Asia urged to show aviation leadership
SINGAPORE – IATA has called on Asia to join the race for industry leadership.
“Asia has more than 50 percent of the world’s population, and will be our largest single market by 2010,” said Giovanni Bisignani, IATA’s director general and CEO in his keynote address at the inaugural Singapore Air Show Aviation Leadership Summit.
“Asia needs to be part of the race to lead the industry with sound policies and innovation, along with the commercial race for market share, Bisignani said.
He identified liberalisation of air services as one of the opportunities for Asian leadership to effect industry change.
“The archaic bilateral system requires government to negotiate international markets, resulting in a fragmented industry.
“The largest airline represents only five per cent of total traffic. And in Asia 13 airlines compete for 50 per cent of the market.”
ASEAN’s decision to liberalise traffic between capital cities in 2008 was a step in the right direction, Bisignani said.
“But we need bolder leadership that will set the industry on a completely different course.
“If Asia acts as a region, it can balance the traditional leadership of the US and Europe, bringing a bolder approach and exploring new ways of doing business,” said Bisignani.
He also suggested the formation of a new and unique regional institution for coordination of air policy issues involving both government and industry.
“Asia is our industry’s present and its future. Running an airline is tough business, and Asia has done well,” he said.
“The race for market share and growth has been won.
“Now we need a unique race for leadership that involves key players from the region from fast developing China and India, to more traditional players like Japan, Singapore or Australia, and everyone in between.”
Ian Jarrett
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