Fuel prices hurt airlines
Jun 10, 2008
THE International Air Transport Association (IATA) has asked governments and industry partners to address the fuel crisis, which is pushing airlines into the red. “Airlines are struggling for survival. Massive changes are needed.
By Winfred Kagwe
THE International Air Transport Association (IATA) has asked governments and industry partners to address the fuel crisis, which is pushing airlines into the red. “Airlines are struggling for survival. Massive changes are needed.
Governments must stop crazy taxation, change the rules of the game and fix the infrastructure,†the association’s director general and chief executive, Giovanni Bisignani, told delegates at IATA’s 64th annual general meeting and world air transport summit in Istanbul, Turkey.
IATA forecasts a loss of $2.3b this year due to the high price of fuel, which has averaged $106.5 per barrel.
The association said the loss could be higher, probably $6.1b with the oil price hitting $135 per barrel for rest of the year, a statement said.
The industry transports 2.3 billion passengers. The loss of over $3.5 trillion of business and 32 million jobs is anticipated if the industry falls.
“It is time to tear up the 3,500 bilateral agreements and replace them with a clean sheet of paper without any reference to commercial regulation,†Bisignani advised.
THE International Air Transport Association (IATA) has asked governments and industry partners to address the fuel crisis, which is pushing airlines into the red. “Airlines are struggling for survival. Massive changes are needed.
Governments must stop crazy taxation, change the rules of the game and fix the infrastructure,†the association’s director general and chief executive, Giovanni Bisignani, told delegates at IATA’s 64th annual general meeting and world air transport summit in Istanbul, Turkey.
IATA forecasts a loss of $2.3b this year due to the high price of fuel, which has averaged $106.5 per barrel.
The association said the loss could be higher, probably $6.1b with the oil price hitting $135 per barrel for rest of the year, a statement said.
The industry transports 2.3 billion passengers. The loss of over $3.5 trillion of business and 32 million jobs is anticipated if the industry falls.
“It is time to tear up the 3,500 bilateral agreements and replace them with a clean sheet of paper without any reference to commercial regulation,†Bisignani advised.