AVIATION INDUSTRY MUST STAND UNITED TO ADDRESS CHALLENGES, SAYS IATA CHIEF

By Tengku Noor Shamsiah Tengku Abdullah
SINGAPORE, June 6 (Bernama) -- The International Air Transport Association
(IATA) today called on the global aviation industry to build a platform for a
sustainable future based on renewed leadership, continuous innovation and, a
united stand in addressing challenges and finding solutions.

These bold steps were spelled out by IATA Director General and Chief
Executive Officer Giovanni Bisignani in his address at the association's 67th
Annual General Meeting (AGM) and World Air Transport Summit in Singapore.

Bisignani also reported on the results of Vision 2050 IATA's initiative to
determine a long-term vision for the air transport industry and reviewed the
past decade to highlight achievements and unfinished business.

"After a decade of crisis and shocks, airlines today are safer, stronger,
leaner and greener. But sustainable profitability remains elusive.

"We expect airlines to make just US$4 billion profits this year on revenues
of US$598 billion. The challenge is to prepare to handle 16 billion passengers
and 400 million tonnes of cargo by 2050 with efficient infrastructure and
effective technology, while making sustainable profits and satisfying customer
needs," said Bisignani.

Since Vision 2050 was first outlined at last year's AGM in Berlin, a group
of 35 strategic thinkers agreed that many things must change to better serve our
customers and build a stronger industry.

Bisignani noted that sustainable profitability would be the biggest
challenge for an industry with a net return of 0.1 per cent over the last four
decades.

"We know what will not work. Cost-cutting alone does not increase long-term
profits. Unbundling erodes the value of the base product. And re-regulation
would kill efficiency and innovation," he explained.

He said the key conclusion of Vision 2050 was the need for stronger
partnership across the value chain and a more proactive role for