The US “no longer leads” global aviation, risks “irrelevance” – United Airlines

Glenn Tilton, CEO of United Airlines, has delivered a frank assessment of the state of the US airline industry and observed that Asia's airports and airlines are better poised to cope with and compete in the global marketplace. It comes at a time when major US airlines are actively expanding their international market presence, though hampered by high fuel prices and a weak US dollar. Mr Tilton said, “US aviation once led the world in innovation, efficiency and competitiveness. Today, we no longer lead”. He added that by 2010, more than one-third of the world's air traffic will be to, from or within Asia. According to Mr Tilton, “there is a sense of possibility that the global economy can be shaped to serve Asia's interests - and a clear understanding of the vital role aviation plays in creating that future”. Tilton also praised China’s efforts to develop airport capacity, modernise its system and consolidate its airline sector and reiterated calls for the US to “do the same, to compete”. He added, “it was the goal of deregulation back in 1978 to create a market with much more choice and better pricing options for consumers. That ambition has more than been achieved. Washington's desire to keep the industry fragmented, driven by domestic market concerns, has led to a resistance to the normal order of free market activity”. Growth is “not limited to Asia”, according to Mr Tilton, citing progress in the Middle East in developing airports and airlines with the latest technology and passenger comfort. By contrast, the US had failed to modernise its aviation industry's infrastructure and regulatory environment to keep up with technological advances because “special interests keep bickering over how to pay for and implement new systems”. Mr Tilton warned that the US faces increasing competition from emerging markets and must “evolve, adapt [and] reinvent - or risk irrelevance in the global marketplace”. Tilton concluded, “the lesson for all of us in government, industry, and labor is clear - you cannot draw a line in the sand and say you don’t want to take part in globalisation”. He cautioned further international interdependencies are “unavoidable”, resistance to change is “unsustainable”, while legacy issues undermine competitiveness and defending them at the expense of progress “will simply ensure the rest of the world passes you by”. However for those who understand how the world has changed and are resolved to “evolve, adapt and reinvent”, the opportunities are "extraordinary".

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