IATA: International passenger numbers remain sluggish in April
KUALA LUMPUR: International Air Transport Association (IATA) says growth trend for international passenger numbers remain sluggish overall with passenger travel on international markets rising 3.8 per cent in April compared to a year ago, slower than the 4.6 per cent result in March.
“For premium international travel (up 4.9 per cent), there was an acceleration in March (up 4.6 per cent), but the growth trend remains fragile when looking at the past six months,” it said in a statement yesterday.
“There was a rise in premium international air travel volumes in April compared to March, but given developments in demand drivers and the inherent monthto-month volatility in the data, this does not necessarily mean an upturn in the trend.”
IATA noted that global economic growth appears to have slowed for the second consecutive month in May, according to measures of business activity and world trade is experiencing the steepest decline since 2013.
Nonetheless, it observed that some markets continue to show solid increases, at least for the time being.
“International travel within the Far East was up 11.7 per cent overall, and on premium markets, travel within Europe rose 4.8 per cent, consistent with recent indicators that economic recovery is on track. Looking ahead, the recent developments in the global economy present downside risks for growth in international air travel,” it added.
“Economic weakness in Asia from falling trade activity could lead to deterioration in business related air travel for that region.
"That said, there has been no sign of weakness in demand.” SERI KEMBANGAN: The green energy projects in the United Kingdom (UK) and Thailand are expected to provide KNM Group Bhd with recurring income.
The four-year green energy park project contract with Peterborough Renewable Energy Ltd in Peterborough (UK), is expected to contribute 25 per cent of revenue in its financial year 2017.
Chief executive officer/executive director Lee Swee Eng said the profit generated from the project would be one of the recurring incomes for the company for at least five years.
“The UK government has been encouraging renewable energy and introduced a unique policy called the Renewable Energy Obiligation Certificate (ROC), whereby we receive an incentive for every megawatt produced from waste (garbage).
“So, the income will come from the ROC,” he told reporters after the company’s annual general meeting (AGM) here yesterday.
The Peterborough project will start engineering works in the third quarter of 2017 and operate on a 17.6 megawatt capacity under phase one.
At full capacity, the project will generate 80 megawatts. Lee said the green project in Thailand is an ethanol plant produced from cassava (tapioca).
“By quarter one 2016, we will own a 72 per cent stake in the plant.This is expected to contribute about 10 per cent to the company’s profit for the financial year 2016,” he added.
He said Thailand was offering a eight year tax-free incentive, which was attractive to the company.
He said after 2017, the company will gain total recurring income of 35 per cent as revenue, which would enable the company to stabilise and sustain itself.
Plants built for the green project can span 25 years.
Asked if KNM Group would initiate a similar project in Malaysia, Lee said the company would not make any investment, as it uses regasification technology.
“This is an advanced technology that Malaysia’s tariff system does not support,” he added.
Malaysia mainly runs the waste-to-energy initiative using incineration. — Bernama