Strong Air Travel Demand Growth Returns
The International Air Transport Association (IATA) has announced that global passenger traffic results for November 2016 showing the strongest demand growth in nine months. Total revenue passenger kilometers (RPKs) rose 7.6 per cent compared to November 2015. Capacity (available seat kilometers or ASKs) increased by 6.5 per cent, and load factor rose 0.8 percentage points to 78.9 per cent. “Stronger demand for air travel reflects—and is supporting--a pick-up in the global economic cycle. As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017,” said Alexandre de Juniac, IATA’s Director General/ CEO. November international passenger demand rose 8.0 per cent compared to the year earlier, with airlines in all regions showing growth. Total capacity climbed 6.8 per cent, and load factor edged up 0.9 percentage points to 77.1 per cent. African airlines experienced an 8.2 per cent rise in demand compared to November 2015. Economic conditions in much of Africa remain challenging, particularly in the biggest economies of Nigeria and South Africa, but the upward trend in seasonally-adjusted passenger traffic has reasserted itself more recently, supported by strong demand on routes to and from Asia and the Middle East. Capacity rose 5.1% and load factor climbed 1.9 percentage points to 66.3 per cent. European carriers saw demand increase by 8.3 per cent in November 2016, while traffic grew at an annualised pace of 12 per cent over the past five months or so. This suggests that the disruption caused by terrorism and political instability has lifted, against a backdrop of a growing Eurozone economy. Capacity rose 6.8 per cent and load factor climbed 1.1 percentage point to 80.8 per cent.
(ISO Guide 73 ISO 31000; 2009) This definition helps us to think further about risk than we have addressed it thus far; we know that risk can be a combination of likelihood and impact, and that it can be positive or negative, but we are now looking at the effect of risk on objectives; and the fear that lurks in the shadows. When we are looking at the management of risk or what we call risk management, we are looking about identifying, analysing and responding to risk in the context of those objectives.
The standard definitions of risk management are not so uniform as those for risk, but in the main there are references to the ‘processes’ or activities behind identifying, analysing and responding to risk; Coordinated activities to direct and control an organisation with regard to risk (ISO Guide 73 ISO 31000).
This short treatise leads us to the concept of ‘enterprise’ risk management. We will tackle this in depth in a later article, but it’s worth saying that enterprise risk management or ERM is risk management for the whole organisation – i.e. enterprise wide;
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