MANILA, Philippines - The International Air Transport Association (IATA) has urged governments across the globe to dismantle barriers to connectivity to further strengthen the air transport sector.
IATA director general and chief executive officer Tony Tyler said governments should address excessive taxation, high infrastructure costs, onerous regulation and, at the same time, improve the capacity and efficiency of airports and air navigation services.
“A strong air transport sector is in the self-interest of governments eager to support economic growth and development. Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen,†Tyler stressed.
He pointed out that 2013 is the 100th year of commercial aviation, and air transport has transformed the way we live, work and play over the century and provided jobs for some 57 million people and supported $2.2 trillion in economic activity by connecting people and goods on 35,000 routes.
“But continued connectivity growth is not guaranteed. The industry’s expected margin in 2013 of 1.3 percent is very weak. Furthermore current returns on investment are less than half the industry’s cost of capital, which continues to erode shareholder value,†he pointed out.
Data released by IATA showed that traffic results for November 2012 showed an improvement in both passenger and air freight demand.
Air travel was 4.6 percent higher in November last year compared to November 2011 as air freight volumes edged up 1.6 percent while passenger capacity rose 3.2 percent.