ANNUAL REVIE W 2017 Alexandre de Juniac Director General & CEO International Air Transport Association Annual Review 2017 73rd Annual General Meeting Cancun, June 2017 Note: Unless specified otherwise, all dollar ($) figures refer to US dollars (US$). Illustrations: Martin O’Neill - Cut it Out Studio CONTENTS CONTENTS 04 Members’ List 06 Chairman’s Message 08 Director General and CEO’s Message 10 Industry Story in 2016 16 Safety 22 Security 28 Regulation and Taxation 34 Infrastructure 40 Environment 46 Cargo 52 Passenger Experience 58 Financial Services 62 Aviation Solutions 67 IATA Offices 53 57 IATA 70th IATA Offices Anniversary MEMBERS’ LIST Air Vanuatu Euroatlantic Airways Iran Aseman Airlines A AirBridgeCargo Airlines C European Air Transport Israir Airlines Adria Airways Aircalin C.A.L. Cargo Airlines Eurowings Aegean Airlines Airlink Camair-Co EVA Air Aer Lingus Alaska Airlines Capital Airlines Aero Contractors Alitalia Cargojet Airways J Aero República All Nippon Airways Cargolux Japan Airlines Aeroflot Allied Air Caribbean Airlines F Jazeera Airways Aerolineas Argentinas AlMasria Universal Airlines Carpatair Federal Express Jet Airways (India) Aerolineas Galapagos S.A.—Aerogal American Airlines Cathay Dragon Fiji Airways Jet Lite (India) Aeromexico Arik Air Cathay Pacific Finnair JetBlue Aigle Azur Arkia Israeli Airlines Cemair flybe Jordan Aviation Air Algerie Asiana Airlines China Airlines flydubai JSC Nordavia-RA Air Arabia ASL Airlines Belgium China Cargo Airlines FlyEgypt Juneyao Airlines Air Astana Atlas Air China Eastern Airlines Freebird Airlines Air Austral AtlasGlobal China Postal Airlines Air Baltic Austral China Southern Airlines Air Berlin Austrian CityJet K Air Botswana Avianca Comair G Kenya Airways Air Burkina Avianca Brasil Condor Garuda Indonesia Kish Air Air Cairo Azerbaijan Airlines Copa Airlines Georgian Airways KLM Air Caledonie Azul Brazilian Airlines Corendon Airlines Germania Korean Air Air Canada Corsair International Guangxi Beibu Gulf Airlines Kuwait Airways Air Caraibes Croatia Airlines Gulf Air Air China Cubana Air Corsica B Czech Airlines Air Europa Bahamasair L Air France Bangkok Air H LACSA Air India Belavia—Belarusian Airlines Hahn Air LAM—Linhas Aéreas de Moçambique Air Koryo BH Air D Hainan Airlines Lao Airlines Air Macau Biman—Bangladesh Airlines Delta Air Lines Hawaiian Airlines LATAM Airlines Argentina Air Madagascar Binter Canarias DHL Air Hi Fly LATAM Airlines Brasil Air Malta Blue Air DHL Aviation Hong Kong Airlines LATAM Airlines Colombia Air Mauritius Blue Panorama Dniproavia Hong Kong Express Airways LATAM Airlines Ecuador Air Moldova bmi Regional LATAM Airlines Group Air Namibia Boliviana de Aviación—BoA LATAM Airlines Paraguay Air New Zealand Braathens Regional Aviation AB LATAM Airlines Peru Air Niugini British Airways E I LATAM Cargo Brasil Air Nostrum Brussels Airlines Egyptair Iberia LATAM Cargo Chile Air Serbia a.d. Beograd Bulgaria Air El Al Icelandair LATAM Cargo Mexico Air Seychelles Emirates InselAir LIAT Airlines Air Tahiti Ethiopian Airlines Interjet LLC Nordwind Air Tahiti Nui Etihad Airways Iran Air LOT Polish Airlines Air Transat Iran Airtour Airlines Loong Air 4 MEMBERS’ LIST Lucky Air Silk Way West Airlines Lufthansa P Silkair V X Lufthansa Cargo Pegas Fly (LLC “IKAR”) SKY Airline Vietjet Xiamen Airlines Lufthansa CityLine Pegasus Airlines South African Express Airways Vietnam Airlines Luxair PGA—Portugália Airlines SriLankan Airlines Virgin Atlantic Philippine Airlines SunExpress Virgin Australia PIA—Pakistan International Airlines Surinam Airways Volaris Precision Air SWISS Volga-Dnepr Airlines M PrivatAir Syrianair VRG Linhas Aéreas—Grupo GOL Mahan Air Vueling Airlines Malaysia Airlines Malindo Air Mandarin Airlines Q T Martinair Cargo Qantas TAAG—Angola Airlines W Mauritania Airlines International Qatar Airways TACA Wamos Air MEA—Middle East Airlines TACA Peru Westjet Meridiana fly TACV Cabo Verde Airlines White Airways MIAT Mongolian Airlines TAM—Transportes Aéreos del Wideroe Mistral Air R Mercosur MNG Airlines Rossiya Airlines TAME—Linea Aérea del Ecuador Montenegro Airlines Royal Air Maroc TAP Portugal Myanmar Airways International Royal Brunei TAROM IATA represents airlines from all New African members are CemAir, Royal Jordanian Tassili Airlines corners of the globe using a multitude FlyEgypt, Mauritania Airlines of business models. Membership is International, Allied Air, and Overland RwandAir Thai Airways International growing. Of particular note is the Airways. The first three carriers Thai Lion Air increase in new model airline (NMA) are based in Johannesburg, South N THY—Turkish Airlines members. NMAs now account for more Africa; Cairo, Egypt; and Nouakchott, Neos Tianjin Airlines than 10% of IATA membership. Mauritania, respectively, while Allied Air and Overland Airways operate out NESMA Airlines S TUIfly Asia-Pacific has been a particularly of Lagos, Nigeria. Nextjet S7 Airlines Tunis Air active region for new membership NIKI SAA—South African Airways T’way Air in the 12 months to May 2017. Europe has two new IATA members. Nile Air Safair Lao Airlines, and Malindo Air— Neos is a leisure market Italian airline Nippon Cargo Airlines (NCA) Safi Airways operating out of Laos, and Malaysia, based in Milan, and MNG Airlines is respectively—joined IATA, as did a Turkish cargo carrier flying out of Nouvelair Santa Barbara Airlines U fellow NMAs Thai Lion Air and Vietjet. Istanbul. SAS Bangkok is home to Thai Lion Air, SATA Air Açores Ukraine International Airlines Hanoi to Vietjet. Elsewhere, new IATA members include SATA Internaçional United Airlines Iran Airtour Airline, headquartered in In China, new IATA members include Tehran, and Air Caraibes, a regional O Saudi Arabian Airlines UPS Airlines SF Airlines, a cargo airline based in airline in the French Caribbean Okay Airways SF Airlines Ural Airlines Shenzhen, and Guangxi Beibu Gulf and headquartered in Guadeloupe. Olympic Air Shandong Airlines UTair Airlines—also known as GX Airlines— And in Russia, Pegas Fly, based at Oman Air Shanghai Airlines Uzbekistan Airways at Nanning Wuxu International Airport. Yemelyanovo International Airport, Onur Air Shenzhen Airlines Loong Air, flying out of Hangzhou also joined the IATA fold. Xiaoshan International Airport, and Overland Airways SIA—Singapore Airlines Lucky Air, based in Kunming, also SIA Cargo signed up to IATA membership. Sichuan Airlines 5 CHAIRMAN WILLIE WALSH A VOICE THAT MAKES A DIFFERENCE What have been your top priorities scheme to avoid this patchwork quilt of as chairman? schemes that were going to be imposed I have thoroughly enjoyed my time as upon us. So I think we have a unique Chairman, and I got to do something that opportunity, and it’s great to see that not many Chairmen of IATA get to do, and today 68 states have signed up and intend that is to oversee the transition from one to participate from the very early stages, Director General to a new Director General. and that’s great news for us. So there’s And it clearly was one of my key priorities still more work to do, but I think it’s a very to ensure that the transition went well. I’m significant development and a great step very pleased to say that both personally, forward for the industry. and on behalf of the Board, we’re delighted with the work that Alexandre is doing. I Does the industry have sufficient think he’s shown great leadership, and infrastructure to meet future the transition has been smooth, but as we demands for connectivity? would expect, he has a different style of Our industry is growing at a significant leadership, and we’re looking forward to pace, driven by the demand for more air that continuing, with Alexandre taking IATA travel, and I think it’s fair to say that current forward from its current strong position. infrastructure doesn’t support what we’re doing today. So when I look forward, I How significant is the ICAO CORSIA struggle to see how our industry will fulfill agreement for the industry? the demands that are going to be made I believe the ICAO CORSIA agreement on it. We have insufficient air traffic control was probably one of the most significant infrastructure, many airports around the developments that I’ve seen in my time world are full, there are very few plans to in this industry—about 40 years now—so expand airports, and where those plans I think that gives you a feeling for how do exist they are often at exorbitant cost, important it was that we got this right. and that’s something that our industry We’ve been talking about convincing has to fight against. So this is going to be regulators that we needed a global a challenge for us, and it’s one that the 6 CHAIRMAN WILLIE WALSH industry needs to work with our partners into IATA, they can influence our thoughts, IATA BOARD OF GOVERNORS 2016–2017 to ensure that we do have the right they can influence our lobbying, and that infrastructure, sufficient infrastructure, to has to be a really positive development for CHAIR OF THE BOARD Naresh Goyal Masaru Onishi not just fulfill the requirements for today everyone in the industry. Willie Walsh Chairman Chairman and tomorrow but for the next 10, 15, 20, Chief Executive Officer JET AIRWAYS (INDIA) JAPAN AIRLINES INTERNATIONAL 30 years. I think that’s going to be a big What are the biggest issues that you see AIRLINES GROUP Rickard Gustafson Douglas Parker challenge for everyone. on the horizon for the industry? (representing BRITISH President and Chief Executive Officer Our industry is always going to be AIRWAYS) Chief Executive Officer AMERICAN AIRLINES SAS How important is it that the industry challenged by the unforeseen, and probably MEMBERS (From November 2016) speak with one voice on critical issues? the most recent event has been the banning Akbar Al Baker Robin Hayes Fernando Pinto Chief Executive Officer President and Chief Executive Officer It’s really important that as an industry of electronic items in the cabin of the QATAR AIRWAYS Chief Executive Officer TAP PORTUGAL we can try and find common ground.