by Neelam Mathews - December 1, 2015, 10:00 AM
As
Asia Pacific airlines experience strong passenger growth, the region continues
to face a host of diverse challenges, not least of which involves effective
safety oversight. At the recent Association of Asia Pacific Airlines (AAPA) annual 59th
Assembly of Presidents in Bali, delegates also called on governments to boost
infrastructure investment, simplify passenger facilitation and moderate
consumer rights legislation. But perhaps the foremost concern centered on what AAPA director general Andrew Herdman
characterized as a heavy handed regulatory approach by world aviation bodies
toward airlines whose countries’ aviation authorities do not meet
international standards.
Authorities have restricted
or even banned Asian carriers from Thailand, Indonesia, and the Philippines
from operating to European Union and U.S. destinations due to a lack of
effective regulatory oversight in their home countries. “AAPA remains opposed to the unilateral
imposition of extra-territorial measures and operating restrictions,” said
Herdman. He added while the systems of some national civil aviation regulatory
bodies need strengthening, “airlines should not be held responsible for their
[authorities’] shortcomings, [as] the possibility of operations to various
destinations being restricted or even banned could have a major detrimental
impact on certain carriers from the region.” Herdman called for “a more
light-handed approach to the industry, rather than taking actions that involve
more regulatory hurdles, additional legislation and unfair taxation.”
The Indonesian government,
which imposed restrictions on airlines for failing to meet international
standards, now plans significant investments in safety across all areas of
transportation. “Next year the government will allocate around $1 billion for
safety improvements, including sea, rail and air transport,” said Minister of
Transportation Ignasius Jonan. The figure represents the highest amount ever
spent in a single year in Indonesia.
Contradictions remain,
however. “The challenge for Asia Pacific is how to counterbalance its
development in market terms even as the U.S. and Europe still set the pace with
intensity of regulation,” said Herdman. “We are strong supporters of an ICAO that sets ambitious standards, but the
problem is the degree of compliance by states on standards leaves a lot to
be desired.”
Another hot topic centers
on airspace risk assessment associated with flights over conflict zones, as the AAPAseeks further streamlining of
the processes by which governments share intelligence and information related
to flight safety. “Safety requires close cooperation between regulators,
airlines and other involved stakeholders, with the sharing of data and best
practices,” said Herdman.
Airline margins, meanwhile,
remain sluggish. Fierce competition has led to reduced yields for all carriers
in a region that contains many of the busiest air routes in the world. “Bleak
results in a good year of traffic growth show how competitive the market is,”
said Herdman. “Slow growth of freighters is still looming over the sector as
belly capacity grows at 6 percent.”
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