Subscribe Free
in Events

IATA address infrastructure crisis to secure aviation’s future

Posted 6 February 2018 · Add Comment

The International Air Transport Association (IATA) is calling for urgent attention to address infrastructure challenges in order to secure the industry's future.

"Having the infrastructure to grow is vital to our industry's future. But in many key places, it is not being built fast enough to meet growing demand. And there are worrying trends which are increasing costs. One of these is airport privatisations. We have not found the correct regulatory framework to balance the interests of the investors to turn a profit, with the public interest for the airport to be a catalyst for economic growth. All the optimism supporting strong aircraft orders will mean nothing if we don't have the capability to manage traffic in the air and at airports," said Alexandre de Juniac in his keynote address to the Singapore Airshow Aviation Leadership Summit (SAALS). The theme of the Summit is 'Reimagining Aviation's Future'.

De Juniac highlighted the lack of airport capacity in Jakarta, Bangkok and Manila as his top concerns in the Asia-Pacific region. "At the other end of the spectrum, we have Seoul's Incheon Airport. They recently added runway and terminal capacity without raising charges for airlines and passengers. And, Incheon has extended an airport charges discount introduced two years ago. This sets a very positive example for other airports to follow. It also demonstrates great understanding of the role aviation plays in linking the Korean economy to economic opportunities globally," said de Juniac.

"The Singapore government is also showing great foresight with its expansion plans for Changi Airport, including Terminal 5 (T5). But there are challenges. We must ensure the plans for T5 are robust enough to meet the high standards of airline operations and passenger convenience users of Changi Airport have come to expect. And we need to get the funding model right to avoid burdening the industry with extra costs. The prize to keep in sight is the airport's contribution to Singapore's overall economy," said de Juniac. There have been reports on plans to introduce a tax on passengers and increases in charges to fund the construction of Terminal 5. The airline industry does not support pre-funding to finance in advance infrastructure projects.

Ensuring sufficient and cost-efficient infrastructure in Asia-Pacific is a top priority. The region is center stage of the industry's overall growth. By 2036 we expect 7.8 billion people to travel (up from 4.3 billion expected in 2018). Of the 3.5 billion trips to, from or within the Asia-Pacific region in 2036, 1.5 billion will touch on China. As early as 2022 China will be the largest single aviation market. India is another emerging power-house—even if it will take longer to mature. And nearly equal potential could be realized as the Indian aviation market continues to develop.

In his keynote address, de Juniac also identified five fundamental areas that need to be protected when reimagining the industry's future, the theme for SAALS:

Safety: "We had a stellar year in 2017. But there are always ways to improve—particularly as our data analysis capabilities grow. I would like to imagine a future for aviation with no accidents. We need to improve on safety, particularly as our data analysis capabilities grow," said de Juniac.

Open Borders: "Aviation needs borders that are open to people and trade. The ASEAN single aviation market is an important development. I would like to imagine a future for aviation where airlines are as free as possible to meet the demands for connectivity. We must be a strong voice in the face of protectionist agendas," he said.

Global Standards: "A common set of rules underpins the aviation industry's success—in everything from safety to ticketing. And I would like to imagine a future where global standards continue to be strengthened by the cooperation of airlines and government through institutions such as the International Civil Aviation Organization and IATA," said de Juniac. 

Sustainability: "Our commitment to cut emissions to half of 2005 levels by 2050 is ambitious. And I would like to imagine a future where our net carbon impact is zero." Industry and governments have agreed on a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) as one of its four pillars in a common strategy to ensure aviation meets this responsibility.

Profitable: "I would like to imagine a future where airlines generating normal profits is the norm, not a rarity." 2018 is the ninth year of profitability since 2010, and the fourth consecutive year in which the return on invested capital is expected to exceed the cost of capital.

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Jazeera Airways announces Q1 2018 earnings

Jazeera Airways has announced its financial results for the first quarter of 2018.

Flydubai to operate flights to Sulaimaniyah

Fydubai has announced that flights to Sulaimaniyah, Iraq, will resume from 10 May 2018.

Ras Al Khaimah snapshot flight returns with Seawings

Seawings’ Ras Al Khaimah new season snapshot tour has returned to target the growing tourist market to the Emirate.

Rwanda launches ‘Bucket List Rwanda’ Travel Packages exclusively for Middle Eastern residents

The Rwanda Development Board, Rwanda’s governmental organisation responsible for promoting Rwanda’s tourism initiatives abroad, has launched luxury and weekend getaway packages, which have been exclusively tailored for

Etihad launches loungewear collection at the Louvre Abu Dhabi

Etihad Airways leveraged its sponsorships of global fashion weeks and its Platinum Partner status of Louvre Abu Dhabi to launch a new Emirati designed loungewear collection at an exclusive reception held last night at the iconic

FedEx Express named a UAE Great Place to Work

FedEx Express, a subsidiary of FedEx, has for the eighth consecutive year been ranked amongst the ‘Best Workplaces in the UAE’ for 2017-2018, by Great Place to Work.

SOFEX SK2018
See us at
Global Aerospace BT2018Istanbul Airshow BT22018SOFEX BT2018EBACE 2018GATM BT1004061118MEBAA BT1004121218BIAS BT271017161118Cargo BT1004091018AirportShow BT1502090518ASDubai BT1004091018ArabianTravelMkBT250418