Industry reduced to 12 global players – IATA’s Vision 2050

By 2050 there could be 12 global airline players making margins of over 10%, supported by many regional and niche carriers and only 10 global air traffic controllers, in comparison with the over 100 today. This is part of IATA director general and CEO, Giovanni Bisignani’s, Vision 2050, which he outlined to the IATA AGM yesterday (June 7).

Bisignani said today’s fragmented industry of 1,061 airlines, most of which make no significant profits, are a result of the outdated and unsustainable bilateral system.

“The restrictions of the bilateral system are a dam that holds us back. It is time for that damn to burst. Governments must act responsibly to ensure safety, security, and a level playing field. And airlines need the freedom to build efficiencies across borders, better serve their customers, and achieve sustainable profits to fund growth and innovation.”

The vision of over 10% margins is not merely a dream, he added. “Before the recession at least a dozen IATA members already had 10% margins. We must make this a much broader reality. Change in all areas is possible. This vision – including sustainable profitability – can be our future.”

He also said that the year 2050 could see airports paying airlines to “bring shoppers and airport revenues funding the air traffic management system”.

While some audience members clearly approved of this concept, KLM’s president and CEO, Peter Hartman, pointed out during the CEO Forum that in Europe this concept would simply be viewed as subsidisation.

Lucy Siebert

Berlin, Germany