Airport cost a risk for airlines: International Air Transport Association

on Feb5

IATA CEO Alexandre De Juniac on December 8, 2014.

Fabrice Coffrini | AFP | Getty Images

IATA CEO Alexandre De Juniac on December 8, 2014.

The growing cost of airport infrastructure poses risks to the airline industry’s profitability and growth, the head of the International Air Transport Association said, adding there was an infrastructure crisis almost everywhere in the world.

“We see the costs rising to where it could be unbearable for the airlines and passengers,” IATA CEO General Alexandre de Juniac told reporters on the sidelines of the Singapore Airshow Aviation Leadership Summit.

He cited the proposed 14 billion pounds ($19.8 billion) cost of a third runway at London’s Heathrow Airport and the development of a fifth terminal at Singapore’s Changi Airport as cases where it was crucial that costs were kept under control.

“We must pay attention to these costs from the beginning,” de Juniac said. “We would like to avoid big projects in which we see overruns because the infrastructure is fantastic but it is very costly.”

Global airline profits are expected to rise to a combined $38.4 billion this year, according to IATA forecasts, but net profit margins at 4.7 percent remain low by the standards of other industries.

“Our exuberance is limited,” he said.

Previous postSingtel to spend $413 million to up stake in India's Bharti Telecom Next postCadillac XT4 crossover to debut in New York City

Leave a Reply

Your email address will not be published. Required fields are marked *

Los Angeles Financial times

Copyright © 2020 Los Angeles Financial times

Updates via RSS
or Email