73rd IATA Annual General Meeting – Cancun Wrap Up

    The International Air Transport Association (IATA) hosted its 73rd annual general meeting in Cancun, Mexico on 4-6 June. As a sponsor of the event, CAPA was in attendance to ensure none of the news was missed.

    The Blue Swan Daily has pulled together some of key news items from around the globe and related to our region to ensure you are up to date on everything aviation.

    IATA

    IATA DG and CEO Alexandre de Juniac, stated:

    • IATA membership passed three important resolutions: to accelerate the modernisation of the air cargo industry, to urge governments to collaborate better on security, and to ask governments to do more on sustainable alternatives fuels for aviation;
    • AGM attendees exhibited a common interest in connectivity and “they know that in order to deliver the continuous changes needed to keep flying safe, efficient and sustainable we need to collaborate”;
    • The air cargo industry is “emerging from a six year coma” with growth of 7.5% expected for 2017;
    • 2017 is expected to mark the third year in a row when airlines will earn a normal return on capital. On USD743 billion in revenues, airlines will make USD31.4 billion.

    IATA’s members passed resolutions focused on security, cargo modernisation, and the adoption of sustainable fuels the associations 2017 AGM, reaffirming their commitments to these areas:

    • In a resolution reaffirming the airlines industry’s commitment to safety and security, IATA called for greater collaboration between government and industry stakeholders–both to protect passengers and crew, while minimising disruption;
    • A resolution was also adopted which calls for the modernisation of cargo processes to be stepped up. The resolution urges the air cargo industry to adopt modern standards that facilitate safe, secure, efficient operations, and use enhanced technology to provide customers with services able to self-monitor and send real-time alerts;
    • A further resolution calls for governments to implement policies that will accelerate the use of sustainable aviation fuels. The resolution reaffirmed the industry’s commitment to work with governments to implement the Carbon Offset and Reduction Scheme for International Aviation global CO2 emissions agreement.

    IATA released the following 2017 industry profitability outlook for Asia Pacific carriers:

    • Regional carriers expected to post a USD7.4 billion net profit, down 8.6% year-on-year;
    • Regional profit of USD4.96 per passenger;
    • Passenger demand is expected to grow by 10.4%, slightly ahead of expected capacity growth of 8.8%;
    • Cargo is playing a large role in the strength of Asia Pacific carriers, which collectively account for about 40% of air cargo shipments. Cargo revenues are rising for the first time in several years and this trend should be boosted by the restocking of retailers and industry in the initial stages of the economic upturn;
    • China continues to reorient its economy away from exports and toward domestic demand;
    • The wider Asia region is still the key source of manufactured components and finished goods which is showing strong demand at the start of the cyclical economic upturn seen in recent quarters.

    Qantas

    Qantas CEO Alan Joyce, stated:

    • Its partnership with Emirates is still important despite announcing nonstop service between Australia and London. Mr Joyce continued “even when we start flying direct to London, Dubai will still play a big role. Emirates has 40 destinations in Europe. We’re never going to fly direct to places like Venice and Prague”.
    • Qantas will host the 74th IATA AGM and World Air Transport Summit in Sydney, Australia, from 03-Jun-2018 to 05-Jun-2018.

    Virgin Australia

    Virgin Australia Airlines Group believes Western Sydney’s proposed airport at Badgerys Creek requires 24 hour operations to ensure success and growth in passenger traffic. Virgin Australia Airlines group executive John Thomas stated: “It’s the law of geography. For an Asian carrier to have a 07:00 or 08:00 arrival they need to leave post the curfew here. So we think it will actually generate more traffic by giving those later departures out of Sydney, which the city has never had. It is critical there is no curfew on flights at the proposed airport”.

    Air New Zealand

    Air New Zealand CEO Christopher Luxon, stated:

    • He believes the proposed extended laptop ban would not have too much of an impact in New Zealand. Mr Luxon continued, “I am not sure exactly what problem the laptop ban was trying to solve, it is up to governments to work out what any threats were. The industry and passengers needed to be vigilant and aware of potential security threats, but the ban in its current state would not really affect New Zealand”.
    • Air New Zealand will begin reviewing options for its next widebody aircraft from the end of 2017 to service ultra long range routes into the North or South America. The aircraft which could be purchased include newer versions of the Boeing 787, a larger version of the A350 XWB, or the next generation of the 777 which is still under development and won’t be available until the 2020s, with the objective of moving deeper into North America and South America.