IATA has recently organized its flagship event, Wings of Change Europe, in Rome, addressing key topics of aviation. What are the takeaways from that event?

Our focus was on restoring competitiveness to Europe while advancing the sustainability agenda. The two are not mutually exclusive. But it will require smart regulation from politicians, working together with the industry, to make it happen.

The Draghi Report has significantly advanced the discussion around Europe on the competitiveness of the EU economy. In the airline world, we can see all too clearly the positive effects of the de-regulation that turbocharged airline connectivity in the 1990s, and the negative impacts of the creeping re-regulation that we have seen since. EU 261 consumer rights rules, for example, are inconsistent and confusing, adding huge costs while doing little to encourage better performance across the whole aviation chain. We’re seeing individual states try and ban pricing freedoms, and ideas to make the slots rules more restrictive. These kinds of developments would run completely counter to the professed desire of Europe’s politicians to embrace the recommendations of the Draghi Report.

Sustainability is an existential issue for our industry. We’re committed to reaching net-zero CO2 emissions by 2050. But to fly net zero will be a massive challenge. The production of Sustainable Aviation Fuels is the ultimate tool we need, but this requires the right policy mix of demand signals with production incentives. At the moment the EU is all stick – a mandate on SAF – and not enough carrot – incentives to increase production. Mandating something which barely exists is not a helpful model. 

While SAF production will take time to build up, in the meantime there is much else that can be done. Full implementation of the Single European Sky could deliver a 10% reduction in emissions, but unfortunately the political will for meaningful reform is not there. That is why it is so important that IATA can work directly with ANSPs like ENAV to optimize airspace at national level. That way, some of the benefits of SES might still be achieved.

Traffic in Europe is growing fast and several factors are affecting traffic flows and aviation in general, such as conflicts. What is your expectation on the evolution of the air traffic and the key areas that we should address?

Air traffic is set to grow strongly now that the effects of the pandemic are behind us. Italy has recovered faster post-COVID than many other European markets and looks set for strong growth in the short term. But longer-term, the growth is not as strong as other countries. Italy is set to fall from the third largest to the fifth largest market in Europe over the next 20 years. So, Italy has work to do to recover that potential lost growth.

Growth brings significant benefits for Italy in terms of jobs and trade. But growth also brings challenges. Continued expansion across Europe is putting infrastructure under strain. It is essential that ATM is modernized and ready to cope with increased traffic. ATM also has a vital role to play in minimizing noise impacts around airports. We are seeing the noise debate attract a great deal of negative political interference at airports like Schiphol and Brussels. It is important that as an industry we can demonstrate that we have the tools to mitigate noise impacts for local residents while still enabling airports to expand and fulfill their potential.

Conflict zones are leading to additional pressure on certain ANSPs as traffic is diverted. We’re seeing some cope better than others with this burden. It is difficult to predict how this will evolve. The political situation is volatile and things could just as easily get worse rather than better. But this should encourage all stakeholders to ensure their systems are robust and flexible enough to manage unexpected events.

IATA and ENAV, together with the other key aviation actors in Italy, are partnering in the framework of the National Airspace Strategy initiative, an initiative that was launched some years ago by IATA itself and which represents a good example of strong collaboration. What is your view on the achievement so far? Which areas should be further developed to create value for the national aviation system?

Italy was one of the first countries to set up a NAS and it is encouraging to see the progress being made. Putting in place Continuous Climb Operations in 2023, and the implementation of Free Route Airspace in 2024 are important steps forward. And the flexible use of airspace, especially through close cooperation with the military, enables much more dynamic access to airspace, improving safety, increasing capacity, and allowing for more efficient routings, which saves emissions. So, the NAS is making progress…but of course airlines are impatient to go further and faster. We want to see the redesign of terminal airspace using performance-based navigation principles completed. This will help cut noise and emissions, and create much-needed capacity. The digital connection and integration of the Airport Operations Plan with the Network Operations Plan will help minimize delays and improve efficiency.

We have to remember that ultimately all our work should be focused on improving the travel experience for our customers – passengers and shippers – and in building a more environmentally and financially sustainable aviation sector. As I mentioned earlier, Italy generates huge benefits from aviation connectivity. We need the NAS to succeed not for our sakes, but in order to help Italy as a whole. That’s the prize we are all aiming for.