According to the Centre for Asia Pacific Aviation, 2007 is shaping up as a year for many carriers in which contingency and alternative plans may come to the fore.

American Airlines, clearly disappointed to lose out to United Airlines for a new daily service to China, is instead putting a lot of hype around plans to expand its presence in Japan. This coincides with the impending entry into oneworld of Japan Airlines, which is "switching to the offensive" in 2007, according to CEO, Haruka Nishimatsu. The airline's new business plan, to be unveiled early next month, will include a reorganisation of its international network, including a focus on expanding profitable routes to France, the US, China, India, Russia and Vietnam.

Korean Air (KAL) meanwhile has proposed the formation of an 'East Asian Airline Bloc' involving South Korea, Japan and China to counter the increasing strength of the EU and its airlines.

"The move comes ahead of bilateral air services negotiations between Korea and France that could see more competition on the route," stated the Centre's Executive Chairman, Peter Harbison.

"That aside, it is an interesting proposal by KAL and could provide an alternative multilateral model in Asia for China to consider," continued Mr Harbison.

Many other carriers could be pursuing a 'Plan B' strategy this year, particularly in securing fresh funding or new alliances. These include Air New Zealand, China Eastern Airlines and Garuda Indonesia.

"The volatile nature of aviation means that, even in the good times such as now, disaster can strike very quickly. Contingency planning is the name of the game in the new era, when government support can no longer be taken for granted," concluded Mr Harbison.