The slow pace of the construction of airline infrastructure is the most dominant problem in the global aviation industry. The lack of adequate supply for the growing demand in the different sectors of the world economy for air transport has led to major challenges in the industry. The CEO and director general of the International Air transport Association (IATA), Alexander de Juniac said that all the positive hopes that we have all had in supporting robust aircraft orders will amount to nothing if the key aviation players and stakeholders fail to build capacity for the efficient management of airports and air traffic control.
Mr. Juniac made this statement while he delivered a keynote address on Monday during the Singapore Airshow Aviation Leadership Summit. More than 275 airlines have representation at IATA which comprises of more than 83% of the air traffic that is currently functional on the global market. The organization has made calls for the immediate attention in addressing the challenges that are currently facing the industry in order to have the future of the industry secured. Moreover, the high cost of air travel is contributed by many trends that are quite worrying. One of the factors leading to an inflation in flying costs is the privatization of airports.
Mr. Juniac said that the only way to spur economic growth is to develop a regulatory framework to balance the investor’s interest with an incentive that will turn a profit while at the same time manage interests of the public for the airports. One of the most pressing concerns that have been raised by IATA is the lack of adequate handling capacity in places such as Manila, Bangkok, Jakarta and other major destinations for the Asia-Pacific region. The IATA leader said that South Korea’s Incheon Airport in the Country’s capital of Seoul provides a benchmark that all other airports should observe and learn from. Just a few months ago, the Incheon airport in Seoul added their terminal capacity and an extra runaway without inflating the costs for cargo transport or air tickets for travelers. Moreover, the airport has extended an air ticket discount that was introduced 24 months ago.
Mr. Juniac said that the South Korean airport understands the role played by the aviation industry in linking global opportunities to the Korean economy hence spurring economic growth. These comments come at a time when the Changi airport in Singapore made an announcement that air tickets would be hiked to fund the construction of an additional terminal.