The airline industry is crucial to national and global economic development and therefore great attention has to be paid to it to ensure that at all times air transport is affordable, reliable and efficient. In recent years, the air line industry has come under pressure due to global economic crisis and high fuel prices resulting in several airline companies folding up or forced to merge with other companies. Consequently, the competitive field has been reduced and as such air fares have risen appreciably.

But the global situation with respect to air transport even though difficult is showing some encouraging sign of recovery which would be most welcome by travellers across the globe.

The International Air Transport Association (IATA) said that in 2009 intra-Asia-Pacific travel had eclipsed the number of travelers in North America as the world’s largest aviation market. Asia-Pacific’s travelers numbered 647 million compared to the 638 million who travelled within North America (including domestic markets). By 2013 an additional 217 million travelers are expected to take to the skies within Asia–Pacific.

“Achieving Asia-Pacific’s tremendous potential is contingent upon short-term efforts to battle the impacts of the economic downturn with cost reductions and efficiency gains. Longer-term Asia-Pacific must also face global challenges including environment, security and liberalization,” said Giovanni Bisignani, IATA’s Director General and CEO at the start of the Singapore Air Show Aviation Leadership Summit.

The global aviation industry is expected to reduce losses from US$11.0 billion in 2009 to US$5.6 billion in 2010. The loss reduction is being led by Asia-Pacific’s carriers who are expected to see their losses shrink from US$3.4 billion in 2009 to US$700 million in 2010. “Asia-Pacific’s prospects are improving faster than other regions,” said Bisignani.

Bisignani noted that the Asia-Pacific region is diverse, dynamic and with great potential:

Diverse: Asia-Pacific is home to two of the world’s top five airlines in terms of profitability. At the same time, the region’s governments provided over US$10 billion in government bailouts to airlines in the first quarter of the year. The region’s two biggest growth markets—India and China—face completely different circumstances. India’s challenge is to reduce costs and improve infrastructure, while China is adjusting to new global trade patterns. (Source: Air Transport News)

Glenn Tilton, Chairman, President and Chief Executive Officer, United Airlines

and Chairman, Air Transport Association of America to the European Aviation Club in his article: The Importance of Aviation to Enabling Economic Recovery notes:

“Globalization has made the world flatter and passengers rightly expect global connectivity. No one carrier can serve all customers, and no one carrier can serve all points on a map.”

“Due to the current regulatory anachronisms, the only way we can attempt to provide the global connectivity the market place demands is through alliances with other carriers … because airlines are different.”

Here in Guyana we have been have difficulties with international air carriers because of the absence of competition as only few airlines operate the Guyana route and they hold the travelers ransom.

Recently, one airline which operates here raised air fares to an unreasonable level prompting the Minister of Tourism, Industry and Commerce, Manniram Prashad to react sharply to the steep increases.

According to the minister the airline practically has a monopoly in Guyana and his ministry has been trying to get more airlines to fly to this country.

On this note also it was encouraging to hear from President Bharrat Jagdeo that the government is not ruling out the possibility of getting back into the airline business so as to break the monopoly.

The airline business is crucial to Guyana, especially in light of the budding local tourism industry which has the potential to become one of the largest sectors of the national economy. And in order to realise that potential efficient, economical and reliable air transport is essential. Therefore, if the government has to get back into the business in the interest of the development of this country so be it.