Airlines Facing Emissions Trading: Strickland

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Sept. 25 (Bloomberg) -- John Strickland, Director at JLS Consulting, discusses his outlook for both airlines and airplane manufacturers. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Bombardier number.

It is great to see them fly.

There have been delays of getting the plane to making its first flight.

Now they face the challenge of getting enough orders.

They have some orders in the books but there is only one high-profile one from lufthansa.

There are other regional jets coming up from other families and of course we have the success over the brazilian family.

John, when -- guy johnson spoke to john lee of airbus yet yesterday and what came out of it was in 20 years they are going to start making their own planes.

How is that going to change the way we see the aerospace technology?

There is very little air travel currently -- one low cost airline in china currently.

Spring airlines.

They have a fairly modest fleet running into 30 or so planes.

Ryanair in europe has 300. logically the scale of china, that should be hundreds and hundreds if not thousands of aircraft in that type of fleet.

That is where demand is going to come from.

Boeing already has a factory there.

As china starts to make its own planes, even if they are hard to sell abroad.

In the battle, is it boeing?

Do they i have the first foot in there?

It is for m more evenly balanced on the long haul market.

Airbus is probably getting to a lead position.

The a-320. talk to me about -- they are concerned about the airlines business.

High fuel and demand from asia.

They have introduced all of those and start their forecast this week which revised down wart expectations.

Having said that, it is still well over last year.

There is a slowdown taking place currently in asia.

Fuel prices weigh heavily.

They also expressed concerns about emissions.

There is a u.p.-backed body in montreal about an emissions agreement.

The e.u. tried to force that last year and got a lot of backlash from key economic hitters around the world.

They want to see that sorted out.

The airline industry is global.

We don't want to have to navigate around local.

In the longer interpret, are things going to pick up and be better for the airline industry?

Are we going to see more consolidation?

What is the big theme you're watching out for?

The consolidation track is well in stride, particularly in the u.s. whether the u.s. airways mergers can go ahead.

In europe, there are more mergers to come.

There are struggling airlines coming out in a number of countries.

Right now we're waiting to hear whether air italia will see one from air france-klm.

The general trend is upward.

There are always variances in different markets.

Africa is one to look out, for example.

Low cost development.

Kenya air ways announced a low cost brand called jumbo jet.

Thank you so much for that.

John strickland, director of j.l.s. cult consulting.

Coming up, we'll talk about we'll be talking about marketing.

Keep it here "on the move." ?

This text has been automatically generated. It may not be 100% accurate.

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