How Nigeria can tap from IATA $680bn growth projection –IATA

“If developing countries, including Nigeria, can reduce tax burden on the aviation industry, their economies will be more effectively driven by the sector.”

This was the view of the International Air Transport Association (IATA), while reviewing the impact of the industry on global economy in the past five years.

Addressing the US Chamber of Commerce in Washington DC, on Sunday, IATA’s Director General/CEO, Alexandre de Juniac, said most developing economies of the world have records showing clearly that one of the debilitating factors holding down the aviation industry, and ironically such countries’ economies, is lack of policy capable of encouraging operators in meeting projected growth-target, resulting from high tax.

He disclosed that IATA has put in place industry’s potential to contribute about $680.1 billion to GDP annually, including creating not less than 6.2 million jobs within the same period, which countries are to harness.

Urging governments to support the vital role that aviation plays in connecting people and commerce around the globe, de Junaic said no other sector could achieve that.

“Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place.

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“Aviation is the business of freedom and we must continue to work together to make sure all countries survive their economic challenges,” IATA boss said.

On Africa, specifically, he said his association will continue to assist governments in the continent to open their doors for full tapping of the gains of the sector, as is the case in Europe and USA.

According to him, the situation is quite different in the US as the Airline Deregulation Act of 1978 has unleashed competition and spurred innovation by letting market forces drive commercial decisions.

“Deregulation has benefited travellers, as well as the US economy, and the competitiveness of its airlines. I hope that the emerging economies will focus on this in the few years to come.

“Delivering the benefits of an ever safer, efficient and sustainable air transport system in the face of a doubling of demand by 2035 will require quick, constant innovation.

“At the industry level, governments should be playing important role as partners and regulators and not as players.

“Safety is our top priority, which is why flying is the safest way to travel”, he added.

IATA is currently having a partnering agreement with Nigeria, estimated to amount to $3.2bn, but which can only be tapped fully, if the country’s ticketing is fully automated.

Mr. Sam Adurogboye, NCAA spokesman, said there is strong evidence proving that Nigeria and the international agency are in best of partnerships, but didn’t give details.

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