Shaping commercial aviation's next century
Singapore: The International Air Transport Association (IATA) sources
emphasised the importance of industry-government partnership as the
industry embarks on the second century of commercial aviation.
"The most salient lesson of commercial aviation's first century is
the value of partnerships. Through partnership, industry and government
made flying the safest way to travel. This is a good guide as we look
ahead to aviation's next century.
No matter what the challenge, solutions built in partnership between
industry and government are the most durable and yield the best
results," said IATA Director General and CEO Tony Tyler, in his keynote
address at the Singapore Airshow Aviation Leadership Summit.
Tyler said there are opportunities for partnerships in designing
regulation, growing connectivity and planning for sustainability.
Aviation needs a regulatory framework that supports its global
activities.
"I am concerned about the negative impact of growing regulatory
divergence and the proliferation of 'unique approaches' to regulating
the industry. While they were created with the best of intentions, they
often come with the unintended consequences of complexity and
bureaucracy," said Tyler.
He suggested five guiding principles for governments when developing
regulations:
(1) To consult broadly, including industry and consumers; (2) ensure
a rigorous process for analysing the costs and benefits of any new
regulation; (3) ensure regulations do not conflict with global
standards; (4) harmonise so that regulations are not at cross-purposes
with a global industry; and (5) to think what will deliver value to the
passenger.
Passenger Rights: The impact of the multitude of passenger rights
legislation is a growing concern. "It is fully understandable that
governments wish to set some minimum guarantees to protect passengers.
But the absence of a global framework on passenger rights has seen some
50 countries implement passenger rights regimes.
The result is becoming an unmanageable mess of conflicting and
over-lapping rules. In some cases, regulations are becoming so
prescriptive that airlines cannot go the extra mile for passengers,"
said Tyler.
At the 2013 IATA Annual General Meeting, airlines endorsed a set of
principles for passenger rights. And at its last Assembly, the
International Civil Aviation Organization (ICAO) was tasked to develop
global standards for passenger rights regulations.
Industry, people and governments are united in the desire for global
connectivity. Today the air transport industry operates a network of
some 40,000 routes over which 3.3 billion people and 50 million tonnes
of cargo will be carried in 2014.
"Our world is more connected than ever, but we are also nowhere near
our potential.
If the propensity to travel in Asia matches the level seen in
developed markets, we would expect a market four-times the current
size," said Tyler.
Tyler noted that the expanding middle class in developing markets is
the biggest growth opportunity for aviation.
However, he warned that the opportunity would only be realised if
governments understand aviation's role as an economic catalyst and
actively build a policy environment in which it can be successful.
He highlighted taxation and infrastructure as two specific areas of
concern. "Aviation should pay its fair share of tax. But taxing aviation
at levels equal to the 'sin' taxes applied to alcohol and tobacco makes
no sense.
"Connectivity stimulates business that provides tax revenue, but a
draconian tax such as the UK Air Passenger Duty (APD) hurts the UK
economy. Every family that forfeits a long-haul vacation because of the
APD also impacts jobs in the destination countries. It may be a UK tax,
but the impact is global," said Tyler, who also highlighted the high
fuel taxes in India, and proliferation of facility fees for substandard
facilities and occasional over-built facilities across Africa.
Efficient infrastructure in sufficient supply is a critical building
block for connectivity.
This is largely understood in Asia which is noted for its many
world-leading airports.
The region is also moving forward with a Seamless Asian Sky
initiative aimed at ensuring sufficient airspace capacity to accommodate
growth efficiently. "But there are challenges. The potential markets of
Manila, Jakarta, Mumbai lack the infrastructure to support the economic
benefits that aviation can deliver.
In Europe, airports in general cannot be expanded fast enough, with
the onerous approvals process often leading to projects being abandoned.
And the advancement in the much needed Single European Sky is being
prevented by state governments mired in a web of vested interests," said
Tyler.
He reiterated the industry call for a global approach to managing
aviation's climate change impact.
The aviation industry has set up clear targets on the environment: to
achieve a 1.5% improvement in fuel efficiency annually to 2020; to cap
net emissions with carbon neutral growth from 2020, and to cut net
emission in half by 2050 compared to 2005 levels.
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