DOHA: The global air cargo business has been facing difficulties for the last couple of years. In 2012, the industry witnessed two percent decline in demand; and 2013 is a crucial year for the aviation sector, said Tony Tyler, Director General and CEO of the International Air Transport Association (IATA) at the Opening Plenary of the ongoing World Cargo Symposium here yesterday.
He called on airlines and their partners in the air cargo supply chain to work together to make air cargo more competitive.
“Air cargo is vital to the global economy, transporting more than $5 trillion worth of goods annually, or more than a third of world trade by value. And for airlines, it accounts for about 12 percent of industry revenues. But, like the rest of the airline industry, air cargo is a tough business. Last year saw a two percent decline in both air cargo demand and yields. There are early signs that an upturn is on the way. To seize the opportunity we must strengthen the industry’s competitiveness,” said Tyler.
He reminded governments that their role extends beyond market-based measures. Their role in supporting initiatives such as implementing the Single European Sky and the commercialisation of sustainable biofuels for aviation is critical to the industry’s long-term sustainability.
He also highlighted the significance of the air cargo industry that plays a critical role in driving economic growth and development. However, he added that “this is not always fully appreciated by governments.”
Outlining key priorities to modernise the industry, he said that transitioning to a paperless operating environment is critical to improving air cargo’s competitiveness. The Global Air Cargo Advisory Group (GACAG) endorsed an e-Freight roadmap that reflects agreement on roles and responsibilities for pushing this critical project forward.
On the issue of secure the supply chain, IATA called on governments to implement mutually-recognised secure supply chain regimes. Studies have estimated that secure freight also brings an economic benefit of $1bn to $2bn over five years.
The Peninsula
