IATA: AIRPORTS FACING CAPACITY CRISIS
But IATA urges caution as govts increasingly turn to private sector for investment
GOVERNMENTS need to urgently tackle a capacity crisis facing airports as demand for international travel grows, but they should be cautious about private sector involvement, airline industry group International Air Transport Association (IATA) warned yesterday.
With passenger levels projected to nearly double to 7.8 billion by 2036, infrastructure such as airports and air traffic control systems were not keeping pace, said the IATA.
Major airports have sought to address the crisis by managing slots — giving airlines specific operating rights at particular times.
But there was still a need for new airports, said IATA chief Alexandre de Juniac at the body’s annual meeting, here.
“We are in a capacity crisis. And we don’t see the required airport infrastructure investment to solve it,” he said, adding that cash-strapped governments were increasingly turning to private firms to increase airport capacity.
But he cautioned against privatised airports, warning that they had “not lived up to airline expectations” with many carriers having “far too many bitter experiences”.
“Travellers also sense the problem. According to (global rating system) Skytrax, five of the top six traveller-preferred airports are public,” he said.
“Privatised airports are definitely more expensive. But there is little difference in efficiency or investment levels compared with airports in public hands.”
IATA yesterday projected global air passenger traffic to rise by 6.5 per cent this year to 4.36 billion, after increases of 7.0 and 7.3 per cent in 2016 and 2017, respectively.
The body, which represents 280 airlines, will consider a resolution on the privatisation of airport infrastructure today that calls on governments to factor in long-term economic and social benefits when commissioning new terminals.
The resolution will also call for better regulation governing privatised airports and protecting consumer interests.