Connectivity is critical for enhanced trade
“Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen.”
in the NewsState of Logistics 2016: Pursue mutual benefit Truckers applaud move to revert to pre-2013 Hours of Service regulations Kion CEO sees further potential for growth from the Dematic acquisition LM Viewpoint 2017: Prepare to be quick and nimble Infrastructure could be a key part of Trump’s plan More News
2013 is the 100th year of commercial aviation. 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.
But continued connectivity growth is not guaranteed, cautions the International Air Transport Association (IATA). 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, IATA believes 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.
We agree with Tony Tyler, IATA’s Director General and CEO, who feels 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,” said Tyler.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Warehouse & DC Operations Survey: Ready to confront complexity 2016 Quest for Quality Awards Dinner View More From this Issue