NEW DELHI: “The freedom with which we can move this large assembly from Madrid one year to New Delhi the next and then on to Tokyo and the speed with which we can call delegates in from all corners of the world within a few days dramatises the services which we (airlines) offer to the general public.” That was Indian aviation pioneer, J R D Tata addressing the media in 1958 and the “large assembly” he referred to comprised the 250 delegates attending the International Air Transport Association (IATA) annual general meeting (AGM). Back then IATA had only 86 members, its delegates flew in from around the world, some likely taking days to reach India to attend the five-day AGM held in October. On Sunday, IATA’s 81 st AGM began in Delhi and the “large assembly” now comprises about 1700 delegates, including officials from the 350 member airlines. This is the third time that India is hosting the IATA annual general meeting (AGM), the first in 1958 and then in 1983, both the events inaugurated by the then prime ministers, Jawaharlal Nehru and Indira Gandhi. Prime Minister Narendra Modi is expected to deliver a keynote address on Monday evening. What were the topics that made headlines in the two earlier events held in India? TOI digs into its archives to look back at the IATA AGMs and the global airline industry in 1958 and 1983.
A look at the past IATA AGMs gives a glimpse of the global airline industry’s journey over the decades. The overwhelming theme of the 1958 AGM event was the technological challenges as airlines stood on the cusp of the jet age. A year earlier, in December, Boeing 707, the jet pioneer, had made its first flight. At the IATA AGM the airlines decided to continue to ”pool their expert knowledge and experience” for safe jet operations. Two year later, Tata’s Air India took the delivery of its first Boeing 707 and became the first airline in Asia to induct a jet in its fleet. Today, Indian carriers have a combined fleet of over 860 aircraft, majority of them jets. Another resolution passed in the 1958 AGM was about airspace control. Airline members decided that they would approach their respective governments to formulate a system under which both military and civil aviation aircraft navigate under the guidance of a single air traffic control authority in the respective air traffic control areas.
In the 1980s, the major concern for IATA member airlines was “undercutting of fares” and the recession in the US which dampened demand for air travel. New reports from the Times of India archives state that in 1982, IATA member airlines had lost an estimated $ 1.2 billion due to undercutting. In 1978, the US Congress passed the Airline Deregulation Act which allowed airlines to set their own fares and decide their routes. It increased competition as new players entered the market and in the 1980s the fare wars intensified as airlines undercut each other’s fares to fill the seats. US was the world’s biggest airline market and the accumulated losses of IATA member airlines from 1979 to 1982 stood at $ 6 billion, according to a TOI report published in October 1983. But in other parts of the world, the main cause of concern was airline security, the terror threats, bombings and hijackings that had hit the airline industry back then. In her inaugural address, the then prime minister Indira Gandhi spoke of the need to make air travel safe for passengers. She asked for stern measures against “the heinous crime of hijacking”.It was a tough year for airlines. In March, a Balkan Bulgarian Airlines flight was hijacked, but the controversy that hijacked the October annual general meeting of IATA involved the bombing of a Korean Air Lines flight on September 1. The crew of a Korean Boeing 747 from New York to Seoul made a navigation error, went off the planned route into the Soviet airspace where it was intercepted and shot down by the pilot of a Soviet Sukhoi aircraft, killing all the 269 on board. About a year after her speech against terrorism, Indira Gandhi was assassinated by her Sikh bodyguards in June 1985, 329 passengers and crew died in the bombing of Air India flight 182 by Canadian Sikh militants.
India’s anti-apartheid stance also made news in the 1983 IATA AGM. Back in 1946, India had imposed a complete embargo on South Africa and so the presence of delegates from IATA member airlines, South African Airways and Israeli carrier El Al at the IATA event held in India had made news. Israel was targeted for continuing its relationship with South Africa.Back then in 1983, IATA had 124 member airlines. Knut Hammarskjöld was IATA’s director general back then. The Swedish diplomat launched the first billing and settlement system in Tokyo in 1972, which later evolved into the successful BSP (Billing and Settlement Plan) and CASS (Cargo Accounts Settlement System), facilitating financial transactions between passenger as well as cargo agents and the airlines.Its aviation industry directly employs 369,700 people and generates $5.6 billion of GDP. When indirect, induced, and tourism impacts are included, the totals rise to 7.7 million jobs and $53.6 billion of GDP (1.5%).Willie Walsh, IATA’s Director General said: “India’s place in global aviation has changed dramatically, particularly over the last decade. The country saw record aircraft orders, impressive growth, and world-class infrastructure developments. The AGM will allow aviation leaders and journalists from around the world to witness first-hand how India’s rapidly modernising and expanding aviation sector is contributing to the country’s overall economic and social development”.Pieter Elbers, CEO of IndiGo and Chair of the IATA Board of Governors said: “Aviation is a powerful force for good worldwide, and that is particularly evident in India. India’s aviation market is rapidly thriving while significantly contributing to the country’s socio-economic growth, and IndiGo is at the forefront of this upward trajectory. This is India’s time!”The World Air Transport Summit (WATS), which follows immediately after the AGM, will address key issues facing the aviation industry. “The AGM is always a moment for the industry to reflect and regroup in the face of enormous economic, geopolitical, and technological forces ahead,“ said Walsh. “I’m confident this gathering will deliver value to our stakeholders and strengthen our commitment to progress and collaboration.” Key topics to be addressed in the WATS include the financial outlook for the airline industry, how India is strategically using aviation to drive development, the relationship between energy security, renewable energy, and Sustainable Aviation Fuel production, financing aviation net zero, and the cost of payment and potential innovations.
About The Author
