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2011 was a year inflicted by various events, the Arab Spring, high oil prices, the Japanese earthquake and tsunami, the ongoing sovereign debt crises in Europe, the fall of consumer demand and, lately, the Thailand floods.

This has resulted in a year of two halves for our industry, with a second half experiencing a 5% reduction in an air cargo’s FTK (Freight Tonne Kilometers) year over year.

As this industry is a leading economic indicator, we need to be extra cautious for the year ahead. However, lots of positives emerged in 2011, most importantly, the emergence of GACAG which now provides a platform for unified industry collaboration tackling the key priorities of Security, e-Commerce, Trade Facilitation and Sustainability.

On Security, IATA and industry have provided solutions on an e-Cargo Security Declaration which is being tested in the UK and the Netherlands. As for Secure Freight we successfully secured Letter of Intent from Kenya and Mexico, and launched pilots in both countries. We also gained recognition of Secure Freight principles from the Australian Office of Transport Security.

On trade facilitation, IATA as part of GACAG has also offered a recommendation on Advance Information to Customs.

On e-freight, we will be close to meeting our target by achieving 9% penetration on feasible trade lanes. This is thanks to strong commitment by our industry partners.

In 2012, the Board of Governors have tasked us to deliver e-AWB adoption setting us a target of 15% of global penetration. Thankfully we have the benefit of good performers, such as Cathay Pacific, Emirates, Korean Air, Singapore Airlines, and KLM from whom the others can take the lead.

I see GACAG becoming more influential in facilitating much needed change within our industry. This will become evident at World Cargo Symposium in Kuala Lumpur, 13-15 March 2012.

We will be looking to promote the value of our industry, as a catalyst for driving economic growth and prosperity. And I look forward to working with all our industry partners towards this aim.

I would like to thank all our members, customers, stakeholders and our staff for their support and wish you and your families a very joyous festive season and a Happy New Year!