MOSCOW: A series of bankruptcies that have hit some leading air carriers and tour operators in the past month suggest that a serious crisis is brewing in global civilian aviation. Over the last six months about three dozen strong players have stopped or suspended operations. Among them are Russia’s AiRUnion, Britain’s XL Airways UK and Italy’s Alitalia.

Which comes next?
The latest report by the International Air Transport Association (IATA), issued early in September, is pessimistic. Before the year is out, it says, air carriers will suffer a total loss of $5.2 billion or twice as much estimated earlier.

The reasons, the report believes, lie in "a poisonous combination of high prices and falling demand." The line of logic here is simple: the costlier the jet fuel, the higher the fares and the fewer the air travelers.

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