New resolution championed by IATA

By Patrick Burnson, Executive Editor
January 04, 2012 - LM Editorial

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

image
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).


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!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

Blogs · Air Cargo · Air Freight · Global Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA