Annual Review 2014 IATA ANNUAL REVIEW 2014 Tony Tyler Director General & CEO International Air Transport Association Annual Review 2014 70th Annual General Meeting Doha, June 2014 Note: Unless specified otherwise, all dollar ($) figures refer to US dollars (US$). CoNTENTs 4 6 8 10 12 16 Members List Chairman’s Message Director General’s 100 Years of Industry Story Benefits of Aviation Message Aviation in 2013 19 25 28 34 40 44 Safety Security Regulation Infrastructure Environment Cargo and Taxation 48 53 55 58 Passenger Financial Services Aviation Solutions IATA Offices Experience mEmbERs LIsT Air Vanuatu Euroatlantic Airways a AirbridgeCargo Airlines c European Air Transport i Aircalin Eurowings AbsA Cargo Airline Airlink C.A.L. Cargo Airlines EVA Air Iberia Adria Airways Alaska Airlines Cargojet Airways Icelandair Aegean Airlines Alitalia Cargolux InselAir Aer Lingus All Nippon Airways Caribbean Airlines Interair Aero República Almasria Universal Airlines Carpatair f Intersky Aeroflot ALs Cathay Pacific Iran Air Aerolineas Argentinas American Airlines China Airlines Federal Express Iran Aseman Airlines Aeromexico Arik Air China Cargo Airlines Fiji Airways Israir Airline Afriqiyah Airways Arkia Israeli Airlines China Eastern Finnair Aigle Azur Asiana Airlines China southern Airlines flybe Air Algerie Atlas Air CityJet Freebird Airlines Air Arabia Atlasjet Airlines Comair j Air Astana Austral Condor Air Austral Austrian Copa Airlines Japan Airlines Air baltic AVIANCA Corsair International g Jazeera Airways Air berlin Avianca brasil Croatia Airlines Jet Airways Air botswana Azerbaijan Airlines Cubana Garuda Jet Lite (India) Limited Air Caledonie Cyprus Airways Georgian Airways Jetblue Air Canada Czech Airlines Gulf Air Jordan Aviation Air China Limited JsC Aircompany Yakutia Air Corsica b JsC Nordavia-RA Air Europa Juneyao Airlines Air France b&H Airlines d h Air India bangkok Air Air Koryo belavia - belarusian Airlines Delta Air Lines Hahn Air Air macau belle Air DHL Air Hainan Airlines k Air madagascar biman DHL Aviation Hawaiian Airlines Air malta binter Canarias Donavia Hi Fly Kenya Airways Air mauritius blue Panorama Dragonair Hong Kong Airlines Kish Air Air moldova blue1 Hong Kong Express Airways KLm Air Namibia bmi Regional Korean Air Air New Zealand british Airways Kuwait Airways Air Niugini brussels Airlines e Air Nostrum bulgaria air Air one Egyptair Air sERbIA a.d.beograd EL AL Air seychelles Emirates Air Tahiti Estonian Air Air Tahiti Nui Ethiopian Airlines Air Transat Etihad Airways 4 mEmbERs LIsT l n r t v LACsA NIKI Rossiya Airlines TAAG - Angola Airlines Vietnam Airlines LAm - Linhas Aéreas de Nile Air Royal Air maroc TACA Virgin Atlantic Moçambique Nippon Cargo Airlines (NCA) Royal brunei TACA Peru Virgin Australia LAN Airlines Nouvelair Royal Jordanian TACV Cabo Verde Airlines Vladivostok Air LAN Argentina TAm - Transportes Aéreos Volaris LAN Cargo del mercosur Volga-Dnepr Airlines LAN Perú TAm Linhas Aéreas VRG Linhas Aéreas LAN Ecuador o s TAmE - Linea Aérea del Ecuador Libyan Airlines TAP Portugal LLC “NoRD WIND” olympic Air sAA – south African Airways TARom LoT Polish Airlines oman Air safair Thai Airways International Lufthansa onur Air safi Airways THY - Turkish Airlines w Lufthansa Cargo sAs Tianjin Airlines Lufthansa CityLine sATA Air Açores TmA – Trans mediterranean White Airways Luxair sATA Internaçional Airways Wideroe p saudi Arabian Airlines TNT Airways shandong Airlines Transaero PAL – Philippine Airlines shanghai Airlines TransAsia Airways m Pegasus Airlines shenzhen Airlines TUIfly x PGA-Portugália Airlines sIA – singapore Airlines Tunis Air mahan Air PIA – Pakistan sIA Cargo Xiamen Airlines malaysia Airlines International Airlines siberia Airlines malmö Aviation Precision Air sichuan Airlines martinair Cargo PrivatAir silkair u mAs AIR south African Express Airways y mEA – middle East Airlines sriLankan Airlines Ukraine International Airlines meridiana fly sudan Airways United Airlines Yemenia mIAT- mongolian Airlines q sunExpress UPs Airlines montenegro Airlines surinam Airways Us Airways, Inc. Qantas sWISS UT air Qatar Airways sYPHAX AIRLINEs z syrianair 5 ChairmAN richard AndersoN Commercial aviation, catalyst for change In 2014, airlines will safely transport some 3.3 billion passengers and 50 million metric tons of cargo across a network of almost 50,000 routes. This connectivity has an immense economic footprint—58 million jobs and $2.4 trillion of business activity. over a third of the value of goods traded internationally is delivered by air. This year, we are celebrating the centennial of scheduled commercial aviation. In just 100 years, aviation has become an essential part of our global infrastructure. It has also been a catalyst for change. by turning our big planet into a global community, aviation has had a transformational impact on how we live together. The exchange of ideas, cultures, and experiences enriches us. Prosperity is spread by people working together in 6 ChairmAN richard AndersoN global supply chains. And uncountable opportunities— The IATA settlement systems (ISS) play an important role Government inaction on such critical issues as delivering human and economic—are generated by the freedom to be in the global distribution of airline products. Fully 46% of Next Gen air traffic management in the United states or the almost anywhere in a short 24 hours. airline passenger revenues are channeled reliably through single European sky in Europe is equally problematic. The the billing and settlement Plan (bsP). inefficiency of European air traffic management is a burden Aviation is a romantic industry with very practical purposes. on the airline industry and a ¤5 billion disadvantage for our world would be very different—poorer in spirit and The industry also has a strong global voice in IATA. Europe’s economic competitiveness. wealth—without it. Running an airline is challenging, especially when you do business across borders. Harmonization in the regulatory It has been an honor to serve as the Chairman of the IATA IATA plays an important role in the industry’s success. and operational environment assures a better passenger board of Governors over the past year. This review highlights Airlines compete vigorously to generate profits. but there experience and helps airlines to manage costs efficiently. the considerable progress made in 2013 on the industry’s are many areas where cooperation and global standards Governments and regulators need constant reminding main challenges. deliver value for all industry players and consumers. of this.They also need reminding of the unintended consequences of their actions—or inactions. We can be proud of aviation’s many achievements and The IATA operational safety Audit (IOSA), a condition of contributions during its first 100 years. but in marking this IATA membership, demonstrates the important contribution Taxes illustrate the former. Airlines and airline passengers important milestone, it is more important to look forward. of global standards. In 2013, the safety performance for are a soft target for taxes. Taxes may provide short-term IATA’s challenge is to continue supporting its members so IOSA-registered carriers was more than two times better budget relief for governments. but taxes dampen demand that they can profitably deliver efficient global connectivity than the rate for non-IOSA carriers. And the superiority for connectivity in the long run, and eventually that places that is safe, secure, and sustainable. of that performance will only rise as Enhanced IOSA is a greater burden on the economy. progressively adopted. richard anderson Chairman IATA Board of governors 2013- 2014 Chair of the Board: Mr. david Bronczek Mr. alexandre de Juniac Mr. Naresh Goyal Mr. harry hohmeister Mr. titus Naikuni Mr. Carsten spohr President and Chief President and Chief Chairman Chief Executive officer Group managing Director Chairman and Chief Mr. richard anderson Executive officer Executive officer JET AIRWAYs (INDIA) LTD. sWISS and Chief Executive officer Executive officer Chief Executive officer FEDEX EXPRESS AIR FRANCE-KLm KENYA AIRWAYs LUFTHANsA DELTA AIR LINEs (representing AIR Mr. rickard Gustafson Mr. alan Joyce Mr. Yang ho Cho FRANCE) President and Chief Chief Executive officer Mr. Masaru onishi Mr. antonio Vázquez MeMBers: Chairman and Chief Executive officer QANTAs Chairman Chairman IAG Executive officer Mr. Germán efromovich sAs JAPAN AIRLINEs board of Directors Mr. akbar al Baker KoREAN AIR President of the Mr. temel Kotil (representing IbERIA) Chief Executive officer board of Directors Mr. Peter hartman President and Chief Mr. Calin rovinescu QATAR AIRWAYs Mr. Chu Kwok Leung, ivan AVIANCA Vice Chairman Executive officer President and Chief Mr. Willie Walsh Chief Executive of the board TURKIsH AIRLINEs Executive officer Chief Executive Mr. Khalid abdullah CATHAY PACIFIC Mr. tewolde GebreMariam AIR FRANCE-KLm AIR CANADA officer International almolhem Chief Executive officer (representing KLm) Mr. Liu shaoyong Airlines Group Director General Mr. andrés Conesa ETHIoPIAN AIRLINEs Chairman Mr. Vitaly G. saveliev (representing sAUDI ARAbIAN AIRLINEs Chief Executive officer Mr. James hogan CHINA EAsTERN Chairman bRITIsH AIRWAYs) AERomEXICo Mr. Goh Choon Phong President and Chief AIRLINEs AERoFLoT Mr. david Barger Chief Executive officer Executive officer President and Chief Mr. enrique Cueto sINGAPoRE AIRLINEs ETIHAD AIRWAYs Mr. Pham Ngoc Minh Mr. si Xian Min Executive officer Chief Executive officer President and Chief President/Chairman