TRANSPORT: U.N. Seeks to Reinforce Air Safety

By Thalif Deen Reprint | | Print |

Thalif Deen

UNITED NATIONS, Feb 15 2002 (IPS) - A crisis threatening the global airline industry is forcing the United Nations to look for a new strategy to reinforce safety and security in commercial air travel.

The International Civil Aviation Organisation (ICAO), a Montreal- based U.N. agency, is scheduled to hold a conference Feb. 19-20 to re-affirm member states’ responsibility to “prevent, combat and eradicate acts of terrorism involving civil aviation.”

Participants at the meeting, to be held in Montreal, will include all 169 ICAO members and 32 international civil aviation organisations.

The sharp drop in air travel – and the resultant crisis in the industry – has been triggered by last September’s terrorist attacks in the United States.

The use of four hijacked commercial aircraft – all belonging to U.S.-based airlines – has made many travellers reluctant to fly.

According to the Geneva-based International Labour Organisation (ILO), the industry’s cyclical downturn, combined with the terrorist attacks, has resulted in the loss of some 400,000 jobs in the airline industry worldwide since September last year.

All segments of the air transportation industry – including airlines, airports, air navigation services, equipment manufacturers, catering companies, and car rental facilities – have been affected by the crisis.

In a report released last month, ILO said one of the consequences of the present crisis is that a number of airlines around the world will find themselves in financial difficulties.

“Some will be forced to cease operations and be placed in liquidation, others may be re-nationalised or receive subsidies. The end result will be a move in the direction of industry consolidation that will present challenges for governments, users and airlines alike,” it warned.

The report warned that the consequences of layoffs among airline staff are likely to spread to other segments of the labour market.

For every direct flight job lost, at least four jobs are lost on the ground in airports (in such areas as catering, baggage, maintenance and airport security), and approximately three jobs around the perimeter of airports (in hotels, transport and support services), it said.

Last year, the U.S. alone grounded about 800 aircraft, adding to some 1,200 already in storage prior to September’s attacks.

Assak Kotaite, head of ICAO, said: “The tragic events in which thousands of innocent lives were destroyed have sharpened the resolve of the world civil aviation community to do all that is necessary so that air transport remains the safest and most efficient system of mass transportation ever created.”

“We want to ensure that civial aircraft are never again used as weapons of mass destruction and to restore public confidence in a system that is fundamentally sound,” he added.

A resolution adopted by ICAO in October last year called for a major international conference to address the terrorist threat in the skies.

United Airlines, two of whose planes were used in the Sep.11 attacks, suffered an annual loss of 2.1 billion dollars last year, the largest ever by a single carrier.

The decline in revenues was caused primarily by a sharp drop in passenger traffic after Sep. 11. The speculation in the industry is that unless United Airlines stops bleeding, the company may file for bankruptcy.

The problems facing the industry have also reached out to Europe, and Asia.

Sabena, the Belgian national airline, closed shop last year. So did Swissair, which was later absorbed into Crossair, an already existing airline of Switzerland.

Singapore Airlines (SIA), described as one of the world’s most efficiently run airlines, also posted losses last year, the first time in history.

Cheong Choong Kong, SIA’s chief executive, says that a number of major airlines are on the brink of ruin. “The pain is only just starting. Nobody dares predict how it will end.”

Last October, SIA said it would defer all aircraft deliveries following an 88 percent drop in net profits in the six months to September.

SIA, which has about 98 aircraft, had plans to increase its fleet to 106 by March this year. The airline not only has a hiring freeze but its managers have also taken pay cuts ranging from five to 15 percent.

Malaysian Airline System (MAS), that country’s flag carrier, is also in trouble having grounded at least 10 aircraft. It has also slashed its workforce by about 3,000, as part of a plan to remain afloat. Additionally, MAS has axed about 12 unprofitable international routes, including one from New York to Dubai.

The only significant exception is Emirates Airlines, owned by the United Arab Emirates, which will increase its fleet with 22 new Airbuses costing more than 15 billion dollars.

Maurice Flanagan, chief executive of the airline, says that despite misgivings, “business has come back already”. The airline’s expansion plans include daily flights from New York to Dubai beginning next year.

“To an extent, we were isolated from the problem,” Flanagan said, but admitted he has not yet decided how he would persuade Americans to fly an airline called “Emirates.”

The crisis in the airline industry has also hit international tourism. The World Tourism Organisation, a U.N. agency based in Spain, said last week that international travel declined slightly last year.

Spain unseated the United States as the world’s number two tourist destination, after France.

The number of tourists visiting France last year has been estimated at 76.5 million, followed by Spain with 49.5 million. Visitors to the United States fell by about 12.6 percent from the year before, to about 44.5 million.