Unusual times call for special action: iata

The leaders of the world's airlines have unanimously agreed to a resolution calling for governments, airports and unions to take immediate action to help the industry survive a growing fuel crisis that is pushing carriers deeper into the red.

"Extraordinary times call for extraordinary action. Airlines are an engine for global prosperity and failures among them would send shock waves to the world economy," said International Air Transport Association (IATA) chairman and TAP Portugal CEO Fernando Pinto.

On existing fees and charges, IATA urged governments to refrain from imposing multiple and additional punitive taxes and other measures that can deepen the crisis.

State service providers must invest to modernise air transport infrastructure urgently, eliminating wasteful fuel consumption and emissions.

Business partners, in particular monopoly service providers, must become as efficient as airlines are now. If not, regulators must restrain their appetite with tougher regulation, the association said.

Labour unions must refrain from making irresponsible claims and join the effort to secure jobs in aviation and related industries, it added.

"Governments must stop crazy taxation, regulate monopolies effectively, ensure that the cost of energy reflects its true value, fix the infrastructure and change the rules of the game," said Giovanni Bisignani, IATA director-general and CEO.

"We struggle when governments do not cooperate on issues such as security, regulations on monopolies, the environment and liberalisation," he said at IATA's 64th Annual General Meeting, which attracted more than 800 participants.

He called on government to ensure "effective regulations that deliver results on cost-efficiency and good service, not a licence to print money and abuse monopoly powers".

The IATA chief blamed "short-sighted governments" for imposing punitive measures on carbon emissions, and the aviation industry is among the worst hit. He directed his attack at European Union countries.

Governments should "take politics out of air traffic management" and help develop an emissions-trading scheme that is fair, voluntary and global, he said.

"Our industry turns dreams into reality. If governments come on-board, a carbon-free future is absolutely possible," he added.

On liberalisation, he said: "Governments must stop treating us and our passengers as cash cows and they must control monopoly suppliers who do the same."

He said the so-called freedoms of the air, which involve bilateral aviation agreements between countries, were in fact restrictions on the business as airlines cannot fly to new markets without an international agreement.