The International Air Transport Association (IATA) called upon
governments to work together and with the aviation industry to maximize
aviation’s ability to sustainably drive global economic development and job
creation.
“Governments and industry share a common interest in aviation’s success.
Aviation is a business and a driver of economic and social development that is
vitally important to governments. About 3 billion people fly annually. And the
nearly 50 million tonnes of cargo transported by air represents some 35% of the
value of goods traded internationally” said Tony Tyler, IATA Director General
and CEO while speaking at the International Civil Aviation Organization (ICAO)
International Air Transport Symposium.
Aviation is a highly regulated industry at the national, regional and
global levels. “Sustainability depends not only on what airlines do for
themselves but also the policies adopted by governments,” said Tyler.
“Regulation that is neither coordinated nor mutually recognized brings a high
cost of compliance without corresponding benefits, while maintaining
restrictions on airlines’ access to global capital and to markets has kept
airlines financially weak,” said Tyler noting the important role of ICAO in
delivering solutions to ensure aviation’s sustainability in the broadest of
terms.
Tyler cited four areas where policy efforts are needed to ensure
aviation’s financial sustainability:
· Infrastructure:
Modernization of air traffic management is needed to reduce delays, save fuel
and cut CO2 emissions.
· User Charges:
Effective regulation of monopoly suppliers is required to ensure sufficient
infrastructure, reasonable returns for operators and cost-efficient prices for
airlines, in line with ICAO-agreed principles.
· Fees and Taxes: Policies
are needed that re-invest aviation tax receipts back into the industry and to
ensure that aviation is treated as an economic catalyst not a cash cow.
· Regulation: An
approach is needed that resists the urge to micro-manage competition, allows
airlines to explore different business models and enables market forces to play
out.
Additionally, Tyler noted the need for a globally coordinated approach
among governments to managing aviation’s 2% contribution to manmade CO2
emissions. “Aviation has committed to three targets, the most ambitious of
which is to cut net emissions in half by 2050 compared to 2005. We cannot do
that without government cooperation. As aviation is a global industry, that
cooperation must be coordinated through ICAO.
That is why Europe’s inclusion of international aviation in its
emissions trading scheme is counter-productive. The regional approach distorts
markets. And it will not have the positive impact on sustainability of globally
coordinated measures through ICAO. On top of that, the unilateral and
extra-territorial approach is seen by non-European states as an attack on their
sovereignty,” said Tyler.
“Nobody wants a trade war. And I am confident that if Europe
participates whole-heartedly at ICAO—being prepared to find solutions with the
international community beyond its current plans—ICAO will successfully
facilitate a durable solution for environmental sustainability,” said Tyler.
“Aviation connectivity is the infrastructure of our global community. A
key component of sustainability must be a pragmatic and comprehensive policy
approach focused on building competitiveness to maximize aviation’s economic
and social benefits,” Tyler said.
A recent Oxford Economics study reported that aviation globally is
responsible for 56.6 million jobs and $2.2 trillion in economic activity—3.5%
of global GDP.