Dubai: Global aviation watchdog International Air Transport Association (IATA) has asked the Canadian government to improve its global competitiveness in air transport, travel and tourism by working with the industry to address issues of taxation and regulation, security and the environment instead of trying to restrict its airspace to foreign carriers.
"Air transport is key to Canada's economy... but the country is losing its competitive edge," said Giovanni Bisignani, IATA's Director-General and CEO, in a speech to the Montreal Council on Foreign Relations.
His comments come weeks after the Canadian government entered into a controversy with the UAE on allowing traffic rights to UAE airlines, especially Emirates. Air Canada had, in 2006, sought a revenue sharing model to give access to Emirates to its key gateway cities.
Saj Ahmad, aviation analyst with the UK-based FBE Aerospace in London, told Gulf News: "The bottom line is that the wider financial crises in the US and Europe have meant that governments have taken their eyes off the transport ball and left incumbent and inefficient airlines at the mercy of more astute, nimble and more efficient airlines who are growing and fulfilling passenger needs.
"This too shows the disparity between funding costs in Europe/USA, which has a higher number of ageing airplanes in contrast to the GCC — but of course, Europe/USA fail to consider these pertinent points when labelling their Middle East rivals as subsidised. This is a classic case of ‘crying wolf' when these same critics do nothing about the quagmire they have made for themselves and equally do virtually nothing to alleviate the competitive pressures on their inefficient business models."
Bisignani said governments around the world are too involved in the industry and are preventing airlines from operating like other industries.
James Hogan, Etihad Airways chief executive, on Thursday told members of the European Aviation Club: "We must not allow economic adversity to nudge us back towards protectionism."
