IATA chief: Nations should pay for air security: Travel Weekly

IATA chief: Nations should pay for air security

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.S. airlines aren't the only ones complaining about airport fees and security costs. These issues apparently aggravate executives at airlines around the world -- a point that was made at IATA's annual general meeting in Washington earlier this month.

Hundreds of delegates interrupted with applause when IATA Director General and CEO Giovanni Bisignani declared that privatizing airports gives them "a license to print money."

Complaints about security costs surfaced throughout the meeting, with Bisignani calling on the world's nations to pay for airline security. He also asked governments to loosen foreign ownership restrictions, allow more airline mergers and acquisitions and move beyond bilateral open-skies deals to regional agreements such as a U.S. -European union.

Delta and Southwest executives squared off at a IATA conference panel discussing the future of the world's airlines.

Delta Chairman and CEO Leo Mullin predicted "a hell of a contest" is coming, as Delta lowers its costs to compete head-to-head against low-cost, point-to-point rivals.

"It's going to play out in the next five years or so, or we're dead. And I don't think we're going to be dead," Mullin said.

Southwest Chairman Herb Kelleher suggested he isn't afraid of the challenge, retorting, "We're nowhere near finished lowering our costs."

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Mullin also had this to say at the conference: "There are too many darn hubs in the United States."

That includes 60% too many in the central U.S., he added.

Mullin, of course, didn't offer to close any of Delta's hubs. Instead, as in the past, he promoted airline industry consolidation, which he believes will result in an eventual decline of four to six hub-and-spoke carriers.

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Speaking of hubs, Continental just made its largest one even bigger. This month the airline opened the first phase of its new 23-gate Terminal E at Houston (Bush).

Seven gates on the west concourse go into operation immediately, and Continental said the central building and east concourse will be completed by December.

The completed terminal will give it access to 80 gates at Houston, which will "support growth" as the airline adds to its present level of 530 departures to 148 cities.

Continental touted the advantages of the 600,000-square-foot, U-shaped building for travelers: better flight information displays, clearer public-address announcements and abundant self-service check-in kiosks.

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Travelers soon won't be able to fly on the Concorde anymore -- assuming Virgin Atlantic's seemingly quixotic effort to obtain and fly the aircraft doesn't succeed -- but everyone in the U.S. will have the opportunity to see it.

Air France flew one of the aircraft across the Atlantic one last time, from Paris to Washington, to donate the aircraft to the Smithsonian Institution's National Air and Space Museum. The museum plans to display the aircraft at its new companion facility, which is under construction at Dulles Airport and scheduled to open Dec. 15.

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