Why airport privatizations fail – IATA DG

The Director-General of International Air Transport Association (IATA), Alexandre de Juniac, has called for urgent attention to address infrastructure challenges in order to secure the aviation industry’s future.

However, he decried the worrying trend about airport privatizations which he said have not been backed with a regulatory framework to balance between the interest of investors and the public interest.

This was contained in his address to the Singapore Airshow Aviation Leadership Summit (SAALS). The theme of the summit is ‘Reimagining Aviation’s Future’.

In the copy of the speech sent to our correspondent by IATA, De Juniac stressed that infrastructure is vital to the industry’s future.

The Federal Government of Nigeria is on the verge of privatizing some four airports which have been a subject of intense debate in the industry with the stakeholders divided over the desirability of the exercise.

The first and only successful airport privatization model - the Murtala Muhammed Airport Terminal Two operated by Bi-Courtney Aviation Services Limited (BASL) - has been challenged by the controversy over the terms of contract between the concessionaire and the Federal Airports Authority of Nigeria.

Speaking further, the IATA CEO said the performance in terms of safety in 2017 was stellar.

He said, “We had a stellar year in 2017. But there are always ways to improveparticularly as our data analysis capabilities grow.

“I would like to imagine a future for aviation with no accidents. We need to improve on safety, particularly as our data analysis capabilities grow.

“Aviation needs borders that are open to people and trade…I would like to imagine a future for aviation where airlines are as free as possible to meet the demands for connectivity. We must be a strong voice in the face of protectionist agendas.”