Examines Challenges Impacting The Efficiency And Growth Of Airlines

The U.S. Chamber of Commerce held its 12th Annual Aviation Summit last Thursday, bringing top experts and leaders from all sectors of aviation to discuss critical issues facing the industry. The event examined many of the challenges impacting the efficiency and growth of airlines, including rising fuel prices, onerous environmental regulations, runway availability, and the implementation of the NextGen air traffic modernization program.

“Aviation is an essential mode of transportation that can both quickly and efficiently move people and goods around the United States and the world,” said U.S. Chamber President and CEO Thomas J. Donohue. “A strong federal role is essential for safety, oversight, and air traffic efficiency. Necessary maintenance and modernization investments must be made to renew and upgrade aging aviation infrastructure, and to preserve America’s role as a leader in aviation.”
 
The summit kicked off with a one-on-one discussion between Donohue and W. James McNerney, Jr., the chairman, president, and CEO of The Boeing Company. Other panel discussions focused on manufacturing, future trends in aviation, and airport efficiency.
 
“The welfare of the U.S. aviation system is of critical importance to the economy because it facilitates the movement of goods and people through commercial, business, and private travel,” said Carol Hallett, of Counsel at the U.S. Chamber. “The Chamber continues to advocate for federal policies that recognize the vital link between America’s aviation industry and jobs, economic development, global competitiveness, national security, and quality of life.”

During the event, United CEO Jeff Smisek said the recent round of airline mergers has helped make airlines profitable again, adding that fewer flight and higher fares have gone a long way towards resolving the situation of "too many airlines chasing too few passengers." But, he said, too many taxes and a lack of government support are still hurting the industry, which could benefit from the NextGen Air Traffic Control system, according to a report from the Associated Press.

The Wall Street Journal reports that US Airways CEO Doug Parker said during the conference that he has not decided whether to keep the new branding and logo rolled out for American Airlines last month. Parker will assume the role of chief executive of the merged airline if it is approved by anti-trust and other officials. The new logo and livery were introduced shortly before the merger deal was announced on Valentine's Day to mixed industry reviews.

Parker said that the two airlines were "on track" to complete the merger by the third quarter of this year.

FMI: www.uschamber.com