Current returns on investment in aviation sector less than half the industry’s cost of capital: IATA

IATA director general and CEO Tony Tyler noted (09-Jan-2013) 2013 is the 100th year of commercial aviation. He commented, "Over that century, through an ever-expanding network, air transport has transformed the way we live, work and play, providing jobs for some 57 million people and supporting $2.2 trillion in economic activity by connecting people and goods on 35,000 routes." IATA, however, warned continued connectivity growth is not guaranteed. Mr Tyler said, "The industry's expected margin in 2013 of 1.3% is very weak. Furthermore current returns on investment are less than half the industry's cost of capital, which continues to erode shareholder value. In the New Year, governments should resolve to bring down the barriers to connectivity growth. This can be done by addressing excessive taxation, high infrastructure costs, onerous regulation and improving the capacity and efficiency of airports and air navigation services. A strong air transport sector is in the self-interest of governments eager to support economic growth and development. Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen." [more - original PR]