New York - The International Air Transport Association (IATA)
called on the new Obama Administration in the US to prioritise aviation
as a catalyst to stimulate the US economy. “Smart investments - not
bailouts - in air transport will pay-off with jobs and boost other
industries,” said Giovanni Bisignani, IATA’s Director General and CEO.
In a speech to the Wings Club in New York, Bisignani urged
the Obama Administration to go beyond the airport investments in the
White House Agenda. “The US air traffic management system is in
desperate need of an upgrade. Airlines and airports cannot be efficient
economic catalysts if we operate in gridlock. I urge the President to
allocate the US$4 billion needed to get the ball rolling with the first
phase of the long-awaited NextGen project that will create some 77,000 jobs
in the US economy,” said Bisignani.
IATA also urged the Obama Administration to deliver broad
policy changes in the areas of security, environment and commercial
freedoms:
Security: Security improvements
since September 11, 2001 have come with a growing bill that now totals
US$5.9 billion annually. Bisignani challenged governments on efficiency.
“I am not convinced that we are much wiser or any more efficient in our
processes,” said Bisignani. ”We have a great record on safety because
data drives decisions that are implemented with global standards. We
spend billions on security with little data to support the actions taken.
Governments have made minimal progress on recognising each other’s
security standards. We need a system that is threat-based, risk-managed
and cost-efficient, with mutual recognition of standards. Security
principles must be a part of the corporate structure of all industry
players. And governments must be accountable to show value for every
dollar that is invested”.
Environment: Bisignani praised
the Obama Administration’s intention to be a leader in addressing climate
change and urged the President to support aviation’s global efforts to
contain and reduce the 2% of man-made carbon emissions attributed to
aviation. The aviation industry is united behind IATA’s Four Pillar
Strategy of technology investment, efficient infrastructure, effective
operations and positive economic measures. The strategy is delivering
results. Since 2004, some 59 million tonnes of CO2 have been saved and
this year, aviation’s carbon footprint will shrink by 4.5% - 2.5% from
capacity reductions and 2% due to efficiency gains. “We need government
leadership with a global vision. Governments must stimulate the economy
with green investments such as biofuel research and tax breaks for new
aircraft purchases. And they must remain true to the vision of Kyoto
which entrusted the International Civil Aviation Organization (ICAO) to
deal with aviation’s international emissions. In preparation for
December’s Climate Change Conference in Copenhagen, the ICAO Group on
International Aviation and Climate Change (GIACC) will produce an action
plan in September. We need the US, a member of GIACC to be a strong voice
opposing Europe’s unilateral, illegal and ineffective regional emissions
trading plans while building consensus for a global solution,” said
Bisignani.
Commercial Freedoms: “Thirty
years after the US started deregulation under President Carter, the job
is still incomplete,” said Bisignani in a challenge to reform the 60+
year-old bilateral system. “International markets remain closed until
governments negotiate them open, and foreign ownership restrictions still
limit access to global capital and prevent cross-border consolidation.
What worked in the 1940s is killing the industry today. To manage through
this crisis without bailouts airlines cannot have one hand tied behind
their back with outdated restrictions on ownership. Why does the US
restrict ownership of its airlines to 25%, effectively limiting the
ability of international capital to offer Americans aviation jobs?
Passengers don’t care who owns an airline, so long as it is safe and
provides efficient service. Governments should take the same view.
Following IATA’s Agenda for Freedom Summit last October, we are working
with 14 governments and the European Commission on a Multilateral
Statement of Policy Principles. I hope that early in President Obama’s
term we will be able to change the structure of aviation, not with
bailouts, but with commercial freedoms that will generate value for
investors and provide a more secure future aviation jobs,” said
Bisignani.
“The priority of government is to create jobs and restore
the economy to health. In the US, aviation supports 10.2 million jobs and
US$1.1 trillion in economic activity. Meaningful change in government’s
approach to security, the environment and commercial freedoms will ensure
that aviation plays its role as an economic catalyst,” said Bisignani.
View
Bisignani's full speech
For more
information, please contact:
- Steve Lott
Head of Corporate Communications, North America
Tel: +1 202 285 9590
Email: lotts@iata.org
Notes
for Editors:
