Responding to yesterday's (15 January 2008) vote of the European Parliament on Airport Charges, IACA expressed its disappointed that an opportunity to address the unbalanced relationship between the fully deregulated airline sector and their monopolistic service provider (airports) has been missed.

Airport users need a genuine economic Regulation on airport charges to rebalance the relationship between airports and airlines IACA says. In the absence of such an adequate instrument, IACA believes that it would be detrimental to airlines to grant a blank cheque to airports in respect to the choice of Single/Dual Till business model, as voted for yesterday.

As airports are increasingly developing non-core activities, airlines should be able to benefit from these activities (generated by their passengers) through lower aeronautical charges (‘single till).

Most worrying, however, is the decision by the Parliament to allow pre-financing of large airport infrastructure projects through increased airport charges which can be imposed on airline carriers.

Sylviane Lust, Director General of the International Air Carrier Association (IACA) commented: “The vote only serves to reinforce the monopolistic behaviour of airports going forward and gives a free reign to airports to set charges and pre-finance investments. It is economic nonsense to allow airports to pre-finance infrastructure projects through airport charges. This allows airports to start building and shift the risk of investment entirely onto airlines.”

“An airport’s ‘single till’ charging mechanism permits airports to maximise generated profits from retail and commercial activities, while airport users (airlines) may benefit from lowered airport charges.”