AAPA Targets Constraints to Industry Growth

The dramatic shift of economic power and influence towards Asia in recent years is rapidly propelling the region’s airlines to the forefront of the global air transport industry.

Already commercially successful in a highly competitive environment, Asian carriers are seeking a realignment of the global regulatory framework, with a level of influence commensurate with the Asia Pacific region’s growing economic stature.

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.

 “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,” said Mr Andrew Herdman, AAPA Director General speaking at the opening ceremony of the AAPA 55th Assembly of Presidents in Seoul. “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.” 

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