Industries vs. Industry vs.
By Joanna Plucinska
DUBLIN (Reuters) – Two of the leading figures in aviation sparred publicly about sustainability, airport disruption and how the war in Ukraine is impacting Europe’s skies in a rare interview-turned-debate at an industry conference in Dublin on Monday.
Willie Walsh was the outspoken head IATA’s largest airline trade group. He joined Henrik Hololei from the European Union to speak on the stage at the Airline Economics conference. It took place in London, the aviation finance capital.
Airlines and other industry professionals often save their lobbying efforts for closed-door meetings. The two powerful figures brought their candid views to the stage and argued in front of hundreds upon financiers.
Here are some of their key points:
ON UKRAINE
Hololei, originally from Estonia (a Baltic nation, which was once part the Soviet Union), repeatedly pointed out Russia’s invasion in full force of Ukraine, and the disruption that Russian airspace caused for many Western countries.
Walsh wanted to find out what could be done in order to lift this closure. This threatens to penalise certain Western airlines, while Chinese and other carriers continue to fly over Russia.
Hololei bluntly stated that Russia would lose the war. This would be a great help.
He stated that it would not be “business as usual” for Russian airspace to reopen.
“If we have the chance to see the opening of Russian airspace, one must disappear: the Siberian Overflight Royalties,” he stated. He was referring to the fees that Moscow charges airlines for flights that pass over Siberia.
ON AIRPORTS
Walsh was uncompromising about one of his favorite targets, airports. Airports are accused of charging too much for their services, but they insist that they must make large capital investments.
He said, “Let’s talk briefly about airports and the bandits out here.” “Their performance for 2022 was appalling, yet the (European Commission) tends to be very soft on airports and hard on airlines.”
Hololei was supportive of the Commission’s approach but made Walsh an uncommon public concession.
“(The airports) were also greatly affected by COVID, however, unlike many airlines, they received much more limited support from state.”
He said, “We haven’t forgotten about airports as well, and we will continue being tough on them.”
SUSTAINABILITY
Hololei was not shy when he demanded that Walsh clarify why aviation is now seen by the average consumer as an antienvironment bad boy.
“What was the sector’s mistake in the past that caused it to be perceived as bad today?” He asked.
Walsh admitted that the industry wasn’t managing its image well enough. He said, “We allowed those who wanted the poster child of environmental damage to pick at aviation.”
ON SAF
They agreed to work together to produce sustainable aviation fuel (SAF) in order to gradually replace kerosene. This will help to make aviation more greener.
Walsh stated, “We shouldn’t wait for traditional oil companies to produce SAF.”
Hololei agreed, saying: “We will fail very few of the targets that have been set.”
(Reporting by Joanna Plucinska Additional reporting from Tim Hepher; Editing and editing by Mark Potter