As the U.S. expressed “concern” on Tuesday over the devaluation of China’s currency, making its exports cheaper but reducing the buying power of Chinese consumers, Chinese airlines continued to feel the pain of a weaker yuan as the value of their foreign debt rose with the relative strengthening of the U.S. dollar. China Southern Airlines, for one, on Tuesday issued a profit warning report estimating a first-quarter net loss resulting from negative foreign exchange fluctuations.
Foreign exchange market
Version 9 of Continuum Applied Technology’s Corridor aviation service software includes a new multi-currency module for companies that serve international customers, automated weight-and-balance feature and easier integration with third-party applications using new application programming interfaces (APIs). The multi-currency module not only helps with currency conversions but allows customers and vendors to use their preferred currency.
International Water-Guard Industries (IWG) is “adjusting its pricing and business policies in response to the unprecedented shift in exchange rates between the U.S. and Canadian dollar.” According to IWG president and CEO David Fox, the Burnaby, British Columbia-based company has raised its U.S. prices by 7 percent “while working with non-U.S.
Much of the unprecedented recent growth in sales of business aircraft has been driven by the international market, where advantageous exchange rates have made dollar-denominated assets unusually affordable.
The continued weakness of the U.S. dollar on international currency markets is stimulating sales of U.S.-based business aircraft to foreign buyers. With the dollar recently reaching historic lows against the three-year-old euro, prospective buyers from Europe are pouncing on exchange-rate-based discounts.