Dear colleagues,

While we have seen an encouraging traffic resurgence around the globe, fuel prices have undermined hopes for overall airline financial recovery. It’s been another test of our industry's ability to deal with crises. And it has underlined the need to keep driving costs out of the business.

In fact, we are en route to a low cost industry. It's the only way to survive. Airline business processes are being radically simplified and overhauled to squeeze costs. And our partners are beginning to understand the need for greater cost efficiency to match airline productivity improvements. There still is a need, however for further re-structuring, including a better alignment of traditional labour practices with this new airline reality.

The transition to a low cost industry must reflect customer demands for transparency and simplicity, but at the same time keep the important benefits of the global airline network.

For Governments, there is a critical role to play in this transition by allowing airlines to operate as true global businesses.

These are some of the challenging issues that will be explored at our AGM and World Air Transport Summit that will take place in Tokyo, 29 - 31 May 2005. And as always, it will be a great opportunity for industry leaders to meet.

I look forward to seeing you in Tokyo.

All the best,

Giovanni Bisignani,
Director General and CEO