Rising fuel prices are the biggest challenge facing the air transport industry, local daily The Jordan Times reported Thursday, quoting Samer Majali, new chairman of the International Air Transport Association (IATA) board of governors.
Due to skyrocketing fuel prices to unprecedented levels, the airline industry is now falling into the red, said Majali, who is also president and chief executive officer of Royal Jordanian Airlines (RJ). He commenced his one-year term as the chairman of IATA board of governors earlier this month.
"For example, RJ's fuel bill accounted for 42 percent of the company's total operational costs last April compared to 30 percent during the same period last year," the RJ chief said in an interview on Wednesday.
However, it is difficult for the RJ to increase flight fares to compensate for the higher fuel prices in light of stiff competition in the transport sector, the chief said.
Majali is the first chief executive of an Arab and regional airline to hold the presidency of IATA's board of governors in 21 years. Salim Salam, former Middle East Airlines chairman held the position between 1986 and 1987.
The IATA was founded in Havana, Cuba, in 1945. The board of governors is its highest authority and its 31 members are elected by IATA from among 240 international airlines' chief executives.
The board sets the association's rules and regulations and submits projects to be implemented to the general meeting, with a view of promoting the air transport industry and simplifying travel for passengers.
Source:Xinhua
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