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Iata boss slams ‘burdensome’ tax and regulations

Burdensome taxation and bad regulations have come under fire by the boss of IATA in a wide ranging speech in Washington.


Director general and chief executive Tony Tyler urged “co-operation and innovation across the aviation value chain” and called on governments to take advantage of aviation’s ability to drive economic growth.


Speaking to the International Aviation Club, he said: “Despite our vital economic role, politicians appear to value us more as surrogate tax collectors.


“The purpose is primarily to generate funds for the treasury at the expense of travellers.


“We must continue to work together to persuade lawmakers and regulators to focus on aviation as a catalyst for economic growth and job creation. We cannot do that if we are being buried in taxes.”


But Tyler added: “Our challenge with governments is not just taxation. We suffer equally, if not more, from bad regulations.


“Delays and flight cancellations are estimated to have cost the US economy some $31.2 billion in 2008. Yet we see regulation that is meant to protect passenger rights actually provide incentives to airlines to cancel flights because penalties for extended delays are so costly.


“Not only that, the regulation puts the entire burden on the airlines even though the responsibility for delays is often beyond their control.


“I am not arguing that airports and government agencies should also be subject to draconian fines for equipment failures or personnel shortages that result in passengers being unable to disembark.


“I am suggesting that we eliminate this economically damaging rule and replace a rigid culture of blame with a flexible structure mandating collaborative decision making among all the stakeholders.”


He outlined efforts by airlines to cut net emissions in half by 2050 over 2005 levels.


But Tyler said: “We must work together to convince governments to take policy measures to support a framework for their success. It’s in everybody’s interest to improve environmental performance, energy self-sufficiency and create jobs in the green economy.


“Unfortunately, the attention of governments is being distracted by Europe’s unilateral plan to include international aviation in its emissions trading scheme.


“The industry supports market based measures – including emissions trading – that are globally coordinated through the International Civil Aviation Organisation.”


Europe’s plans are coming under increasing pressure as states express their concerns over sovereignty issues, he added.


The US is debating legislation to prohibit its carriers from participating and 26 states sponsored a declaration by the ICAO Council urging governments in Europe to abandon their “unilateral and extra-territorial” plans and support the success of a global solution through ICAO.


“I cannot think of another issue that touches international aviation, with the exception of safety, on which China, India, Russia, Japan and the US are in agreement,” said Tyler.

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