geoff dixon - Orient Aviation

49TH ASSEMBLY OF PRESIDENTS
Assembly resolutions
Avian Flu, fuel, insurance, user fees...
The heads of the 17 member
airlines of the Association of
Asia Pacific Airlines (AAPA)
passed eight resolutions at
their annual Assembly of
Presidents signalling their intention to
work on various fronts ranging from health
issues such as the threat of a flu pandemic,
winning fuel savings through optimization
of air routes (see below), security charges,
insurance premiums and onerous aviation
levies on airlines and passengers.
Among the resolutions passed by the
assembly were:
• In the face of concerns regarding a
potential Avian Flu pandemic, a call on
governments, health authorities and the
media to act responsibly during health related
crises to avoid inciting public panic.
• An appeal to governments to introduce
direct routing and operational measures
at airports to reduce fuel wastage and
improve airspace utilization, as well as
strengthened collaboration with airspace
users and air navigation service providers
in taking advantage of available technology
and operational techniques to provide
efficiencies.
The AAPA also wants better coordination
and cooperation with military authorities
to enable more effective and efficient use
of airspace.
• A call on governments to provide
appropriate support to airlines in light
of proposals by the insurance market to
invoke new aviation insurance exclusions.
These would preclude cover for damage
caused by “weapons of mass destruction”
(nuclear, biological, chemical, radioactive
or electromagnetic weapons). Without such
cover some airlines may not be able to operate
under various countries’ regulations.
• Calling on governments to carefully
consider the economic effects of putting
further financial strain on airlines and to
exercise restraint in increasing the burden
of levies on airlines and passengers.
• Renewing a call for fair and reasonable
user charges imposed by aeronautical
service providers and airports. Airlines said
they already face numerous and increasing
cost pressures in the form of operating
costs, taxes and charges that directly affect
commercial growth. They said current
levels of airport charges remain excessive
and disproportionate to the cost structure of
airports.
• Want governments to recognize the
provision and cost of aviation security should
be borne by them from general revenues and
not from taxes and user charges. Airlines,
which have seen their security costs
skyrocket since 9/11, also want security
standardization. At present they often have
to meet different requirements in dozens of
different countries.
The path to lower fuel costs
Asia-Pacif ic airlines are
lobbying governments and
service providers to shorten
flight paths and improve
approaches to airports to cut
fuel costs.
With fuel now averaging 28% of their
operating costs, up from 20% a year ago, the
carriers said because those responsible for
air space utilization and procedures “are not
hit in the pocket by fuel costs” there was less
incentive for them to improve the situation.
Yet it has been estimated changing
unnecessarily complex approach and takeoff
patterns at airports and non-optimal
routings could save as much as 18% of the
world airlines’ entire fuel bill, according to
Association of Asia Pacific Airlines (AAPA)
director general, Andrew Herdman. “That
obviously has a financial implication for
the entire industry, not to mention the
environmental implications of reducing
emissions,” he said.
He was commenting on a resolution
passed by the airline grouping at its annual
Assembly of Presidents and made a strong
appeal to governments to “immediately
introduce direct routing and operational
measures at airports to reduce fuel wastage
and improve airspace utilization”. It said
optimizing fuel efficiency depends on many
external factors, including route structure, air
traffic flow management and airport capacity
and layout.
The AAPA’s 17 member airlines will pay
US$18 billion for fuel this year, up from $12
billion in 2004. Herdman, who said airlines
had been “very successful in transferring
vast sums of money to oil producers
and oil companies”, explained airspace
improvements required a lot of co-ordination
between governments, air traffic providers
and airports. “We are simply asking for a
greater effort in that regard,” he said.
Cathay Pacific Airways chief executive,
Philip Chen, who chaired the 49th AAPA
Assembly, said the association believed
governments must take immediate action to
deliver the change that everyone needed.
“Tremendous savings would be made if
airlines could operate on more direct routes.
Small changes to straighten airways would
make a huge difference in saving money, fuel
and helping the environment. The resolution
is a strong statement by an aviation group
that comprises leading airlines in the Asia-
Pacific and underlines the importance for
governments to take immediate appropriate
action,” said Chen.
Straightening some airways saved US$1.1
billion in 2004. Shaving just one minute off
every flight operated in the world today
would save more than US$2.7 billion and
millions of tonnes of fuel a year, according to
the International Air Transport Association
(IATA).
14 ORIENT AVIATION DECEMBER 2005-JANUARY 2006