IATA criticizes European Union’s response to Volcano crisis

The International Air Transport Association (IATA) criticized the European Union’s response to the eruption of the Iceland volcano in April, saying that it cost the European economy 5 billion euros. Giovanni Bisignani, IATA's Director General and CEO during a meeting of EU Transport Ministers also said Europe must review its compensation regulations for flight cancellations and delays which were applied in a way never intended by the original legislation. Finally, Bisignani reiterated his call for a real European Single European Sky (SES).

Source: IATA press release 31 of June 25, 2010

IATA calls for Single European Sky

During the volcanic ash crisis more than 100,000 flights were grounded because individual countries made different decisions over whether or not to open up their airspace. A Single European Sky would put the skies under one regulatory body and act as a crisis management mechanism, which would eliminate confusion. It would also improve Europe’s competitiveness and environmental performance, said IATA.

Europe’s Transport Council is set to meet on May 4 to discuss the issue of implementing a Single European Sky.

Source: eTravelBlackboard; find article here>>.

Air passengers' rights

Reference for a preliminary ruling before the ECJ (Case C-83/10 Rodríguez ea/Air France) from the Juzgado de lo Mercantil de Pontevedra (Spain) regarding the questions,

1. whether the term 'cancellation', defined in Art 2 lit l of Regulation 261/2004/EC has to be interpreted as meaning only the failure of the flight to depart as planned or is it also to be interpreted as meaning any circumstance as a result of which the flight on which places are reserved takes off but fails to reach its destination, including the case in which the flight is forced to return to the airport of departure for technical reasons?
2. whether the term 'further compensation' used in Art 12 has to be interpreted as meaning that, in the event of a cancellation, the national court may award compensation for damage, including non-material damage, for breach of a contract of carriage by air in accordance with rules established in national legislation and case-law on breach of contact or, on the contrary, must such compensation relate solely to appropriately substantiated expenses incurred by passengers and not adequately indemnified by the carrier in accordance with the requirements of Art 8 et seq even if such provisions have not been expressly relied upon or, lastly, are the two aforementioned definitions of the term further compensation compatible one with another?

IATA: Airline Losses at $11 Billion in 2009

The International Air Transport Association (IATA) announced a revised global financial forecast predicting airline losses totaling $11 billion in 2009. This is $2 billion more than the previously projected $9 billion loss due to rising fuel prices and exceptionally weak yields. Industry revenues for the year are expected to fall by $80 billion to $455 billion, a 15 percent drop from 2008 levels. IATA also revised its loss estimates for 2008 from a loss of $10.4 billion to a loss of $16.8 billion. This revision reflects restatements and clarification of the accounting treatment of very large revaluations to goodwill and fuel hedges. IATA industry profit figures strip-out such extraordinary items which are not realized in cash terms.

Source: IATA press release 37 of Sep. 15, 2009

IATA Welcomes Abolition of Dutch Tax

The International Air Transport Association (IATA) welcomed the decision by the Dutch Government to abolish the recently introduced departure tax as part of its economic stimulus package. The tax added a cost of between EUR 11.25 to EUR 45 for every passenger departing from Dutch airports.

Source: IATA press release No 12 of 27 March 2009; find full text here>>.

IATA forecast for 2009

According to the International Air Transport Association (IATA),the world's airlines are expected to lose US$2.5 billion in 2009. Passenger traffic is expected to decline by 3 percent following growth of 2 percent in 2008. This is the first decline in passenger traffic since the 2.7 percent drop in 2001.

Source: eTurboNews; find full article here>>.

USA: Private tourism sector opposes responsibilty for national security

The National Tour Association voices its opposition to the U.S. Department of Homeland Security proposal calling for airlines and cruise lines to collect biometric information, including fingerprints, from foreign travelers departing the United States.
The International Air Transport Association has condemned the proposal, stating that border protection and immigration are government responsibilities. NTA supports IATA and will be enlisting the support of other segments of the travel and tourism economy. Already, the United Motorcoach Association and the American Bus Association have signed on in support.

Source: NTA; full text here>>.

IATA: Passenger numbers to reach 2.75 billion by 2011

The International Air Transport Association (IATA) released passenger and freight traffic forecasts projecting that in 2011 the air transport industry will handle 2.75 billion passengers (620 million more passengers than in 2006) and 36 million tonnes of international freight (7.5 million tonnes more than in 2006).
International passenger demand is expected to rise from 760 million passengers in 2006 to 980 million in 2011 at an annual average growth rate (AAGR) of 5.1%. This will be lower than the 7.4% AAGR recorded during 2002-2006, largely due to slightly slower global economic growth.
Domestic passenger demand is expected grow from 1.37 billion passengers in 2006 to 1.77 billion in 2011, an AAGR of 5.3%, fuelled by expansion in the Indian and Chinese domestic markets.
International freight volumes are expected to grow at an AAGR of 4.8% over the forecast period, supported by economic growth, globalisation and trade. Strong price competition from other modes of transport is expected to keep freight demand growth below the 6.2% AAGR recorded for 2002-2006.

Source: IATA News No. 37 of 24 October 2007. For more detailed information on Passenger or Freight Traffic forecasts visit
http://email.iata.org/servlet/cc5?pHlHQSDDQUVOmshkJoplFxJhhiqjLJolQHlVaVU

"IATA: Dutch ticket tax proposal is ineffective and inappopriate"

"The International Air Transport Association (IATA) condemned the Dutch Government's plans to impose further taxes on air passengers. The government is planning to tax passengers departing the Netherlands by air as much as € 45 citing environmental reasons.
The passenger tax also breaches resolutions of the International Civil Organisation (ICAO) and Article 15 of the Chicago Convention on International Civil Aviation. 'I am surprised that the Netherlands, as an ICAO Contracting State, chooses to ignore its obligations and trample over international agreements', Bisignani, IATA Director General and CEO, commented."

Source: Avionews.

"Governments Endorse Global Strategy for Aviation and Climate Change - Europe Out-of-touch on Emissions Trading"...

On another hand, "The International Air Transport Association (IATA) applauded the comprehensive strategy for aviation and climate change agreed at the Triennial Assembly of the International Civil Aviation Organization (ICAO), subject to confirmation by today's [Friday's] Plenary. At the same time, IATA expressed deep disappointment in Europe's failure to accept a global approach to emissions trading, based on mutual consent."

This Press Release is also available in full text.

IATA Half Year Traffic Results: Passenger Growth Strong, Cargo Sluggish

The International Air Transport Association (IATA) released traffic results for the first six months of the year showing 6.3% growth in year-on-year international passenger demand, slightly higher than the 5.9% rise recorded for the year 2006. However, passenger demand growth weakened to 5.3% for the month of June, the lowest growth rate in nine months.
Freight demand for the first six months of 2007 grew 2.7%, well below the 4.6% growth recorded for the same period in 2006. While year-to-date demand growth is weaker than forecast, June year-on-year demand for freight grew 4.9%. This is the second consecutive month of strengthening demand for freight, following the 5.0% growth recorded in May, and could be indicating a return to historical growth levels in the 5-6% range.

Source: IATA News No. 27. Full June trafic results availbale here.

"Competition: Commission ends block exemption for IATA passenger tariff conferences for routes between the EU and non-EU countries"

As stated by the EU Press Room, "The European Commission has decided not to renew a Block Exemption Regulation that exempts IATA passenger tariff conferences concerning air routes between the EU and non-EU countries from the EC Treaty’s ban on restrictive business practices (Article 81). Tariff conferences allow airlines to agree prices for multi-leg flights on the same ticket that use more than one carrier. The exemption expires on 30 June 2007 for routes between the EU and the US or Australia, and on 31 October 2007 for routes between the EU and other third countries (see IP/06/1294 and MEMO/06/359). IATA has not supplied data that would allow the Commission to conclude that an exemption would continue to benefit passengers. IATA is now developing a new interlining system to replace passenger tariff conferences: this will not be covered by a block exemption and, as is the case for other sectors of the economy, it will be for IATA and individual carriers to ensure that their agreements are compatible with the competition rules."

This Press Release is available in full text.

ACI/IATA Friction

Airports Council International is to Airports what IATA is to carriers. The two international trade associations are at odds over several issues regarding airport costs, responsibility for pre-boarding security costs, etc. Earlier this year, ACI issued a report that dealt in detail with what it calls the three weak links in pre-boarding security....processes, people and equipment. Improvements in all three areas will require money and airport/airline co-operation. However, in a July 2006 speech to The Aviation Club of the UK, ACI's Director General called for IATA to disengage from any role in such discussions, suggesting that IATA does not really want the principals to meet directly. ACI denounced IATA for engaging in a "phoney war", "distortions", "empty rhetoric" and "an anti-airports agenda". It called on IATA to become a partner, and not an adversary.

(Originally posted by Doug Crozier)

Regulation on Compensation and Assistance for Air Passengers is valid

The International Air Transport Association (IATA)and the European Low Fares Airline Association (ELFAA), which represents the interests of 10 low-fare airlines from nine European countries, contested the United Kingdom’s implementation of the regulation before the High Court of Justice of England and Wales. They raised before the High Court questions concerning the validity of the regulation, in particular of the provisions relating to cancellations, delay and compensation. The High Court referred those questions to the Court of Justice of the European Communities. With regard to the compatibility of the regulation with the Montreal Convention, the Court of Justice established that this international Convention, which regulates, amongst other things, the liability of air carriers in the event of delay, binds the Community. The Court held that the assistance and ‘care’ for passengers prescribed by the Community regulation in the event of a long delay to a flight constituted standardised and immediate compensatory measures. They were not among the measures whose institution is regulated by the Convention and cannot therefore be considered inconsistent with the Montreal Convention. With regard to compliance with the obligation to state reasons and observance of the principle of legal certainty, the Court stated that the provisions of the regulation that are at issue lay down precisely and clearly the obligations owed by air carriers, clearly disclose the essential objective pursued and are unambiguous. With regard to observance of the principle of proportionality, the Court held that the compensation which passengers may claim when they have been informed of a flight cancellation too late did not appear manifestly inappropriate to the objective pursued, given the existence of a ground for exemption upon which carriers may rely and of the conditions restricting the application of this obligation on carriers. With regard to observance of the principle of equal treatment, the Court held that the situation of undertakings operating in each of the different transport sectors was not comparable. Passengers whose flights are cancelled or subject to a long delay were in an objectively different situation from that of passengers on other means of transport in the event of incidents of the same nature. The Court concluded, therefore, that its examination had revealed no factor of such a kind as to affect the validity of the provisions of the regulation that are at issue. (PRESS RELEASE No 1/06 of the ECJ; see http://curia.eu.int/en/actu/communiques/cp06/aff/cp060001en.pdf)

(Originally posted by Michael Wukoschitz)

Brisbane World's best Airport

IATA has chosen Brisbane Airport as world's best airport and bestowed the "Eagle Award". The airport is expecting 15 million passengers this year.

(Originally posted by Michael Wukoschitz)

Airlines Price Fixing to be Reviewed

The Commission issued a consultation paper on 8 February 2001 indicating that it intends to review the block exemption from EU Competition Rules given to airlines.This would affect the "passenger tariff conferences" held by IATA to deal with interlining agreements. The exemption will continue until June 2002 when the new policy should be announced. See
http://europa.eu.int/comm/competition/antitrust/others/#consultation_interlining_feb_2001

(Originally posted by John Downes)

IATA: Deep Vein Thrombosis and Air Travel

IATA Director General, Pierre J Jeanniot, stated in letters to the Vice President of the European Commissioner and Commissioner for Transport, Mme Loyola de Palacio and US Secretary of Transport, Mr Norman Mineta, "At the present time, there is no conclusive medical evidence supporting the alleged connection of deep vein thrombosis (DVT) with long distance travel. Nonetheless, a number of further studies are underway and IATA Members are very much aware of the need to minimise any potential risks". IATA is organising a worldwide conference on cabin health in Geneva 17-18 May 2001.

(Originally posted by John Downes)

IATA Initiatives on Disruptive Passengers

A Memorandum of Understanding and a set of IATA Guidelines have been adopted by by the major airlines and airports authorities to address the problem of disruptive passengers. An IATA Seminar in Geneva on 23 March attracted 140 delegates from 64 airlines and other industry associations. Protocols adopted by Gatwick Airport's Disruptive Passenger Action Group were put to those attending as good practice. The UK and Canada have launched public awareness campaigns to make clear what type of behaviour will not be tolerated and the legal and other consequences for those who engage in it.

(Originally posted by John Downes)

IATA Criticise Europan Transport Ministers Meeting Re the Air Traffic Management System

IATA stated that, though the Meeting of the Ministers of Transport of the 38 ECAC States in Brussells was helpful its outcome was inadequate. There is need for more action to reduce delays and to build a safe, efficient and cost- effective ATM system. IATA supports EC membership of EUROCONTROL. It also supports the EC Commission's decision to form a high level group to build a Single European Sky. It calls for strengthened capacity planning by EUROCONTROL and has criticised the capacity targets set for summer 2000 and 2001.

(Originally posted by John Downes)

IATA's DG Calls for a Balance to the Benefits of Air Liberalization

Pierre Jeanniot (DG of IATA) stated on 16 November 1999 "There is no question that the air transport industry will continue to liberalise. Our main concern is that liberalisation proceeds in a manner which produces the best balance of benefits to consumers, airlines and the public interest". IATA has issued a discussion paper on Air Transport and the General Agreement on Trade in Services (GATS). At present GATS covers repair and maintenance, provision of computer reservation systems and sales and marketing of air services. These may be added to at the next WTO Ministerial Conference in Seattle (USA) on 3 December 1999.

(Originally posted by John Downes)