by Elco B
Tue Jun 3rd, 2008 at 05:32:04 AM EST
|I stole the titel from a press release from IATA. |
Seeing the graph they are in full panic-mode now.
IATA is in conference in Istanbul (1 - 3 June IATA Annual General Meeting and World Air Transport Summit) and what is coming out there is worth a look.
IATA is an international trade body, created some 60 years ago by a group of airlines. Today, IATA represents some 230 airlines comprising 94% of scheduled international air traffic. The organisation also represents, leads and serves the airline industry in general.
Just before the opening of the conference, IATA gave his usual monthly press release about air-transport figures.
Some points: Traffic Conitues to Slow
29 May 2008 - Istanbul
"The impact of skyrocketing oil prices and weaker economies has made its way to traffic growth. At this time last year we were talking about 6.7% growth for the first four months of the year. This year it's 4%. There has been a step change downwards," said Bisignani.
"In 2007 airlines posted a profit of US$5.6 billion. This was the first profit after six years in which losses totaled more than US$40 billion.
And indeed, this was just an introduction for what is coming.
After the first day of the conference we have already this:
Industry Leaders Agree to Historic Declaration
The leaders of the world's airlines unanimously agreed to a resolution calling for governments, airports and labour to take immediate action to help the industry survive the growing financial crisis. The resolution was made at the International Air Transport Association's (IATA) 64th Annual General Meeting and World Air Transport Summit.
Ah, government is needed!
Some other points from their 'historical' declaration:
Governments must eliminate archaic rules that prevent airlines from restructuring across borders.
|Sounds good, but what they mean? Government is archaic? |
In view of existing fees and charges, governments must refrain from imposing multiple and additional punitive taxes and other measures that will only deepen the crisis.
|Taxes are punitive? Oh well, they forget all the tax-money invested in the infrastructure and e.g. ATC(air-traffic-control).|
State service providers must invest to modernise air transport infrastructure urgently, eliminating wasteful fuel consumption and emissions.
|Ooh, government doesn't pay enough! Not our fault we are wasteful.|
Business partners, in particular monopoly service providers, must become as efficient as airlines are now. If not, regulators must restrain their appetite with tougher regulation.
| Oewaw; regulation no good?|
Labour unions must refrain from making irresponsible claims and join the effort to secure jobs in aviation and indeed in other industries.
|Yep, the usual mantra; Unions are irresponsible, evil, evil.... |
In the interest of the global economy and the flying public, we urge authorities to enforce the integrity of markets so that the cost of energy reflects its true value.
|Waw, and now government and regulation is needed again? |
"The airline industry is sending a clear message to governments, partners and labour. We are in crisis. Governments, labour and our business partners must understand this. And they must act," said Giovanni Bisignani, IATA Director General and CEO.
I fully agree, we are in crisis.
But their 6 point plan is confusing me. It looks like they want someone else pays the bills so they can keep the profits.
And there is another press release from IATA, 02 June 2008.
Crisis Again - Deep Losses Projected
The International Air Transport Association (IATA) revised its industry financial forecast for 2008 significantly downwards to a loss of US$2.3 billion. The forecast uses a consensus oil price of US$106.5 per barrel crude (Brent). This is a swing of US$6.8 billion from the previously forecasted industry profit of US$4.5 billion that was announced in March and based on an average oil price of US$86 per barrel (Brent).
We gonna loose lots of money.....HELP !
From that release:
"We also need to take a reality check. Despite the consensus of experts on the oil price, today's oil prices make the US$2.3 billion loss look optimistic. For every dollar that the oil price increases, we add US$1.6 billion to costs. If we see US$135 oil for the rest of the year, losses could be US$6.1 billion," said Bisignani.
"The situation has changed dramatically in recent weeks. Oil skyrocketing above US$130 per barrel has brought us into uncharted territory. Add in the weakening global economy and this is yet another perfect storm," said Bisignani.
"Oil is changing everything. There are no easy answers. In the last six years, airlines improved fuel efficiency by 19% and reduced non-fuel unit costs by 18%. There is no fat left. To survive this crisis, even more massive changes will be needed quickly. Air transport is a catalyst for US$3.5 trillion in business and 32 million jobs. This is an extraordinary crisis with the potential to re-shape the industry with impacts throughout the global economy. Governments, industry partners and labour must deliver change," said Bisignani.
OHO, we are switching to full panic-mode...Everybody must hulp us!
And there is another press-release from IATA 02 June 2008:Fuel Crisis a Catalyst for Change
Agenda for Freedom.
The greatest call for change was with governments. "Re-regulation or re-nationalisation is not the right answer. But it may be the only one unless we change the rules of the game. The Chicago Convention is not the problem. It's the bilateral system that was designed for another age. The Freedoms of the Air are only restrictions on our business. Airlines cannot look beyond national borders to manage risk, access global capital or consolidate. To fight crises effectively, brands not flags must define our business," said Bisignani.
"We must communicate clearly to governments the dimension of the oil crisis, the potential impact on the global economy if the air transport industry fails, the measures that airlines are taking to survive and the action we need from them. To achieve this, IATA is organising an Agenda for Freedom Summit in Istanbul in the fourth quarter of this year. The invitation is open to any country with the courage to change. Already 12 countries have agreed to participate," said Bisignani.
Sorry, by now my head is exploding....over to your more intelligent comments...