Privatisation Of Aviation Infra Failed To Deliver Results: IATA Chief

Privatisation of airports and aviation infrastructure in India and some other countries has "failed to deliver" the benefits and the passengers and the economy have continued to suffer high costs, global airlines' body IATA said today.

As the World Airport Summit of the International Air Transport Association (IATA) began here, IATA Director General and CEO Alexandre de Juniac pointed to the burgeoning growth in air traffic demand and said a crisis in aviation infrastructure was looming.

The summit was attended by over 1,000 industry leaders from across the world.

"Many cash-strapped governments see privatisation as the solution for infrastructure funding. They should be cautious.

"Privatisation has failed to deliver promised benefits in many countries-India, Brazil, France, and Australia to name just a few. The concessionaire makes money. The government gets its cut. The airlines pay the bill-usually a big one. And passengers and the local economy suffer the results of higher costs," de Juniac said in his opening address here.

He said when the governments privatise critical infrastructure, economic regulation is essential.

"To date I cannot name a single success story. Finding the solution is an important piece of work that needs government and industry collaboration. It's the only way to balance the investor's need for profit with the community's need for cost efficient connectivity," he said.

Referring to the threatening security situation, the IATA chief said "the freedom that is at core of aviation remains a target for terrorists".

Observing that the UN Security Council Resolution 2309 confirms that states would have to do more in fulfilling their responsibility to keep their citizens secure when travelling by plane, de Juniac said this was vital to the airlines which have a natural partnership with the governments.

However, "the relationship is showing cracks".

On the US and UK ban on carriage of electronic devices on board, he said "there was no consultation with the industry and little time to implement. The action caught everybody by surprise.

"And it was a big challenge for airlines to comply, and a huge inconvenience to our customers. It should not be that way."

The IATA chief summed up some of the major challenges - the mounting security threats, a "looming" infrastructure crisis and high taxes and "onerous" regulations.