Airports are hitting back at airline assertions that charges are a major cause of their financial woes. Airports Council International (ACI) Europe chief Roy Griffins believes that "misinformation" is harming the airports' case for expansion with crucial decision makers – including politicians – making it harder for the airport companies to assemble the necessary capital for investment in the capacity growth essential to the airlines.
Since airline financial problems became acute in the wake of the 11 September 2001 terrorist attacks in the USA, Giovanni Bisignani, head of airline trade body the International Air Transport Association (IATA), has been hitting out at "natural monopolies" like airports and air navigation service providers (ANSP), claiming that while the carriers did the industry's work and were losing money, the support services continued to rake in profits by increasing their charges disproportionately and with impunity. Griffins says that with few exceptions this is untrue, and ACI Europe has embarked on a hearts and minds campaign to persuade politicians and other decision-makers that airports have to be in a position to make unprecedented investments in capacity improvements to meet spiralling travel demand. He insists airport charges amount to only 4% of airlines' costs on average, and says that this situation has remained the same for the last 30 years.
In fact, says Griffins, the airports are actually subsidising the airlines as a result of the "single till" approach to what airports are required to do with their earnings. That means that they are not permitted in most countries to assess the cost of providing services to airlines and charge that figure, they are required to take into account earnings from separate ventures like retail outlets in terminals, and lower the prices to airlines accordingly.
This, says Griffins, is depriving airports of the ability to earn the kind of profits needed for infrastructure investment to meet future demand in Europe. The International Civil Aviation Organisation looks as if it is beginning to see the airports' point of view, saying: "It may be appropriate to retain non-aeronautical revenues rather than use such revenues to defray charges."
Air transport system growth in Europe, says, Griffins, is such that the continent's airport system is already strained and will soon fail to meet demand. By 2025, says Griffins, even if the airports increase their capacity by 60% compared with today, Europe's top 10 airports will be saturated, more than 60 will be congested, and there would still be a capacity shortfall of 17.6% in the system.
DAVID LEARMOUNT/LONDON
Source: Flight International
