Bid to break stalemate on airport fees

Date: 26/02/1998

By Chris Johnstone

A NEW initiative to break the deadlock over plans to force airports to bring their charges into line with real costs has been launched by the European Commission.

Fresh talks are currently being held with the EU governments which have problems with the proposals, designed to give airlines a better deal by ensuring that fees reflect the cost of services provided.

Officials say those problems are unlikely to be overcome in time for EU transport ministers to hold a meaningful discussion on the plans at their next meeting on 17 March.

One of the main goals of the Commission's proposed directive, which would compel airport authorities to provide details of the costs of their services, is to put an end to what critics describe as questionable charging practices.

These include giving generous discounts to airlines which are good customers and discriminating between national, European and international flights.

While EU governments support the overall aim of the proposal, some of the directive's finer detail has raised hackles.

National concern that the measure would outlaw cross-subsidies between airports within larger networks is causing the most problems, with Spain and Greece also raising questions about overall national aid to airports. Sweden is particularly worried about the threat to cross-subsidies. Charges at Stockholm's main airport, Aarlanda, are used to subsidise smaller regional ones with lower traffic and profits within its network of government and municipally-owned airports. Finland operates a similar system and has the same concerns.

Commission officials stress that governments would still be allowed to transfer cash between airports, but say they should find other sources of revenue besides money raised from charges. They argue that airlines should not have to pay higher fees at one airport to subsidise others which they might never use.

The UK, which currently holds the EU presidency, is keen to include an additional clause in the directive which would force airports to work towards providing an efficient, as well as a cost-related service. But this raises questions over how to measure airport efficiency and how to discipline airports which are not delivering it.

The talks now under way are being closely monitored by airlines which complain that while they have had to shed jobs and take other measures to improve efficiency, airports - with guaranteed local monopolies - have been able simply to raise their charges.

The Association of European Airlines, Europe's airline lobby, is opposed to any cross-subsidies between major airports and smaller regional ones. It argues that financial support for regional facilities should come from national, local or European sources and insists that exceptions to this rule should only be allowed if the airlines themselves agree to the transfer of funds.