Strategic Priorities for Peruvian Aviation

The International Air Transport Association (IATA) today outlined key focus areas for Peru’s aviation community including safety, infrastructure, liberalization and the environment as it works to strengthen its position in Latin America.

“Peru’s economy is growing faster than most of the countries in the world, as a result of Government economic policies that are open and liberal because of the government policies. The strength of Peru’s economy gives it a unique opportunity to support a strategy for aviation to be an even bigger contributor to Peru’s economy. And the success of its liberal and open economic policies gives it a proven model to follow,” said Giovanni Bisignani, IATA’s Director General and CEO to His Excellency Alan García Pérez, President of Peru and Enrique Cornejo Ramírez, Minister of Transportation and Communication, during a meeting that took place at the Government palace yesterday.

Bisignani made the comments in the opening address of official events to celebrate 100 years since Peruvian Jorge Chávez Dartnell made the first flight over the European Alps. In addition to his visit with President García Pérez and Minister Cornejo Ramírez, Bisignani will also meet with Ramón Gamarra Trujillo, Director General of Civil Aviation, as well as key industry figures.

“Today we celebrate the 100th anniversary of the first aircraft to cross the European Alps with a flight from Switzerland to Italy. This impressive technical achievement was done by the great Peruvian aviator Jorge Chávez Dartnell. Even a hundred years later, the symbolism of this event lives on. Technology continues to drive our industry forward. Aviation connects countries and economies with a global network. And it does take a lot of courage to manage an airline in a very difficult operating environment,” said Bisignani.

Bisignani outlined several strategic priorities to strengthen Peru’s aviation industry:

• Safety: Safety is the industry’s top priority and a constant challenge. Safety in Latin America had improved, but challenges remain. For the first six months of 2010, the accident rate in Latin America was three times higher (1.98 Western-built jet hull losses per million flights) than the 0.64 global average. Five governments in Latin America (Brazil, Chile, Costa Rica, Panama and Mexico) have endorsed the IATA Operational Safety Audit (IOSA) in their safety oversight programs. “The most fitting tribute to Jorge Chávez would be for Peru to make IOSA a requirement in Peru. And I encourage Peru to be a leading voice in making IOSA a requirement for all aircraft flying to, from and within the region,” said Bisignani.
• Infrastructure and Taxes: IATA is working with the DGCA in Peru to introduce more efficient approach and departure procedures at Peru’s main airports. New procedures have already been introduced in Cuzco, which have reduced the number of flight cancelations and diversions. IATA is working to bring those same changes to Lima, which could shave 10 minutes off flight times. “Aviation can only perform its vital role as an economic catalyst if the infrastructure is efficient. While we work together to improve infrastructure and competitiveness, I encourage Peru to review its $18 million in charges for fuel uplift. And Peru must address its complex taxation structure that sees it ranked 74th in the World Economic Forum’s Travel Competitiveness Index, behind Chile (57) and Brazil (45),” said Bisignani.
• Liberalization: Peru can take a leadership role in the region by working to liberalize ownership and open air service links with other countries and better integrate economies. In Peru alone, liberalization of market access and ownership would generate 77,000 jobs and boost GDP by $3.2 billion. “There is a leadership opportunity for Peru in supporting an open aviation area in Latin America through the Latin American Civil Aviation Commission (CLAC),” Bisignani said.
• Environment: Aviation has a solid track record on climate change with constant attention to reducing both fuel burn and emissions. IATA is leading united industry efforts to improve fuel efficiency by 1.5% per year to 2020, cap emissions from 2020 with carbon neutral growth and cut emissions in half by 2050 compared to 2005. For example, IATA helped shorten a route between Lima and Madrid, which is saving 400,000 kg of CO2. “The 22 CLAC states—including Peru—have made two important commitments on aviation and climate change. The first is to confirm support for a global solution for aviation on climate change under the International Civil Aviation Organization (ICAO). The second is the endorsement of the industry targets. I hope that Peru will be a strong voice supporting these commitments at the upcoming ICAO Assembly,” said Bisignani.

“Peru has played an important role in the Latin American aviation success story of delivering profitability, improving safety and developing innovative business models. In the coming months we will be preparing for our Vision 2050 summit. We will look ahead 40 years to see what is needed for our industry to be sustainable. The Latin American experience will make an important contribution to that discussion. And the legacy and courage of Jorge Chávez will be among the inspirations for our forward-looking vision,” said Bisignani.

View Giovanni Bisignani’s full speech