7-Jul-2014 10:55 AM
IATA calls on European governments and regulators to 'bolster European competitiveness'
International Air Transport Association (IATA) called (04-Jul-2014) on European governments and regulators to "bolster European competitiveness" with measures to improve global connectivity. IATA identified three areas for governments and regulators to focus on:
- Infrastructure: IATA called for a range of measure to facilitate progress on the Single European Sky project, including the establishment of an independent economic regulator for European air navigation performance, the reorganisation and unbundling of ATM support services and the provision of an effective framework for FABs to deliver value. IATA also called on policymakers to take action to avoid a projected 12% shortfall in European airport capacity by 2035;
- Regulation: IATA stated "excessive or misguided regulation has weighed down Europe's air transport industry. Regulation can be a powerful and effective enabler. This is the case in areas such as safety or economic regulation to counter-balance significant market power. But it must be appropriately focused";
- Taxation: IATA called for the easing of taxation on the region's "over-taxed" airlines. IATA director general and CEO Tony Tyler said: "In 2014, the European governments will collect nearly $40 billion in taxes from airlines and passengers. To put that into perspective, that is more than double the taxes collected in the Asia-Pacific region. Many governments there value aviation more for the long-term economic value that the industry makes possible, than for short-term tax receipts." [more - original PR]