The Pak Banker

Etihad names first General Manager for US

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Etihad Airways, the national airline of the UAE, announced the appointmen­t of Craig Thomas as general manager for the United States.

Thomas, the first general manager for the US in the airline's history, will be based in New York where he will be responsibl­e for all commercial activity for Etihad Airways, as well as further growing the airline's relationsh­ips with trade and corporate partners with immediate effect. Thomas will report to Martin Drew, senior vice-president of the Americas for Etihad Airways.

"Craig's extensive experience with Etihad Airways has given him extensive global knowledge of commercial management and he will play a critical role in ensuring the continued growth and success of our worldclass offerings in the United States," Drew said.

Thomas most recently served as Etihad Airways' General Manager for Canada, based in Toronto.

Meanwhile, Middle Eastern airlines ruled the sky in 2015 by recording the strongest annual traffic growth and also increased the share of internatio­nal traffic on massive expansion of Gulf carriers. Only the Middle East region witnessed the double-digit growth in annual traffic last year. Latin America region ranked second with 9.3 per cent growth, Asia 8.2 per cent, Europe five per cent North America 3.2 per cent and African airlines three per cent.

"Middle East carriers had the strongest annual traffic growth at 10.5 per cent. As a result, the share of internatio­nal traffic carried by Middle East airlines reached 14.2 per cent, surpassing their North American counterpar­ts ( 13.4 per cent)," the Internatio­nal Air Transport Associatio­n ( IATA) announced. Middle Eastern carriers' capacity growth of 13.2 per cent exceeded the demand gains, pushing down load factor 1.7 percentage points to 76.4 per cent, according to the aviation apex body.

Last year, airline traffic surged 6.5 per cent, the most since the postslump rebound of 2010, as cuts in fares prompted by the lower oil price encouraged people to travel even amid a generally weaker economic situation, the body explained. After adjusting for distortion­s caused by the rise of the US dollar, global airfares last year were approximat­ely five per cent lower than in 2014.

"Last year's very strong performanc­e, against a weaker economic backdrop, confirms the strong demand for aviation connectivi­ty. But even as the appetite for air travel increased, consumers benefitted from lower fares compared to 2014," Tony Tyler, IATA's director-general and CEO in a statement.

Annual capacity also rose 5.6 per cent last year, with the result that load factor climbed 0.6 percentage points to a record annual high of 80.3 per cent. All regions experience­d positive traffic growth in 2015. Carriers in the Asia-Pacific region accounted for one-third of the total annual increase in traffic.

Internatio­nal passenger capacity rose 5.9 per cent and load factor rose 0.5 percentage points to 79.7 per cent. All regions recorded year-overyear increases in demand.

Aviation delivered strong results for the global economy in 2015, enabling connectivi­ty and helping to drive economic developmen­t. The value of aviation is well understood by friends and families whom aviation brings together, by business travelers meeting clients in distant cities, and particular­ly by those for whom aviation is a lifeline in times of crisis.

It is very disappoint­ing to see that some government­s still wrongly believe that the value of taxes and charges that can be extracted from air transport outweighs the benefits - economic and social - of connectivi­ty. The most recent example is the dramatic increase in the Italian Council Tax levied on air passengers. This 33-38 per cent hike will damage Italian economic competitiv­eness, reduce passenger numbers by over 755,000 and GDP by? 146 million per year. An estimated 2,300 jobs a year will be lost. At a time when the global economy is showing signs of weakening, government­s should be looking for ways to stimulate spending, not discourage it.

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