VILNIUS, LITHUANIA --- The increasing concern about the possibility that the current Eurozone crisis might evolve into a ‘second wave’ of recession has caused the IATA to announce revisions to its aviation industry outlook. In a worst case scenario in 2012 the industry might have to suffer losses of up to USD 8 billion, while a slightly more optimistic one suggests that the losses should not exceed USD 1.4 billion. European carriers are by far in the most challenging position. AviationCV.com experts maintain that if they are forced to cut the number of employees, Asian Pacific airlines will attempt to seize the opportunity to solve the issue of pilot shortage.

According to recent prognosis, Europe should face losses of up to USD 600 million whilst the Middle East will earn only USD 300 million out of the previously expected USD 700 million in profits. Latin America will also see a sharp drop in financial returns with profits declining from USD 400 million to USD 100 million. Africa, in accordance with previous prognosis, will face USD 100 million in losses, the USA should manage to sustain financial stability (USD 1.7 billion in profits) and the Asian Pacific region is still expected to enjoy an increase in profits, mainly due to the rapidly growing China market (USD 2 billion in profits). The global forecast, however, suggests an overall 4% growth in passenger demand.

“The synergy between unstable global economics and increasing passenger flows means that an economic recession would affect the entire aviation industry, including pilot market. It is highly likely that the industry experiencing financial hardships will be forced to look for various ways to optimize business activities. One of these is to cut down on human resources by reducing the number employees. It will definitely have a big impact on the pilot market in Asia where the demand surpasses the supply. The European pilot market would at least partially satisfy the region’s demand for highly qualified pilots,” explained the

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Lately the Asian-Pacific carriers tend to place increasingly large aircraft orders thus further deepening the problem of pilot shortage in the region. However, how will the Eurozone crisis affect the already heightened pilot salaries How will the upcoming recession influence the demand for highly qualified pilots which is supposed to drop due to global financial unrest In order to maintain flexibility and minimize costs, airlines could increasingly opt for aircraft crew leasing services. Leasing aircraft crew could enable airlines to assign pilots to different regions depending on demand. Such practice might prove to be especially expediant during the Eurozone crisis. Pilots could secure their jobs and airlines could choose to transfer pilots in case of any financial hardships.