ID :
64349
Fri, 06/05/2009 - 16:48
Auther :
Shortlink :
https://oananews.org//node/64349
The shortlink copeid
IATA SEEKS LESS RESTRICTIONS FOR AVIATION INDUSTRY
KUALA LUMPUR, June 5 (Bernama) -- Governments should extend the aviation industry the same opportunity like others in running its business especially during difficult times like this, says the International Air Transport Association (IATA).
Its director general and chief executive officer, Giovanni Bisignani said
the aviation industry was not asking for bailouts, but just some ease in
restrictions of growing the business.
He said in any other industry, the product could be exported easily. But in
the aviation industry, the product is a route or a connection which needs to be
preceeded by an international treaty.
"That is the rule of the game which was set over 65 years ago at the time of
the Chicago Convention. They are not something that makes sense today," he told
a media briefing here in conjunction with the upcoming IATA annual general
meeting (AGM) next Monday in Kuala Lumpur.
Bisignani said there were many cases where big funds from the Middle East
had come in to support and invest in banks, but this cannot be the same for the
airlines because many countries have a foreign ownership limit of 20-25 percent.
"We are not asking for support, we are just asking for opportunity to run
this industry as a business. We don't have that kind of freedom," he explained.
"At the moment, it is difficult for the industry. We are tied-up because we
can't sell our products where the market is and we cannot take advantage of
international funding."
Describing the situation as emergency for the industry, he said it was time
for governments to wake up.
Too often, governments don't understand the role of this industry
which represents eight percent of global Gross Domestic Product while 32 million
workers are involved, he said.
The AGM this Monday is expected to be graced by Prime Minister Najib Tun
Razak who would be addressing delegates as part of the meeting's
formal opening while Singapore's Minister Mentor Lee Kuan Yew would also be
holding a special dialogue session.
"The air transport industry is once again meeting in crisis, this time as a
result of the global financial meltdown. We are honoured that the Prime Minister
and the Minister Mentor will provide their insights at this critical time,"
Bisignani said.
Asked on why Malaysia was chosen, he said the AGM was held around the world
and this country made sense for the industry.
"Malaysia is a very successful story, and so is its Kuala Lumpur
International Airport, and the government is a with a leadership that
understands the industry's needs.
"Malaysia Airlines is our host, Idris Jala is on our board and
the airline's strong turnaround is a great example and inspiration for many
airlines," he said.
Bisignani said Najib also understood the needs and supported the aviation
industry, having decreased the airport charges in Malaysia.
He added that Lee was also a unique leader on aviation, as the success story
of Singapore Airlines and Changi Airport represented the success story of a
great country.
"A great airline and airport was instrumental for the development of
Singapore as a major economy of the world. It will be an inspiring lesson for
us, using history to look forward," he said.
Although the last AGM held in Istanbul, Turkey last year was centred on
rising fuel prices, this time it is different, he said.
"Here we face demand shock where traffic is disappearing and cargo has
never been so down. Fuel is not a problem, because we are now caught in the
biggest recession after the Great Depression," he said.
Bisignani said the AGM would also discuss on potential savings by the
industry and the efforts needed to get it done.
He said last year the industry celebrated the use of 100 percent e-ticketing
and worldwide deployment of common-use kiosk and check-in, of which produced a
combined savings over US$4 billion.
"But we are planning to implement activities to simplify business that would
save the industry over US$10 billion," he said.
Another important issue is e-freight of which the aviation industry handles
about 37 percent of global freight value.
"It has less appeal than e-ticketing, but very effective because we handle
an enourmous amount of freight and each freight is accompanied by roughly
between 15-60 pages of paper like Customs."
"We are taking away the paper from the process, meaning we are working with
airlines, shippers, customs, freight forwarders. It is a complicated issue but
it can bring savings of about US$4.9 billion," he said.
On the issue of climate change, Bisignani said the aviation industry
represented two percent of carbon dioxide (CO2) which IATA took very seriously
although it is a small number.
"This Monday we will show our achievment in a short period of time in
reducing Co2 via infrastructure, operations and economic measures."
"We probably will have those 3rd generation biofuels registered and
certified by 2011, where planes can fly with jetfuels and biofuels blended at 50
percent. We will show what we have done and what are our plans for the future of
the environment," he said.
Bisignani said despite the bad numbers in the industry, its environmental
performance was improving.
"Our emission this year will fall by seven percent. Of that, five percent is
because less planes are flying due to recession and another two percent is due
to implementation of effective measures."
"We have shortened nearly 200-300 new routes, saving fuels, and this gives
me great confidence to say that we are on track to achieve great results," he
said, adding that there would be representatives from environmentalist
organisation, WWF, at the AGM.
Meanwhile, he said the issue of safety was still imperative despite air
travelling being the safest mode of transport.
"The tragic Air France accident early this week reminds us that safety is a
constant challenge. This is a clear reminder that despite our great record,
safety will always be top priortiy," he said.
According to Bisignani, IATA members last year only had one accident for
every 1.9 million flights.
"The track record is great but every life lost is a tragedy, so we have to
aim high in order to achieve the highest level of safety," he added.
He said when IATA started, its members had nine million passengers a year
with 900 fatalities. Last year, IATA handled 2.2 billion passengers a year with
510 fatalities.
"This is a real team effort that has shown incredible results. If we could
use the same approach in handling other areas like securities, that would be a
great improvement on how we handle those situations," he said.
He added that the organisation's 226 members at present had succesfully
passed the IATA Operational Safety Audit (IOSA). Prior to that, about 20
airlines were dropped for failing to pass the audit.
"We are helping those dropped to make it back on the list," he said.
-- BERNAMA
Its director general and chief executive officer, Giovanni Bisignani said
the aviation industry was not asking for bailouts, but just some ease in
restrictions of growing the business.
He said in any other industry, the product could be exported easily. But in
the aviation industry, the product is a route or a connection which needs to be
preceeded by an international treaty.
"That is the rule of the game which was set over 65 years ago at the time of
the Chicago Convention. They are not something that makes sense today," he told
a media briefing here in conjunction with the upcoming IATA annual general
meeting (AGM) next Monday in Kuala Lumpur.
Bisignani said there were many cases where big funds from the Middle East
had come in to support and invest in banks, but this cannot be the same for the
airlines because many countries have a foreign ownership limit of 20-25 percent.
"We are not asking for support, we are just asking for opportunity to run
this industry as a business. We don't have that kind of freedom," he explained.
"At the moment, it is difficult for the industry. We are tied-up because we
can't sell our products where the market is and we cannot take advantage of
international funding."
Describing the situation as emergency for the industry, he said it was time
for governments to wake up.
Too often, governments don't understand the role of this industry
which represents eight percent of global Gross Domestic Product while 32 million
workers are involved, he said.
The AGM this Monday is expected to be graced by Prime Minister Najib Tun
Razak who would be addressing delegates as part of the meeting's
formal opening while Singapore's Minister Mentor Lee Kuan Yew would also be
holding a special dialogue session.
"The air transport industry is once again meeting in crisis, this time as a
result of the global financial meltdown. We are honoured that the Prime Minister
and the Minister Mentor will provide their insights at this critical time,"
Bisignani said.
Asked on why Malaysia was chosen, he said the AGM was held around the world
and this country made sense for the industry.
"Malaysia is a very successful story, and so is its Kuala Lumpur
International Airport, and the government is a with a leadership that
understands the industry's needs.
"Malaysia Airlines is our host, Idris Jala is on our board and
the airline's strong turnaround is a great example and inspiration for many
airlines," he said.
Bisignani said Najib also understood the needs and supported the aviation
industry, having decreased the airport charges in Malaysia.
He added that Lee was also a unique leader on aviation, as the success story
of Singapore Airlines and Changi Airport represented the success story of a
great country.
"A great airline and airport was instrumental for the development of
Singapore as a major economy of the world. It will be an inspiring lesson for
us, using history to look forward," he said.
Although the last AGM held in Istanbul, Turkey last year was centred on
rising fuel prices, this time it is different, he said.
"Here we face demand shock where traffic is disappearing and cargo has
never been so down. Fuel is not a problem, because we are now caught in the
biggest recession after the Great Depression," he said.
Bisignani said the AGM would also discuss on potential savings by the
industry and the efforts needed to get it done.
He said last year the industry celebrated the use of 100 percent e-ticketing
and worldwide deployment of common-use kiosk and check-in, of which produced a
combined savings over US$4 billion.
"But we are planning to implement activities to simplify business that would
save the industry over US$10 billion," he said.
Another important issue is e-freight of which the aviation industry handles
about 37 percent of global freight value.
"It has less appeal than e-ticketing, but very effective because we handle
an enourmous amount of freight and each freight is accompanied by roughly
between 15-60 pages of paper like Customs."
"We are taking away the paper from the process, meaning we are working with
airlines, shippers, customs, freight forwarders. It is a complicated issue but
it can bring savings of about US$4.9 billion," he said.
On the issue of climate change, Bisignani said the aviation industry
represented two percent of carbon dioxide (CO2) which IATA took very seriously
although it is a small number.
"This Monday we will show our achievment in a short period of time in
reducing Co2 via infrastructure, operations and economic measures."
"We probably will have those 3rd generation biofuels registered and
certified by 2011, where planes can fly with jetfuels and biofuels blended at 50
percent. We will show what we have done and what are our plans for the future of
the environment," he said.
Bisignani said despite the bad numbers in the industry, its environmental
performance was improving.
"Our emission this year will fall by seven percent. Of that, five percent is
because less planes are flying due to recession and another two percent is due
to implementation of effective measures."
"We have shortened nearly 200-300 new routes, saving fuels, and this gives
me great confidence to say that we are on track to achieve great results," he
said, adding that there would be representatives from environmentalist
organisation, WWF, at the AGM.
Meanwhile, he said the issue of safety was still imperative despite air
travelling being the safest mode of transport.
"The tragic Air France accident early this week reminds us that safety is a
constant challenge. This is a clear reminder that despite our great record,
safety will always be top priortiy," he said.
According to Bisignani, IATA members last year only had one accident for
every 1.9 million flights.
"The track record is great but every life lost is a tragedy, so we have to
aim high in order to achieve the highest level of safety," he added.
He said when IATA started, its members had nine million passengers a year
with 900 fatalities. Last year, IATA handled 2.2 billion passengers a year with
510 fatalities.
"This is a real team effort that has shown incredible results. If we could
use the same approach in handling other areas like securities, that would be a
great improvement on how we handle those situations," he said.
He added that the organisation's 226 members at present had succesfully
passed the IATA Operational Safety Audit (IOSA). Prior to that, about 20
airlines were dropped for failing to pass the audit.
"We are helping those dropped to make it back on the list," he said.
-- BERNAMA
