Published on January 13, 2006

The International Air Transport Association (IATA) is holding an Aviation Summit next month to map the future of the air transport industry after it lost ground as a result of last year’s fuel price hikes.

The summit will take place in Singapore on February 20, bringing together the chiefs of airlines as keynote speakers focusing on three topics: Mapping the Future, Winning Strategies; Let’s Help The Passenger; and Accommodating New Markets.

The future of the aviation industry is promising, according to IATA. More than 1.8 billion passengers travelled in 2004, with international passenger and cargo expected to grow at an annual rate of 5.6 per cent and 6.3 per cent respectively until 2009.

But the road ahead is challenging as air transport experiences its most difficult period. Following on losses exceeding US$30 billion (Bt1.18 trillion) since the September 11, 2001 terrorist attacks, soaring fuel prices will drive industry losses of at least another $6 billion in 2005. Cost cutting is not keeping pace with falling yields, said the industry body.

The value proposition is changing. Travellers expect convenience and connectivity, but they are not prepared to pay for the complexity of the industry systems that have evolved over time.

Simplifying the business and focusing on value are critical.

IATA sees Asia as home to one of the most dynamic markets in aviation today – India. With less than 1 per cent of its population travelling by air, India’s growth potential is enormous. Within a period of 15 years, the number of Indian carriers has grown from two players to more than 10 today. Indian carriers also placed more than $12 billion of aircraft orders at the Paris Air Show.

Significant changes, both regulatory and infrastructure, are taking place in India. There are great opportunities and great challenges. India will change the face of modern aviation, said the association.

For the discussion on Mapping The Future, Winning Strategies, the panel will map the future of air transport, identify key industry trends, emerging markets and changes in travel patterns.

The panel will also look at the changes in the way people travel, discuss how airlines can create and retain value in the industry, as well as what can be done to contain rising costs that seem uncontrollable.

Participants can learn from successful strategies already in place.

In the Let’s Help The Passenger segment, the panel will discuss the present and future of what can be done by airlines and airports to help the passenger, explore the opportunities made available by technology, and identify what passengers value when they are travelling.

The Accommodating New Markets panel discussion will discuss travel trends, opportunities and changes taking place, and will also give an insight into the huge world market.

With of 7.2 per cent growth in gross domestic product for 2005 to 2009, air traffic growth can be expected to be about 15 per cent.

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