IATA asks govts not to single out aviation for heavy taxation

Governments should not single out the aviation industry for taxes and regulations but treat it like any other business, International Air Transport Association (IATA), the global airlines’ body, has said.

Governments should not single out the aviation industry for taxes and regulations but treat it like any other business, International Air Transport Association (IATA), the global airlines’ body, has said.

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“One of our key messages to governments will be that aviation should be treated like any other business. We don’t want a handout, but we also don’t want to be singled out for special fees and taxes, and commercial regulations that chill market creativity and initiative,” IATA director general and CEO Tony Tyler said.

Tyler’s statement came ahead of the 69th IATA annual general meeting and World Air Transport Summit, which began on Monday.

“This is a very tough business. The day-to-day challenges of keeping revenues ahead of costs remain monumental. Many airlines are struggling. On average, airlines will earn about $4 for every passenger carried — less than the cost of a sandwich in most places,” Tyler said.

IATA upgraded its global outlook for the airline industry to a $12.7-billion profit in 2013 on $711-billion in revenues. This is $2.1 billion better than the $10.6 billion profit projected in March of this year. Airlines, it said, had found new sources of value that have increased the contribution of ancillary revenues from 0.5% in 2007 to over 5% in 2013.