Air Transport World

IATA: concerns over concentration. (International Air Transport Association conference)

GENEVA-Four major topics provide the main talking points among airline chairmen, CEOs and other senior officers as they gather in Nairobi, Kenya on Oct. 28-29 for IATA's annual meeting.

According to Giinter Eser, IATA director general, the talking points will be:

* How the industry is weathering the aftermath of the Gulf War;

* The impact of the European single market after Jan. 1, 1993;

* Progress of the industry toward moving out of recession;

* The way in which a group of eight increasingly powerful carriers is beginning to dominate the total market.

Speaking at IATA headquarters here against a background of industry losses of $2.7 billion on international scheduled services last year and a further loss of $2.5 billion during the first five months of this year, Eser was understandably gloomy. He could see, he said, no fight at the end of the tunnel," only-maybe-"a small lifting of the shadows. "I would not call it a disaster but it is a very serious situation. The financial situation is critical for a number of airlines," Eser said.

Total traffic will have to grow 6.5% up to year-end merely to stay even with 1990 but at the same time, capacity could rise by no more than 3.6% if a cumulative erosion of the load factor is to be prevented. …

Log in to your account to read this article – and millions more.