Southeast Asia's civil aviation industry is revamping its structure and capacity amid a slowdown sparked by the devastating September 11 terrorist attacks on the United States, according to Wednesday's China Daily.

The world's airlines may lose as much as US$7 billion in 2001, up from a US$2.5 billion loss for the year predicted prior to September, said Pierre Jeanniot, director-general and CEO of International Air Transport Association.

Singapore Airlines (SIA), one of Asia's leading carriers, has cut services to the United States, Japan and other destinations, but it has also increased flights to Australia and New Zealand.

SIA is also promoting special packages to stimulate demand while scaling down costs, spokeswoman Corinna Chan said.

A slowing global economy started cutting into SIA profits even before September 11. The latest report from the company released in late October showed a sharp drop in profits.

Still, SIA may be doing better than other airlines, many of whom have slashed staff and schedules dramatically.

And despite cutbacks, SIA has gone ahead with the launch of a US$118.3 million in-flight catering centre, reflecting optimism about the future.

The centre, one of Asia's largest and most advanced inflight catering services, is capable of producing 45,000 meals a day, centre production manager Lim Kim Chew said.

The devices feature computerized food handling and storage systems, automated washing machine lines and automated cart transport systems.

"The centre symbolizes our desire to be at the leading edge of the industry and to realize our goal of becoming a premier global provider of in-flight catering and airport ground handling services," Chan said.

Malaysia Airlines, another heavyweight in Asia, is also restructuring. Under a new plan, the airline will kill unprofitable, non-core destinations and focus more on profitable, high-growth routes, a spokesperson said.

Jeanniot said he expects a significant recovery next year, urging governments, airlines and infrastructure providers to work together.

( Xihua News Agency December 12, 2001)