IATA CALLS FOR AIRLINE INDUSTRY RESTRUCTURING

IATA CALLS FOR AIRLINE INDUSTRY RESTRUCTURING    Pierre J., Jeanniot, director general of the International Air Transport Association, said that the aviation industry must restructure to allow a sustainable, safe and profitable aviation growth.
   Jeanniot told the IATA’s 57th annual general meeting and World Air Transport Summit in Madrid on Monday (May 28) that aviation must find “a new path of fully sustainable, safe and profitable growth,” adequately rewarding all four categories of stakeholders — customers, society at large, employees and shareholders of airlines.
   “Finding that new path requires an industry restructuring, but that, in turn, cannot be accomplished without a regulatory framework which encourages restructuring of airlines, as well as infrastructure providers, to exploit economies of scale,” he added.
“Specifically, current ownership rules should be relaxed and traditional bilateralism must make way for ‘bloclateralism’ between regional groups of nations and further expansion of open skies.”
   Society will benefit from the improving aviation environmental record, including “sensible use of intermodal transport solutions,” the airlines association executive said. “But the quid pro quo – from governments – for an environmentally responsible industry, must be a greater determination to supply the airport , traffic control and airport infrastructure to sustain future growth,” he said.
   Jeanniot warned that “it is essential that our industry not be held captive to the demands of part of the labour force.” Airline shareholders were “not well rewarded,” he added.