GENEVA: Airport overcrowding -- with Bangkok a key example of passenger congestion -- and sustainability were among the key highlights outlined in a report by the International Air Transport Association (IATA).
Alexandre de Juniac, the IATA director general and chief executive officer, said on Wednesday that 70% of travellers polled by the association sensed overcrowding at airports -- and more than half of the respondents would support plans to expand their community's airport.
Stopping a project under construction is an extreme case, he said, but the problem of airport bottlenecks is affecting travellers in all parts of the world, including Bangkok, New York, Sao Paulo, London, Frankfurt, Addis Ababa and Sydney.
His comments followed reports that Airports of Thailand Plc (AoT) has put the brakes on the controversial second terminal project scheduled to be built at Suvarnabhumi airport pending steps to glean opinions from relevant parties, including the International Civil Aviation Organisation (ICAO).
Mr de Juniac conceded that finding a solution to the airport capacity problem would not be easy.
He said, however, that digital transformation based on global standards was a key method for improving the optimal usage of airport infrastructure. The IATA has a process to more efficiently allocate scarce slots at overcrowded airports, he said.
He insisted calls for slot auctioning must be rejected as it enriches airports, raises the cost of travel, provides no incentive to grow capacity and curbs competition.
Despite the near-gridlock in aviation traffic in some places, the association's forecast for commercial airlines' net profits next year is quite upbeat -- US$35.5 billion, up from $32.3 billion this year. The Asia-Pacific region, in particular, is predicted to rake in net profits of $10.4 billion, compared with $9.6 billion this year.
From January to October, air travel grew strongly worldwide, with Asian domestic markets showing a marked expansion.
IATA chief economist Brian Pearce said robust economic growth and lower oil prices will enable the airline industry to stabilise profitability next year with an average return on capital of 8.6%. But he noted that while fuel costs may be falling, other aviation-related unit costs are not.
A major worry, Mr Pearce said, is trade protectionism and the US imposition of tariffs on China and threats on others. Aviation depends on openness, he said, and itself facilitates the free movement of people and goods.
Border disputes put a damper on aviation and economic development as a whole, Mr Pearce said.
Meanwhile, the IATA affirmed that sustainability is crucial for the aviation industry's survival in the long term. Mr de Juniac said through the ICAO, many governments have been asked to work with the association to manage the carbon footprint.
The solution was the agreement on a Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), which will effectively cap net emissions from 2020. The association hopes that by 2050 net emissions will be cut by half.
Michael Gill, the IATA's director of aviation environment, made it clear that governments must support the Corsia by implementing it as agreed -- with no exceptions. The governments must work as partners with the IATA to incentivise new technologies and develop infrastructure that accommodates efforts to reduce carbon emissions.