IATA head calls for urgent resolution on open skies

EU and US should lead the way JOY ORLEK THE URGENT need for an open skies agreement between the EU and US has again come under the spotlight. Speaking at a recent conference in Singapore, IATA’s director general and CEO Giovanni Bisignani said that while airlines were among the first companies to operate globally, they are among the last to benefit from globalisation. “Deregulated by half-measures, governments are far too involved with an industry that is intensely competitive and consistently reducing costs. Airlines cannot live with the 60-year-old rules of the game – the bilateral system – that were developed for another age. “Governments must move forward with progressive liberalisation to build a stronger industry.” He said that an agreement between the US and EU on open skies and regulatory convergence would send a strong signal about the way forward for aviation. “The agenda for a successful airline industry is not complicated, but it has three dimensions – airlines, partners and governments. If these three dimensions are correct the chances for a safer, more secure, environmentally friendly industry that produces a US$6 billion profit in 2007 are good. That is still only a 1.5% margin – but will signal a move towards a more stable industry,” said Bisignani.