The trouble with the European Commission is that it has too many difficulties putting its laudable objectives into action. Ground handling offers the latest example of this.
A year after beginning a study into how Europe's ground handling monopolies can be broken up, the Commission has released its proposed directive. Unfortunately, the proposal suffers from three major shortcomings.
One, it will allow governments to limit competition in most key ground handling areas to two companies - hardly a free market. Two, it ignores the controversial question of joint handling. And three, it will be at least four years before the new rules come into effect. In the meantime, the Commission will have to be content with dealing with complaints against such airports as Frankfurt and Milan.
The issue of ground handling, which is controversial enough in itself, is symptomatic of a wider problem. In policing Europe's single market, the Commission often has one hand tied behind its back. There is no doubt that the Transport Directorate, under new commissioner Neil Kinnock, would like to refuse certain state aid requests - notably Iberia's second handout. And Brussels officials are keen to introduce tough directives or codes of conduct covering doing business issues like slot allocation, codesharing, frequent flyer programmes and computer reservations systems.
Unfortunately for the proponents of free competition, such admirable objectives are often watered down to meet political objections. Every time this happens, the arrival of a truly free market is delayed further.
Unfortunately for the proponents of free competition, such admirable objectives are often watered down to meet political objections. Every time this happens, the arrival of a truly free market is delayed further.
Source: Airline Business
