The European Low Fares Airlines Association (ELFAA) today called on the EU Commission to publish the Guidelines on financing of airports…
The European Low Fares Airlines Association (ELFAA) today called on the EU Commission to publish the Guidelines on financing of airports and start-up aid to airlines departing from regional airports, following their announcement today. Although ELFAA has not yet seen the official version of the guidelines, the Commission`s press release makes it clear that the Guidelines still impose unworkable conditions on public airports in their efforts to grow passenger numbers – conditions that do not apply to similar private airports. The reality in the industry is that public airports are competing with newly privatised airports for airline traffic and these guidelines effectively regulate only one side of the industry as private airports are offering long term, low costs to airlines willing to deliver passenger numbers.
The Commission has portrayed the guidelines as being positive for the development regional airports and personal mobility. However, this kind of de facto regulation of airports is likely to lessen competition and increase costs to consumers.
Commenting on the Commission`s announced airport Guidelines, Interim President of ELFAA and Commercial Director of Sterling, Stefan Vilner, said: We are anxious to see the final version of the Guidelines. Although the Commission refers to extensive consultation with industry, the fact is that these guidelines were always presented by DG Transport as a done deal. The airlines and regional airports have consistently expressed concerns that the Commission was essentially trying to regulate public airports through the guidelines. This would be highly damaging in a dynamic industry like air transport where the low fares airlines have successfully transformed small regional and secondary airports into viable and profitable entities.
We look forward to receiving the final version of the guidelines but remain concerned at the Commission`s continuing trend towards re-regulating the airline and now airport industry. Competition in the airline industry led to the emergence of the low fares airlines and this has led to competition in the airport market. These guidelines risk undermining competition and consumer choice and the growth of regional airports.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
