IATA calls for effective Australian airport rules

THE International Air Transport Association (IATA) has unveiled an agenda for Australian aviation that addresses infrastructure, training, environmental and liberalisation issues.

IATA director general and CEO Giovanni Bisignani called on Australia to remove outdated ownership restrictions for international aviation. "Historically, airlines have profit margins of less than one per cent that is not sustainable. To fix this, we need to run this business like a normal business. The 49 per cent foreign ownership cap for international operators [is] very difficult to understand," he told told the Australian National Aviation Press Club.

"It is critical that the next Australian government has a solid aviation policy to reap the broad economic benefits that aviation can generate," said Mr Bisignani.

"Australia's regional neighbours, India and China, are engines of growth, helping Asia Pacific's carriers to lead the industry's recovery from the global financial crisis. With a coordinated national policy that builds on the key elements of last year's National Aviation White Paper, much can be achieved," said Mr Bisignani.

"We need profitable airport partners. However, they must be effectively regulated so that they do not abuse their monopolistic position. The Productivity Commission's review of Sydney Airport charges is an opportunity to re-balance the situation to deliver higher quality with greater cost efficiency," the IATA chief said.

"We have had over 50 years of studies on a new airport for Sydney. Whether you believe Sydney Airport will run out of capacity in 10 years or 20 years, a decision is now critical," said Mr Bisignani. "We need a decision on a plan to maximise the capabilities of the current airport and to determine a location and timeline for the new airport. It is essential to ensure that the airport has the capacity to continue to play its important role in the economy."

Airservices Australia (ASA), a company that introduced new air navigation technologies, was challenged by Mr Bisignani to continue raising the bar by taking a similar approach with new capital expenditure projects and its next long-term pricing agreement.

"The 2005-2009 pricing agreement sets a new industry benchmark. The next agreement must be equally significant and should include three key elements: (1) cost reductions to airlines made possible by ASA's successful management through the crisis; (2) an agreed capital expenditure programme and (3) an approach to regional operations in line with the International Civil Aviation Organization (ICAO) principle of equality of opportunity and without international airlines subsidising regional operations."

The IATA chief also encouraged Australia to provide training to support India and China. "To maximise the economic benefits of these opportunities, Australia needs better coordination on strategy and standards. For this, government and industry must be on the same page," said Mr Bisignani.

With regard to the environment, he said: "Australia is facing a difficult debate on the issue of emissions trading and carbon taxes. The industry is committed to cap emissions with carbon-neutral growth from 2020 and to cut them in half by 2050 compared to 2005 levels. But Canberra must remember that aviation is a global industry. Domestic or regional solutions for aviation and climate change cannot deliver effective results. In line with the White Paper, Australia must take a leading role to ensure that aviation emissions are managed on a level playing field in a global framework under ICAO."
(Source:www.schednet.com)