Connectivity is critical for enhanced trade
January 22, 2013 - LM Editorial
2013 is the 100th year of commercial aviation. Over that century, through an ever-expanding network, air transport has transformed the way we live, work and play, providing jobs for some 57 million people and supporting $2.2 trillion in economic activity by connecting people and goods on 35,000 routes.
But continued connectivity growth is not guaranteed, cautions the International Air Transport Association (IATA). The industry’s expected margin in 2013 of 1.3% is very weak. Furthermore current returns on investment are less than half the industry’s cost of capital, which continues to erode shareholder value.
In the New Year, IATA believes governments should resolve to bring down the barriers to connectivity growth. This can be done by addressing excessive taxation, high infrastructure costs, onerous regulation and improving the capacity and efficiency of airports and air navigation services.
We agree with Tony Tyler, IATA’s Director General and CEO, who feels a strong air transport sector is in the self-interest of governments eager to support economic growth and development.
“Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen,” said Tyler.
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