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Warning: This is long. Only read if you want to hear my observations about a truly remarkable 2011 IATA AGM.

If that's not your bag, return to Flightglobal for news etc

 

Wow, that was some IATA annual general meeting. In fact it was like no other AGM I've been too.

The Airline Business Daily headline on Tuesday morning, reporting on a furious series of interventions from the floor of this normally placid affair, said simply: "Arab carriers speak out." We could have had: "Time for change", "Arab ambush" or "Arab spring."

All were suggested, some even went on page, only to be discarded for reasons you'll need to talk to myself or Airline Business editor Max Kingsley-Jones about if you know us well enough.

Read the digital edition of the paper, and those from Days 1 & 2 here.

For Airline Business, naturally, the IATA AGM is an important affair as CEOs who represent 93% of world traffic go there. We like it so much, back at 2007's AGM in Vancouver we decided to publish a daily paper at the show. Airline Business, part of the Flightglobal publishing empire (OK perhaps empire is a bit strong), can do dailies because many of us have experience doing the Flight Daily News series some of you will know from big air shows like Paris or Farnborough.

On Monday morning at our hasty news meeting - most had to rush into the Oneworld press conference at 0745 - we highlighted possible lead stories and talking points that would go into the Tuesday morning paper.

Bisignani with his wife Elena shortly after the AGM finishes.

We knew of course that the set-piece state of the nation speech from outgoing IATA director general Giovanni Bisignani's would provide some big headlines and quotes. His "basta" blasts at monopoly suppliers and governments have become legendary and given us plenty of headline fodder over the years.

You can watch the whole thing via IATA's website.

We also had word that there might be something else afoot: Something out of the ordinary: a surprise from the floor perhaps?

We were on high alert. So was the IATA hierarchy, for behind the scenes a revolution was rumbling and they were prepared for trouble.

As you can imagine there are many twists and turns, some dating back years, as to why this "Arab spring" came to a head in Singapore and I'd need another series of interviews and 100s more words to explain it all in detail, but simply put Middle East carriers felt under-represented at IATA, they felt IATA was too "big network carrier" - centric, and perhaps the autocratic style of its leader Bisignani was putting their backs up as well.

So what would they do about it? Prior to the meeting they were ready to agitate, but had decided, for the sake of a united industry front at Bisignani's swansong AGM, to keep quiet. It is not the done thing to air grievances in public - and this is a very public forum.

That ended on Sunday afternoon when decisions taken in the IATA committee (which met on the Sunday) that nominates who sits on the 30-strong IATA board of governors - the most powerful IATA leaders - caused a firestorm among Middle East carrier chiefs.

A series of hasty phone calls later and a big brick was about to be flung into the normally placid waters of the IATA AGM.

Now, as a point of order, I need to try and briefly explain how the AGM works for those who weren't there or don't understand the procedure: this is effectively a public annual general meeting at which recommendations (resolutions) from the company board are tabled, discussed and decided.

Now I don't know the exact procedures - refer to IATA's website for that arcane detail - but in my understanding each IATA airline member can have their say and vote upon resolutions.
The airline delegates sit in United Nations style rows behind desks in specific places each with their own microphone. They can have their say at any point in the proceedings.

Most say nothing. They are usually more interested in the discussions and networking that take place in and around the AGM.

Yes the director general's speech is a must-see and the CEO debate in the afternoon can throw up some good verbal punch-ups, but the AGM bit is a gavel-bashing, orchestrated swift round-up of business.

Under Bisignani the gavel-bashing part has been compressed, and rightly so. It had been a tedious, largely irrelevant, run through IATA procedures.

The only upset I can recall to this smooth running was in Washington DC in 2003 when Jaime Bautista, the cheery head of Philippine Airlines piped up. I can't remember what he was complaining about, but it certainly stirred things up. He's been quiet ever since though.

But the events of Monday 6 June, explained in the Airline Business story in our Tuesday paper at the show, caused more ructions at IATA.

See also this Qatar Airways press release that it issued on Tuesday 7 June - plenty of borrowing from our story. It also uses our photo of Al Baker waving his notes at the time!

I was actually sitting in the press room preparing pages when I heard on the TV feed the voice of Qatar Airways head Akbar Al Baker. His tone said it all - as I am sure all of you at the AGM knew right away.

He had some comments and misgivings about IATA's financial statements and about its auditors. Now this doesn't happen. Let's be honest, how many CEOs even read the papers they get outlining IATA's finances? I'd wager hardly any.

Al Baker was the spearhead for Middle East complaints. He was backed up from the floor by Middle East Airlines chairman Mohamad El-Hout.

From left field the Middle East carriers received support from Air Niugini head Wasantha Kumarasiri. My information is that Kumarasiri's input was not part of any scheme, he simply spoke out at what he heard (Wasantha, if you do happen to read this drop me a line at mark.pilling@flightglobal.com and tell me your part of the story).

Again, read the Airline Business story for the details.

Now this was awkward for the man running the show (traditionally the AGM host carrier does this job) the shiny new CEO of Singapore Airlines Goh Choon Phong. Poor sod. He's been in the hot seat at SIA less than a year and now, because the Egyptian revolution meant moving the AGM from Cairo to Singapore with just three months notice, he has to host the world's biggest airline meeting (as an aside, Mr Goh was praised by IAG chief executive Willie Walsh for his adroit handling of the situation - well said Willie).

The discomfort on the podium was clear as Tom Windmuller, the AGM secretary, and Mr Goh handled the growing unrest.

Sharply made points from Al Baker, accompanied now with points made by the ever-eloquent boss of Emirates Tim Clark, rained in.

A vote was going to be taken, initially suggested as a show of hands by Windmuller. No thanks, said Clark, and it became a secret ballot. That would happen in the afternoon.

Throughout these proceedings, most sat there bemused, what was going on? Clearly the Middle East carriers are unhappy at IATA, but why?

It took at least an hour for all this excitement to unfold. Please correct me if I am wrong, but to my mind the only voice I recall offering a pause for thought on the Middle East intervention was Air New Zealand head Rob Fyfe, himself on the IATA board of governors.

In the afternoon the ballot result was announced, and it was close, only being narrowly defeated. The tight result in itself is a major story, showing clearly the unease that many CEOs have in IATA's governance.

As Toronto Star scribe Bert Archer tweeted: #IATAAGM Ballot results: 43 in favour of proposal, 48 against, 5 absentions, 22 blanks, 1 ineligible. Very divided #IATA, it seems.

Overnight the IATA team pondered next moves: would any objections be raised about the appointment of director general designate Tony Tyler. The former head of Cathay Pacific was IATA's nomination and a man seen by all as a brilliant choice.

But there was to be no further AGM disruptions. International Airlines Group chief executive Willie Walsh told the AGM that "Tony's track record in the industry is second to none" and that IATA was "fortunate" to have a man of his standing lined up to take it forward.

However, he did allude to Monday's events. "It has been a difficult AGM, but in my mind one of the most positive AGMs in recent times," he said. Tyler won the AGM's support, and took to the podium as Bisignani's successor. Many stood and applauded.

Here Tony Tyler swaps cards with a gaggle of journos after the Tuesday press conference.

Tyler made reference to Monday's events as well: "Yesterday was an interesting day wasn't it." But, like Walsh, he was encouraged. "It shows how relevant and important IATA is to you...that's a good thing.

"My priority now is to ask questions and then to listen and to learn," he said.

So what have we learnt from this most remarkable of IATA AGMs?

Firstly, Tony Tyler has been handed a bit of a hot potato to deal with. He officially begins work on 1 July and one of his first tasks will be to mollify the Middle East carriers and get them back on board.

The Middle East carriers respect and admire Tyler so he has a good chance of achieving that.

Secondly, there will be some soul-searching at IATA about whether it is properly transparent and has balanced its representation of big and small alike. "I heard your message about greater member involvement and transparency," said Tyler on Tuesday. He must wonder just what he's sailed into.

Thirdly, there is no doubt this was not the leaving ceremony Giovanni Bisignani envisaged. For me, and I expressed my views about Bisignani's leadership of IATA in the June issue of Airline Business, these events did overshadow his departure.

But the Middle East rumblings and arrival of Tyler should not detract from Bisignani's undoubted achievements with IATA over the past decade.

For me as a journalist Bisignani has been brilliant. And on a personal level I have really enjoyed dealing with him and I've got immense respect for him. Of course he's not perfect and clearly he's made enemies as well as friends.

But I do regret that his goodbye this week did not include a standing ovation, which I think is rather churlish of the IATA members.

Overall quite simply it has been an amazing few days that have been a privilege to cover.

Virgin Atlantic tweeted a response to Flightglobal following the news yesterday that a UK agency was looking into allegations of price-fixing on the London-Hong Kong route.

This is what it said;

VirginAtlantic @Flightglobal VA will defend itself against the allegations of 2002-06 VA don't believe we acted in anyway contrary 2 interests of consumers

We thought it was a remarkable use of social media.

The news today that the UK's Office of Fair Trading has launched a price-fixing probe into the alleged activities of Virgin Atlantic and Cathay Pacific Airways on the London-Hong Kong route will make uncomfortable reading for airline executives everywhere.

With the recent news agenda dominated by the ash cloud and the past 2 years dominated by the downturn, the spate of stories on passenger and cargo fixing had all but died down.

But it has re-emerged, and many will be asking what else is going on out there? Is this practice more widespread than anyone believed?

Unfortunately for Virgin Atlantic it is in the headlines once again over price-fixing. This time the roles are reversed, for Cathay has "blown the whistle". It was Virgin that blew the whistle on British Airways over price-fixing of long-haul fuel surcharges back in 2006.

Don't forget either the cargo price-fixing cases that involved scores of carriers - this dates back to 2006 as well.

In the cargo probes the fines are stacking up.

OK it's April Fool's Day but this is no prank. Simply a collection of offbeat airline videos, many of them ads, for a bit of fun over the Easter weekend.

No 1: The AirTran Airways stampede - a low-cost carrier extolling the virtues of assigned seating, business class seats and Wi-Fi

 No 2: Southwest's Battle Cry - Making the point with plenty of skin on show that it is good to fly bags for free

No 3: Air New Zealand's safety video - now a YouTube favourite with over 5 million views! This is just a classic

No 4: If it's an anime video it's got to be a Japanese carrier - and it is: All Nippon Airways

And finally, No 5: Spain's Vueling - to the tune of "When love takes over" seemingly the whole of the airline's HQ gets involved in this epic "Vueling together"

Enjoy - and Happy Easter!

The tragic situation in Haiti is galvanizing carriers across the globe. Airlines ranging from El Al to Republic Airways Holdings have offered relief either through special flights, the donation of frequent flyer miles, bonus frequent flyer miles for Red Cross donations or matching donations.

Several carriers including Air Canada, American and WestJet have delivered supplies to Haiti. United, who doesn't offer regularly scheduled flights to the country, plans on 20 January to start the first of 30 flights to Haiti to deliver personnel and supplies to the rescue effort. (photo credit ONEXONE foundation -- Joe Adler.) 

Even lessor GECAS has become involved in the Haitian relief effort after it was approached by the Hope for Haiti charity for help in securing a cargo aircraft to ship supplies to Haiti. After GECAS Cargo lead Chris Damianos contacted Arrow Cargo, the carrier agreed to operate two relief flights for Haiti.

I realise I've probably missed several carriers that have offered help and aid, so please feel free to alert me to any efforts you know about.  

Despite the tremendous amount of support being offered to Haiti from worldwide organizations, the Port au Prince airport continues to face challenges in handling the large volume of relief efforts. This Canadian Press article details frustrations by some humanitarian agencies in getting access to the airport, which late last week was taken over by the US military. As I put this post together, CNN is reporting Doctors Without Borders continues to face challenges in gaining proper access to the airport.  

After the Christmas Day attack on a Delta Air Lines Airbus A330, it's hardly surprising that aviation security is again under the spotlight.

We've already witnessed the furore over body scanners, which show a little too much detail, but that's as far as it can go, right?

Apparently not, according to this article from Raw Story, an "alternative news nexus" which which claims to "unearth and spotlight stories underplayed by the popular press".

The piece talks about new "mind-reading scanners" from Israeli firm WeCU Technologies (as in "we see you"). Apparently this system would projects images onto airport screens which would only be recognised by a would-be terrorist.

"The logic is that people can't help reacting, even if only subtly, to familiar images that suddenly appear in unfamiliar places. If you strolled through an airport and saw a picture of your mother, you couldn't help but respond," explains WeCU chief Ehud Givon in the article.

The logic sort of works, but is this really on the cards? The Israel Export & International Cooperation Institute lists a company called WeCU on its website, but it only appears to employ three people and the website link is under construction and requires a password.

Genuine or not, it makes for an interesting talking point.

[Photo credit: US National Institute on Aging]

...and one of those people is the controversial columnist at the Times/Sunday Times newspapers of the UK Jeremy Clarkson.

Plenty of British humour in here all, but Jeremy's take on travelling overseas at Christmas is a hoot and any piece that manages to get the line "twang the hostesses' suspender belts" gets my vote!

Here's what Jeremy actually looks like for those not in the UK...

And just for the hell of it here is a shot of what BA (well either BOAC or BEA I'll let any of you lot tell us which - my vote goes to BOAC) hostesses looked like back in 1951. "Strike, not in my day!" I hear you cry.

*UPDATE*

A quick follow-up on this - the UK climate change committee has delivered its view on the compatibility of aviation growth and the UK's environmental targets - and believes passenger demand must be limited to a 60% rise on 2005 figures if it is to meet 2050 carbon targets. But while much of the coverage centres on a third runway for Heathrow - the report demonstrated the effect on demand that could be achieved if expansion is limited to London Heathrow, London Stansted and Edinburgh - the committee insists it is "agnostic" as to where airport expansion takes place. Read our story from ATI on this here and check out the full CCC report here

Plenty of talk about on aviation and the climate change issue at the moment with the start of the UN climate change talks in Copenhagen and the release of a number of relevent reports in the UK on the future strategy for its aviation sector.

First up today were the findings of a UK cross-party parliamentary transport committee which backed development of a third runway at Heathrow and suggested Gatwick might be a better choice for an additional runway for London, if required, then Stansed as current earmarked. It also suggested the EU's emissions trading scheme, which aviation joins from 2012, might prove a weak tool for pushing development of low-carbon air transport.

Meanwhile tomorrow the UK's Committee on Climate Change will deliver its view on how UK aviation emissions can be constrained up to 2050 in order to contribute to efforts to tackle climate change. And if that's not enough, the Carbon Trust will formally publish its report on the likely economic impact on the airline industry of entry into the emissions trading scheme - for more on how they think some airlines could even increase profitability as a result, click here.

But of course the bigger picture, and dominating all the headlines today (and for the next two weeks no doubt), is Copenhagen, where global leaders meet to try and reach a successor agreement to Kyoto. Precisely what agreements emerge from Copenhagen in two weeks time, and how this impacts the aviation sector, is anyone's guess (imagine 192 people trying to carve up the bill after a meal out - who had extra garlic bread? Who only had tap water? I didn't have a starter and I left before pudding!)

For its part the aviation sector, which is pushing for a global sectoral approach and has set its own long-term targets, continues to press its case hard. And in particular it will be hoping to avoid aviation becoming subject to a tax, as a mechanism for helping to fund climate change projects in developing nations, along the lines of the International Air Passenger Adaptation Levy proposal floated by the Maldives on behalf of the group of least developed countries last year. You can read more about the airline response to such concerns in this FT report here.

Earlier this week, I caught up with Finnair vice-president for sustainable development Kati Ihamaki in London (in the midst of a hotel evacuation, but that's another story!).

Coincidentally, our meeting happened just as BA made a dramatic pledge on behalf of IATA to slash carbon dioxide emissions in half by 2050 and to achieve carbon-neutral growth from 2020 onwards.

This fits in nicely with Kati's call for a more unified approach to environmental matters. During our chat Kati, who is a member of IATA's environment committee, urged for a "sectoral", rather than "patchwork" approach to emissions trading.

Kati gives an example to illustrate her point. If a Chinese airline spends a long length of time flying over Russia to get to Europe, why should the carrier pay environmental charges in Europe and give nothing to Russia? A fair point.

"If we don't move along with others, there will be a patchwork of different systems," she says, adding that there are high hopes that the principles of a global solution will be discussed at the UN Climate Change Conference in Copenhagen this December. "Maybe in two years [a universal system] could be in place, by 2013. It needn't take too long."

Kati says much is hanging on the Copenhagen talks. "After that either the industry will move together or take different steps. That's why everyone is holding back at the moment."

But the Finnair executive believes there is a danger that "the politics of the day", i.e. emissions trading, are taking second place to operational measures with potential for real environmental benefits, such as the Single European Sky project.

It is a matter of political will, explains Kati. The Single European Sky is still going to take some time, while emissions trading is a political talking point.

She also would like to see money from schemes like emissions trading channelled back into environmental R&D for the aviation industry, as well as to poorer nations to encourage them to get involved.

On the subject of biofuels, Kati is a firm believer in second generation products and is currently extremely interested in the potential of fuels derived from forestry residue.

"I'm really positive about that and the discussions which we have had with different companies are really encouraging. Forestry residue - that's the main ingredient which we are talking about with some suppliers - we'll see."

But supply issues still remain. Even if Finnair is able to get enough biofuel in Finland, Kati questions what the airline would do to fuel aircraft down route.

For the low-down on how airlines are preparing for the start of emissions trading, take a look at this report which ran in our September print edition.

Want to recap on the basics? Here's our emissions trading low-down.

After seeing a lot of press releases on labour relations over the years you get use to the language. Now I've got a new phrase to add to my vocabulary - simulated strike.

That is the accusation India's Jet Airways is making against a large group of its pilots for calling in sick over the past couple of days after a Mumbai court ruled they could not strike during a conciliation process taking place with the carrier.

Now I don't know the ins and outs of the grudge the pilots have with the carrier - please enlighten me anyone if you like - but I have trouble understanding such action in this terrible business climate. And India is suffering badly. No one is making money. There is too much capacity.

Our recent leader urged airlines to take a hard line on labour.

Jet's dispute with its pilots is yet another blow to the carrier as it tries to return to breakeven.

It is also having trouble with its proposed alliance with another loss-maker Kingfisher Airlines.

And the strike is causing massive disruption.

Here's the Jet release of 8 September in full: