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Increasing Spending on Security in Airports Regardless Recession and High Oil Prices - The increase in fuel prices and the credit crunch are pushing out of business airlines and tour operators around the world. Despite this situation, security spending in airports is still expected to increase at double digit rate, in the following years
Increasing Spending on Security in Airports Regardless Recession and High Oil Prices

 

NewswireToday - /newswire/ - London, United Kingdom, 2008/09/22 - The increase in fuel prices and the credit crunch are pushing out of business airlines and tour operators around the world. Despite this situation, security spending in airports is still expected to increase at double digit rate, in the following years.

   
 
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Crisis in the airport transport industry is taking its toll. Companies like British tour operator XL, Italian flag airline Alitalia and London-based K&S are being thrown out of business; with global economic downturn and volatile fuel prices playing a significant role in their fate. With a worldwide recession a step away the crisis on the airport transport industry does not have any precedent.

However, securing airports and flights from terrorist and criminal attacks is a major issue for airport administrators. National and international bodies, like the International Air Transport Association (IATA), the International Civil Aviation Organization (ICAO) and the European Organisation for the Safety of Air Navigation – EUROCONTROL, are unwilling to reduce security levels in cost cutting favour.

Security spending in airports is often charged back to airline companies which already face increasing operational costs on oil and commodities. Consumers, on the other side, are also faced with recession worries and credit restraints and are obliged to cut back on luxury spending such as holidays and travelling. Airline companies are therefore squished between the increasing costs of fuel and security and the reduction of their customer base, to which they could pass their costs onto.

"To maintain high security standards the security spending in the transport sector in Europe, is expected to increase at double digits in the following 3-5 years. Video surveillance equipment and analytics software are increasingly deployed in airports with growth of over 10 per cent year on year. On the other hand, manned guards are also increasingly present, in conjunction with police forces, to operate the ever-increasing security systems deployed in airports", observes Matia Grossi, Industry Analyst for Frost & Sullivan Electronics & Security group.

If you would like to receive more information about security industry, please contact Joanna Lewandowska at joanna.lewandowska[.]frost.com with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email. Frost & Sullivan's Automatic Identification & Security Growth Partnership Services Programme also includes research on the following markets: Electronics & Security, European Security Industry, CCTV industry (European video surveillance equipment market). All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Increasing Spending on Security in Airports Regardless Recession and High Oil Prices

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