The European Commission may have finally produced a directive aimed at dismantling the European ground handling monopolies, but its application is at least three if not six years away. Instead, Brussels will continue to pursue complaints with traditional methods, as it has with its most recent action against the Greek government over Athens airport.
The Council of the European Union must first approve the directive, and the timing of this legislative process is an unknown factor. Even Commission officials disagree as to how long this can take, with a source at the competition directorate suggesting the Council can take 'two to four years' to decide if they are not happy with the wording, while a transport directorate source says optimistically it should take a year.
In either case the delay does not end there, as the draft directive allows a two year 'transition' period for those airports affected. This is unlikely to please the likes of British Airways, KLM or Lufthansa, which were hoping for rapid action in opening up ground handling services. The fact that the directive is a compromise between 'what airports do not want and what airlines would like to keep', as one Brussels consultant terms it, has already raised questions over its effectiveness.
The latest Commission move in the sector against Athens could spell more trouble for struggling Greek flag carrier Olympic, which earns approximately 15 per cent of its total revenue from ground handling contracts.
Meanwhile, the cases against Milan and Frankfurt, each initiated about 18 months ago, should be ruled before the end of 1995, says a Commission source.
Meanwhile, the cases against Milan and Frankfurt, each initiated about 18 months ago, should be ruled before the end of 1995, says a Commission source.
Source: Airline Business
