The Association of Asia Pacific Airlines (AAPA) sees a number of danger signs that could affect the prospects for the industry, and believes governments could do more to facilitate air transport in the region.
The Association of Asia Pacific Airlines (AAPA) sees a number of danger signs that could affect the prospects for the industry, and believes governments could do more to facilitate air transport in the region.
Speaking with reporters in Singapore following the group’s annual meeting of presidents, AAPA director-general Andrew Herdman noted that 2019 has been a “disappointing” year for global economic growth, which is likely to come in at 3% compared with original forecasts of 3.9%.
While airlines are generally still profitable, trade tensions are undermining confidence amid slowing economic growth. This is particularly challenging for the cargo segment, the performance of which has a tight correlation to economic performance. In addition, challenges remain in areas such as regulations, slots, and other areas that are largely controlled by governments.
“The emergence of Asia as a powerhouse driving the global economy during the 21st century naturally creates a sense of optimism for the region’s dynamic air transport industry in the long term,” says Herdman.
“However, success cannot be automatically assured without robust efforts to support carriers, who continue to face an ever increasing number of challenges to achieving strategic development and growth. Given the significant contribution that air transport makes towards wider economic and social development, governments need to adopt a much more positive attitude towards the industry, and work meaningfully towards removing obstacles that hinder the sustainable growth of the industry,” he adds.
AAPA members, which comprise several major regional airlines, met last week in Kuala Lumpur for a closed-door session. The gathering had been planned for Hong Kong from 21 to 22 November, with media and other industry players in attendance, but this was cancelled owing to recent political unrest in the city.
Nonetheless, the grouping adopted several resolutions. These included calls for improved infrastructure, greater collaboration around the environment, improved cybersecurity, the broad adoption of ICAO guidance for slot allocations, and the elimination of tax and charge regimes that are onerous for passengers.
“At a time when the industry is already having to cope with an increasingly challenging business environment, and recognising the adverse impact on the wider travel and tourism sector, AAPA renews its call on governments to refrain from increasing the burden of aviation levies in any form on international air travellers,” it says.
In addition, the AAPA has announced that Herdman, who has led the AAPA since 2004, will step down in 2020. He will be succeeded by Subhas Menon, a 35-year veteran of AAPA member Singapore Airlines.
