IATA Regional Update - ASPAC newsletter - FAPAA

A quarterly newsletter from the IATA Asia Pacific Regional Office 

Issue No. 3/2008 

Responding to Crisis 

Priorities For Indian 

Aviation 

IATA Director General and 

CEO Visits Vietnam 

New Country Manager 

For Australia, New 

Zealand, SWPI 

IATA’s Training Team 

Strengthened in India 

IATA e-freight goes-live 

in Australia and New 

Zealand 

New Aviation Distance 

Learning Programme: 

Airline Revenue 

Management Course 

Responding to Crisis 

This has been an incredible year. We started in celebration of a profit in 

2007. It was our first profit since the tragic events of September 11, it 

was a significant event. 

The celebration did not last long. By mid-year we were in a cost crisis 

centered on US$147 oil. As economies faltered, the price of oil has 

dropped below US$65. So we are ending the year in the shadow of a 

looming recession. For the first time since SARS, passenger numbers 

contracted in September by 2.9% compared to the previous year. The 

7.7% tumble in cargo loads tells us that the worst is yet to come. 

The outlook is bleak. We expect up to US$5.2 billion in losses for 2008. And the results for next 

year are dependant on how deep and long the recession will be. 

The only absolute certainty is the need for efficiency everywhere. 

Since 2002 airlines have improved fuel efficiency by 19%, dropped non-fuel unit costs by 18% 

and restructured their businesses to improve productivity by 64%. 

The burden of change must be shared. 

That is why IATA is engaging airports and air navigation service providers in a campaign for 

efficiency. So far this year, our efforts have yielded US$5 billion in fuel savings with a benefit to 

the environment of over 14 million tonnes of CO2. 

At the same time, we are engaging our partners to pass on efficiency gains to airlines in reduced 

charges. A re-think of fuel taxes in Brazil will bring US$411 million in savings over the next 4 

years. India's elimination of 5% fuel import duties is a good first step towards addressing the 

competitive disadvantages that the current tax structure has created. 

In these difficult times, we must look above and beyond incremental change. Restrictions on 

access to markets and to global capital have lost their purpose in today's global world. They 

have created a super-fragmented industry that is not sustainable in the long-term. 

In late October, IATA did something extra-ordinary. We hosted an Agenda for Freedom summit 

for 14 states and the European Commission. The goal was to modernise the rules of the game. 

The group found a shared belief that airlines need the same commercial freedoms that other 

businesses take for granted. This momentum will drive discussions over the next months as we 

prepare for a follow-up meeting early 2009 to turn discussions into action. 

The industry will get through this crisis one way or another. Our goal is to ensure that it emerges 

stronger and more efficient. Our future depends on it. 

Giovanni Bisignani 

Director General and CEO 

International Air Transport Association (IATA)

Priorities For Indian Aviation 

Indian carriers could post US$ 1.5 billion in losses in 2008, the largest outside the US. 

In his speech to the Confederation of Indian Industry (CII), Giovanni Bisignani identified 

three priority areas to help Indian carriers weather the perfect storm of high costs and 

falling demand. 

Costs: 

• Removing the 8% excise tax, implementing a standard 4% state tax for domestic fuel 

and greater transparency in overall pricing. 

• Removing the Service Tax on premium class tickets, overflight, landing and airport 

charges. 

• Setting up and staffing the Airport Economic Regulatory Authority (AERA) to achieve 

cost efficient infrastructure and bring India's charges in line with ICAO charges 

policies 

Infrastructure: 

• Infrastructure investments are urgently needed. While Delhi is moving towards the 

capability of handling 100 million passengers, the situation at Mumbai remains critical. 

Use the breathing space of the current downturn to plan for capacity in the 100 million 

passenger range for Mumbai. 

Standards: 

• The non-standard data transmission requirements for Advance Passenger Information 

(API) is an added cost burden that provides no additional benefit. This is a serious flaw 

for India's API at a time when increased cooperation is needed. 

“I am an India optimist, but 

my biggest concern is speed. 

Aviation is a fast-changing 

industry that is fueling much 

of the Indian economic 

success story. But the crisis 

is highlighting that India's 

decision making is too slow. 

India is not just a great market. 

It must also be a great leader. 

Minister Patel has done a great 

job in liberalising the industry 

and setting the wheels in motion 

for the rapid development of 

aviation in India. The benefits 

are clear: connecting business 

to markets, expanding tourism 

and creating jobs. Now it is 

the responsibility of entire 

government to follow up by 

addressing the issues of today's 

crisis with quick decisions 

based on global standards and 

build a solid platform for future 

expansion,” said Bisignani. 

IATA Director General and CEO Visits Vietnam 

IATA's Director General and CEO, Giovanni Bisignani, made his first official visit to 

Vietnam in September 2008. As part of the visit, Bisignani met with Mr. Ho Nghia 

Dung, Minister of Transport, Mr. Pham Quy Tieu, Director General of the Civil Aviation 

Administration of Vietnam (CAAV) and Mr. Pham Ngoc Minh, CEO of Vietnam. 

“Vietnam has liberalised to expand market access and create new opportunities. 

It is investing infrastructure to meet future demand. Its recent elimination 

of the 15% import duties for jet fuel is a major step in the right direction, 

a move for other governments to follow. And the recent technical 

improvements in air traffic management using data link capabilities will 

improve efficiency and reduce delays. All of this is fully in line with the 

industry's need for dramatic change to meet the challenges of the global 

industry crisis,” said Bisignani. 

Bisignani also took note of challenges going forward. “As Vietnam moves 

forward with its tremendous expansion it is important to keep global standards 

as the backbone for industry development. For infrastructure that means regular 

consultation with airlines to meet the industry's needs and charging policies 

that are in line with ICAO standards fair, cost related, transparent and nondiscriminatory,” 

said Bisignani.

New Country Manager For 

Australia, New Zealand, SWPI 

Ian Lorigan joined IATA as Country 

Manager for Australia, New Zealand & 

South West Pacific Islands in August 

2008. As Country Manager, he will 

serve as the main point of contact for 

airlines, travel and cargo agents and 

industry service providers and relevant 

government agencies and regulatory 

authorities on matters related to IATA. 

Lorigan’s responsibilities will also include 

overseeing the management of the IATA Airline Agency 

settlement systems for travel and cargo agents. 

Prior to joining IATA, Lorigan worked for Singapore Airlines 

from 1990 – 2008, holding senior roles in Sales, Distribution 

and Marketing in Australia, Singapore and most recently, New 

York, as Vice President Eastern USA and South America. 

IATA’s Training Team 

Strengthened in India 

Alpana Chaturvedi has been appointed as 

IATA's Manager, Regional Training Centre 

Delhi. Chaturvedi has the responsibility 

of setting up IATA's Regional Training 

Centre, which is operational since 8 

September. For a start, 12 classroom 

courses are scheduled for 2009. She 

will also promote the IATA Training and 

Development Institute (ITDI) learning 

products in the South Asian region, and oversee the ITDI 

network of Authorised Training Centres. 

Prior to joining IATA, Chaturvedi was Head of Training & 

Business Development at the Bird Education Society for 

Travel & Tourism. 

IATA e-freight goes-live in Australia and New Zealand 

IATA e-freight is “live” in New Zealand and Australia, 

the fourth and fifth new locations respectively to 

deliver paper free cargo in 2008. 

The New Zealand e-freight went “live” on 14 October 

2008 on 2 trade lanes: New Zealand-Singapore, and 

New Zealand-Hong Kong. The New Zealand IATA 

e-freight implementation was led by New Zealand 

Customs and supported by Singapore Airlines, 

Cathay Pacific, DHL Global Forwarding, Mainfreight 

International and MAF Biosecurity of New Zealand. 

The Australia e-freight became operational on 

22 October 2008 on 3 trade lanes: Australia- 

Singapore, Australia-New Zealand and Australia-The 

Netherlands. QANTAS led the Australia IATA e-freight 

implementation. Also involved in the implementation 

were Singapore Airlines, Cathay Pacific, British Airways, 

DHL Global Forwarding, Schenker, Fracht Australia, 

Australian Customs, the Australian Quarantine and 

Inspection Service, the Australian Federation of 

International Forwarders and the Customers Brokers 

and Forwarders Council of Australia.

New Aviation Distance Learning Programme: 

Airline Revenue Management Course 

The IATA Training and Development Institute (ITDI) helps thousands of people start or grow their career in the exciting world 

of aviation. The Aviation Training Programme is designed to give participants the skills and knowledge to maximise their career 

opportunities in a number of industry sectors - airline, cargo, airport and civil aviation segments, with the flexibility to study full or 

part time, from home, office or through one of IATA's authorised training centres. 

The newest addition to the Aviation Course portfolio is the AIRLINE REVENUE MANAGEMENT COURSE. 

What is revenue management and why is it needed in the airline industry of today and tomorrow? 

As competition and various economic pressures increase, all airlines - regardless of business models - need to maximize revenues 

in order to remain in business and continue to grow. The course will introduce basic concepts and goals of airline revenue 

management. Some of the topics discussed are the factors that affect demand for airline seats, understanding how price is a 

strategic “lever” in demand management, the importance of booking class assignment and structure, and why scheduling is an 

important element of revenue management. 

For a complete outline of the content of the course and for 

information on how to register for the course, please visit 

http://iata.org/training/courses/talf51.htm. 

IATA Membership 

IATA members comprise some 230 airlines 

representing 93% of international scheduled air traffic. 

For more information, please log on to 

www.iata.org/Membership/airlines 

IATA Asia/Pacific Office 

111 Somerset Road, #14-05 Somerset Wing 

Singapore 238164 

Tel: 65 6438 4555 

Fax: 65 6438 4666 

website: www.iata.org 

Comments and feedback are welcome and should be sent to: chungs@iata.org

IATA Regional Update - ASPAC newsletter - FAPAA

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