In a speech to the International Aviation Club of Washington, DC, International Air Transport Association (IATA) Director General and CEO Giovanni Bisignani said both safety and security remain concerns for the world's financially-strapped airlines.

IATA outlined several steps the U.S. Department of Homeland Security (DHS) should take to improve security and make the system more efficient. Bisignani warned that the deadline for 100 percent cargo screening set for next year is at risk as the government has not yet certified the required tools to meet the objective.

As regards safety, Bisignani said "the numbers tell a mixed story."

He stated: "the global accident rate through August is 30% lower than last year, but this is balanced by 670 fatalities through the same period. That is more than the fatalities we had in all of 2008. Let me be clear, getting on a plane is about the safest thing that you can do. But every fatality reminds us that we must do better."

At the recent International Aviation Safety Conference held by the FAA, the new ICAO secretary general called for greater cooperation between governments and industry. "His proposal to break down silos and share safety information is the right direction. IATA is ready to rise to this challenge...we are already in cooperation with partners to address the two largest causes of accidents: runway excursions and ground damage."

IATA and the Flight Safety Foundation now offer a Runway Excursion Risk Reduction Toolkit. And the IATA Safety Audit for Ground Operations (ISAGO) is raising the bar on safety.

As regards the ongoing crew rest controversy, the IATA boss said "this spirit of cooperation and global standards should also guide the debate on pilot flight time and fatigue- risk management. A global solution through ICAO will deliver the best results."

Bisignani weighed in on the cargo inspection debate, saying for the first time that the federal mandate of 100% screening in 2010 may not be achievable.

"The most immediate (security) challenge is cargo. Next year, 100% cargo screening will be mandatory. But TSA has not certified the equipment to do the job. Congress and TSA must extend the deadline. More fundamentally, 100% screening will be costly but it will not deliver the best security. Why put all the burden at a single screening point when the Certified Cargo Screening Program (CCSP) can provide security throughout the supply chain? Urgently sorting this mess must be a priority," he stated.

Bisignani said several political developments in the U.S. are counterproductive, including a move to restrict use of foreign repair stations. "These are protectionist and show a lack of understanding not just of aviation, but of how the global economy works. These are symptoms of lost leadership," he stated.

IATA joined the U.S. Air Transport Association as regards NextGen. "The Obama Administration needs to put NextGen on a fast track to reduce delays by 40%. The Administration needs to fix New York's airports to reduce delays and improve environmental performance. The real solution is a complete redesign of the airspace," the head of IATA stated.

Meanwhile, Bisignani said the world's airlines are expected to lose a combined $11 billion in 2009, $2 billion more than previous forecast, as the cost of fuel rises and the number of passengers and the volume of cargo sink. And IATA revised its estimates for 2008 from a loss of $10.4 billion to a$16.8 billion worth of red ink.

On a positive note, air carrier net losses worldwide are expected to be limited to $3.8 billion next year because of some growth in traffic volumes, 3.2% for passenger and 5% for cargo.

"This is not a short-term shock. Conserving cash, careful capacity management and cutting costs are the keys to survival. The global economic storm may be abating, but airlines have not yet found safe harbor. The crisis continues," said Bisignani.

The regional picture is varied:

• North American carriers are expected to post losses of $2.6 billion, more than double the previously forecast loss of $1.0 billion by the end of this year. The losses would be worse if not for early capacity reductions to match the slump in demand. But yields remain weak and recovery in travel demand is being held back by high levels of debt and unemployment.
• European carriers are expected to post the largest losses, $3.8 billion, more than double the previously forecasted $1.8 billion loss.
• Asia-Pacific carriers will post losses of $3.6 billion, being worst hit by the recession and fuel hedging losses at the end of 2008.
• Latin American carriers are expected to break even, an improvement from the previously forecasted loss of nearly $1 billion and the best performance among the regions.
• Middle East carriers can also see an improved outlook, from a loss of $1.5 billion to a loss of only $500 million. Airlines there continue to gain long-haul market share with expanded capacity and hub connectivity. The weakness of economic recovery, however, could mean continued excess capacity and further losses.
• Africa's carriers can expect loss of $500 million. Further losses are expected in this region next year.