by Mia Taylor
Last updated: 6:05 PM ET, Thu February 14, 2019
The International Air Transport Association is urging the U.S. government to work together with the aviation industry to ensure that the industry is prepared to accommodate a projected 62 percent rise in demand.
During a speech at the International Aviation Club in Washington D.C. IATA Director General and CEO Alexandre de Juniac said that delivering aviation's economic benefits requires a framework that supports competitiveness.
"Competition unleashes innovation and helps drive prices down. In 1978, the US government recognized this fact and deregulated the airline industry, leading to lower fares and greater access to air travel," said de Juniac.
"Yet some in Congress are trying to turn back the clock on deregulation's successful legacy," continued de Juniac. "For example, a measure introduced in last year's Federal Aviation Administration reauthorization bill would have required the US Department of Transportation to regulate airline ancillary fees. Clearly, the intent was to eliminate the unbundling model that has allowed airlines to keep fares low by asking consumers only to pay for those things they value."
While the measure de Juniac is referring to did not make it into the final bill, IATA's leader said it should never have been introduced in the first place.
"On principle, it is outrageous that airlines were singled out in this manner," said de Juniac.
The aviation supports 6.5 million jobs in the United States and contributes over $778 billion to GDP, including aviation-supported tourism, according to IATA.
Passenger journeys meanwhile are expected to rise to 1.26 billion by 2037, from 780 million in 2017.
During his speech, de Juniac highlighted key factors necessary to ensure aviation is able to meet this increase and grow aviation's benefits. These include maintaining a competitive environment that stimulates innovation, and adequate infrastructure to cope with new demand.
When discussing competitiveness, de Juniac urged the US to ratify the Montreal Protocol 2014 (MP14) to address loopholes in international agreements that make it difficult to bring the law to bear against unruly passengers.
"No passenger or crew member should have to put up with verbal or physical threats, harassment, violence or assault," he said.
MP14 would close jurisdictional loopholes in the existing international treaty governing offenses onboard aircraft. It is designed to ensure that perpetrators face justice regardless of where they are flying. To date, 16 countries have ratified MP14. However, 22 are needed for the protocol to come into force.
In terms of infrastructure, de Juniac highlighted the need for additional airports to accommodate growth.
"While the US is in a better position than most markets, no major new airport has opened here in almost 25 years," he said. "With the US market expected to add close to 500 million passengers by 2037, that just won't do."
In the absence of adequate infrastructure, de Juniac suggested the Worldwide Slot Guidelines (WSG) become even more important for managing scarce resources around the world. The guidelines are being used at about 200 airports, including at New York's JFK, and account for 43 percent of global traffic.
"While there may be local variation in how slots are managed, the system will only work if the parties at both ends of a route are using the same rules. Tinkering by any participant messes it up for everybody. Therefore, we cannot turn a blind eye to one country or one airline over another," said de Juniac.
The recent partial government shutdown in the United States did not escape de Juniac's attention.
He called on leaders in Congress and the Administration to work together to ensure that aviation connectivity is not endangered in the event of another government shutdown.
"While aviation was fortunate to escape long-lasting economic damage during the shutdown, there were some serious impacts and airlines took a hit in terms of tickets not sold and trips not made," said de Juniac. "The shutdown also underscored the urgent need to remove the US air traffic control system from the federal budget process and place it in a nonprofit structure that would be immune to these kinds of situations."
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