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...
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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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Freight and passenger traffic are forecast to grow in the 5 to 6 per cent range during the year but the industry is projected to record another loss of over US$4 billion for 2006.
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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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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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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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We fully understand the principles of supply and demand. But it is difficult to see this as anything other than a $14 billion cash grab by the oil industry that is pouring salt into the wounds of a global crisis.
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We fully understand the principles of supply and demand,
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We will only see profitability in 2007 when we expect a return of US$6.2 billion. This is a net profit margin of 1.5%, not even enough to cover the cost of capital and nowhere near recovering the billions lost since 2001. A long and difficult agenda for change involving all partners is still ahead of us.
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We are working on four core projects: 100 percent e-ticketing globally by the end of 2007; bar-coded boarding passes; common use of self-service check-in kiosks; and radio-frequency identification for baggage management.
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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.
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I applaud Malaysia's leadership in ratifying this important convention, which creates an international legal framework that will help attract finance to the aviation industry.
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Moreover, the impact of Hurricane Katrina on fuel supplies and refinery capacity will only ensure that relief will not come soon.
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The approach of the French Government to air transport is from another age. There was little or no financial transparency. And a result that ignores the recommendation of an independent commission makes a total mockery of the consultation process. The government should support greater efficiency rather than shirking its regulatory responsibilities.
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Paper costs money...you do not need to be a rocket scientist to understand that up to $3 billion in savings are possible.