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
You may also be interested in the following articles...
Global commercial aircraft deliveries fell in 2016 as Boeing again outsold Airbus; 2017 to be a peak
The global commercial aircraft fleet grew by 4% in 2016 and the year ended with an order backlog of more than nine years of production. Among the regions, North America still has the biggest and oldest fleet, but the lowest ratio of orders to aircraft in service. By contrast, Middle East has the fewest in service, but the highest ratio of orders to current fleet numbers.
This report gives an overview of the number of commercial aircraft deliveries in 2016 and the outlook into 2017 and beyond. It also looks at numbers in service and on order by region. It is based on preliminary numbers from the CAPA Fleet Database and guidance on 2016 deliveries from Airbus and Boeing, who have yet to announce final numbers.
The data indicate that total worldwide deliveries fell in 2016, the first such decline for six years, as a result of delays to new aircraft programmes. Boeing delivered more aircraft than Airbus for the fifth straight year, but its deliveries fell short of its 2015 level, while Airbus increased its numbers year-on-year. Total deliveries will likely rise again in 2017, but this may prove to be a peak year.
European airline seat capacity growth accelerates - perhaps too quickly: Outlook for winter 2016/17
The summer 2016 season came to an end on 29-Oct-2016. Adjusting for an extra week relative to the previous summer, it produced seat growth of 6% for capacity to/from/within Europe, matching the rate of growth in summer 2015, but higher than the 10-year average rate of 4% and higher than any other summer since 2010.
Current indications from data filed with OAG are that Europe will also experience accelerating capacity growth in the winter 2016/2017 season, which runs from 30-Oct-2016 to 25-Mar-2017. Adjusting for the season being shorter by one week relative to last winter, total seat growth in Europe is set to reach 7%, compared with 6% growth in winter 2015/2016 (and 6% growth in summer 2016). This is higher than the 10-year average rate for winter of 3% and the highest winter growth since 2007/2008.
On routes to all but one region from Europe, seat growth this winter will both be faster than last winter and higher than its 10-year average. The one exception is Europe to Middle East, the fastest-growing region, where capacity growth will remain at 10%. This report presents analysis of this winter's seat growth for Europe by region and by airline group.