The Nature of Air Transport

In the words of Giovanni Bisignani, Director General and CEO of LATA who, at a meeting he addressed in February 2011 said  

Aviation is a unique industry. In 2011 we expect to generate almost 600 billion in revenues with the burden of 205 billion in debt. The industry s activity is critical. Aviation supports 32 million jobs and facilitates the global village by supporting 3.5 trillion in economic activity. Our commitments to tackle climate change are the most ambitious of any global industry. And we are the safest mode of transport. But our margins are pathetic -Just 0.1% over the last 40 years. This is not sustainable. We need to look ahead to anticipate 

Air transport, unlike any other mode of transport, is severely constrained by international treaty. While rail, maritime and road transport do not require the express permission of the State into which they operate services internationally, no scheduled air service can be operated over or into the territory of a contracting State, except with the special permission or other authorization of that State, and in accordance with the terms of such permission or authorization. This anomaly has spawned htmdreds of bilateral air services agreements and enabled States to adopt a protectionist attitude in guarding the market share of its own national carrier, thus stultifying competition among carriers and depriving the consumer of the most efficient and cost effective air transport product that an otherwise liberalized market would have produced. 

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