IATA Advocates A Smarter Regulation And A Dialogue Between The Industry And Governments Focused On Solving Real Problems
Aviation is a global industry and this year it will safely meet the transport needs of 4.6 billion travellers. IATA’s director general and CEO Alexandre de Juniac defines aviation as the Business of Freedom, but this performance could not be achieved without commonly understood and implemented rules of the game. “Regulation is vitally important to aviation,” he explains, but this should be in the form of smarter regulation, a concept he describes as more “common sense than it is rocket science”.
Transcript
Alexandre de Juniac:We fully recognize that aviation is a regulated sector for many reasons— historic, but also because there are monopoly situations, you have relations between states— so it needs strong regulation. Basically, to start with, For safety reasons, and it has proved to be effective and efficient. But, you know, we have to navigate between the risk of overregulation and the risk of underregulation. So to find the appropriate compromise of a good and efficient regulation, we have created this concept of smart regulation, which is based on common sense. And IATA is a member of the IATA Council. Defining what is the appropriate regulatory framework and the appropriate regulatory bodies that will have to implement this regulation to boost or to promote the growth of aviation. And that's based on 2 or 3 main principles. First of all, a cost-benefit analysis of each regulation. A very broad and extensive consultation of all the stakeholders that are involved or touched or that could be concerned by that regulation, and clever implementation by authorities that are dedicated and open to the issues, big issues of the aviation industry. You know, you have several issues. The first one is the infrastructure crisis. It's not a regulatory issue per se, even if you have a lot of regulatory inputs that are influencing that issue. We have an infrastructure crisis either in the air traffic control or in the airport capacity because the traffic is growing, skyrocketing, and at the same time, You know, we see that the investment needed to increase the infrastructure capacity is not always taking the same pace. So we have a concern for the infrastructure to be able to cope with the growth. We have issues related to regulation of privatization of airports, and they're not always adapted. We have regulatory issues regarding Taxation or charges that the airlines are paying that are sometimes inappropriate or excessive. So there are a lot of issues, a lot of work on our desk. We are overexposed to many risks or to many uncertainties, but it's also a sector that has proved its resilience and its ability to transport more than 4 billion passengers Last year, safely. Exceptionally safely, which is, which is at the end of the day, that's the key. That's the basics of the contracts we have with our passengers. Thank you.
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