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IATA: airlines in crisis


IATA: airlines in crisis


The International Air Transport Association says the global airline industry faces an unprecedented crisis and will likely lose 6.5 billion euros this year. IATA’s head Giovanni Bisignani told the aviation body’s annual meeting in Kuala Lumpur that drastic reshaping is needed. He complained about what he called government micro-regulation, crazy taxation and airlines abusing their monopoly power.

Bisignani told delegates: “Our industry is in survival mode, whether this crisis is long or short, the world is changing. Even if we try to look beyond the crisis, we must recognize that there will not be business as usual.” At the same time Airbus’ sales chief, John Leahy, said 2009 will be a tough year for plane orders. Speaking at the IATA meeting, he foresaw several orders being deferred, but he did not expect many order cancellations. Airbus has net orders for just 11 aircraft so far this year.

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