AAPA Targets Constrains to Industry Growth

Asian airlines operating in an increasingly dynamic market will not only need to remain vigilant to safety, always the industry’s highest priority, but also have to battle against the constraints of ineffective regulation and excessive taxes and charges imposed by governments, especially those of Europe and the United States. Controversies surrounding the EU Emissions Trading Scheme, the UK Air Passenger Duty (APD) and new passenger handling rules in the US are already well-known, but form only part of the picture when it comes to the broader constraints that governments place on industry growth. 



Against this backdrop, AAPA will continue to be outspoken on the major challenges that need to be addressed if the Asian airline industry is to reach its full potential in the global market. At the conclusion of the AAPA 55th Assembly of Presidents in Seoul today, AAPA took a firm stance on a number of critical aviation policy issues, with resolutions on Taxation, Passenger Facilitation, Security, Infrastructure, and Environment passed by its collective membership. 



Speaking at the opening ceremony of the Assembly today, Mr Andrew Herdman, AAPA Director General said: “Rather than focusing on adding layer upon layer of new regulations, as well as additional taxes and charges, governments would do well to reflect on the fact that aviation can be a key contributor to economic recovery and job creation, led by travel and tourism.” 



Mr Herdman added, “Unjustified new regulations, taxes and charges do untold damage to the economy, counteract innovation by the airline industry, harm the travelling public by making air travel less affordable and undermine air transport’s vital role in fostering social and economic development. The industry is firmly committed to ensuring that aviation grows in an environmentally responsible way, with ambitious environmental targets and exciting developments in sustainable biofuels.” 



Commenting on the global state of play, Mr Herdman said, “Although air transport is an inherently global industry, the regulatory agenda is still largely driven by the US and EU, but with Asia already representing the world’s largest aviation market, the region also needs to play a more active role in driving the global regulatory agenda on key aviation policy matters.” 





RESOLUTIONS 



TAXATION 



Airlines and the travelling public today bear the burden of numerous taxes and charges increasingly imposed by governments, with the travelling public often being unaware of the magnitude of such taxes or levies. A number of governments have imposed taxes or levies, such as the UK Air Passenger Duty (APD), the German ecological tax on air passengers and the travel authorisation fees introduced by the US and Sri Lanka. Some governments are even considering the introduction of punitive or arbitrary taxes and levies on air passengers as political retaliatory instruments against similar measures being imposed by other governments. 



AAPA strongly urges governments to carefully consider the overall economic effects of putting further financial strain on the travelling public and on the aviation industry. Furthermore, AAPA calls on governments to refrain from imposing arbitrary taxes that undermine aviation’s vital role both in fostering global tourism, and acting as a positive driver of social and economic development. 





PASSENGER FACILITATION 



Governments worldwide now impose requirements on the airline industry for the mandatory provision of detailed information about passengers, usually in the form of Advance Passenger Information (API). Some governments have also introduced more onerous visa and quasi-visa requirements for inbound passengers. 

This proliferation of regulations and mandatory procedures related to passenger processing has led to a general deterioration in service levels and inconvenience endured by air passengers. 



AAPA calls on government agencies to consult widely with the aviation industry in order to strike a better balance between national border control objectives and the need for efficient passenger facilitation. Secondly, the Association calls on governments to ensure that regulations related to passenger processing are truly justified and when required are implemented in a practical, cost-effective, and efficient manner. Thirdly, AAPA calls on governments and airport authorities to positively consider the benefits of the further use of technologies to streamline passenger travel and to enhance the overall travel experience. Finally, the Association calls on governments to recognise the true costs, both direct and indirect, of implementing various rulemakings related to passenger processing, and the corresponding impact on the travel and tourism industry and wider economy. 





SECURITY 



Strengthening aviation security effectively requires close cooperation and coordination between governments and other industry stakeholders. Unfortunately, the travelling public continues to be frustrated by a degraded travel experience as a result of increasingly complex, intrusive, onerous and inconsistent aviation security procedures, resulting in widespread inconvenience as well as civil liberties and health concerns. 



AAPA renews its call on governments to recognise the importance of subjecting aviation security policies to proper cost-benefit analysis in order to strike a reasonable balance between aviation security and passenger facilitation that minimises unnecessary inconvenience and delays. AAPA also calls on governments to develop and implement intelligence-led, outcome-based aviation security regimes, to respond more effectively to the needs of the passenger and the air cargo supply chain. Finally, the Association calls on governments to recognise the value of mutual recognition of respective security regimes to avoid unnecessary duplication of effort. 





INFRASTRUCTURE 



With global demand for air travel projected to grow by 5% annually, led by the Asia Pacific region, timely investments need to be made in expanding airline fleets and related aviation infrastructure including airport runways, terminal capacity, and air traffic management (ATM) systems in order to satisfy the projected growth in demand. Failure to coordinate and carry out the necessary investments in any one part of the system will inevitably lead to further congestion, delays and inconvenience to the travelling public, fewer choices of air services and losses to the wider economy which depends on efficient air travel and air cargo services. 



AAPA calls on governments to recognise their responsibilities in ensuring timely investments in the development of aviation-related infrastructure, including airport runways and terminal capacity, as well as modernising air traffic management systems, to meet the projected growth in demand for air transport, to the benefit of the wider economy. Further, AAPA calls on governments in the Asia Pacific region to develop a regional air traffic flow management strategy to enhance joint airspace planning, the use of common standards, and harmonised flight control procedures. 





ENVIRONMENT 



The aviation industry plays a critical role in contributing to the economic and social development of all countries worldwide and is the only global sector to voluntarily establish a climate change strategy with ambitious environmental targets comprising: fuel efficiency improvements of 1.5% per annum; carbon neutral growth from 2020; and a 50% reduction in net emissions by 2050 compared to 2005 levels. 



EU intransigence on the inclusion of foreign airlines within the EU Emissions Trading Scheme (ETS), without the consent of other governments, has triggered a global political backlash. A number of foreign governments are considering retaliatory political instruments, trade measures and sanctions targeting European interests, if the EU ignores such objections and proceeds with the EU ETS in its current form. 



AAPA calls on the EU to scrap plans to include foreign airlines within the EU ETS, rethink its position and re-engage with the international community. AAPA also strongly urges governments to work within the auspices of ICAO towards an effective multilateral agreement on a global, sectoral framework on aviation and the environment, and to refrain from introducing duplicative measures, including the imposition of arbitrary taxes that deliver no real environmental benefit.