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New resolution championed by IATA

By Patrick Burnson, Executive Editor
January 04, 2012

As noted in recent news, air cargo demand has fallen off just when 2012 was being ushered in.

Tony Tyler, Director General and CEO of The International Air Transport Association (IATA), noted that this year the story of aviation’s importance is even more compelling as governments around the world seek solutions to economic uncertainty.

Economic growth is the only “durable” solution, added Tyler, and aviation can be a catalyst for that growth.

But that depends on governments allowing airlines to get on with the business of providing global connectivity, Tyler told IATA members:

“The New Year’s resolution for every government with respect to aviation should be to stop over-taxation or mis-regulation of this vital economic driver,” he said.

IATA is estimating the airline industry will make a collective profit of $6.9 billion in 2011 for a net margin of 1.2 percent. IATA forecasts that this will fall to $3.5 billion in 2012 (0.6 percent net margin). But the association has warned that the downside risk of the Euro-zone crisis failing to be resolved could lead to losses in excess of $8 billion.

About the Author

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Patrick 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 .(JavaScript must be enabled to view this email address).


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Article Topics

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