Even as economy wavers, aviation industry can soar: Transport Minister Lui Tuck Yew

SINGAPORE - Transport Minister Lui Tuck Yew has urged the international aviation industry to make use of the current global economic crisis to lead the aviation industry to greater heights.

Speaking at the Aviation Leadership Summit held on the sidelines of the Singapore Airshow 2012, Mr Lui said one area in which the industry can work together is air transport liberalization.

He suggested that the present economic crisis should be turned into an opportunity for a global push to further advance the freedoms of the air - rather than allowing it to become an excuse to protect unsustainable models - because the liberalization of air rights will boost connectivity, create jobs and uplift economies.

Said Mr Lui: "At a regional level and amongst progressive states, liberalisation has been advanced collaboratively to good effect. For example, the member states of the Association of South-east Asian Nations (Asean) have inked multilateral agreements to fully free up air freight and passenger services among all Asean points, to realize intra-Asean open skies by 2013.

"Like-minded Asean Member States such as Singapore and Malaysia, who have opened up bilaterally ahead of intra-Asean liberalization, have already reaped the benefits of significant traffic growth and provided wider choices for the travelling public."

Mr Lui also called on the industry to work together to make all parts of the aviation system stronger.

He said aviation's economics, safety, security and ecological resiliency must be boosted, so countries keep their heads above water in bad times, and position themselves to thrive in good times.

Mr Lui noted that aviation is beset by a new wave of challenges. Continued weakness in the United States recovery, and the looming threat of recession in Europe have dampened demand and yields.

The International Air Transport Association's (IATA) projections for the air transport sector ranged from meagre profits in a more optimistic scenario, to heavy losses should there be a full-blown European sovereign debt crisis.

Mr Lui called on the international aviation industry to forge closer ties of cooperation.

He said: "We need to recognize that the growth and success of each region is to the advantage of all. Hence, the summit's theme of working jointly to overcome challenges and enacting change resonates. Let us move beyond the all-too-common rhetoric of partnership to embrace it in reality." CHANNEL NEWSASIA