Aviation industry strives to improve efficiency against high oil costs

The global aviation industry is striving to improve efficiency as it is expected to lose 7.5 billion US dollars this year due to skyrocketing oil prices, the world aviation body has said in Nairobi.

Visiting Director General and CEO of the International Air Transport Association (IATA) Giovanni Bisignani said the forecast is based on an average oil price over the 12 months of 2005 of 57 dollars per barrel.

"Oil is once again robbing the industry of a return to profitability," Bisignani told a news conference in Nairobi late Monday.

He urged the African airlines which he said will experience minimal loses this year to shorten routes, reduce costs and introduce electronic ticketing in order to stay in the competitive business.

The IATA boss said efficiency gains, high load factors and fuel surcharges are helping mitigate a portion of the impact of the extraordinary price of fuel.

"The airline battle to reduce costs, increase yields and improve efficiencies is effective well beyond expectations," said Bisignani.

"We are trying to do as much as we can in order to introduce more efficiency in the industry. We are negotiating with our navigation service providers to see how they can match the costs the airlines are experiencing and their efforts," he said.

Bisignani said the aviation industry would achieve 1 billion dollars in shorter routes, saying the discussions are underway with governments to ensure that this was realized as a means of improving efficiency.

He said IATA, which represents over 250 airlines globally, has taken a leading role in developing industry standards and providing education opportunities for the expansion of electronic ticketing and specifically interline electronic ticket.

Bisignani emphasized the tremendous potential for efficiency gains in air traffic management, and the associated environmental benefit.

He lauded the Kenyan government's expansion plan of the Jomo Kenyatta International Airport that will include construction of a second runway.

The IATA chief said his body will continue supporting Kenya and other African countries to improve their aviation industries.

He disclosed that his organization intends to set up a center in Nairobi that will audit African airlines to improve their safety record.

Source: Xinhua