That Was The Week That Was 04-08 October
Outrage at outrageousness, and outrageously entertaining, language
Normally, in the normal times, when everything is proceeding according to norm, we do not associate October with the airline industry’s trade associations’ AGMs. That is what June is for. Normally, we go to summer safe in the knowledge that the associations are out there, beating the drum for their members, and, frankly, riffing on all their usual tunes. An AGM is normally a medley of the particular association’s greatest hits: we hate monopoly service providers; airports are businesses too, you know; and ANSPs are not expensive, safety, safety, safety.
But October is when, post-Covid, we are now to be entertained by AGMs. What a treat lies in store for the last week of October when the ACI and CANSO take their turn on centre court. And, if the IATA AGM is any guide, expect firework. No, not fireworks; but at least one firework.
IATA set the ball rolling by not just noting, as per, that it hates monopoly service providers. That would have been too tame, too mainstream for its new DG, Willie Walsh. Never one to eschew a headline – and knowing that a major U-turn on net zero was about to land as well, so they could get the punches in whilst attention was elsewhere, IATA put out a wonderful press release. This is one for the ages. A ‘crisis of apocalyptic proportions’ (well, frankly, no really; we survived, economies are growing and the next problem will be that we cannot cope with the rebound, but hey ho!), which is to be borne by the airlines, ‘because [the monopoly service providers] can’ (as opposed to because that is what the regulations that the airlines demanded, no, sorry, DEMANDED are now in place).
The best bit, if you will excuse me a parochial moment, is that now, now, IATA is praising Australia’s Productivity Commission, which was its enemy number 1 when it decided, rightly, that Australia’s airports do not abuse their market power. As Kissinger noted, there are no friends in politics, only interests, and now it is in IATA’s interest to align with the Productivity Commission. That will have them quaking in their boots in Canberra.
The gauntlet thrown down, the question was what would the response be? A very fair question. Take a guess… Well, ACI-Europe, by far the most out there of the aviation associations could not resist the temptation to fight fire with fire. The ACI-Europe press release called the IATA press release ‘outrageous’. Fair play. Why should airports subsidise airlines, it asked. The IATA view is ‘distorted and flawed’. Take that, Slasher!
But then other parts of the monopoly service provider (sic) network chimed in. ACI World, which balances a much less commercial portfolio of members, was much more emollient. The IATA claims were ‘out of context and do not reflect efforts made by airports’ it noted. CANSO, representing the even more risk adverse ANSP community, gave a response that made the ACI World reaction look like an explosion of rage and anger. In its response, it called for unity to tackle the industry-wide financial crisis. Perhaps we could also teach the world to sing in perfect harmony. Buy a home and furnish it with love. Grow apple trees and honey bees etc…
Walsh and the new IATA have made clear that the gauntlet is now down. Game on.