IATA Director General and CEO, Giovanni Bisignani, delivered his "State of the Industry" speech at the IATA AGM, recapping a decade spent by airlines in “survival mode” in which they cut costs by 9%, increased fuel efficiency by 24% and improved labour productivity by 67% while suffering “constant shocks”. Mr Bisignani stated the industry profit of USD18 billion in 2010 was the best of the decade, but at a “pathetic” 3.2% margin, and stated that the forecast of USD4 billion in profit for 2011 at current oil prices is a “tribute” to airlines. He also said unfinished business remains in the areas of security, monopoly suppliers, government taxation and the EU Emissions Trading Scheme. Mr Bisignani stated under IATA’s Vision 2050 challenges remain to “destroy silos in the value chain” to get governments to change their approach to aviation and “replace intervention with commercial freedom”. He also commented on the rapid development of aviation in China, India, the Middle East, Latin America and Africa and the work being done to aid deregulation in North America and Europe. Mr Bisignani stated that the industry is not as united as it needs to be, with tensions around the rapid growth of the Gulf carriers, the Asia Pacific will continue to grow, with China and India to become the driving force of aviation in this century, and innovation and openness to change will determine the future of the industry. [more]
Bisignani recaps decade spent in 'survival mode' in AGM address
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