Barrot plans light touch on airport

The European Commission is set to issue light- touch proposals on airport charges early next year despite intensive lobbying by major airlines for a strict one-size-fits-all approach. Airlines claiming that they are being held to ransom by monopoly airports will be sorely disappointed.

Calls for caps on airport charges have been gathering pace in the run-up to publication of the Commission’s proposals. Airports claim that increases in charges are needed to fund infrastructure improvements to accommodate growing numbers of passengers and increased air traffic. Airlines, on the other hand, claim that they are a captive market for ‘glass palaces’ that make little effort to lower costs.

According to a draft version, the Commission will propose a number of guidelines aimed at establishing mechanisms to reassure airlines. Member states will be obliged to establish a national authority on charges that is independent of both airlines and airports. In addition, airports will have to hold mandatory annual consultations with client airlines. The proposal states that airports must not discriminate between airlines when setting charges, but they do allow for a differentiation on tariffs depending on services offered. With no legal imperative for guidelines to be implemented, however, the proposals may fail to boost the bargaining power of airlines.

"What we’re asking for is for the Commission to include a requirement for robust national regulations that has teeth," said Anthony Concil, spokesperson at the International Air Transport Association (IATA), which represents airlines. "Clearly, [Transport Commissioner Jacques] Barrot himself has indicated there is arbitrariness about airport charges in Europe. There must be a requirement for a regulation that has legal effect. If you set nebulous guidelines, the expectation is you end up with a nebulous result. A requirement to consult doesn’t mean you need to come to an agreement."

According to IATA, Aéroports de Paris, which hit passengers with a 44% increase in charges between 2001 and 2004, is Europe’s worst behaved airport. The French government’s decision to approve a yearly 5% increase in charges until 2010 to build new facilities at Charles de Gaulle Airport and Paris Orly infuriated airlines further. It is thought that countries such as France, which is notoriously protective of national champion Air France, could ignore the Commission’s guidelines.

Low-cost carriers may be more open to the Commission’s proposals. "We know that the traditional airlines have been lobbying hard for harmonised charges at airports," said Oliver Aust, spokesperson for low-cost carrier Easyjet. "We’re not looking for a one-size-fits-all legislation. What we are looking for is a scheme in which airports are transparent in their charging. In Paris we pay the same as Air France pays for its shiny new terminal. What we ask for is the ‘user pays’ principle."

Proposals will also cover the pressing issue of airport capacity. Olivier Jankovec, director-general of Airports Council International Europe, said: "We welcome the fact that the Commission will take action to clarify the rules of the game relating to airport charges, in conjunction with a long-awaited initiative on airport capacity. The two are closely linked...we are hopeful that the Commission will take a balanced approach that would allow the well-established and widely accepted ICAO [International Civil Aviation Organisation] charging principles to acquire greater legal strength in the EU context." ICAO principles on airport charges advocate consultation, transparency and non-discrimination.

According to a Commission official, the proposals are ready, but the agenda for December is too busy for their release. An industry observer said, however, that Barrot was simply waiting until everyone was in agreement. "Barrot never does anything unless everyone agrees. He doesn’t like confrontation. He doesn’t like disagreement."

The European Commission is set to issue light- touch proposals on airport charges early next year despite intensive lobbying by major airlines for a strict one-size-fits-all approach. Airlines claiming that they are being held to ransom by monopoly airports will be sorely disappointed.