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Cargo hold of issues for Iata's new pilot

To celebrate his becoming chairman of the global airline club last week, Cathay Pacific Airways chief executive Tony Tyler set out not so much a stall but a whole department store of complaints about the problems that the aviation industry faces.

It was a typically Tyler feisty effort, full of rambling good sense along with a few self-serving comments on behalf of airlines.

His speech, in Singapore just before he took up the post of chairman of the International Air Transport Association, deserves a wider audience. Does it offer hope that he may use his year in office to try to bring the airlines together to do something practical to improve the sickly business?

With the world's airlines facing losses of US$9 billion this year, some of Mr Tyler's home truths are telling, particularly his attack on stifling, greedy, often nonsensical government regulations.

Mr Tyler's biggest immediate test is whether he can persuade airlines and governments to come on board with a sensible scheme to make aviation pay for its greenhouse gas emissions. Major airlines such as Cathay and British Airways are pressing for a workable global greenhouse gas tax.

Admittedly, they are partly motivated by fear that unless they can get agreement, individual governments will impose more expensive piecemeal taxes. The European Union is showing the way, with planned taxes that will hit non-European airlines such as Cathay heavily.

Poorer countries are pressing to raise US$10 billion from a tax on long-haul flights. Britain is imposing heavy taxes on all flights, but the money goes to general revenue, not to protect the environment, 'a Brown tax, not a green one', Mr Tyler mocked.

Willie Walsh, chief executive of British Airways, conceded that the airlines had spent too much time with transport ministers and within the International Civil Aviation Organisation, a United Nations body, rather than talking to environment ministers. A lot is expected of Mr Tyler, not least because he is based in Hong Kong, and China, along with Brazil and India, has been showing its new political and economic clout.

But there are really too many issues calling for his attention. One is to lobby the European Union to stop delaying and accomplish the Single European Sky, bringing together all the air traffic systems. This would save airlines 12 per cent in fuel costs and the choking planet an equivalent amount of greenhouse gases.

Then there is an ever-growing plethora of rules and regulations. The United States, Mr Tyler noted, had just issued 177 pages of guidance notes on dealing with passengers with disabilities. Foreign airlines only have to carry dogs as service animals in the cabin for disabled passengers, but US airlines must be prepared to carry miniature horses, monkeys or even ducks if passengers need them for psychiatric or emotional support.

Some countries are planning to fine airlines or demand compensation for passengers in the case of delays, and Mr Tyler protested that this was hardly fair if weather, such as typhoons in Hong Kong or snowstorms in New York, was responsible.

But one of the reasons why demands for compensation have been made is that airlines treat passengers cavalierly. I was once stuck on board a United Airlines flight for almost nine hours before the flight was cancelled, without compensation.

Mr Tyler claimed that wider recognition for the oneworld alliance would give passengers the greater competition of three alliances to choose from. But how is three a better choice than 10 or 20?

Airlines have colluded with governments in setting base fares at unrealistically high prices. Only fools and business executives on expenses pay them. But they are a useful base for excess luggage or for imposing a whole range of extra charges and impositions on special fares. These have led to a baffling range of booking classes from A to Z for the three (or four, if there is premium economy) real classes of service on board.

Yes, Mr Tyler is right that airlines face tough times, especially with oil prices rising again. But honesty should require him to face up to the airlines' warts as well as those of governments and regulators.

Job No 1

Workable global tax on greenhouse gases a priority for airlines

Total losses the world's airlines are expected to face this year, in US$: $9b

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