compared to 2.24 b in 2008.
What should the governments be doing in such crisis?
Governments need a wake-up call to create a policy framework that supports a competitive air transport sector capable of driving economic expansion. We don’t want bailouts. But we need governments to look more seriously at this sector by investing in efficient infrastructure; replacing the proliferation of environmental taxes with a global solution for the environment; and giving airlines normal commercial freedoms to merge where it makes sense and to access markets and global capital like any other business. We want to be treated as a normal industry.
What is your advice for India to come out of the mess?
India’s problems are high costs of infrastructure, fuel, high taxation at state and national level. This must come down.
IATA suggested recently that governments should ease flight operation rules such as air bilaterals.
Open sky is the rule of the game. Rules governing bilaterals between the two countries on air traffic should liberalise. There is no sense why we should go by a rule we framed in the 1945-46. It is not required now.
In one of your visits to India 2-3 years ago, you had decried the airport infrastructure. What is your view now? What about airport charges?
It has vastly improved. We would like to see more efficiency. As for the charges, they will now be looked into by the newly set-up Airport Economic Regulatory Authority. AERA should comprise of professionals.
Recently, an American carrier with military personnel was asked to land in Mumbai as it did not have permission to overfly India? What is your reaction to such acts of overflying without permission
The International Air Transport Association (IATA), the world trade body representing the airline industry, has some 230 airlines as members, having 93 per cent of scheduled international air traffic. Giovanni Bisignani, who joined the IATA as director general and CEO in 2002 and is credited with reshaping and refocussing the organisation, spoke to B S Arun of Deccan Herald in New Delhi recently.
Excerpts:
The economic meltdown has taken a toll on Indian aviation industry. How badly is the industry across the world affected?
The revenues of the industry are going to decline from US$525 billion (last year) to $455 b in 2009. The industry is already reeling under a $200 b debt. Europe has suffered big losses to the tune of $3.8 b, Asia $3.6b and US $2.6 b. Our revised global financial forecast has predicted airline losses totalling $11 b in 2009. This is $2 b more than the previously projected $9 b loss due to rising fuel prices and exceptionally weak yields.
How long will it take for the recovery? Is the worst over?
After the 9/11 incident due to which the industry suffered losses of $20 b, it took three years for the sector to recover. Now the situation is worse. We don’t have a growing economy in most parts of the world. We feel the worst is over but it will take longer to recover, may be 3-4 years. The bottom line of this crisis is: the combined 2008-09 losses at $27.8 b is larger than the impact of 9/11.
How far has the industry taken the hit in India?
Indian carriers will lose $1.5 b in 2009, which includes Air India’s losses of over $1 b. India and China will see increase in losses.
What is the recessionary effect on passengers and cargo globally?
Passenger traffic is expected to decline by 4 per cent and cargo by 14 per cent for 2009. Yields are expected to fall by 12 per cent for passenger and 15 per cent for cargo. The fall in passenger yield is led by the 20 per cent drop in demand for premium travel. Cargo utilisation remains at less than 50 per cent despite the removal of 227 freighters from the global fleet. There is little hope for an early recovery in yields in either the passenger or cargo markets.
In addition to these, aviation turbine fuel prices are still ruling high adding to the costs. There is no justification for higher prices as oil prices have fallen. Worldwide, airlines have lost $11 b in fuel bill in 2009 and $16.8b in 2008.
How many airlines have been closed down because of losses due to recession?
At least 40 airlines have shut shop. They are distributed equally across continents.
What do you foresee for the industry in 2010?
IATA expects losses to continue into 2010 with the industry expected to report a $3.8 b net loss. Passenger demand is expected to contract by 8 per cent to 2.06 b travellers compared to 2.24 b in 2008.
What should the governments be doing in such crisis?
Governments need a wake-up call to create a policy framework that supports a competitive air transport sector capable of driving economic expansion. We don’t want bailouts. But we need governments to look more seriously at this sector by investing in efficient infrastructure; replacing the proliferation of environmental taxes with a global solution for the environment; and giving airlines normal commercial freedoms to merge where it makes sense and to access markets and global capital like any other business. We want to be treated as a normal industry.
What is your advice for India to come out of the mess?
India’s problems are high costs of infrastructure, fuel, high taxation at state and national level. This must come down.
IATA suggested recently that governments should ease flight operation rules such as air bilaterals.
Open sky is the rule of the game. Rules governing bilaterals between the two countries on air traffic should liberalise. There is no sense why we should go by a rule we framed in the 1945-46. It is not required now.
In one of your visits to India 2-3 years ago, you had decried the airport infrastructure. What is your view now? What about airport charges?
It has vastly improved. We would like to see more efficiency. As for the charges, they will now be looked into by the newly set-up Airport Economic Regulatory Authority. AERA should comprise of professionals.
Recently, an American carrier with military personnel was asked to land in Mumbai as it did not have permission to overfly India? What is your reaction to such acts of overflying without permission
How US was trying to come out of Recession
U.S. Airlines Emerging from Recession
With the global economy continuing to improve, there is steady improvement in demand for air travel as well as cargo since the beginning of 2010, after being badly affected by the economic downturn. Business travel, which is directly affected by the economic environment, plunged to an all-time low in 2009 as many corporations slashed travel budgets. Leisure travel as well as cargo also showed a remarkable decline.
With improving economic sentiment, business travel and demand for air cargo are gradually catching up. However, leisure demand is still low and is expected to take a greater time to reverse, since spending in this area is highly discretionary. We may not see a noticeable improvement in that segment until clear evidence of labor-market improvements take hold.
To combat the recessionary effects, the airlines have cut costs, slashed capacity and increased load factor. However, as travel demand catches up, the airlines can avoid additional capacity cuts. Conversely, airline capacity is expected to improve in 2010. This would help to keep fares in check, besides making it easier for travelers to book last-minute seats.
Though we think the worst is over, industry drivers all point to a slow recovery (at best) during the remainder of 2010. The economy is still far from healthy, with unemployment likely to remain high throughout the year. Growth in consumer spending is also expected to be sub-par as compared with the prior years. However, we expect faster growth in the next four years as the economy gathers momentum, consumers and business sentiments recover and spending increases.
Consolidation, the Only Viable Route
In a severely fragmented industry, consolidation is the writing on the wall, as the recent merger announcement between United Airlines and Continental Airlines shows. The 2009 recession and a drop in travel demand has been difficult for almost all air carriers, with small companies finding it hard to subsist, thus making consolidation imperative. This is the optimal way for the industry to deliver sustainable profitability, by gaining better efficiency, greater economies of scale and reduced operating costs.
On the consolidation front, a major development in 2008 was the merger between Delta and Northwest Airlines, which made Delta the world's largest airline. The merger provided significant cost advantages for the operation of both airlines. Further mergers and acquisitions appear likely, provided that some operators would inevitably find it harder to recover than others. Low-cost airlines, which have weathered the storm in 2009, stand in a more favorable position now, and may even end up purchasing some regional operators.
Oil Price Volatility
The airline industry is cyclical and sensitive to a number of key drivers, the most prominent of which is the world price of crude oil. The ATA estimates that for every dollar increase in the price of jet fuel -- a derivate product of crude oil -- both the domestic and international airline industry incurs an additional $445 million in fuel expenses. While prices have eased a bit recently, they remain significantly above year-earlier levels. This is of concern to the airline industry, as it will directly increase the cost of fuel purchase, shrinking profits. Oil prices are predicted to trend even higher in response to an increased demand as the world shakes off the recession.
However, in order to offset the loss from oil price volatility, the airlines are considering levying additional fees and charges. Hedging strategies are another profit protection tool, and will be more extensively undertaken.
OPPORTUNITIES
Though almost all carriers are expected to benefit from the improving economy, we favor United Airlines, a wholly owned subsidiary of UAL Corp. (UAUA) particularly, with a Zacks #1 Rank. The company has been reporting improving revenues, with its Corporate segment recording an increased demand from international markets. Pricing trends have also shown an improvement. UAL’s recently announced merger with Continental Airlines will make it the biggest airlines with an enhanced capacity and improved service.
Our next pick is Delta Air Lines Inc. (DAL - Analyst Report) with Zacks #2 Rank. Delta is uniquely positioned to benefit from its merger with Northwest Airlines, which has made it the world’s largest airline generating economies of scale. Moreover, Delta has recently seen a surge in business travel volumes and improved pricing, a trend which is expected to continue.
Others with a Neutral recommendation and a Zacks #3 Rank are AMR Corp. (AMR), Continental Airlines (CAL), Jetblue Airways (JBLU - Analyst Report) and Southwest Airlines (LUV - Analyst Report).
WEAKNESSES
Overall we view the industry to post strong growth in the coming years. However, near-term risks associated with the airlines shares are the fluctuations in the price of fuel, disease outbreaks, or concerns that the economy may slow down further.
We think Republic Airways Holdings (RJET - Snapshot Report) with a Zacks #4 Rank will be an Underperformer in the near term as it continues to face strong competition in Denver and Milwaukee, the main markets in which it operates. Moreover, fuel price volatility will continue to exert a downward pressure on the earnings.
With the global economy continuing to improve, there is steady improvement in demand for air travel as well as cargo since the beginning of 2010, after being badly affected by the economic downturn. Business travel, which is directly affected by the economic environment, plunged to an all-time low in 2009 as many corporations slashed travel budgets. Leisure travel as well as cargo also showed a remarkable decline.
With improving economic sentiment, business travel and demand for air cargo are gradually catching up. However, leisure demand is still low and is expected to take a greater time to reverse, since spending in this area is highly discretionary. We may not see a noticeable improvement in that segment until clear evidence of labor-market improvements take hold.
To combat the recessionary effects, the airlines have cut costs, slashed capacity and increased load factor. However, as travel demand catches up, the airlines can avoid additional capacity cuts. Conversely, airline capacity is expected to improve in 2010. This would help to keep fares in check, besides making it easier for travelers to book last-minute seats.
Though we think the worst is over, industry drivers all point to a slow recovery (at best) during the remainder of 2010. The economy is still far from healthy, with unemployment likely to remain high throughout the year. Growth in consumer spending is also expected to be sub-par as compared with the prior years. However, we expect faster growth in the next four years as the economy gathers momentum, consumers and business sentiments recover and spending increases.
Consolidation, the Only Viable Route
In a severely fragmented industry, consolidation is the writing on the wall, as the recent merger announcement between United Airlines and Continental Airlines shows. The 2009 recession and a drop in travel demand has been difficult for almost all air carriers, with small companies finding it hard to subsist, thus making consolidation imperative. This is the optimal way for the industry to deliver sustainable profitability, by gaining better efficiency, greater economies of scale and reduced operating costs.
On the consolidation front, a major development in 2008 was the merger between Delta and Northwest Airlines, which made Delta the world's largest airline. The merger provided significant cost advantages for the operation of both airlines. Further mergers and acquisitions appear likely, provided that some operators would inevitably find it harder to recover than others. Low-cost airlines, which have weathered the storm in 2009, stand in a more favorable position now, and may even end up purchasing some regional operators.
Oil Price Volatility
The airline industry is cyclical and sensitive to a number of key drivers, the most prominent of which is the world price of crude oil. The ATA estimates that for every dollar increase in the price of jet fuel -- a derivate product of crude oil -- both the domestic and international airline industry incurs an additional $445 million in fuel expenses. While prices have eased a bit recently, they remain significantly above year-earlier levels. This is of concern to the airline industry, as it will directly increase the cost of fuel purchase, shrinking profits. Oil prices are predicted to trend even higher in response to an increased demand as the world shakes off the recession.
However, in order to offset the loss from oil price volatility, the airlines are considering levying additional fees and charges. Hedging strategies are another profit protection tool, and will be more extensively undertaken.
OPPORTUNITIES
Though almost all carriers are expected to benefit from the improving economy, we favor United Airlines, a wholly owned subsidiary of UAL Corp. (UAUA) particularly, with a Zacks #1 Rank. The company has been reporting improving revenues, with its Corporate segment recording an increased demand from international markets. Pricing trends have also shown an improvement. UAL’s recently announced merger with Continental Airlines will make it the biggest airlines with an enhanced capacity and improved service.
Our next pick is Delta Air Lines Inc. (DAL - Analyst Report) with Zacks #2 Rank. Delta is uniquely positioned to benefit from its merger with Northwest Airlines, which has made it the world’s largest airline generating economies of scale. Moreover, Delta has recently seen a surge in business travel volumes and improved pricing, a trend which is expected to continue.
Others with a Neutral recommendation and a Zacks #3 Rank are AMR Corp. (AMR), Continental Airlines (CAL), Jetblue Airways (JBLU - Analyst Report) and Southwest Airlines (LUV - Analyst Report).
WEAKNESSES
Overall we view the industry to post strong growth in the coming years. However, near-term risks associated with the airlines shares are the fluctuations in the price of fuel, disease outbreaks, or concerns that the economy may slow down further.
We think Republic Airways Holdings (RJET - Snapshot Report) with a Zacks #4 Rank will be an Underperformer in the near term as it continues to face strong competition in Denver and Milwaukee, the main markets in which it operates. Moreover, fuel price volatility will continue to exert a downward pressure on the earnings.
Canadians think we’re in a recession, but economists don’t...so what's the reality
A surprising majority of Canadians — 70% of them — say the country is in the middle of a economic recession, even though economists will tell you Canada hasn’t been in one since 2009, and is nowhere close.
The results, from a new online survey sponsored by the Economic Club of Canada and conducted by Pollara Strategic Insights, highlight a growing disconnect between how financial professionals quantify and measure the health of the economy and how Canadians feel about their every day prospects.
Michael Marzolini, chairman of Pollara, called the results the most pessimistic in 16 years.
“Canadians are more self-centred. They believe themselves under siege,” he said at a breakfast presentation hosted by the Economic Club in Toronto that included top economists from Canada’s Big Five banks.
“Most Canadians have little knowledge of economics, but they are on the front lines of the economy. They can see, and feel, financial change, and they tend to act collectively,” he said. “Canadians, in aggregate, are remarkably canny about the economy.”
The survey of 2,878 Canadians found optimism towards the Canadian economy has dropped to 25%, compared with 54% in 2009. As well, 35% of Canadians expect employment to worsen this year, compared with only 25% a year ago.
Doug Porter, deputy chief economist with BMO Capital Markets, who was in attendance Thursday morning, said he was in some ways surprised by the stark negativity in the report while also acknowledging that Canadians have had to weather months of doom and gloom.
Even so, with unemployment levels far off historical highs, decent auto sales and a still-resilient housing market, the underlying indicators suggest that Canadians really should not be feeling so down about themselves.
“I think things were much worse three years ago. This situation doesn’t even compare,” he said. “By most definitions, we’re not even close to being in recession in Canada. It is somewhat baffling that Canadians are so dour. Maybe it reflects their personal situations.”
Ken Wong, a marketing and consumer behaviour professor with Queen’s University, said while economists focus on the macro, which has been fuelled by commodities at the expense of jobs-intensive manufacturing, everybody else focuses on the micro: their own jobs, broken-down pensions and battered investment portfolios.
“It’s all about the unit of analysis. What’s good for the economy has not been good for the consumer the past few years,” he said. “The recession didn’t affect everybody in the same way.”
Arguably the best-performing province at the moment is Saskatchewan, but with a small population compared with Ontario and Quebec, it is not surprising if their optimism is drowned out by the many more voices complaining in Canada’s hard-hit manufacturing centres, he said.
Part of the problem may also be that Canadians do not know the correct definition and usage of the word “recession” either: economists define a recession, generally, as at least two straight quarters of negative GDP growth. Even then, there is room for interpretation, Mr. Porter said.
“I think that’s more a rule of thumb than anything. A lot of it is in the eye of the beholder,” he said.
Certainly those watching Mr. Porter and other top economists Thursday present their forecasts for 2012 and beyond would get the sense that they were not exactly seeing sunshine and rainbows ahead for Canada, or anywhere else for that matter.
Craig Alexander, chief economist with TD Economics, warned that the many desperate fiscal decisions the United States has made over the past few years will truly come home to roost in 2013.
While the elimination of some tax cuts and other stimulus policies may drag the U.S. economy by as much as 1.5 percentage points in 2012, the impact of those automatic cuts could completely eliminate any economic growth the year after.
“If complete gridlock happens and nothing occurs in Washington, the fiscal drag in 2013 goes up to 2-2.5 percentage points. That’s the rate of growth we’re expecting for the U.S.,” he said. “Fiscal policy could derail the economic recovery.”
In Canada, expectations remain muted in 2012. Craig Wright, chief economist with RBC Economics, forecasts 2.5% growth in Canada, which he admits is on the high side.
“Usually a decade of excess is followed by a decade of stress and we’re in the midst of it right now,” he said.
“I wouldn’t necessarily tell people to cheer up, but maybe not buy into the pessimism,” Mr. Porter said. “Although, it is entirely possible that Canadians are seeing something that the broad numbers haven’t captured yet.”
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