Alexandre de Juniac
SPEED and innovation are key factors for securing the future of a healthy global air transportation industry in a world that is growing in uncertainty.
Newly-appointed IATA director general and CEO Alexandre de Juniac said during his keynote speech at the IATA World Financial Symposium yesterday that the industry was having “a very good year” and is forecasted to achieve a collective net profit of US$39.4 billion, which would be a record.
However, the former Air France-KLM Group chairman cautioned that potential risks that can stumble this profitability include a sudden rise in oil prices, an increase in terrorism, a sharp economic downturn and a retreat from the principles of free trade by one or more major economies.
He said: “Uncertainty is ahead of us. I am a big believer in speed and innovation. We cannot know the future. But we need to be prepared to react quickly when the environment changes. That’s not easy for any business – and it is a real struggle for process-driven industries like air transport.”
Speaking to TTG Asia e-Daily on the sidelines of the symposium, IATA’s chief economist Brian Pearce elaborated that in light of “record profitability” for the aviation industry this year, consumers will see a substantial increase in the value they derive from air transport, including a reduction in what they pay.
Highlighting the growth in LCCs by 50 per cent today, compared to 10 years ago, Pearce said this has resulted in a “travel boom” with especially strong competition among airlines for consumers in Asia-Pacific.
“Especially in this part of the world (Asia), consumers will stand to benefit a lot from lower fuel prices with lower fares and more routes,” he said.
