IATA repeats call for liberalisation

Joy Orlek IATA DIRECTOR general and CEO Giovanni Bisignani issued a further call for the liberalisation of air transport when he addressed the Arab Air Carriers’ Organisation in Kuwait last week. “We cannot rely on a 60 year-old bilateral system that requires governments to negotiate our markets,” he said. “This worked in the 1940s when we had 9 million passengers flying government-owned airlines, but a 2 billion passenger a year business needs speed and flexibility.” He called on the US and Europe to lead on liberalisation. “There is no excuse for them not to – except politics. And the recent US elections will make things even more difficult." In Bisignani’s view, liberalisation stimulates traffic and is a catalyst for economic growth. He points to the example of India where a liberalised treaty with the UK saw flights double, with both Indian and UK carriers sharing the opportunities. “The European Single Market is another example – it became a reality in 1993 and traffic doubled by 2005. "So my message is simple. The industry needs to move forward with a progressive approach to liberalisation. No need to change overnight, but governments must follow up on the vision of a staged approach to liberalisations agreed at ICAO in 2003."