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Fuel costs, political uncertainty forces Eznis Airways to cut back |
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Wednesday, 09 July 2008 |
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A doubling of fuel prices has
resulted in Mongolia’s Eznis Airways canceling plans to expand its
fleet with the purchase of a fourth Saab 340B.
“We have decided not to proceed
with the fourth aircraft because fuel prices have almost doubled in
the past 12 months and there doesn’t seem to be any let-up in sight,”
Eznis Airways CEO, Glen Pickard, told Air Transport Intelligence news.
Reports indicated that Eznis
was deterred from the purchase not only by rising fuel costs, but also
by the impact on tourism following post-election rioting in Ulaanbaatar
in which five people died.
Pickard said the airline would
consolidate, rather than expand, during these difficult times. He added,
though, that he expected the purchase price of a new aircraft will be
less 12 months from now, should the company feel it is the correct time
to expand.
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