Airlines

Common interest calls for co-operation: IATA

IATA is calling on governments to work together and with the aviation industry to maximize aviation’s ability to sustainably drive global economic development and job creation. Speaking at ICAO’s International Air Transport Symposium, IATA’s director general and CEO, Tony Tyler said, “Governments and industry share a common interest in aviation’s success. Aviation is a business and a driver of economic and social development that is vitally important to governments. About 3 billion people fly annually. And the nearly 50 million tonnes of cargo transported by air represents some 35% of the value of goods traded internationally.” Pointing out that aviation is a highly regulated industry at the national, regional and global levels, Tyler said, “Sustainability depends not only on what airlines do for themselves but also the policies adopted by governments. Regulation that is neither coordinated nor mutually recognized brings a high cost of compliance without corresponding benefits, while maintaining restrictions on airlines’ access to global capital and to markets has kept airlines financially weak.” And IATA’s boss praised the important role that ICAO plays in delivering solutions to ensure aviation’s sustainability in the broadest of terms. In order to ensure aviation’s financial sustainability, Tyler cited for key areas where policy efforts are needed and these include infrastructure, user charges, fees and taxes and regulation. On the issue of fees and taxes, Tyler said that policies are needed that re-invest aviation tax receipts back into the industry and to ensure that aviation is treated as an economic catalyst not a cash cow. As for regulation, he said that an approach is needed that resists the urge to micro-manage competition, allows airlines to explore different business models and enables market forces to play out. He also said that there is a need for a globally coordinated approach among governments to managing aviation’s 2% contribution to man-made CO2 emissions. “Aviation has committed to three targets, the most ambitious of which is to cut net emissions in half by 2050 compared to 2005. We cannot do that without government cooperation. As aviation is a global industry, that cooperation must be coordinated through ICAO.” And he continued: “That is why Europe’s inclusion of international aviation in its emissions trading scheme is counter-productive. The regional approach distorts markets. And it will not have the positive impact on sustainability of globally coordinated measures through ICAO. On top of that, the unilateral and extra-territorial approach is seen by non-European states as an attack on their sovereignty.” In this respect, IATA’s boss noted, “Nobody wants a trade war. And I am confident that if Europe participates whole-heartedly at ICAO — being prepared to find solutions with the international community beyond its current plans — ICAO will successfully facilitate a durable solution for environmental sustainability.”