What’s Wrong with the EU Ban?

International Air Transport Association’s Tony Tyler is clear and constructive in his criticism of the EU Ban as he holds the floor during IATA Aviation Day in Kazakhstan. (13 September 2012)
“Let me be clear: the banned list is a misguided approach. It does little if anything to improve safety. There is no transparency—no clarity on why some carriers are put on the list and no clear indication on what is required to get off the list. And some aspects of how the list is administered are absolutely absurd. For example, Air Astana’s exemption to fly to Europe is restricted to aircraft that it had when Kazakhstan was put on the European banned list. So it cannot fly its newest aircraft to Europe. How could that possibly improve safety?”

Read the full speech on the IATA’s website

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    Strengthening the Foundations of Brazilian Aviation

    IATA Press Release
    20 August 2009

    Sao Paulo – The International Air Transport Association (IATA) set out an agenda for the Brazilian civil aviation sector, leveraging positive actions by the Government of Brazil to improve competitiveness and deliver broad economic benefits.

    “The new Civil Aviation National Policy is a great opportunity. Air transport supports 2.6% of Brazil’s economy. Thousands of jobs and billions of dollars of business depend on its success. Brazil must use the national policy to build a more competitive industry by overcoming major fiscal and infrastructure handicaps,” said Giovanni Bisignani, IATA’s Director General and CEO. Bisignani made his comments in a speech to industry and government leaders at the British Chamber of Commerce in Sao Paulo, Brazil.

    Bisignani held positive meetings with ANAC, the Ministry of Defense and the Minister of Institutional Relations and noted many recent encouraging developments in Brazilian aviation. These include the elimination of the PIS/COFINS tax on jet fuel which collected US$100 million annually, the adoption of the IATA Operational Safety Audit (IOSA) by the Brazilian government, and the staged liberalization of air fares. “As Brazil prepares to host the 2014 FIFA World Cup, we look forward to working even more closely with the government to further improve the competitiveness of Brazilian aviation and achieve cost-efficient infrastructure improvements,” said Bisignani.

    Bisignani offered to work with the Brazilian government in two key areas:

    Airport Concessions: Brazil is contemplating airport concessions to help speed infrastructure improvements. “Private investment with the right conditions can help improve infrastructure but concessionaires must be governed by robust economic regulation. Our common goal is to ensure that the airport is run efficiently, serves and consults with its customers and drives economic development. This is a natural role for ANAC. IATA is happy to bring its global expertise to ensure that ANAC has the independence to carry its mission effectively,” said Bisignani.
    Congestion at Sao Paulo’s Guarulhos Airport: Bisignani offered support for early implementation of IATA’s Worldwide Scheduling Guidelines at Sao Paulo’s Guarulhos airport. “Congestion pricing is not a solution. IATA’s Worldwide Scheduling Guidelines are helping airports around the world manage congestion. As we evaluate longer term solutions, we look forward to working with INFRAERO to make the most of existing terminals and infrastructure and to a robust consultation process on future developments,” said Bisignani.
    Bisignani also noted the need to improve the competitiveness of the Brazilian aviation sector by working together to addressing two specific issues:

    Petrobras’ import parity pricing policy: “This adds 30 cents to every gallon of jet fuel sold in Brazil. This US$450 million annual competitive disadvantage makes no sense for a country that supplies 80% of its fuel needs domestically. The result is that 32% of the cost structure of Brazil’s airlines goes to fuel, compared to a global average of 23%. We must find a policy that brings prices in line with market realities,” said Bisignani.
    ATAERO Tax: Airport charges paid to INFRAERO, Brazil’s airport operator, do not equally recover costs for each individual airport. Airlines pay a 50% surcharge (US$370 million annually) known as ATAERO to cover the gaps. “INFRAERO must be funded on a cost recovery basis, with charges that are transparent, agreed with users and in line with international standards,” said Bisignani.
    Finally, Bisignani urged Brazil’s government to be a strong voice driving aviation forward on two key priorities: environment and liberalization.

    Environment: IATA is leading industry efforts on aviation and the environment with three sequential targets: a 1.5% average annual improvement in fuel efficiency to 2020, carbon neutral growth by 2020 and a 50% absolute cut in emissions by 2050 (compared to 2005). “Brazil is critical to these goals. As a leader in biofuels, I hope that the Brazilian government will provide the fiscal and legal framework to encourage investments in sustainable biofuels which can significantly reduce aviation’s carbon footprint. Brazil is a major player in the UNFCCC process and at ICAO which is tasked with handling aviation’s international emissions. It has a leadership responsibility to ensure that ICAO can bring to the UNFCCC a position that supports a global sectoral approach to aviation emissions and reflects the industry’s globally harmonized approach to controlling emissions,” said Bisignani.

    Liberalization: Brazil was one of 15 governments participating in IATA’s Agenda for Freedom. An IATA study showed that market and ownership liberalization in Brazil had the potential to generate up to 400,000 new jobs and up to 24 billion Reais. “CONAC’s proposal to increase foreign ownership possibilities to 49% and a recent liberal bilateral agreement with Chile are steps in the right direction. As the region’s largest economy, I hope that Brazil can take leadership to promote liberalization in Latin America and globally,” said Bisignani.

    View Giovanni Bisignani’s full speech

    Notes for Editors:

    IATA (International Air Transport Association) represents some 230 airlines comprising 93% of scheduled international air traffic.
    For more information, please contact:

    Anthony Concil
    Director Corporate Communications
    Tel: +41 22 770 2967

    PORTUGUESE

    Reforçando os Fundamentos da Aviação Brasileira

    20 de agosto de 2009 (São Paulo) A Associação Internacional de Transporte Aéreo (IATA)
    definiu uma agenda para o setor da aviação civil brasileira, destacando ações positivas do
    governo brasileiro para melhorar a competitividade e proporcionar amplos benefícios
    econômicos.

    “A nova Política Nacional de Aviação Civil é uma grande oportunidade. O transporte aéreo
    sustenta 2,6% da economia brasileira. Milhares de empregos e bilhões de dólares em negócios
    dependem de seu sucesso. O Brasil deve usar a política nacional para construir uma indústria
    mais competitiva, abordando importantes descompassos fiscais e de infraestrutura “, disse
    Giovanni Bisignani, Diretor Geral e CEO da IATA. Bisignani fez seus comentários em um
    discurso para líderes da indústria e do governo na Câmara Britânica de Comércio em São Paulo,
    Brasil.

    Bisignani teve positivas reuniões com a ANAC, o Ministério da Defesa e com o Ministro das
    Relações Institucionais e constatou recentes desenvolvimentos encorajadores para a aviação
    brasileira. Estes incluem a eliminação do PIS/COFINS sobre a querosene de aviação, que
    representam US$100 milhões anualmente, a adoção do IATA Operational Safety Audit (IOSA)
    pelo governo brasileiro e a progressiva liberalização das tarifas aéreas. “Com a preparação do
    Brasil para sediar a Copa do Mundo 2014, estamos dispostos a trabalhar ainda mais
    estreitamente com o governo para aprimorar a competitividade da aviação brasileira e alcançar
    maiores eficiências de custo de infraestrutura”, disse Bisignani.

    Bisignani se ofereceu para trabalhar com o governo brasileiro em duas áreas fundamentais:
    • Concessões de Aeroportos: O Brasil está considerando a concessões de aeroportos
    para acelerar melhorias na infraestrutura. “O investimento privado, nas condições
    adequadas, pode ajudar a melhorar a infraestrutura, mas os concessionários devem ser
    objeto de uma regulação econômica robusta. O nosso objetivo comum é assegurar que
    o aeroporto funcione de forma eficiente, sirva e interaja com seus clientes e impulsione o
    desenvolvimento econômico. Esta é uma função da ANAC. A IATA tem prazer em dividir
    sua experiência global para possibilitar que a ANAC tenha a independência para
    desempenhar sua missão de maneira eficaz”, disse Bisignani.
    • Congestionamento no Aeroporto de Guarulhos/São Paulo: Bisignani ofereceu apoio
    para a pronta implementação dos Worldwide Scheduling Guidelines no aeroporto de
    Guarulhos, em São Paulo. “A tarifa de congestionamento não é uma solução. Os
    Worldwide Scheduling Guidelines estão ajudando aeroportos ao redor do mundo a
    gerenciar congestionamentos. Enquanto avaliamos soluções de longo prazo,
    trabalharemos com a INFRAERO para tirar máximo proveito da infraestrutura e dos
    terminais existentes, além de um processo consistente de planejamento conjunto sobre
    futuros projetos “, disse Bisignani.

    Bisignani observou também a necessidade de melhorar a competitividade do setor de aviação
    brasileiro, trabalhando em conjunto para abordar duas questões específicas:
    Política da paridade de preços de importação da Petrobras: “Isto adiciona 30
    centavos para cada galão de querosene de aviação vendido no Brasil. Essa
    desvantagem competitiva de US$450 milhões anuais não faz sentido para um país que
    produz internamente 80% de seu consumo de combustível. O resultado disto é que a
    participação dos combustíveis nos custos das empresas brasileiras representa 32% do
    total, contra 23% da média global. Precisamos encontrar uma política de preços alinhada
    com as realidades do mercado”, disse Bisignani.

    ATAERO: As tarifas de aeroporto pagas para a INFRAERO, a operadora brasileira de
    aeroportos, não cobrem por completo os custos para cada aeroporto individualmente. As
    empresas aéreas pagam uma sobretaxa de 50% (US$ 370 milhões ao ano) conhecida
    como ATAERO para cobrir necessidades. “A INFRAERO deve ser remunerada em base
    de recuperação de custos, com tarifas que sejam transparentes, acordadas com os
    usuários e alinhadas com padrões internacionais”, disse Bisignani.
    Por fim Bisignani instigou o governo brasileiro a ser um líder no setor de aviação com relação à
    dois temas prioritários: meio ambiente e liberalização.

    Meio ambiente: a IATA está liderando os esforços da aviação civil com relação ao meio
    ambiente, com três metas sequenciais: 1,5% de melhoria anual na eficiência de combustível até
    2020, crescimento neutro de carbono até 2020 e redução absoluta de 50% nas emissões até
    2050 (em comparação à 2005). “O Brasil é chave para estas metas. Com um líder em
    biocombustíveis, espero que o governo brasileiro desenvolva um modelo fiscal e legal para
    encorajar investimentos em biocombustíveis sustentáveis, que podem reduzir significativamente
    nossa pegada de carbono. O Brasil é um ator importante no UNFCCC e na ICAO, que foi
    incumbida de gerenciar as emissões da aviação internacional. O Brasil possui uma
    responsabilidade de liderança para garantir que a ICAO consiga levar para o UNFCCC uma
    posição que represente a abordagem da indústria da aviação e reflita o objetivo de
    harmonização global para o controle das emissões”, disse Bisignani.

    Liberalização: O Brasil foi um dos 15 governos que participou da reunião Agenda for Freedom,
    da IATA. Um estudo da IATA indicou que a liberalização do acesso ao mercado e à propriedade
    tem o potencial de gerar até 400.000 novos empregos e até R$ 24 bilhões de incremento no PIB
    do país. “A proposta do CONAC de aumentar as possibilidades de propriedade estrangeira para
    49% e um recente acordo bilateral liberal com o Chile são passos na direção correta. Como a
    maior economia da região, espero que o Brasil assuma a liderança para promover a liberalização
    na América Latina e globalmente”, disse Bisignani.

    O texto complete do discurso de Bisignani está disponível em www.iata.org

    Contato:
    Anthony Concil
    Diretor de Comunicação Corporativa
    + 41 22 770 2967
    Email: corpcomms@iata.org

    Nota para os editores:

    • IATA (International Air Transport Association) representa 230 empresas aéreas,
    compreendendo 93% do tráfego aéreo internacional regular.

    Spanish
    Se refuerzan los cimientos de la aviación brasileña

    20 de agosto de 2009 (Sao Paulo) – La International Air Transport Association (IATA) ha
    dibujado una agenda para el sector brasileño de aviación civil, aprovechando las acciones
    positivas del Gobierno brasileño para mejorar la competitividad y obtener beneficios económicos
    más amplios.

    “La nueva Política Nacional de Aviación Civil es una gran oportunidad. El transporte aéreo
    supone el 2,6% de la economía brasileña. Miles de puestos de trabajo y miles de millones de
    dólares de penden de su éxito. Brasil debe usar la política nacional para construir una industria
    más competitiva dando respuesta a los principales retos en materia fiscal y de infraestructura”,
    dijo Giovanni Bisignani, Director General y CEO de IATA. Bisignani hizo estos comentarios en un
    discurso ante líderes de la industria y el gobierno en la Cámara de Comercio Británica en Sao
    Paulo, Brasil.

    Bisignani sostuvo encuentros positivos con el ANAC, el Ministerio de Defensa y el Ministerio de
    Relaciones institucionales, y se hizo eco de varios desarrollos positivos recientes en la aviación
    brasileña. Estos incluyen la eliminación del impuesto PIS/COFINS sobre el combustible de
    aviación, que obtenía 100 millones de dólares anualmente, la adopción de la Auditoría de
    Seguridad Operacional de IATA (IOSA), por parte del Gobierno brasileño, y la liberalización
    escalonada de las tarifas aéreas. “A medida que Brasil se prepara para ser la anfitriona de la
    Copa del Mundo de la FIFA en 2014, esperamos trabajar cada vez más estrechamente con el
    Gobierno para mejorar aun más la competitividad de la aviación brasileña y lograr mejoras en la
    eficiencia de los costes de las infraestructuras”, dijo Bisignani.

    Bisignani ofreció trabajar con el Gobierno brasileño en dos áreas clave:

    • Concesiones aeroportuarias: Brasil está estudiando concesiones aeroportuarias para
    ayudar a agilizar las mejoras en infraestructura. “Las inversiones privadas con las
    condiciones adecuadas pueden ayudar a mejorar la infraestructura, pero los
    concesionarios deben ser gobernados por regulaciones económicas sólidas. Nuestro
    objetivo común es asegurar que los aeropuertos funcionan de forma eficiente, dan
    servicio y se comunican con sus clientes y ayudan al desarrollo económico. Esta es una
    tarea natural para ANAC. IATA está muy satisfecha en aportar su experiencia global
    para asegurar que ANAC tiene la independencia para llevar a cabo su misión de forma
    eficiente”, dijo Bisignani.

    • Congestión en el Aeropuerto Guarulhos de Sao Paulo: Bisignani ofreció el apoyo
    para la implementación de la Guía de Programación Mundial de IATA en el Aeropuerto
    Guarulhos de Sao Paulo. “Cobrar para evitar la congestión no es la solución. La Guía de
    Programación Mundial de IATA está ayudando a los aeropuertos de todo el mundo a
    gestionar la congestión. Mientras evaluamos soluciones a largo plazo, esperamos
    trabajar con INFRAERO para conseguir lo máximo de las terminales e infraestructuras
    existentes y llegar a un sólido proceso de consultas sobre los desarrollos futuros”, dijo
    Bisignani.

    Bisignani también hizo notar la necesidad de mejorar la competitividad del sector brasileño de
    aviación trabajando juntos para dar respuesta a dos problemas específicos:

    • La política de paridad de importación en los precios de Petrobras: “Esto añade 30
    centavos a cada galón de combustible de aviación vendido en Brasil. Esta desventaja
    competitiva de 450 millones de dólares anuales, no tiene sentido para un país que
    suministra domésticamente el 80% de sus necesidad de combustible. El resultado es
    que el 32% de la estructura de costes de las líneas aéreas brasileñas es el combustible,
    en comparación con la media mundial del 23 %. Debemos encontrar una política que
    coloque a los precios en línea con la realidad del mercado”, dijo Bisignani.

    • El impuesto ATAERO: Las tasas aeroportuarias que se pagan a INFRAERO, el
    operador brasileño de aeropuertos, no recuperan costes de forma similar en cada
    aeropuerto individual. Las líneas aéreas pagan una sobretasa del 50% (370 millones de
    dólares anuales), conocida como ATAERO para cubrir los agujeros. “ATAERO debe
    financiarse sobre una base de recuperación de costes, con tasas transparentes, de
    acuerdo con los utilizadores, y en línea con las normas internacionales”, dijo Bisignani.
    Finalmente, Bisignani urgió al Gobierno brasileño para que apoyase el futuro de la aviación
    basándose en dos prioridades clave: medio ambiente y liberalización.
    Medio Ambiente: IATA está liderando los esfuerzos de la industria sobre el medio ambiente con
    tres objetivos esenciales: Una media del 1,5% anual de mejora en la eficiencia del consumo de
    combustible hasta 2020, crecimiento neutral en carbono para 2020 y una reducción absoluta del
    50% en las emisiones en 2050 (en comparación con 2005). “Brasil es crítico para lograr estos
    objetivos. Como líder en biocombustibles, espero que el Gobierno brasileño ofrezca el marco
    fiscal y legal para ayudar a las inversiones en biocombustibles sostenibles que pueden reducir de
    forma significativa la huella de carbono de la aviación. Brasil es uno de los principales actores en
    el proceso de UNFCCC y en OACI, que tiene la responsabilidad de gestionar las emisiones
    internacionales de la aviación. Tiene la responsabilidad de líder para asegurar que OACI pueda
    dar a UNFCCC una propuesta que apoye una filosofía sectorial global y refleje la filosofía
    armonizada globalmente del sector para controlar sus emisiones”, dijo Bisignani.

    Liberalización: Brasil fue uno de los 15 países cuyo Gobierno participó en la “Agenda for
    Freedom” de IATA. Un estudio de IATA mostro que la liberalización de mercado y de la
    propiedad en Brasil tenía el potencial de generar hasta 400.000 nuevos empleos y 24.000
    millones de Reais. “La propuesta de CONAC de incrementar la propiedad extranjera hasta el
    49% y un reciente acuerdo bilateral liberal con Chile son pasos en la dirección correcta. Como la
    mayor economía de la región, espero que Brasil tenga el liderazgo para promover la
    liberalización en América Latina y globalmente”, dijo Bisignani.

    El texto complete del discurso de Bsisgnani está disponible en www.iata.org.

    – IATA –
    Contacto:
    Anthony Concil
    Director Corporate Communications
    + 41 22 770 2967
    Email: corpcomms@iata.org
    Nota para los editors:
    • IATA (International Air Transport Association) representa a unas 230 líneas aéreas, que
    suponen el 93% del tráfico aéreo internacional regular.

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  • |

    Speech by Mr Raymond Lim, Minister for Transport and Second Minister for Foreign Affairs at the MOU Signing between Singapore and International Air Transport Association on 10 February 2011

    Mr Giovanni Bisignani, IATA Director General & CEO, Distinguished guests, Ladies and gentlemen:

    A very good evening On behalf of the Singapore Government, I am happy to be signing this Memorandum of Understanding with IATA, which as Mr Bisignani mentioned earlier, marks the strong partnership and excellent relationship IATA has with not just Singapore, but the Asia-Pacific region. IATA – A ‘Blue-Chip’ Organisation

    IATA represents some 230 member airlines from more than 125 countries that fly over 93% of the world’s international scheduled air traffic.

    However, IATA is not just an industry association of the world’s airlines.

    IATA plays an active and influential role on aviation issues of concern, such as:

    the fair application of market-based carbon trading schemes for environment protection
    overhaul and liberalisation of the global aviation regulatory regime on air traffic rights
    e-ticketing initiatives for passengers
    e-freight initiatives for air-cargo documentation
    fair competition advocacy
    As a representative of the majority of the world’s airline operators, IATA holds valuable insights into airline interests, concerns and views that have helped governments and other international bodies in the formulation of sound and appropriate civil aviation policies.

    IATA is thus a highly useful intermediary for governments to work with airlines, drawing on their experience and expertise to develop global standards for one of the world’s largest industries and for the promotion of safe, efficient and economical air transport.

    IATA has close working relations with other strategically important aviation bodies like the International Federation of Air Line Pilots’ Associations (IFALPA), as well as national aviation bodies of various countries.

    Furthermore, IATA has a special institutional relationship with the International Civil Aviation Organisation (ICAO), playing an active role in various ICAO fora.

    It is recognized as a key industry organisation[1] and often consulted by ICAO on aviation-related matters such as implementation of new international aviation standards, and aviation’s role in combating climate change.

    This reach enables IATA to influence the thinking of decision-makers in industry, international organisations and even governments.

    In terms of reach and influence, there is no similar industry organisation that is comparable in stature. IATA’s Asia-Pacific Regional Office

    Recognising IATA as a “blue-chip” organisation, we were supportive of IATA’s decision to establish its Regional Office for the Asia-Pacific region in Singapore back in 1994.

    While physically small, the role of IATA’s Asia-Pacific Regional Office in Singapore is anything but that, and its presence has brought benefits to Singapore and the region.

    For instance, IATA has played an instrumental role in implementing air traffic management initiatives that have helped airlines reduce operating costs, and enhanced overall safety and efficiency of flight operations in Singapore and at the regional level.

    IATA’s Regional Training Centre, attracting on average some 2,000 students to Singapore annually, has also helped to develop the human capital needed to grow the industry over the years.

    With its unique access to industry information and resources, IATA has been a valuable partner with whom Singapore has co-organised the highly successful series of Singapore Aviation Leadership Summits that are held in conjunction with the biennial Singapore Airshow.

    The close collaboration has enabled Singapore to attract captains of the aviation industry and key government officials to a premier event which has put Singapore and Changi Airport on the circuit of key global aviation events. The work behind the scenes on this project has been possible only with the presence of IATA’s Asia-Pacific Regional Office, which has staff of the appropriate seniority and experience to work with Singapore officials in the organisation of the Summit.

    Over the next 10 years, IATA intends to ramp up its operations in Singapore significantly. It also plans to increase the number of conferences, events and training courses to be held here. This will strengthen Singapore’s proposition as a ‘Home for Talent’, and as a centre for knowledge exchange.

    IATA’s expansion will add to the vibrancy of international non-profit organisations (INPOs) established in Singapore. This is testament to our unique proposition to the global INPO community as a base to do good work in the region, as well as develop and expand their Asian footprint.

    Conclusion

    Looking ahead, I am confident that IATA will continue to serve the region well, as it grows its operations here.

    Let me also take the opportunity to wish Mr Bisignani the best of health and every success in his future endeavours, after he steps down as IATA’s Director General and CEO later this year.

    Thank you.

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    Global Aviation Facing Critical Issues; Conclude Panelists at 20th World Routes Development Forum

    Renowned panelists in the first panel discussion at the 20th World Routes Development Forum, which was held in Chicago on September 21, concluded that the global aviation industry is currently facing 5 critical challenges.

    As per the results of live polling moderated by BBC World News presenter, Aaron Heslehurst, the delegates regarded infrastructure as the most critical challenge, with aviation profitability, safety/security, taxation and oil price stability being the other 4.

    At the start of the session, the issue of safety and security was discussed, particularly in context of the recent incidents of MH17 and MH370. Managing director of Malaysia Airports Holdings Berhad (MAHB), Datuk Badlisham Ghazali appreciated the actions taken by the ICAO and other bodies in order to improve aviation safety, however, he emphasized on the need of enhanced visibility from global aviation bodies regarding the industrial developments aimed at increasing safety. Referring to MH17 tragedy, he said, “The industry needs to move forward in more visible way. Response has not been as visible as what I had hoped for.”

    The issue of aircrafts flying over conflict area in eastern Ukraine was also brought up during the discussion. Thomas Windmuller, SVP airports, passenger and cargo services at IATA, asked why some airlines had the vital information not to fly while the others were not aware.

    Profitability was another point of discussion in the forum and according to Windmuller, “We are in a period of sustained growth in volume, but not necessarily profitability. The number of airlines that recover their capital cost is very small… The problem is not just airlines, it is aviation. There are very few parts and components that are making big money. These include airports, and air navigation services, who do not make a profit, and do not cover their long-term capital costs.”

    The delegate voting regarded Infrastructure challenges as the most serious issue being faced by the aviation industry today. The current investment in aviation infrastructure development projects vary a great deal from country to country. In some countries like China, big investments are being made for infrastructure development while in some other countries this trend is non-existent.

    Trey Urbahn, the chief strategy officer of Azul Brazilian Airlines, said that the most pressing issue being faced by Brazilian aviation industry today is taxation. Giving example of Azul Brazilian Airlines, he said that 36% of the company’s profit go on taxes and that the company is working with the government to address this serious issue. He suggested that the taxation garnered should be re-invested for infrastructure development.

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  • IATA Announces Femke Sickler Winner of 2018 FACE-UP Competition

    IATA

    The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 280 airlines or 83% of total air traffic. We support many areas of aviation activity and help formulate industry policy on critical aviation issues.

    Winner of 2018 FACE-UP Competition

    Geneva – The International Air Transport Association (IATA) announced that Femke Sickler a recent graduate of Delft University of Technology in the Netherlands was the recipient of the IATA FACE-UP award for 2018. FACE-UP is a competition for recent university graduates whose thesis is on the subject of innovation and transformation in air transport logistics (e.g. air cargo, supply chain management, mobility, IT solutions, etc.).

    Sickler’s thesis addressed improving the air cargo value chain with regard to the acceptance process, trucking schedule and data communication. The award was presented at the 12th World Cargo Symposium (WCS) in Dallas.
    “Among many worthy candidates I congratulate Femke Sickler for an outstanding achievement. It is great to see the next generation of air cargo professionals helping to drive the innovation that is needed in the global air cargo industry,” said Glyn Hughes, IATA’s Global Head of Cargo.

    A senior panel of judges from across the industry selected three finalists who presented at the WCS closing plenary for the audience to nominate the ultimate winner of the FACE-UP competition. The finalists were selected based on showing innovation and also the potential to transform air cargo. Danny Jonker (Maastricht University) and Caroline Larisch (Maastricht University) made up the trio of finalists.

    The biennial IATA FACE-UP competition is the first installment of its kind. The initiative is part of IATA’s Future Air Cargo Executives (FACE) Program which was launched in 2013 with the aim of attracting, retaining and developing a bright and diverse pool of young talent, preparing them to become the next generation of leaders in the cargo industry.

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  • |

    Press Release: The MENA Challenge: Coping with Growth

    Date: 20 October 2010

    Cairo – The International Air Transport Association (IATA) called for coordinated efforts to deal with the challenges of growth in the Middle East and North Africa (MENA). “Over the last decade, the carriers of the Middle East and North African region have grown from 5% of global traffic to 11%. Planned aircraft purchases of $200 billion over the next decade will support this growth into the foreseeable future. This expanding global presence brings with it the challenge of playing a larger role in the global aviation community,” said Giovanni Bisignani, IATA’s Director General and CEO.

    The financial situation of the MENA carriers is improving. For 2010, IATA is forecasting a bottom line improvement of $1 billion on the $600 million that the region’s carriers lost in 2009. “We are expecting the region to make $400 million profits this year. A more cautious approach to capacity is helping to drive this improvement. While demand is in line for a 21% increase over last year, the capacity increase has been limited to 15.9%,” said Bisignani in a keynote address to the Arab Air Carriers Organization (AACO) Annual General Meeting in Cairo, Egypt.

    For 2011, IATA expects a fall in global profitability to $5.3 billion from the $8.9 billion that airlines are expected to make in 2010. IATA expects MENA carriers to follow the trend with a reduced 2011 regional profit of $300 million. The small profit will be partially driven by an expected capacity expansion of 10.6% outstripping demand growth of 10.4%.

    Bisignani highlighted four challenges of growth for the region:

    Safety: The region’s hull loss rate for Western built aircraft slipped from zero accidents in 2006 to 3.32 accidents per million flights in 2009. “At 4.6 times the global average of 0.71, that is a concern. The region’s rapid growth must be accompanied with a strong safety record,” said Bisignani who challenged MENA’s governments to adopt IATA’s two safety audits—the IATA Operational Safety Audit (IOSA) and the IATA Safety Audit for Ground Operations (ISAGO)—as part of national requirements. Egypt was the first government in the world to mandate IOSA, joined later by Lebanon, Syria and Bahrain, and soon Jordan. Today, 35 MENA carriers are on the IOSA registry, including all 26 IATA members. MENA has also taken a leadership role on ISAGO. Lebanon will make it mandatory for ground handlers from June 2011 and 13 ground handlers in the region are already on the registry.

    Infrastructure: The MENA region is planning airport construction totaling $100 billion, which includes at least eight new runways in the Gulf region. “The industry and governments are investing in infrastructure to support the economic benefits of aviation’s growth. But what is being built and planned on the ground is not being matched in the air. Military airspace covers 60% of the region, limiting capacity and forcing inefficient routings. We must cooperate to open more of the region’s skies,” said Bisignani. IATA is also working on projects to redesign airspace in the Gulf area, facilitate more traffic for East-West traffic across North Africa, support ultra-long haul operations with more efficient routings, and complete the implementation of reduced vertical separation minima (RVSM) across MENA by bringing Iraq on board.

    Technology for Simplifying the Business: MENA is on target to meet the December deadline for 100% implementation of bar coded boarding passes which promises global savings of $1.5 billion. Airlines are 92% complete while airports are at 90%. The region is home to seven airports that are already operating 100%: Abu Dhabi, Dubai, Bahrain, Muscat, Doha, Kuwait and Sharjah. Two countries in MENA are participating in IATA e-freight—the United Arab Emirates (UAE) and Egypt. The UAE is a global top performer as the originating country for 21% of all e-freight shipments. “Jordan, Kuwait, Qatar and Saudi Arabia have all passed the high-level assessment and are expected to launch in 2011. The only hurdle is for governments to adapt their local regulations to facilitate modern business practices. E-freight is a great competitive advantage with the capability to save the industry $4.9 billion,” said Bisignani.

    Government Involvement: Bisignani urged governments in the region to keep costs in check and create the regulatory framework to balance burgeoning long-haul opportunities with short-haul regional liberalization. Bisignani praised Tunisia’s decision, following an IATA intervention, to eliminate its 10% import tax on jet fuel which conflicted with the Chicago Convention. Bisignani urged the region to set correct precedents with privatized infrastructure. “We are now working with Jordan to curb unilateral increases in taxes and charges that followed privatization of its airports. To keep competitive, governments much ensure meaningful consultation and agreed investments plans,” said Bisignani, who also encouraged the region to take a more proactive approach to liberalization. “I see cutting-edge examples of liberalization as key markets such as Morocco, Jordan and Tunisia build open-sky agreements with Europe. The Damascus Convention of 2004 provides a framework for regional liberalization, but the number of countries ratifying it is disappointing.”

    Environment: Bisignani noted the important outcomes of the 37th Assembly of the International Civil Aviation Organization (ICAO) that placed aviation ahead of all other industries in dealing with climate change. “Governments confirmed ICAO’s leadership role in managing aviation’s emissions and agreed on a collective aspirational goal to improve fuel efficiency by 2% to 2050, while capping emissions from 2020 with carbon-neutral growth. They also agreed to develop a framework for economic measures that minimize market distortions, treat air transport in line with other sectors, ensure that emissions are accounted for only once and recognize past and future efforts,” said Bisignani.

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    IATA Members Seek Measures to Deter Unruly Air Passenger Behavior

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    In the recently held 70th Annual General Meeting (AGM) of the International Air Transport Association (IATA), IATA members unanimously passed a resolution focused on effectively deterring and managing the issue of unruly behavior of air passengers.

    In the resolution, IATA members prompted government and industry to join hands to develop a balanced set of measures for addressing the problem of unruly air passenger, including disturbing order, committing physical assault or violating crew instructions during the flight.

    According to Tony Tyler, the director general of IATA, “This resolution confirms the determination of airlines to defend the rights of their passengers and crew. Everybody on board is entitled to enjoy a journey free from abusive or other unacceptable behaviour. Many airlines have trained both ground staff and cabin crew in procedures, not only to manage incidents of unruly behaviour but also in measures to prevent them. But a robust solution needs alignment among airlines, airports, and governments.”

    In 2013 alone, some 8,000 cases of unruly passenger behavior were reported by airlines to IATA.

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