New: The Challenges and Future of Air Transport - IATA


IATA annual general meeting, 2018

There are many challenges that face the international air transport industry and re-regulations stands out as one of them including upholding integrity as regards global standards and the unstable capacity of airports. These among other challenges were highlighted by the director general and CEO of the International Air Transport Association, Alexandre de Juniac to delegates at the annual general meeting of IATA in Sydney Australia. The CEO of IATA Further stressed that increase in oil prices, labour and the rise of forces of protectionism contribute to beclouding the promising future.

“Smarter regulation” principles form governments is what IATA wants. Said de Juniac who went further to highlight approaching re-regulation issues in countries such as Italy, the Philippines, Brazil and Latin America among others. Also, the U.S. Senate proposal to regulate the charges made by airlines on re-booking, checked baggage, cancelation and seat selection lead to ”stunning reversal of U.S deregulation.

De Juniac expressed dissatisfaction with the way government neglect global standards to which they had initially agreed to implement.  He mentioned countries like India who helped create resolutions relating to prohibition of taxes on international tickets but proceed to tax international travel.

Talking about capacity constraints, De Juniac stated that 100 of the world’s biggest airports face capacity constraints and that there is still no airport infrastructure investment to solve the issue. Considering privatization, It was further highlighted that privatization is not a solution as privatized airports become more expensive to manage.

Speaking on optimism about the future, IATA’s chief economist Brian Pearce said that despite the uncertainty around tariff wars as well as hits on business confidence, the industry is still very positive about travel growth in the coming years. IATA expects air travel to increase by 7 percent this year. Passenger throughput is expected to reach 4.36 billion while cargo demand increases by 4 percent.



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