Arab News, Mon, Jun 03, 2024 | Dhu al-Qadah 26, 1445
IATA summit in Dubai focuses on airline industry challenges
Saudi Arabia:
Geopolitical and economic changes, safety, and emissions are in the spotlight at
the 80th IATA Annual General Meeting and World Air Transport Summit that
commenced in Dubai on June 2.
According to the International Air Transport
Association, leaders from the global airline industry are attending the World
Air Transport Summit scheduled to continue until June 4 at the event.
Discussions will encompass topics such as artificial intelligence, innovation,
and a review of the annual report on the air transport industry.
The gathering, hosted by Emirates and the first of
its kind in Dubai, is expected to witness over 1,500 participants, including
IATA’s member airlines, IATA AGM-level Strategic Partners, and international and
regional associations. Additionally, it includes leading manufacturers, industry
suppliers, and media representatives.
IATA’s Director General Willie Walsh stated:
“Dubai’s world-leading connectivity places it at the crossroads of the planet.
And it will soon be the center of the airline industry’s leadership as it hosts
the 80th IATA Annual General Meeting and World Air Transport Summit.”
He added: “We look forward to hosting our industry
colleagues in Dubai, Emirates’ home and hub. This is a city that has forged its
place in global aviation and prospered, thanks to its visionary leaders and
progressive policies that recognize air transport’s role as a key economic
enabler.”
In line with this, the IATA chief noted that last
year, aviation contributed 27 percent to Dubai’s gross domestic product and
supported $37 billion in gross value added.
Tim Clark, president of Emirates, remarked that
there are always exciting new developments in Dubai.
“I hope visiting delegates will get to a chance to
experience this buzzing city and the UAE’s renowned hospitality for themselves.”
Clark said.
The World Air Transport Summit is set to follow
the annual meeting, offering a comprehensive program that addresses the critical
issues facing aviation.
“The commitment to achieve net-zero carbon
emissions by 2050 will top the agenda of the 80th IATA AGM and World Air
Transport Summit. We will explore solutions to accelerate progress, particularly
with the production of sustainable aviation fuel and the potential for carbon
removals,” said Walsh.
He added that they will also assess their progress
on safety, financial sustainability, and other key industry topics.
“It’s important that we put these challenges on
the table so that all stakeholders, including governments, have a clear
understanding of what airlines need to connect people and economies safely,
efficiently, and ever more sustainably,” IATA director general said.
Meanwhile, the global aviation watchdog has
announced a substantial decrease of nearly $1.8 billion in airline funds
previously blocked by governments from repatriation.
This reduction, representing a notable 28 percent
decline, has been observed as of the end of April, according to a statement by
IATA.
Since December 2023, the blocked funds have
diminished by $708 million, marking a significant step toward resolving the
issue of hindered repatriation.
IATA reiterated the call for governments to remove
all barriers to airlines repatriating their revenues from ticket sales and other
activities in accordance with international agreements and treaty obligations.
"The reduction in blocked funds is a positive
development. The remaining $1.8 billion, however, is significant and must be
urgently addressed. The efficient repatriation of airline revenues is guaranteed
in bilateral agreements,” Walsh said.
He added that even more importantly, it is a
prerequisite for airlines — who operate on thin margins — to be able to provide
economically critical connectivity. “No business can operate long-term without
access to rightfully earned revenues.”
IATA added that the main driver of the reduction
was a significant clearance of funds blocked in Nigeria. Egypt also approved the
clearance of its significant accumulation of blocked funds. However, in both
cases, airlines were adversely affected by the devaluation of the Egyptian pound
and the Nigerian naira.