"Re-structuring required for Sustainable, safe and Profitable Aviation Growth" - Jeanniot

"Aviation must find a new path of fully sustainable, safe and profitable growth, adequately rewarding all stakeholders; customers, society at large, employees and shareholders" said IATA Director General Pierre J. Jeanniot at the opening of IATA's 57th Annual General Meeting and World Air Transport Summit in Madrid, on May 28.

"Finding that new path requires an industry re-structuring," continued Jeanniot, "but that, in turn, cannot be accomplished without a regulatory framework which encourages re-structuring of airlines, as well as infrastructure providers, to exploit economies of scale. 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."

"The four groups of stakeholders must be properly rewarded, in a balanced way, if underlying growth potential is to be achieved."

"Customers can be re-assured by an improving safety record and an integrated plan involving IATA, the airlines, manufacturers and all other parties to do even better. IATA's Global Customer Service Framework will help airlines and governments, working together, to better define service standards. An increased focus on cabin health and coordinated efforts to eliminate queues at airports through the Simplifying Passenger Travel initiative offer further opportunities to improve the airline product," continued Jeanniot.

"Society at large has enjoyed the benefit of a steadily improving aviation environmental record. This will be sustained through the proposals for new Chapter 4 aircraft, halving perceived noise levels and reducing fuel consumption. Sensible use of intermodal transport solutions should also help. But the quid pro quo- from governments- for an environmentally responsible industry, must be a greater determination to supply the ATC and airport infrastructure to sustain future growth."

Jeanniot observed that "the demanding requirements for safety, punctuality and courteous and precise customer service require highly trained, competent, professional employees... but it is essential that our industry not be held captive to the demands of part of the labour force." The Director General stressed that airline shareholders were not well rewarded and that "it was ironic that businesses which depended on airlines for their very existence all seem capable of generating better profitability."