The International Air Transport Association (IATA) called on Latin American governments to resolve regional problems such as protection, increasing taxes, and insufficient infrastructure in Brazil at the Latin American and Caribbean Air Transport Association (ALTA) Leadership Forum in Panama City this week. The Association also urged the region to use its power gained over a decade of change to take the lead on global issues such as liberalization and climate change.
"After a decade of crisis and transition, Latin America has emerged as a bright star in the industry. The area was in shambles ten years ago. It is currently the only region to have made a profit in both 2009 ($500 million) and 2010 ($1 billion). With a $600 million return in 2011, we expect profitability to continue for the third year in a row. Hard work and a desire to adapt led to the turnaround. However, aviation remains a challenging and competitive industry. More change is needed. However, the Latin American industry's future prospects are very different. The region's achievements over the last decade have given it a forum from which to be a force for global change "IATA's Director General and CEO, Giovanni Bisignani, said. buy apartment qatar
Three strategic regional goals were outlined by Bisignani:
Security: The region's hull-loss rate for western-built jets was seven times the global average a decade ago. By 2009, the record had risen to a perfect nil. In the first ten months of 2010, four fatal accidents raised the accident rate to 3.2 times higher (2.36 Western-built jet hull deaths per million flights) than the global average of 0.73. "Governments and industry face a constant challenge when it comes to safety. Increased adoption of Performance-Based Navigation procedures, finding alternatives to runway excursions, and improving congested airspace are among the region's top priorities. The Latin American Civil Aviation Commission (LACAC) initiative to make the IATA Operational Safety Audit a requirement for all airlines operating to, from, or within Latin America is an excellent example of collaboration at work. The audit is now being used to complement oversight capacities in Brazil, Chile, Costa Rica, Panama, and Mexico. I'm hoping for swift progress among the region's remaining governments "Bisignani said.
Taxes: While aviation is critical to Latin America's economy, the tax burden is increasing. This year, Caribbean nations, as well as Nicaragua and Panama, proposed a total of $287 million in tourism taxes. "Airlines are not a cash cow, and governments must recognize this. As an industry, we must speak up louder to refocus governments away from taxing us to death and toward driving economic growth through a safe aviation sector "Bisignani said.
Brazil: Brazil has the fastest-growing aviation market in Latin America, but its infrastructure is not keeping up with demand. Thirteen of Brazil's top twenty airports lack terminals capable of meeting current demand. This includes Sao Paolo Guarulhos, the largest hub in the city, which will serve as a gateway for the FIFA World Cup in 2014 and the Summer Olympics in 2016. "I don't see any improvement, and time is running out. We must get all stakeholders to the table and finalize a roadmap to avoid a national embarrassment "Bisignani said. IATA is beefing up its presence in Brazil, appointing Carlos Ebner as Country Director, based in Sao Paolo, effective December 1, 2010.
Bisignani urged the region's airlines to take advantage of the United Nations Framework Convention on Climate Change (UNFCCC) meeting in Mexico later this month to remind governments of the industry's constructive approach. "The industry has pledged to increase fuel efficiency by 1.5 percent per year until 2020, cap emissions from 2020 with carbon-neutral growth, and cut emissions in half by 2050 compared to 2005. Airlines have saved 76 million tons of CO2 since 2004. Governments agreed, among other items, to limit emissions from 2020 at the last International Civil Aviation Organization (ICAO) Assembly. We'll arrive in Cancun with all of our homework completed. No other industry is as far along in its commitments or as closely aligned with governments "ICAO's international emissions should be handled by ICAO (in accordance with the Kyoto Protocol) and in collaboration with the UNFCCC, said Bisignani, who also appreciated the assurance by UNFCCC Executive Secretary Christiana Figueres that aviation's international emissions should be managed by ICAO (in accordance with the Kyoto Protocol) and in partnership with the UNFCCC.
Bisignani also urged Latin America to use its recent successes to take the lead in global liberalization efforts. "LAN and TAM have a total market capitalization of about $14 billion. More than British Airways/Iberia ($5.5 billion), the Lufthansa Group ($10.4 billion), Air France/KLM ($5.7 billion), Delta ($11.2 billion), and Continental/United Airlines ($8.8 billion) combined. Multi-brand, multi-national, and multi-hub operations have proven to be effective in Latin America. The benefits that Latin America's consolidation is bringing to customers through stronger carriers should persuade all governments that aviation's commercial freedoms should be expanded rather than limited "Bisignani said.
"Latin American aviation is a success story when it comes to generating profits and creating new business models. This area will make a significant contribution to the global economy. We will be preparing for the Vision 2050 summit in the coming months. We will look forward 40 years with Harvard University's Professor Michael Porter, 25-30 of the world's best minds in aviation, and the inspiring guidance of Singapore's Minister Mentor Lee Kuan Yew. Our mission is to determine what is required to propel an industry that is safer, more environmentally friendly, and more efficient. The Latin American experience would contribute significantly to the debate "Bisignani said.