"Unlike the finance industry, airlines are not asking for handouts"
Published: 01 Dec 2008
IATA has stated that unlike the finance industry, airlines are not asking for handouts.
"As the global economic downturn re-shapes the world's financial industry, policy makers must also understand that change is needed in air transport," says Giovanni Bisignani, IATA's Director General and CEO.
"Commercial freedom, efficiency and a fair treatment in taxes are needed," said Bisignani.
"We need commercial freedoms to run this as a normal business. IATA's Agenda for Freedom is building momentum among governments for access to markets and equity capital and the ability to merge or consolidate where it makes business sense. We need efficiency everywhere. At the top of the list is a Single European Sky by 2012 that would save 16 million tonnes of CO2 and over EUR 5 billion in operating costs. And we need common-sense in taxation. It was good news that the Belgian government has backed away from its plans to introduce a new departure tax. But the UK's decision to hike its Air Passenger Duty is a major step in the wrong direction. Air transport is a catalyst for economic growth. But plugging budget gaps with gratuitous travel taxes is bad policy that is not sustainable. This must change," said Bisignani.
According to IATA, international air traffic for October showing a second consecutive month of global decline. International passenger traffic declined by 1.3 percent compared to the same month in the previous year - a smaller decline than the 2.9 percent drop experienced in September. The October load factor was 75 percent, approximately 2 percent below previous year levels.
"The gloom continues and the situation of the industry remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability. The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come," said Bisignani.
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