Terrorism, wars and revolutions. Pandemic fears, earthquakes and volcanoes. Failing economies and skyrocketing fuel prices. Over the last decade we have seen everything. Everything, except sustainable profits (1).
2010 was the best year of the decade, with a profit of $18 billion (2), but a pathetic margin of 3.2%. 2011 brought more shocks: from disasters in Japan, to unrest in the Middle East, and oil spiking above $120 (3) per barrel. A decade ago, we needed oil below $25 (4) just to break even. It is a tribute to every airline in this room, that we expect a $4 billion profit (5) at today’s oil prices.
A Decade in Review
Airlines spent a decade in survival mode. They transformed themselves by slashing costs 9%, (6)increasing fuel efficiency 24%, and improving labor productivity 67% (7).
Change was harsh. Hundreds of thousands of jobs disappeared, and we said goodbye to many famous companies - Swissair, Varig, Ansett, Sabena, Mexicana and Aloha.
In the aftermath of 9.11, IATA took on the role of fireman, responding to emergencies. IATA led with speed, passion and commitment.
We started with monopoly suppliers. Living in a different reality, they offset declining demand by increasing prices. Shouting politely, we instilled a new mindset that saved airlines $17 billion (8) in costs for airports, air navigation service providers and fuel suppliers.
IATA’s role quickly changed to architect, because the industry needed radical redesign.
Low cost competition focused on what customers valued: they wanted efficiency, not outdated processes. To help you compete, here in Singapore in 2004, IATA started Simplifying the Business. (9) It was a revolution to cut costs and make travel and shipping more convenient.
IATA had to support all its members, not just the club of the powerful. Every airline - big and small - had to share the benefits. To succeed, we set targets. This was unthinkable for an association, but IATA provided support and you delivered.
Forty-eight months later in Istanbul, (10) together we celebrated 100% e-ticketing, and shared the first $3 billion in savings. Simplifying the Business is now saving you $5.5 billion annually.(11) And we are targeting $12.6 billion more (12) in annual savings by expanding the revolution with programs including Fast Travel, e-freight, e-services, and baggage improvement.
We also set targets to improve safety. By 2009 all our members - big and small - were IOSA (13) registered. IOSA has become the global benchmark for safety, with 365 (14) airlines on the IOSA Registry.
The results are impressive. Last year the industry accident rate was the best ever, with 1 accident for every 1.6 million flights (15). That is a 42 % improvement since 2000. IATA members outperformed this, with only one accident for every 4 million (16) flights.
Safety is a constant challenge, but we can be proud that, despite the difficult decade, we made flying even safer.
Constant shocks challenged us in new ways. With SARS, global traffic dropped nearly 20% (17). IATA worked with WHO (18) and ICAO (19) to keep flying safe, even with potential pandemics and radiation. And when a volcano brought the world to a standstill, IATA challenged European governments to provide responsible leadership to keep flying, and flying safely.
Along with shocks we also faced a volatile demon: the price of oil. Surviving with oil over $100 a barrel went from unthinkable to normal. Fuel management evolved into a fine art, impacting the bottom line. In a great example of industry cooperation, IATA collected and shared best practices. Our Green Teams were at your side to help implementation, and we brought airports and ANSPs into the effort, optimizing over 2,000 routes (20). All these efforts saved you $19 billion (21).
Climate change was a related challenge. The economics of our business have always driven fuel efficiency, which is the key to reducing emissions. But we were defensive, with no consensus or strategy. Once again, IATA had to take the lead. At our 2007 AGM in Vancouver I shocked you with a vision for a carbon-free future. The whole value chain then united and committed to targets, including cutting emissions in half by 2050 (22). And we became a role model for other industries to follow. Already through IATA we saved over 76 million tonnes of CO2 (23).
More importantly we discovered sustainable biofuels, which could reduce our emissions up to 80%. (24)Now we need big oil to scale up. They are green in their advertising but not in their actions. They prefer to pocket $1 trillion (25) in profits than invest in green initiatives. So big oil gets the first big BASTA. They need targets to provide aviation biofuel at competitive prices.
IATA has a responsibility to drive change and support a cost-efficient industry. Simplifying the Business, the external cost campaign, and our efforts on fuel efficiency, saved over $59 billion (26) since 2004.
And we have an even bigger responsibility to keep your money safe. Despite political unrest and natural disasters, and even when banks were failing and global finance was cracking, IATA’s financial systems handled over $2.5 trillion of your money since 2002, with 99.999% accuracy (27).
Despite the progress, unfinished business remains.
The first is security. Aviation is much more secure today than in 2001. It costs $7.4 billion annually (28). But our passengers only see hassle, because governments are not working together, or with industry. The US continues to drive the global agenda. But with the leadership of Secretary Napolitano, we are finally making progress (29). She understands that aviation security is a global system.
IATA agreed a common agenda with DHS and ICAO (30). And we are working together to implement it. At the top of the agenda is IATA’s “Checkpoint of the Future” (31). We must replace a 40 year-old concept with a risk-based approach, powered by intelligence and technology. Our passengers should be able to get from curb to gate with dignity, without stopping, without stripping, without unpacking and certainly without groping.
The unfinished business is to make coordinated investments for civilized flying.
We also have some unfinished business on the IATA Wall of Shame.
On the wall we still have happy monopolies: Airports and ANSPs that did not embrace change. We gave the UK regulator our award for being the worst.(32). And last year we had the Western GDSs, which I called leeches (33). Now the US Department of Justice is investigating them for anti-competitive behavior. It could be an important step towards a more competitive market.
This year we have a special place of dishonor on the IATA Wall of Shame for the European Union and its parliament. They are ignoring international law with plans to include international aviation in Europe’s emissions trading scheme (34). Globally coordinated economic measures through ICAO (35) are a key part of our climate change strategy, but uncoordinated punitive measures undermine global efforts, and distort markets. It is a $1.5 billion (36) cash grab that would do nothing to reduce emissions.
The success of our global approach to climate change needs all airlines, individually and with their governments, to join me in saying BASTA to Europe. Be serious about climate change, and be honest in developing global solutions
Also on the Wall is the hit parade of government tax bandits:
- The UK for its $4.5 billion (37) Air Passenger Duty, the largest aviation tax in the world.
- Germany for its $1.3 billion (38) departure tax, an unwanted gift from Chancellor Merkel at our last AGM.
- Austria for copying Germany with a $119 million (39) tax.
- And India for its $450 million (40) Service Tax, in complete contravention of ICAO rules.
Taxing aviation does not pay. The Dutch repealed a $412 million (41) departure tax because it cost the economy $1.6 billion (42). And the Irish plan to cancel their $165 million (43) Travel Tax because it cost $594 million (44) and 3,000 jobs. The lesson for governments is simple: don’t kill the goose that lays golden eggs.
Aviation fuels global trade that is stimulating economies and restoring government budgets. Tax the bankers. They created the mess (45). Their billions in bonuses should help to clean it up.
The UK, Germany, Austria and India need a textbook on aviation’s economic role. And the first chapter is BASTA to more taxation.
What is the result of this decade of change? We learned that cheap oil is history, we must be ready for constant shocks, that aviation’s centre of gravity is shifting eastward.
We were left with inefficiency in the supply chain, limited commercial freedoms, and unrewarded shareholders.
But today airlines are safer, stronger, leaner and greener, because we found the courage to change.
The Future: Vision 2050
Now we must prepare for a world of 16 billion passengers and 400 million tonnes of cargo. (46) To meet this challenge I launched Vision 2050, based on four cornerstones:
- Sustainable profits
- Efficient infrastructure
- Effective technology
- And supportive customers
In February I invited 35 strategic thinkers (47) to develop the vision.
We agreed that many things must change to better serve our customers and build a stronger industry.
We need efficient processes to cope with the volumes, and evolving customer needs. We need technology solutions for environment and security challenges, and for air traffic management that goes beyond national borders. We need airport development that is smarter in meeting future demands. And we need sustainable profitability to support innovation and reward shareholders.
Make no mistake: sustainable profitability will be the biggest challenge.
We know what doesn’t work. Cost cutting alone does not increase long-term profits, unbundling erodes the value of the base product, and re-regulation will kill efficiency and innovation.
So what will work?
First, we must destroy silos in the value chain. We must work in partnership to rebalance financial reward with risk (48), and by creating new value, so price is not the only factor driving competition.
Second, governments must also change their approach. We need policy decisions that replace intervention with commercial freedom, (49) reduce barriers to exit and allow airlines to restructure like normal businesses.
These are big changes. But I have big hopes because many pieces of the vision already exist. These are like tiles for a mosaic that will illustrate our future in four decades. We must select the best to create the image for our success.
Asia has policies to promote and support growth. Already it is 40% of the global cargo industry. The region will produce 360 million more travelers by 2014, 210 million from China alone (50). China is hungry for aviation to drive prosperity. They built 45 new airports in the last 5 years, and are planning another 52 by 2020 (51). India is developing Delhi as a regional hub. ASEAN is targeting a single aviation market by 2015 (52). Investors are betting on this future: three of the five largest airlines by market value (53) are from the region.
In Latin America a handful of carriers developed supra-national brands, and will deliver 3 consecutively profitable years. Governments separated the airline business from politics. Today the continent is globally connected, not by national flags, but by brands like LAN, Avianca and COPA. And the merger of LAN and TAM will create a global player.
The Middle East shows the value of visionary thinking and coordinated planning by industry and government. Over the decade the region’s market share grew from 4% to 11% (54). Low taxes, cost efficiency, and impressive infrastructure developments are at the core of their success.
Africa reminds us that air traffic can be managed internationally. ASECNA alone manages airspace that is one-and-a-half times the size of Europe covering 17 countries (55). Europe has achieved political union but manages its skies like medieval fortresses.
North America has been the source of great ideas including deregulation and open skies. Its carriers successfully managed the 2008 oil spike with prudent capacity decisions and efficient consolidation. (56) Instead of market-share driven strategies, the result was profit.
In 1992 Europe introduced the concept of a single market implemented in stages. The Air France-KLM consolidation gave us a new model (57) that buried nationalist concerns, and laid the foundation for others to follow (58).
Despite the good picture that is emerging, some tiles could still spoil the mosaic.
Governments that have lost the edge to lead cannot move the industry forward. Too many still cling to outdated ownership rules from the bilateral system. Meanwhile Europe has replaced leadership with micro-management.
Tiles not clearly focused on safety also have no place in the future. Africa’s hull loss rate is 12 times the global average (59). But world-class safety is achievable. Twenty-three sub-Saharan African carriers are on the IOSA registry. Nigeria was a major problem but it is now four years accident-free (60). However the Democratic Republic of Congo, with the worst accident rate in the world, is holding the continent’s reputation hostage, while ignoring help that is available.
Through Vision 2050 we identified the need to change, the drivers for change, and the roadblocks. Aviation will certainly grow to support far more than today’s 32 million jobs and $3.5 trillion in economic activity. The question is how to assemble the pieces of the mosaic to grow successfully.
On this I would like to share three personal conclusions.
First, despite our many great achievements, we are not as united as we need to be. Increasing tensions around the rapid growth of the Gulf carriers must be resolved. The solution to call in governments as advocates, or as referees, has not worked. And it won’t. As responsible leaders of this global industry, we must find a fair and reasonable way forward ourselves.
Second, is the role of Asia-Pacific. The region is our future, but it is also our today. Already it is the largest single market in the world. By 2014 it will be 30% of our business (61) and still growing fast. With size comes responsibility. In place of our traditional leaders, I am convinced that China and India will soon become the driving force of aviation in this century. They will grow aviation stronger through change, replacing artificial barriers with commercial opportunities.
Third, innovation and openness to change will determine our future. The changes of the last decade prove that we are capable. Airlines, governments and even your association will be challenged to adapt to new business and demographic realities. We need to keep this momentum, to drive change everywhere, not as a response to crisis, but as a way of doing daily business.
Instead of a conclusion, Vision 2050 is a challenge. All of us, industry and governments, partners and stakeholders, leaders present and leaders future, must be prepared for even more change. We must all unite under a common vision to better serve our customers, to connect the world, and to take responsibility to build a truly successful global industry.
In a few weeks I will hand over the leadership of IATA to my successor. It has been a privilege and an honor to have led your association through this difficult decade.
Working together we achieved great things. IATA became relevant, providing leadership and driving change.
The challenge for my successor has three dimensions. The first is to increase relevance by driving even more change. The second is to keep the industry united, bridging differences, and building on our many great successes. And the third is to keep IATA focused, not as a club, but as the global association that represents, leads and serves all its members equally.
My confidence in the future reflects the great people who manage and lead our industry. It would be impossible to recognize all the individual contributions, but let me start with the most important person for me: Elena, my wife, for her patience and support.
Let me also thank,
- The ICAO leadership for being solid partners
- My four predecessors who built IATA’s foundations
- My great IATA team who joined and supported me on a wonderful and challenging journey.
- The Board, all our member airlines, and those partners and governments who embraced change. Thank you for trusting my leadership, and supporting my many crazy ideas.
And two special thanks:
- To Leo Mullin (62) for betting on my Italian passion to lead a revolution.
- And to all who served as Chairmen of the Board of Governors, and especially David Bronczek (63), for friendship and great support.
And finally thanks for the trust and confidence that you will give to my successor, my good friend, Tony Tyler.
I have been proud to work in this industry for over 20 years. We are the most amazing industry on the planet with the greatest people. We have survived a decade of crisis and shocks growing stronger, fitter and ready for even more change.
The future is truly ours to build.
1. Airlines posted net results over the last decade as follows: -$13.0 in 2001, -$11.3 billion in 2002,
-$7.5 billion in 2003, -$5.6 billion in 2004, -$4.1 billion in 2005, +$5.0 billion in 2006, +$14.7 billion in 2007, -$16.0 billion in 2008, -$9.9 billion in 2009, +$18.0 billion in 2010. The operating revenues for the last decade (2001-2010 inclusive) are $4302.8 billion and net losses are -$29.7 billion for a net margin of -0.7%. The operating profits for the same period are $42.4 billion, an operating margin of 1.0%. Source: IATA Industry Forecast, June 2011.
2 Net profit, revised upwards by $2.0 billion from the $16 billion estimated in March 2011. Source: IATA Industry Forecast, June 2011.
3. Brent crude peaked at $126.59 per barrel on 28 April 2011. Source: RBS databank.
4. In 2001 the industry lost $13 billion with oil at $24.7 per barrel. Source: IATA Industry Forecast, June 2011.
5. $4.0 billion profit is based on industry revenues of $598 billion with 4.4% passenger traffic growth, 5.5% cargo growth, 3.0% improvement in passenger yields, 2.8 billion passengers, 48.2 million tonnes of cargo, 4.0% improvement in cargo yields, and oil at an average of $110 per barrel for the full year. This is less than half the $8.6 billion previously forecast in March 2011. Source: IATA Industry Forecast June 2011.
6. Non-fuel unit costs, in constant $, compared to 2001. Source: IATA
7. All percentage figures are comparing over the period 2001-2010.
8. For the period 2004-2010.
9. Simplifying the Business was launched at the 2004 Annual General Meeting in Singapore. Initially it comprised four projects: e-ticketing, common-use self-service kiosks, bar-coded boarding passes and radio frequency identification for baggage tags. IATA e-freight was approved by the IATA board later that year, bringing the initial scope of the savings achieved by the five Simplifying the Business projects to $6.5 billion per year.
10. 100% e-ticketing was achieved in June 2008.
11. The $5.5 billion in potential annual savings comprises three completed projects: Common Use Self-Service (kiosks) $1 billion, Bar-Coded Boarding Passes $1.5 billion and e-ticketing $3.0 billion.
12. IATA Simplifying the Business program is targeting an additional potential $12.6 billion in annual industry cost savings with five programs: Baggage Improvement Program ($1.9 billion), e-freight ($4.9 billion), Fast Travel ($2.1 billion), e-services ($2.9 billion), Automated Baggage Rules ($850 million).
13. IATA Operational Safety Audit.
14. The IOSA registry can found at www.iata.org/registry. As of 5 June 2011 it listed 365 airlines, including all 238 IATA members, for which IOSA registration is a condition for IATA membership.
15. Equivalent to 0.61 hull losses per million sectors on Western-built jet aircraft. Source: IATA.
16. Equivalent to 0.25 hull losses per million sectors on Western-built jet aircraft. Source: IATA.
17. Global international traffic for May 2003 was 18% lower than May 2002. Source: IATA.
18. World Health Organization
19. International Civil Aviation Organization
20. Optimization includes the cooperation of air navigation service providers (ANSPs) and airports for route shortening, changes to the terminal maneuvering areas, and ground improvements. Savings were recorded for the period 2004-2010.
21. Breakdown of $19 billion were achieved for the period 2004-2010 as follows: $9.27 billion from operations, $6.48 billion from infrastructure and $3.19 billion from the Operational Cost Reduction Initiative.
22. Airports, air navigation service providers, airlines and manufacturers are committed to three sequential targets: a 1.5% average annual improvement in fuel efficiency to 2020, capping net CO2 emissions from 2020 with carbon-neutral growth and cutting net carbon emissions by 50% compared to a 2005 baseline. Aviation’s emissions in 2010 were 649 million tonnes, equivalent to 2% of the global total of man-made CO2.
23. 76.4 million tonnes of CO2 breaks down as 39.8 million tonnes from operational improvements and
36.6 million tonnes from infrastructure improvements for the period 2004-2009.
24. See Shonnard/Williams/Kalnes ‘Camelina-derived jet fuel and diesel: Sustainable advanced biofuels’ (Environmental Progress and Sustainable Energy, October 2010) and Stratton/Wong/Hileman ‘Lifecycle Greenhouse Gas Emissions from Alternative Jet Fuels’ (PARTNER Project 28 Report, June 2010).
25. $1 trillion estimated profit of the ‘Big Five’ Oil companies over the last ten years. Source: US Congress House Committee on Natural Resources (Democrat Staff report, February 2011).
26. Breakdown of $59 billion as follows: Simplifying the Business $17 billion, external cost campaign
$24 billion, fuel efficiency $19 billion (figures rounded to nearest billion), verified by Deloitte in accordance with, and to the extent of, agreed-upon procedures.
27. 99.999% rounded from 2002 to 2010 BSP and CASS collection rate. Source: IATA
28. Breakdown of $7.4 billion as follows: $3.1 billion (41%) per year on fraud and theft prevention, audits, emergency planning, depreciation and carrier liability, $2.0 billion (28%) on operational security including data collection and delays caused by security issues, $2.3 billion (31%) on aircraft protection including air security programs.
29. US Department of Homeland Security (DHS) Secretary, Janet Napolitano, attended a summit at IATA’s Geneva offices in January 2010. In addition the ICAO Triennial Assembly in October 2010 announced new security cooperation measures, including data exchange between IATA, ICAO, the European Union and the US.
30. IATA’s five recommendations to the US Department of Homeland Security were: 1. Conduct formal continuous consultation with industry, 2. Align emergency orders with industry’s capabilities, 3. Eliminate inefficiencies in passenger data collection, 4. Ensure communications among governments to drive global harmonization, 5. Develop the Checkpoint of the Future.
31. The IATA Checkpoint of the Future has three main concepts: 1. Strengthen security by focusing resources where risk is greatest, 2. Support this risk-based approach by integrating passenger information into the checkpoint process, and 3. Maximize throughput for the vast majority of travelers who are deemed to be low risk with no compromise on security levels. Through ICAO, governements are workng togetehr to further examine the conceptual framework for the Checkpoint of the Future. IATA is also coordinating closely with the US DHS Checkpoint of Tomorrow program, which has similar goals.
32. Referenced to the UK Civil Aviation Authority in the State of the Air Transport Industry 2008
33. State of the Air Transport Industry 2010
34. The European Union intends to include international aviation in the European Union Emissions Trading Scheme (EU ETS) from 2012. IATA believes this contravenes the Kyoto Protocol, which gives ICAO responsibility for managing aviation’s international emissions. This responsibility was reconfirmed at the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change, Cancun, 2010. IATA also believes that it contravenes the Chicago Convention, which prohibits taxation on international aviation. Moreover, it is extra-territorial as it would see Europe essentially taxing aviation for emissions over countries outside of its political borders.
35. ICAO reached a historic agreement at its 37th Assembly in 2010 to manage aviation’s international emissions. This included a commitment to develop a global framework on economic measures by its next Assembly in 2013.
36. Calculation based on expected cost of purchased EU ETS allowances in 2012, estimated in 2010 at EUR 15 per tonne.
37. GBP 2.9 billion. An increase planned for 2011 was postponed, but the UK Air Passenger Duty still remains the largest single aviation tax in the world.
38. EUR 1.0 billion annually, announced in June 2010 and implemented from January 2011.
39. EUR 90 million annually, implemented from April 2011.
40. INR 22.23 billion converted at an exchange rate of USD1 = INR46.556.
41. The Dutch departure tax was designed to collect EUR 312 million annually and was introduced in 2008. On 1 July 2009 it was repealed.
42. EUR 1.2 billion. Source: Report by SEO Economisch Onderzoek
43. The Irish Air Travel Tax collects EUR 125 million annually. On 14 April 2011 the government announced plans for its cancellation.
44. EUR 450 million. Source: Report by SEO Economisch Onderzoek
45. The global financial crisis that started in 2008.
46. Calculation based on ‘high’ Revenue Passenger Kilometres (RPK) scenario by ICAO.
47. List of participants in the Vision 2050 meeting in Singapore, 12 Feb 2011: Lee Kuan Yew – Minister Mentor, Singapore; Anthony Albanese – Minister for Infrastructure and Transport, Australia; Raymond Benjamin– Secretary General, International Civil Aviation Organization; Yashwant Bhave – Chairman, Airports Economic Regulatory Authority, India; Philip L. N. Chen – Former CEO, Cathay Pacific; Chew Choon Seng – Former CEO, Singapore Airlines; Josh Connor – Head of Transportation & Infrastructure Investment Banking, Morgan Stanley; Nader Dahabi – Former Prime Minister of Jordan; Kevin Done – Former Aviation and Aerospace Journalist, Financial Times; Rod Eddington – Former CEO, British Airways; Tony Fernandes – Group CEO, AirAsia; Edward M. Greitzer – H.N. Slater Professor of Aeronautics and Astronautics, MIT; John Grier – Group Head of Global Transportation Investment Banking, Citibank; Paul Griffiths – CEO, Dubai Airports; Carlos Limon – President, International Federation of Air Line Pilots’ Associations; Lim Hwee Hua – Second Minister for Finance and Second Minister for Transport, Singapore; Thierry Lombard – Managing Partner, Lombard Odier Darier Hentsch & Cie; Wolfgang Mayrhuber – Former CEO, Deutsche Lufthansa; David McMillan – Director General, Eurocontrol; Robert Milton – Chairman & CEO, ACE Aviation Holdings Inc.; Max Moore-Wilton – Chairman, MAp Airports Group; Leo F. Mullin – Former CEO, Delta Air Lines; Ronald K. Noble – Secretary General, INTERPOL; Ben Page – Chief Executive, Ipsos MORI; José Huepe Pérez – Former Director General of Civil Aviation, Chile; Emilio Romano – President & CEO, Air Group Latin America (AGL); Sir John Rose – CEO, Rolls Royce; Ashley Smout – CEO, Airways New Zealand; Doug Steenland – Former CEO, Northwest Airlines; Chris Tarry – Aviation Industry Research and Advisory, CTAIRA; Steven Udvar-Hazy – Chairman & CEO, Air Lease Corp; Girma Wake – Former CEO, Ethiopian Airlines; Michael E. Porter – Harvard Business School; Brian Pearce – Chief Economist, IATA; Kevin Dobby – International Aviation Adviser.
48. Source: IATA's Value Chain Profitability summary report
49. The bilateral system imposes restrictions on market access and foreign ownership.
50. Source: IATA Airline Industry Forecast 2010-2014. Increases in passenger numbers (international and domestic for 2014 compared to 2009).
51. Source: CAAC
52. ASEAN’s roadmap for liberalization of aviation services calls for: removal of restrictions on 3rd/4th Freedom passenger services between ASEAN capital cities in 2008, relaxation of 5th Freedom access to/from capital cities within ASEAN by 2010, and an ASEAN Single Aviation Market by 2015.
53. Top five airlines by market capitalization (1 June 2011): Air China - $16.82 billion, Singapore Airlines – $13.79 billion,, LAN/TAM (combined market value of current LAN and TAM) - $13.03 billion, Lufthansa - $10.04 billion; Cathay Pacific - $9.42 billion, (Source: Bloomberg)
54. Source: IATA. Measured by international revenue passenger kilometers flown by Middle East carriers in 2001 and 2010.
55. Source: www.asecna.aero
56. US airlines cut both domestic and international Available Seat Kilometres by 24% between July 2008 and February 2009 (source ATA).
57. Air France and KLM merged in 2004, consolidating two major airlines based in different states (although still within the political context of the European Union). Under a common holding company, they retain separate branding and identities.
58. Similar examples to the Air France-KLM model for consolidation through the creation of a holding company include the Lufthansa Group, (Austrian Airlines, Brussels Airlines, bmi, SWISS and others), and International Airlines Group (British Airways and Iberia).
59. In 2010, Africa recorded 7.41 hull losses per million flights on Western-built jet aircraft. This is 12 times the global average of 0.61 hull losses per million flights on Western-built jet aircraft.
60. In 2005 all 225 fatalities in Africa on Western-built jet hull losses involved Nigerian operators. IATA worked with the new leadership in the Nigerian Civil Aviation Authority on major reforms. One further accident occurred in 2006. From 2007 to date, there have been no further hull losses in Nigeria. Source: IATA.
61. Source: IATA Industry Forecast 2010-2014.
62. Leo Mullin served as Chairman of the IATA Board of Governors in 2000-2001.
63. David Bronczek served as Chairman of the IATA Board of Governors in 2010-2011.