NO MAJOR BANKRUPTCIES IN AVIATION INDUSTRY, SAYS IATA

From Saraswathi Muniappan

GENEVA, Dec 15 (Bernama) -- There is no threat of major bankruptcies
expected in the aviation industry but smaller airlines may have difficulties
accessing credit, and as a result they will be fragile.

"So far in 2009, we had to terminate 30 airlines because they could not pay
their bills," said International Air Transport Association (IATA)
director-general and chief executive officer Giovanni Bisignani.

Out of the number, 14 have "disappeared," he said at the Global Media Day
here Tuesday.

On other issues, Bisignani reiterated that ownership restrictions in the
bilateral system prevented consolidation across political borders.

Last month, the IATA Agenda for Freedom took an important step forward with
seven governments and the European Commission signed a multilateral statement of
policy principles, focused on liberalising ownership, market access and pricing.

"The starting point is a level playing field. This is a government
responsibility that is emphasised in the principles," he said.

In today's context, the most important issue to move forward quickly is
ownership, Bisignani said.

"The liberalisation of ownership between the United States and European
Union would be a strong signal that this industry is becoming a normal
industry," he said.

Among the important projects with 2010 deadline are the e-freight and coded
boarding passes.

Bisignani also said that biofuel holds the greatest potential for the
industry.

Five airlines have tested them and certification is expected within 2011, he
said.

According to Bisignani, the industry is staying focused on reducing
emissions.

"A 1.5 per cent average annual improvement in fuel efficiency to 2020.
Stabilising emissions from 2020 with carbon neutral growth and a 50 per cent net
reduction in emissions by 2050 compared to 2005," he said.

-- BERNAMA