IATA is hoping its long-running campaign to persuade the most expensive airport in the world, Tokyo Narita, to cut landing fees will bear fruit shortly.

The association says there are reasons to be confident because Narita's management has said it is committed to a fee cut. In addition, the airport is likely to report an increase in profitability soon, after a year as a private company, giving it some leeway to reduce charges. IATA hopes for a cut of 20%.

Narita faces competition from Central Japan International airport, the country's third main international gateway. Its landing fees are 31% lower than Narita's.

IATA director general Giovanni Bisignani stepped up IATA's efforts to lobby airports for cost efficiencies at the Airports Council International World Assembly in Tokyo in 2002. "In the absence of a regulator IATA has taken on the role as a proxy for competition to remind airports like Narita and others of the need for constant cost improvement," says the trade body.

IATA is also urging the Hong Kong government not to rush the privatisation of Hong Kong International airport. "A successful privatisation should generate efficiencies to allow for reduced costs," says Bisignani. IATA is worried that charges could rise, and believes the government should take its time to ensure a public offering is a success for all concerned.

Bisignani recently met Civil Aviation Administration of China chiefs to discuss giving the country's airports more pricing freedom in line with ICAO charging principles. The proposal was received positively, says IATA, which will assist the Chinese authorities with airport cost and efficiency benchmarking.

Source: Airline Business