The global airline industry is on track to make a profit of $2.5 billion this year after 10 years of struggle in which it made a cumulative loss of $47 billion, according to Giovanni Bisignani, director general and chief executive of the International Air Transport Association (IATA) at its annual general meeting on Monday.
He said that if the industry succeeded in its campaign to remove restrictive legislation that prevented airlines from consolidating across borders and competing in the same way as normal business, it would achieve $100 billion in profits on revenues of $1 trillion in a decade.
By 2050 it would "be very near to zero accidents," emit half the carbon, process more passengers without queues, and operate with almost no delays in globally united skies.
"We will be a consolidated industry of a dozen global brands supported by regional and niche players. And we will deliver value to investors."
Outlining the steps needed to achieve this, he said that the present fragmentation of the industry, with 1 061 airlines as a result of the bilateral system that now regulates it, prevented increased efficiencies from improving the bottom line "because airlines are deprived of the commercial freedom to operate like normal businesses. Our poor profitability makes every shock a fight for survival."
Infrastructure should be shaped around the needs of airlines with airports competing for airline business through efficiency, deriving their income through commerce with airlines bringing shoppers and airport revenues funding the air traffic system.
It would be more efficient to replace the current 180 air traffic management organisations with 10, at half the cost.
And calling for government help in establishing the production of biofuels to replace jet fuel made from oil, he said these had the potential to reduce the industry's carbon footprint by 80 percent. After testing by airlines certification of biofuels was expected within a year. "Local production with jatropha, camelina, algae or even urban waste will open up economic opportunities in virtually any location."
Read at-source
No comments:
Post a Comment