Business | Aviation
Airlines seek less taxation and freedom to grow
The global economy stands to lose 32 million jobs if governments, airports and labour unions, especially in Europe and the US continue to treat airlines like cash cows by imposing heavy taxation and restrict their operations.
- By Ajay Abraham, Sub-Editor
- Published: 00:08 June 5, 2008
Istanbul: The global economy stands to lose 32 million jobs if governments, airports and labour unions, especially in Europe and the US continue to treat airlines like cash cows by imposing heavy taxation and restrict their operations.
This was the message that airline leaders put forward through the Istanbul Declaration with 24 airlines having gone bankrupt in the last six months.
"It's a partnership approach. Don't bite the hand that feeds you," said Giovanni Bisignani, IATA's director general and CEO.
Bisignani said it was unfair that the airline industry was receiving flak for environmental pollution. "Over the past six years, airlines have cut non-fuel unit costs by 18 per cent and distribution costs by 25 per cent. They have also improved fuel efficiency by 19 per cent," he said.
"Extraordinary times call for extraordinary measures. Airlines are an engine for global prosperity and failure among them would send shockwaves throughout the world economy," said Fernando Pinto, chairman of IATA and CEO of TAP Portugal.
The Istanbul Declaration sought attention in six specific areas. It asked governments to eliminate archaic rules that prevent airlines from expanding across borders; refrain from multiple and punitive taxation; modernise airport infrastructure to eliminate wasteful fuel consumption and emissions; push for regulatory restrictions on inefficient monopoly service pro-viders; it urged labour unions to refrain from making unrealistic claims and requested governments to ensure that the cost of energy reflects its true value.
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