EUROPE/CIS: IATA’s Vision 2050 meeting concludes

The International Air Transport Association (IATA) announced the successful conclusion of its Vision 2050 meeting in Singapore. In total thirty-five strategic thinkers gathered in Singapore under the inspirational leadership of Singapore’s Minister Mentor Lee Kuan Yew and benefitting from the competitiveness expertise of Harvard University’s Professor Michael Porter. The full day meeting on 12 February […]


The International Air Transport Association (IATA) announced the successful conclusion of its Vision 2050 meeting in Singapore. In total thirty-five strategic thinkers gathered in Singapore under the inspirational leadership of Singapore’s Minister Mentor Lee Kuan Yew and benefitting from the competitiveness expertise of Harvard University’s Professor Michael Porter. The full day meeting on 12 February 2011 included delegates representing governments, airlines, airports, air navigation service providers, manufacturers, leasing companies, general business and academia. They debated four areas that will play key contributing roles in the industry’s sustainable development into an industry that will serve 16 billion passengers and carry 400 million tonnes of cargo in 2050. The four areas were (1) an industry structure for financial sustainability, (2) understanding the passenger of the future, (3) aircraft and technology for the future and (4) infrastructure for the future. “The timing of the meeting was critical. Over the last decade of crises, the industry lost $50 billion. It also changed completely¡ªimproving productivity by 63 per cent, cutting sales and distribution costs by 19 per cent and improving fuel efficiency by 20 per cent. IATA contributed with $55 billion in savings since 2004 through campaigns to Simplify the Business, improve the costefficiency of infrastructure providers; and reducing fuel burn with shorter routes and shared industry best practices in fuel management. And still we only earned a 2.7 per cent margin in 2010 which we expect to shrink to 1.5 per cent this year. But we could not miss using this window of profitability, however weak, to look beyond the crisis of the day and answer fundamental questions about what the future should look like and how we can get there,” said Giovanni Bisignani, IATA’s director general and CEO. Bisignani noted the meeting produced a general consensus that one of the industry’s biggest challenges is to evolve from the financial disaster of a partial de-regulation that has created fierce competition among airlines but without giving them the normal commercial freedoms to do business. “The industry is sick. To protect the value that aviation delivers to consumers, companies, countries and the global economy, we need a common vision to change as we move forward,” said Bisignani. The Vision 2050 initiative was launched at IATA’s 2010 Annual General Meeting. Over the next months, IATA will consolidate all the Vision 2050 inputs into a document that will be presented at the IATA Annual General Meeting which will take place 5-7 June 2011.