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Press Release No.: 45

Date: 28 November 2007

Washington - The International Air Transport Association (IATA) called for the White House and Congressional politicians in the United States to take more aggressive short-term action to mitigate air traffic congestion and the lingering security hassles.

“President Bush’s recent announcement about making limited airspace changes in an attempt to alleviate congestion during the holidays is a political placebo for a serious long-term illness,” said Giovanni Bisignani, IATA’s Director General and CEO.  He warned that there would likely be more air delays next summer if the Government continues to move too slowly in making capacity and efficiency improvements.  “Instead of addressing the problem, DOT wants to change the way people travel by making it more expensive at peak times,” Bisignani said.

The White House is considering peak pricing at New York JFK airport as a band-aid for delays, but Bisignani said that “congestion pricing has never worked effectively for air transport anywhere in the world so it is foolhardy to believe that it will work in New York.”  Instead, the US Government should implement the IATA Worldwide Scheduling Guidelines and immediately implement operational and infrastructure improvements.  “There’s already a list of at least 75 projects that could begin tomorrow and we can’t wait any longer,” Bisignani said.

In a speech to the Aero Club of Washington, Bisignani urged industry leaders in Washington also to focus on security and the environment.

  • Security:  “The industry is now paying US$5.9 billion a year - US$300 million higher than previous estimates - to comply with a growing list of security regulations.  I see more hassle than value so let’s be open and transparent with the problems and the solutions. Too many knee-jerk security enhancement decisions are based on fear even though the threat hasn’t changed.  We are wasting limited and precious resources. We need to cut through the government red tape and focus on harmonised processes around the globe and push for simplification.  We must invest in new technology to help security become smarter, faster and easier to manage,” Bisignani said. 

  • Financial Outlook: “US carriers have gone from industry sick-man to the most profitable of any region in the world.  This is an incredible turnaround but it’s too early to open the champagne.  Airlines are US$200 billion in debt and we could be heading for an economic downturn with little cash in the bank to cushion the fall.  US carriers are operating aging fleets and labour is also putting pressure on airlines.  It is disturbing that as soon as the industry shows even fragile profits, labour starts to look for a free lunch.  If labour pursues an agenda as an irresponsible adversary everybody’s future is limited,” said Bisignani. 

  • Environment:  IATA’s four-pillar strategy to address climate change is: invest in technology; build and operate efficient infrastructure; fly planes efficiently; and then explore economic measures. “Our goal is carbon neutral growth in the medium-term leading to zero carbon emissions.  The US Government was among the 179 States attending the Triennial Assembly of the International Civil Aviation Organization, which endorsed the strategy and IATA’s target to improve fuel efficiency 25% by 2020.  Europe is our biggest disappointment, as it is fixated on emissions trading.  This is against the Chicago Convention and I support the US in challenging this in the world’s courts.  I also have to ring the warning bell. Don’t wait for a communications crisis to start talking about the environment. We have a solid track record and an ambitious vision to become a zero-emissions industry. Now is the time to communicate to help passengers and stakeholders understand that aviation is setting the highest benchmarks in environmental performance of any industry,” Bisignani said. 

Full text of speech given at Aero Club of Washington

Notes for Editors:

  • IATA has some 240 members comprising 94% of scheduled international traffic
  • More on the IATA Worldwide Scheduling Guidelines (WSG) and scheduling in general, visit:  IATA’s WSG is a global standard that has been employed successfully for 60 years and is currently followed at 140 Level 3 airports worldwide.
  • IATA is represented on the U.S. Department of Transportation’s Aviation Rulemaking Committee (ARC)
    • The ARC was formed as a result of President Bush's direction to take steps to relieve New York congestion by Spring 2008
  • Working with the ARC group, IATA has identified priorities to alleviate airspace congestion:
    • Use all four runways simultaneously with RNP technology
    • Move aircraft more efficiently on the ground with better taxiways and modern ground surveillance
    • Increase airspace capacity with next generation ATM
    • Get aircraft out of the congested area without capacity delays with flexible routes over the North Atlantic
    • Accelerate redesign of of New York and Philadelphia airspace into a single region managed by a direct report to the FAA COO.

For more information, please contact:
Corporate Communications
Tel +1 202 628 9292
corpcomms@iata.org

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