Once known as the home of big airplanes, the Asia-Pacific region's growth now spans so many commercial jet market segments that even manufacturers of regional aircraft are beginning to find ways to keep from being squeezed out by the big guys.

European governments have been notorious for their open or hidden subsidies to support national carriers. But tighter controls imposed by the European Commission, coupled with the effects of the sovereign debt crisis, are taking their toll on the weakest airlines—as witnessed by the recent demise of Spanair and the de facto collapse of Malev.

European Union emission allowance (EUA) prices rebounded in January, taking support from colder weather in Europe, which boosted demand for domestic heating, driving up CO2 emissions and the demand for allowances. EUAs for delivery in December 2012 rallied to €8.04 per metric ton ($10.56 per metric ton) on Jan. 31, up from an all-time low of €6.60 on Jan. 3.

Singapore Technologies Aerospace Ltd. (ST Aero) President Chang Cheow Teck spoke to AW&ST Asia Editor Leithen Francis at the company's corporate headquarters in Singapore. AW&ST: Is there a danger that demand for passenger-to-freighter (PTF) conversions will fall in 2012? I notice China's Jade Cargo has grounded its fleet.

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It's a sign of the times in the topsy-turvy air cargo market that while one eager operator can't wait to get its hands on the latest Boeing 747-8F freighter, others are negotiating deferrals. Such was the confusing picture at Boeing's Everett, Wash., site on Jan. 26 as burgeoning Russian operator AirBridge Cargo (ABC) celebrated the hand-over of its first 747-8F. Meanwhile, not far away, other factory-fresh freighters temporarily sat idle, swaddled against the winter weather in protective covers.

The demise of struggling carriers can take years—as the history of many of the failed airlines has shown—and all too often their executives are very creative in finding yet another investor who is courageous enough (or is ill-informed about the industry) to extend an ailing enterprise a lifeline. Bankruptcies are therefore rare and spectacular.

Aviation may not be a zero-sum game, but in Europe it may seem that way. As several midsize national carriers struggle, low-fare airlines are ready to profit further. But exuberance about the short-term opportunities is dampened by new competitive pressures on the horizon. With Spanair having ceased flying because of financial problems and Hungarian flag carrier Malev on the brink of insolvency, low-cost carriers such as Ryanair and EasyJet see opportunities to improve their own business.