Giovanni Bisignani
Giovanni Bisignani
Giovanni Bisignaniis an Italian businessman, who was Director General and Chief Executive Officer of the International Air Transport Association from 2002 to 2011...
achieved aircraft airlines bill costs gave increase office operating percent pilot reduction total users
Europe's airlines have achieved a 9 percent reduction in aircraft operating costs, a 24 percent reduction in distribution and back office costs and a 14 percent increase in pilot productivity. Airports, on the other hand, gave the airlines a 13 percent increase in per-passenger costs, with a total bill for airlines and their users of $14.5 billion.
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If we reach our target of 100 percent for worldwide electronic ticketing in 2007, then the airline industry could save about $3.5 billion annually.
airline airlines alone along billion capacity challenge companies demand dollars encourage expanding fuel gives hope instead investment investors next oil plan prices quarter reduced remains research response return stepped strong time trillion
Oil remains the single-biggest challenge for airline profitability. Strong demand gives little hope of significantly reduced prices this year. What is disappointing is the response of the oil industry. Instead of expanding refinery capacity, the oil companies plan to return a quarter of a trillion dollars to investors over the next two years. Airlines alone have contributed $14 billion to this windfall profit. It is time that governments stepped in to encourage investment in new refinery capacity along with research into alternative fuel sources.
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The airline battle to reduce costs, increase yields and improve efficiencies is effective well beyond expectations.
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Airports take their own commercial decisions on their ownership structure. But this must not be at the expense of exploiting airlines through higher charges.
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Airlines will spend $34 billion more for fuel this year than last, and about $1.4 billion of that will make its way to the bottom line. That will drive losses to $7.4 billion for 2005.
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Airlines moved fast after Sept. 11, re-engineering, restructuring. But governments have not played a role,
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Airline ownership restrictions became national rights. Now the flags on our aircraft are so heavy they are sinking the industry.
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The story for January was freight which is starting to show a definite strengthening trend following the disappointing 3.2% growth of 2005. This is the first time in a year we have seen two consecutive months of freight traffic growth above 5% which points to a resurgent world economy.
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Each dollar added to the price of a barrel of oil adds $1 billion in costs to the industry.
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February, traditionally the slowest month for international traffic, brought both good news and solid growth. The recovery in freight has stretched to three months with growth of over 5 percent resulting from strength in international trade.
date million paper printing roughly target tickets
The target date is a must. Every year, we are printing roughly 350 million tickets. We will not print any more paper tickets by 2007.
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As the record aircraft orders of last year are delivered, matching capacity to demand will become even more critical. And Avian Flu is the wild card for 2006.
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Cost reduction remains critical. All industry partners and stakeholders will have to sustain their focus on fuel efficiency and attack costs. While we have made some good progress, the road ahead is long. Far too many airport monopolies do not understand the need for efficiency and too many governments are shirking their responsibility to regulate where commercial discipline is absent.