Willie Walsh To Be New IATA Director General -What Should We Expect?

The global airline industry body IATA (International Air Transport Association) announced at its recent AGM, that its current Director General, Alexandre de Juniac will step down next spring to be succeeded by Willie Walsh, former CEO of airline group IAG.

Well versed in IATA

Walsh is no stranger to IATA having been on its Board of Governors for several years, including time as chair from 2016-17. He knows very well how it works, what its strengths and weaknesses are and what tasks lie ahead of it. So, what can we expect from his leadership?

As I have written recently in Forbes, he has a straightforward, direct and transparent leadership style. As the industry confronts its worst ever crisis, that is exactly what is called for if IATA is to continue to justify its position as its global voice.

Frustration with Governments

As airlines wrestle with the many challenges which the Covid-19 crisis has brought they find themselves substantially grounded, particularly in long haul markets, with minimal capacity operating. Billions of dollars in losses are being racked up and a number of airlines are likely to fail.  Measures are being taken to protect customers and staff from the virus. Evidence shows clearly that when they make flights available, without fear of quarantines, there is enormous pent up demand. But the disjointed, erratic and confusing response of Governments around the world is handicapping the recovery of the industry and inflicting wider economic damage through the consequent impact on trade and tourism.

Diplomacy

Over the years, IATA has shaken the hand of Governments and worked mainly, though not always, through diplomacy to further its objectives.  Whilst Walsh will build on the important work of his predecessor in holding Governments to account over their handling of this crisis, he can be expected to be blunt and forceful with his messages to them. Gloves will be off and there will be no punches pulled.    

The Covid-19 crisis is only one Governmental challenge which Walsh will need to front up but there are many others. These include the level and number of taxes imposed on the air transport industry globally, including those levied supposedly for environmental reasons.      

Environmental Agenda

Walsh has been critical that the industry is not further ahead on this sensitive issue, seizing the topic vigorously during his tenure at IAG.  I would expect him to accelerate the sector’s response whilst pushing Governments hard to play a more active and constructive role in helping airlines to improve their green credentials. This is likely to include demands for more research investment in sustainable fuels and alternative power sources, in addition to speeding up improvements in air traffic management to reduce flight delays.   

Meeting the Needs of Members

As well as addressing the external agenda Walsh is likely to review whether IATA is sufficiently fit for purpose in meeting its members needs. It is there to work on their behalf and with his cost conscious instincts he will be keen to ensure that it is both efficient and delivering value for money.     

A Broader Church?

To keep IATA relevant Walsh may also seek to encourage low cost carriers to join. They are currently conspicuous by their absence and complain that their interests are not represented. There is a mutual respect between Walsh and low cost airline leaders including Ryanair’s Michael O’Leary and Wizzair’s Jozsef Varadi. To see them join the ranks of IATA members would add greatly to its legitimacy and authority.

There is certainly plenty for Walsh to get his teeth into when he joins next April and anyone who thinks that IATA will stand still with the new Director General simply be delivering worthy speeches is in for a shock.