ST THOMAS, United States Virgin Islands — THE International Air Transportation Association (IATA) yesterday urged regional aviation authorities to adhere to the key principles set out by the International Civil Aviation Organisation.

IATA’s regional vice president for the Americas, Peter Cerda, said it is unfortunate that many governments had chosen to ignore the principles, a global issue that was particularly acute in the Caribbean.

Addressing tourism and industry officials gathered here on the occasion of World Aviation Day, Cerda noted that aviation taxes continue to increase the cost of travelling to the Caribbean. He said this made the region less competitive to other destinations.

“Taking the islands as a whole, each dollar of ticket tax could lead to over 40,000 fewer foreign passengers,” he said, adding that US$20 million of reduced tourist expenditure meant 1,200 fewer jobs across the region.

“Caribbean countries must therefore consider the aviation industry as a key element for tourism development,” he advised.

The IATA official noted that in terms of charges, two airports in the region, Montego Bay and Kingston, both in Jamaica, recently proposed airport tariff increases of over 100 per cent so as to attain a return of capital of around 20 per cent a year in US dollars.

He said that measures such as these do not encourage or support the development of the industry in the region.

“The regulators must act strongly and swiftly against such big increases. Governments have to foster positive business environments through consultation with the industry and transparency in order to ensure win-win situations for all,” he warned.

Cerda said the issue of taxes and charges in the region transcends the formal breaches of global standards and recommended practices and that the simple truth is that this region is a very expensive place for airlines to do business.

In the Caribbean, tourism and the aviation sector facilitate and support some 140,000 jobs and contribute US$3.12 billion, roughly 7.2 per cent of the Caribbean’s gross domestic product (GDP).

The airline industry is celebrating its 100th anniversary year in the black, according to industry figures released here. Globally, airlines are expected to earn a net profit of US$18 billion in 2014.

— CMC