Mayday Mayday: Global airlines made just 0.1 % return over the last 4 decades

This and other shocking revelations about the state of global aviation were made at IATA's annual chinwag.

IATA Director General and CEO Giovanni Bisignani noted that sustainable profitability would be the biggest challenge for an industry with a net return of 0.1% over the last four decades.

"We know what will not work. Cost-cutting alone does not increase long-term profits. Unbundling erodes the value of the base product. And re-regulation would kill efficiency and innovation," said Bisignani.

The key conclusions of Vision 2050 are the need for stronger partnership across the value chain and a more proactive role for governments. "We must break down silos in the value chain to rebalance financial reward with risks, and create a new value proposition so that competition is not just based on price. And governments must deliver policy decisions that replace intervention with commercial freedoms, reduce barriers to exit, and allow airlines to restructure like normal businesses," said Bisignani.

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