Mr Bisignani: 'I am a fan of Asia. It has never been afraid to marry the best of tradition with a passion for efficiency and success. I look forward to the innovation that Asia, as aviation's largest player, will bring to shape a future that is safe, secure, sustainable and profitable.'

Asia is leading the world out of this recession. But where does it stand in the global aviation industry? We expect Asian carriers to lose US$700 million this year so the tough times have not ended. Still, this performance would be an enormous improvement over the US$3.4 billion loss in 2009.

I believe that the Asia-Pacific has the potential to be the future of aviation.

In 2009, the Asia-Pacific region became the industry's largest market. Fully 27 per cent of all travellers - that's 647 million passengers - journeyed within Asia. Looking to the future, the impact of Asia on global air transport is undeniable. When people in Asia fly as much as their counterparts in the US, the size of the global industry would triple.

The potential for air transport in Asia will undoubtedly stimulate economies and generate enormous wealth. But do we have the government policies, innovation and leadership in place to fully realise it? I believe that we have some work to do.

Let me highlight three areas: environment, security and liberalisation.

The topic of 2009 was the environment. At last December's Copenhagen Climate Conference it was clear that the air transport industry is well ahead of its regulators. We were the only sector in Copenhagen with specific and ambitious industry-wide targets. Regardless of any binding agreement by governments, carbon-neutral growth from 2020 and cutting our emissions in half by 2050 are commitments that this industry has made.

They are also achievable. Better technology, efficient infrastructure and effective operations all hold tremendous potential to reduce aviation's emissions. Biofuels hold particular promise with the potential to reduce aviation's carbon footprint by up to 80 per cent.

Asian governments have strategically used the economic crisis as an opportunity to invest in green business. Biofuels have been tested successfully by five airlines. With certification expected no later than 2011, they are a great opportunity for governments and the private sector.

Sustainability is integral to aviation's licence to grow and continue to connect the world. Over the next months, the goal of the International Air Transport Association (IATA) is to work with governments so that we can approach COP-16 in Mexico with an aligned and ambitious agenda for reducing emissions.

Maintaining a secure industry is another pre-requisite for our future. The botched Christmas Day airline bombing catapulted the issue into the media spotlight. Emergency measures by governments soon gave way to a historic and positive turn of events. US Homeland Security Secretary Janet Napolitano reached out to industry to develop joint solutions.

A single meeting did not solve all of our issues. But we recognised a common goal of a secure industry and created a high-level process to achieve it. This is a model of constructive engagement for governments in Asia and elsewhere to replicate.

Lower profile, but equally fundamental, is the issue of liberalisation. Businesses can only function normally with access to commercial freedoms. Airlines are no exception. Asian governments have recognised the need to liberalise with specific commitments through Asean on opening up markets. This is important. But alone it will not be enough to ensure a healthy future.

In November last year, seven states and the European Commission, representing over 60 per cent of all of aviation, agreed on an important set of policy principles that see the future of this industry as a normal business. This includes the basic freedoms to access markets and global capital.

Singapore and Malaysia are among the first signatories - recognising the need for a new model to replace the 65-year-old bilateral system that is stifling the industry. I urge other forward-thinking Asian governments to join them.

I am a fan of Asia. It has never been afraid to marry the best of tradition with a passion for efficiency and success. I look forward to the innovation that Asia, as aviation's largest player, will bring to shape a future that is safe, secure, sustainable and profitable.

The writer is Director General and CEO, International Air Transport Association (IATA)

IATA is an international trade body, created over 60 years ago by a group of airlines. Today, IATA represents some 230 airlines comprising 93 per cent of scheduled international air traffic. The organisation also represents, leads and serves the airline industry in general