UK government rapped by IATA boss

Monday, 21st September 2009

The director-general of IATA, Giovanni Bisignani aimed scathing criticism at specific governments including the British government at a press conference in Washington last week.

Bisignani said governments need to wake up to the requirement to create a policy framework that helps produce a competitive air-transport sector with a view to driving economic expansion. His most severe crtiticism was directed at the UK government, which has added new 'environment' charges to the already high airport taxes.

 

The IATA chief pointed out that other European countries have actually reversed such taxes after they were found to be negatively affecting the economy. He also advised smaller countries to give up the "expensive hobby" of maintaining national carriers where these do not make business sense.

Bisignani suggests that these countries consider merging airlines across borders. He also aimed criticism at larger countries that refuse foreign citizens to control their flagship carriers, making such mergers difficult. The United States was singled out by Bisignani in this regard.

The IATA chief's comments come at time when airlines all over the world are facing dwindling passenger numbers. He predicted that the airline industry would face losses of around $11 billion this year.

"We don't want bailouts," said Bisignani. The IATA chief insists the industry need governments to consider this sector more seriously, replacing environmental taxes with a more global solution for helping the environment, and by providing airlines with commercial freedoms needed to access global capital and markets like other businesses.

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