Rising oil prices worry airlines worldwide

Paris, June 4 (UNI) Airline executives from all over the world gathered here today to debate how to drive down costs that have become a tougher challenge as global oil prices continue to push the profitability bar higher.

The two-day World Air Transport Summit (WATS) comes amid optimism in key markets like India and China and coincides with annual general meeting of the International Air Transport Association (IATA), an apex body of 265 airlines comprising 94 per cent of scheduled air traffic.

''The tremendous surge in aircraft orders is an encouraging indicator for the industry's future,'' said IATA's director general and CEO Giovanni Bisignani.

But whatever the region, he said, the keys to future success remain straightforward -- relentless focus on great efficiency to achieve needed profitability and ever-improving safety performance.

''The air transport industry has done a great job in both areas but more needs to be done,'' said Mr Bisignani.

Civil aviation minister Praful Patel will deliver keynote address at the WATS in which participants will include aircraft manufacturers, leasing companies and financial experts.

In March, the IATA had forecast an airline industry loss of 2.2 billion dollars for 2006 based on an oil price of 57 dollars per barrel. A revised forecast will be issued tomorrow.

UNI SU CS KP1113