Industry in Crisis, Change Essential (Washington) -- "Bold changes are needed to ensure the long-term financial= =20 sustainability of the air transport industry," said IATA Director General=20 and CEO Giovanni Bisignani at the opening of the 59th Annual General=20 Meeting (AGM) of IATA in Washington D.C. The successive impact of September 11, a world economic slowdown and SARS=20 has been devastating. Industry losses in 2001 and 2002 amounted to US$25=20 billion. Bisignani characterized the last two years as being like "a boxer= =20 who gets hit harder after every knockdown." Fighting Back Bisignani noted that the industry is fighting back with change. The=20 industry is re-inventing itself with cost reductions and efficiency gains.= =20 But this is not enough. Bisignani outlined the next steps in the industry's= =20 fight for survival which include a new approach to labor relations and a=20 new role for governments outlined in the Washington Declaration adopted by= =20 member airlines at the AGM. New Approach to Labor Relations Labor costs cannot remain immune from the change in cost structure needed=20 by the industry. Cost reduction has seen industry employees accept wage=20 cuts in addition to the painful loss of over 400,000 jobs. "This is an=20 opportunity for our pilot colleagues to work with management to safeguard=20 this industry," said Bisignani. Pilots must "not hide behind old work=20 rules, such as seniority lists, which are out of touch with today's=20 competitive world. The industry needs to reward performance, not age or=20 seniority," said Bisignani. Washington Declaration "Outdated government regulations represent the strongest obstacles to=20 change," said Bisignani. In the Washington Declaration, adopted at this=20 IATA AGM, IATA Member airlines called upon governments to help them ensure= =20 a sustainable future for international air transport. The Declaration outlines six measures needed to foster change: =B7 Liberalization of ownership rules to allow airlines access to global=20 capital markets =B7 Economic regulation of airport and air traffic services (ATS) providers= =20 to eliminate monopoly practices =B7 Increased cooperation and standardization between national competition= =20 authorities =B7 Government restraint in imposing discriminatory taxes and fees on the=20 aviation industry =B7 Protecting consumer interests served by industry standardization from=20 unilateral government measures =B7 Governments assume their responsibility for security and the associated= =20 costs. International air transport is governed by the 1944 Chicago Convention.=20 Bisignani said that "the bilateral system, national ownership rules and the= =20 attitude of competition authorities are the three pillars of stagnation in= =20 international air transport. There is no need to bring these down, but=20 there is a need to modernize them." "The key questions are: what should be regulated and how much? Safety and=20 security definitely must be regulated but commercial regulation established= =20 in the era of DC-3s is clearly outdated," said Bisignani. Specifically, Bisignani said that IATA supports regional liberalization as= =20 a step towards "wide open skies" and a competition regulatory framework=20 that will allow for consolidation. Further IATA supports liberalization of= =20 national ownership and control laws, where feasible, to give airlines the=20 freedom to merge, acquire and go to international financial markets. While airlines operate in a commercial competitive environment, airports=20 and air traffic service providers are monopolies who account for US$40=20 billion of airline costs. "Many airports and ATS providers have been good=20 partners but the real issue remains inadequate economic regulation and=20 accountability. Running an airport cannot be the licence to print money=20 that some monopoly service providers believe they have been granted. The=20 industry cannot afford to continue to support 20% average profit margins=20 for airports and ATS providers," said Bisignani. Call To Action "We cannot sit back and wait for better times. Air transport must continue= =20 to fulfil its role as an engine for global economic growth, and providing=20 jobs to over 1.7 million people around the world. The airlines have adapted= =20 to the new circumstances. It is now time for their partners and the=20 governments to do the same," concluded Bisignani. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.natalielaughlin.com/ TnT Webdirectory: http://search.co.tt *********************************************************