High airport fees blamed for BWIA?s woes

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High airport fees blamed for BWIA=92s woes
By Marisa Camejo
Express

High airport fees at Piarco International Airport are affecting BWIA's=20
profitability, according to International Air Transport Association (IATA)=
=20
Director General and CEO, Giovanni Bisignani. In his first news conference=
=20
of 2003=97held jointly with BWIA president Conrad Aleong at Hilton Trinidad=
=20
yesterday=97Bisignani noted that the airline industry must address specific=
=20
problems to combat the major financial crisis it now faced.  Controlling=20
balance sheets was at the top of the list. User services, which include=20
airport fees and air traffic control costs, accounted for US$40 billion=20
last year, with international services alone totalling US$15 billion. In=20
Trinidad and Tobago, airport user fees might be higher than they ought to=20
be, Bisignani observed. He also said the local air traffic control=20
telecommunications system needed to be upgraded. He was due to meet with=20
junior Finance Minister Kenneth Valley yesterday to discuss the matter.

Insurance costs also affect the airline industry, with US$5 billion paid=20
annually. Bisignani specifically complained about insurance companies=20
abruptly giving the industry "a 30-day notice of cancellation of third=20
party insurance after the events of September 11, 2001".  "Security is a=20
government issue, and not one that should be addressed by the airlines.=20
Security in airports, train stations, soccer stadiums, all fall under=20
government responsibility," complained Bisignani as he cited another hurdle=
=20
faced by the industry. He noted that US$3 billion was spent on security in=
=20
2002.  Referring to consolidation of airlines as a "measure that was almost=
=20
always the answer to cost-cutting", Bisignani said although he understood=20
the pride involved in a nation's ownership of an airline, "flag-waving=20
should give way" to more prudent measures if airlines were going to=20
survive. "Governments cannot consistently fund or bail out their national=20
airlines. It's more important that an airline have a future, the flag=20
approach is not acceptable any more," he said. IATA, founded in 1945, is=20
the prime vehicle for inter-airline co-operation in promoting safe,=20
reliable, secure, and economical air services for the benefit of travellers.

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