As aviation businesses worldwide tighten their belts in light of plunging demand, one company is investing millions to expand.

Alteon Training, a subsidiary of Boeing, is investing in more cost-efficient training equipment to attract more airlines to send their staff for training during the current downturn.

The company is expanding during the current crisis by spending on newer but cheaper technology to make training courses more affordable and attractive for airlines.

Roei Ganzarski, chief customer officer, Alteon Training, said: "We're bringing in flat panel simulators. These are simulators created from touch screens that create a mock up of a cockpit. It's a much reduced cost device.

"These devices are easily located closer to the airlines, so by providing training to where the airlines have their crews, we're able to again reduce downtime, reduce travel and make it more valuable for the airlines."

Alteon declined to reveal the details of its investments. It is also partnering some 20 airlines to market their redundant training equipment, like flight simulators to other air transport operators on a profit-sharing basis.

While these efforts may help cut costs internally, the International Air Transport Association (IATA) said the industry as a whole is still being weighed down by significant tax burdens.

Giovanni Bisignani, CEO, IATA, said: "What we pay to airports and air navigation service providers, as a total number ... (cost us) ... US$50 billion.

"In the UK, the Netherlands, and largely Europe, we've seen last year's US$7 billion in extra tax just painted green because of environmental tax. It's quite amazing we're paying extra taxes and we have money to pay the governments to bail out the banks, that's a bit too much."

IATA expects airlines to go through rougher turbulence in the second half of the year. It expects recovery to only be in sight at the end of 2009.