IATA Issues Alarm About BREXIT Impact on Global Supply Chains

Absent any contingency planning being made transparent to the industry, the risks of not addressing key issues could mean “chaos” for interrupted supply chains.

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The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a “no-deal Brexit,” and to move much faster to bring certainty to three critical air transport issues:

  • The uninterrupted continuation of air connectivity
  • The framework for regulating safety and security, and
  • The policies and processes needed for efficient border management

“These are the most critical areas because there are no fallback agreements such as the WTO framework available in a ‘no-deal' Brexit scenario, said Alexandre de Juniac, IATA's Director General and CEO.

He added that absent any contingency planning being made transparent to the industry, the risks of not addressing these issues could mean “chaos” for interrupted supply chains.

“With less than six months to go, we have little more certainty than we did in June 2016,” said de Juniac.

The call for urgent attention to air transport issues in Brexit follows the release of an IATA-commissioned Study of the effects of the United Kingdom leaving the European Union on airlines flying to and from the UK.

Chuck Clowdis, managing director of the consulting firm Trans-Logistics Group, Inc., told SCMR in an interview that he shares the view that the situation could be dire.

“It is critical that the UK and the EU fully address the importance of a codified air transport protocol in discussions of any BREXIT deal,” he said. “The smooth, uninterrupted, safe, orderly border management are vital to a functioning air transport system. To overlook or give short shrift to these areas is perilous to the global economy.”

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About the Author

Patrick Burnson, Executive Editor
Patrick Burnson

Patrick is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].

View Patrick 's author profile.

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