The issue of airport subsidies, and also discounts to low-cost carriers, has come to the fore in recent months, joining airline state-aid as a key issue for Brussels.
The latest move on subsidies has seen the European Commission (EC) send out questionnaires to industry stakeholders to get their views on what action, if any, should be taken.
Based on the response, Brussels will decide whether it needs to review the guidelines on airport subsidies. "There are more and more problems in this area," says Gilles Gantelet, spokesman for EC Transport Commissioner Loyola de Palacio.
He points out that, in the past, airports were regarded as infrastructure companies serving different markets. For instance, "two highways don't compete against each other," he says. However, with the growth of secondary airports and hubs in recent years, the competitive environment between airports is fast changing.
Meanwhile, Brussels has received complaints about the agreement between Charleroi (Brussels South) Airport and low-cost operator Ryanair, which was struck last year. These include suggestions that the regional Walloon government is paying Ryanair's cabin crew's hotel bills. Brussels has asked for information, and could investigate if it is not satisfied with the response.
Ryanair is also coming under fire in the UK, where some airports are making it clear that they are unhappy with its negotiating tactics. The Irish carrier informed airports late last year that it only intended to pay 50% of its bills with immediate effect because of its campaign to get people back flying by offering discounted airfares.
"There were no telephone discussions, no negotiations, they simply sent us through a fax," says Mike Luddy, commercial director of Bristol Airport. "They have finished their war with the travel agents and now they've turned on the airports, but they need the airports much more than they need the travel agents," Luddy says.
After a stiff letter from Bristol Airport's solicitors, Ryanair paid the outstanding 50%. Ryanair says it refuses to comment on airport agreements.
Source: Airline Business
