DAVID LEARMOUNT / LONDON
Global liberalisation for the airline industry is essential and inevitable, according to many speakers at last week's International Civil Aviation Organisation seminar in Montreal, Canada. Referring to the conference theme - "Challenges and opportunities of liberalisation" - ICAO president Dr Assad Kotaite acknowledged "a widespread and understandable desire to quicken the pace of regulatory reform, especially on issues like market access and air carrier ownership and control".
Kotaite observed that "the regulatory framework of the modern commercial air transport era was laid down during a period of conflict - the Second World War", but warned that a new system has to be developed with care to avoid adversely affecting safety and airlines serving vulnerable economies.
United Airlines' vice-president international and regulatory affairs Michael Whitaker said: "At a time when the US airline industry is in crisis and needs investment and ideas, the USA should again demonstrate leadership by permitting foreign ownership of US carriers."
While making a plea for government assistance to airlines during the war in Iraq, International Air Transport Association director general Giovanni Bisignani argued for liberalisation. He described the industry's "three pillars of stagnation - the bilateral system, national ownership rules and the attitude of competition authorities".
Meanwhile, estimating the cost of the war to the airlines at $10 billion in lost business, Bisignani insists that governments must ensure that airports and air traffic service providers lower their charges, or at least do not increase them.
Source: Flight International
