Service levels at Heathrow Airport are 'a national embarrassment', Giovanni Bisignani, head of International Air Transport Association (Iata) has said today. He also criticised the Civil Aviation Authority (CAA), saying it was allowing Heathrow to increase charges by 86% over the next five years. He said such increases could only happen in 'monopolyland'.
The comments came as Iata warned that the airline industry would lose money this year, having predicted profits in April. The aviation trade body, which represents companies providing 94% of global air travel, has now predicted that airlines will lose $2.3bn (£1.2bn) this year, having previously forecast a profit of $4.5bn.
It blamed soaring fuel prices and the weakening global economy for creating what it called 'a perfect storm'. It said the problems were exacerbated by aircraft that had been ordered in a boom being delivered during a slowdown, increasing supply and driving down average fares.
Mr Bisignani told the BBC there would be many more bankruptcies among airlines. He said: 'That's why we think that governments, partners and trade unions must understand it's a wake-up call, an emergency situation and things must change very quickly in order to be able to survive in a profitable way.' Iata is calling on governments to limit taxation, trade unions not to make excessive wage demands and contractors to make efficiency savings. |
