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Giving Latin
American Aviation The Freedom To Succeed By Jim Douglas |
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April 1, 2012 - The International Air Transport
Association (IATA) urged governments and other
stakeholders in Latin America to unite to give aviation
the freedom to succeed by improving aviation safety,
making badly needed investments in infrastructure and
reducing the heavy tax burden on the industry.
“The freedom to succeed depends on having the right
conditions in place. Many of those conditions are beyond
the control of the airlines—or at least require industry
and government to work together with a common vision and
purpose,” said IATA Director General and CEO Tony Tyler. Tyler urged governments to use aviation as a catalyst for economic growth and development in the region. Aviation supports more than 4.6 million jobs and $107 billion in GDP in the Latin America/Caribbean region. But this could be much more. Americans travel an average of 1.8 times a year. |
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Chile has
the region’s highest propensity to travel. But it is still at
0.7 trips per year. “There is great potential to be achieved if
we work closely with governments to secure our future,” said
Tyler. Safety: “The freedom to succeed begins with safety because without it success is not sustainable. Earlier this month, we announced our analysis of the industry’s 2011 safety performance. It was a stellar year—the best in history: 2.8 billion people flew safely on 38 million flights.” However, Tyler noted that the picture in the Latin America/Caribbean region was not as bright.
“Although
Latin American airlines achieved a 32% improvement in the
Western-built jet hull loss rate compared to 2010, the 2011
performance was still 3.5 times worse than the global rate.
LATAM traffic is 6% of the global total but it accounted for 27%
of jet hull losses. If this does not improve, then the current
rate of traffic growth means that in six years, carriers here
will experience a major accident every eight weeks. Clearly that
is not sustainable.” “If Latin American aviation is to continue to deliver on its immense promise, safety must be addressed as a community working in partnership with government. And global standards must be at the heart of our joint efforts.” Tyler cited the success of the IATA Operational Safety Audit, which is a condition for membership in both IATA and ALTA, as a means of improving safety. |
“The accident rate
for non-IOSA carriers in LatAm is five times worse than for those
airlines that have met the standards. Chile, Brazil, Costa Rica, Mexico
and Panama recognize this and have incorporated IOSA into their safety
oversight. Peru is expected to follow in 2014. I cannot understand why
all Latin American governments don’t do the same. It can only help.”
Following on from
IOSA is the IATA Safety Audit for Ground Operations (ISAGO). It is
improving safety and helping reduce the $4 billion annual cost of ground
damage. Eleven airports and four safety regulators in the region have
given their formal support. Four airlines are part of the audit pool
with others expected to join shortly.
Tyler noted the
importance of information sharing to identify emerging safety trends and
take actions to mitigate risks. “On this, IATA and ALTA are working
hand-in-hand, with a landmark agreement enabling all ALTA members to
contribute to and benefit from IATA’s Global Safety Information Center
(GSIC).”
Security: “A
decade after the tragic events of 9.11, we are much more secure but
perhaps not equally wiser in the way that we accomplish passenger
security. Does the security experience of long lines—which is a
particular issue at several large hub airports in Latin America—plus
unpacking, disrobing and often intrusive checks, need to be that way?”
Tyler cited IATA’s
Checkpoint of the Future that will differentiate screening using
passenger information that is already being collected for immigration
purposes. This will be combined with technology that allows passengers
to walk through checkpoints without stopping, disrobing or unpacking.
Tyler cited the
need to harmonize passenger data exchange within the region. “As with
safety, security needs global standards. Many of the LATAM programs for
passenger and cargo data require non-standardized data exchange methods
that cannot be supported by airlines. And even if they could, the
systems would be inefficient and not in harmony with the rest of the
world. IATA is working to educate authorities on the need for change and
providing alternatives.”
Infrastructure:
Tyler said that aviation’s sustainability is also highly dependent on
adequate airport and air traffic management infrastructure. “To be
candid, I have big concerns about this region. Infrastructure clearly is
deficient in many countries but I do not see a level of urgency among
governments to fix it with holistic solutions. Bottlenecks created from
neglect and underinvestment could choke future growth.”
Tyler noted the
recent airport privatizations in Brazil are intended to help that
country fast track much needed investment in airport infrastructure
ahead of the FIFA World Cup and Olympics events. However, the high
prices paid by the new airport investors for the concessions are a
matter of concern. “The investment must be recouped through efficiency
improvements that enable traffic growth, not in higher charges to
airlines,” said Tyler.
Tyler also cited
the need to open more airspace that is currently restricted to military
use and to reduce the heavy fees and user charges imposed on travel and
tourism across the region. “At least $4 billion is collected from
airlines and their customers. There is very little transparency on what
happens to that money. But a best guess is that less than a third stays
within the sector.” |
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