23-Sep-2013 10:32 AM

IATA DG and CEO on 'empowering aviation to deliver more value'

IATA urged (19-Sep-2013) governments to "re-commit themselves to the ideals of airline deregulation and the free market, so as to permit aviation to continue to deliver the benefits of global connectivity that make possible USD2.2 trillion worth of economic activity". IATA DG and CEO Tony Tyler said the ability of airlines "to meet the growing demand for connectivity is at risk." Mr Tyler cited four areas where the market is not being permitted to operate efficiently:

  • Regulation: Regulators "appear determined to hold commercial aviation to a different business standard than they impose on any other form of transportation—or consumer facing activities,” said Mr Tyler. He stated regulators are "micro-managing our businesses, telling us how we may advertise our services, how long we must hold a reservation that has not been paid for and how we are to manage operational disruptions regardless of the cause";
  • Distribution: The "threat" of a new US Department of Transportation regulation that would mandate how and where airline ancillary products are displayed "continues to overhang the industry". My Tyler said the IATA New Distribution Capability (NDC) is "about bringing the same level of capability to display and sell additional products and services through the travel agent channel that already exists on airline websites". IATA believes an NDC standard will "enhance the air travel shopping experience for passengers", but Mr Tyler affirmed that the NDC "will operate within the same privacy laws that govern every other business";
  • Consolidation: Mr Tyler argued that aviation needs to be treated like other industries when it comes to consolidation, stating that consolidation "has resulted in a healthier, more profitable industry and that is good news for travelers as well, because it means airlines have the financial wherewithal to invest in their products and services";
  • Taxation: Mr Tyler warned that too little of the fees and taxes levied on airlines finds its way into infrastructure investment. [more - original PR] [more - original PR - Speech]

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