Message from the Director General & CEO

Shocks dominated the first quarter of 2011. Political unrest in the Middle East knocked 1% off global demand in February. The economic implications of the tragic Japanese tsunami, affecting 10% of global revenues, will unfold over the coming months. Skyrocketing oil prices will have an even bigger impact. The first quarter ended with an average oil price of US$106/barrel. That’s US$10 more than our forecast full-year average of US$96.

Some things are in our hands. Simplifying the Business is improving competitiveness with programs like e-freight. The entire value chain must work together for the $4.9 billion in cost savings by meeting the targets of 10% volumes by the end of this year and 100% by 2015.

But major change is required from governments. Airlines need the freedom to merge or consolidate across borders like normal businesses. Governments must bear the US$7.4 billion national security costs unfairly passed to the industry. And we must convince them that excessive aviation taxes are counterproductive to economic growth.

All these issues will be discussed at our AGM in Singapore, 5-7 June.

I look forward to seeing you there.

Giovanni Bisignani