Achieving a true `One European Sky` – which is critical to the ending of ATC delays – could take a long time in the present political set-up…
Achieving a true `One European Sky` – which is critical to the ending of ATC delays – could take a long time in the present political set-up. So, we believe that to get the change underway, what is needed is corporatisation of national ATC Service providers. Corporatised ATC could be financed through a brand new market instrument, said IATA Director General Pierre J. Jeanniot, speaking at the European Congress on Participation in Global Infrastructure in Frankfurt, 23 January.
If the paper of ATC corporatisation is to be quoted on the Frankfurt stock exchange, this does not have to be in the form of equity. In fact, we believe these corporations can be debt financed – and there are some good examples of this working, for example in Canada.
IATA has many years of experience, working with our Member airlines, in addressing aviation infrastructure needs in many parts of the world, proposing charging policies and user fees required to repay the various investments. We collect ATC charges directly from the airline through our Clearing House services, to arrange prompt and timely repayment.
Some 30 such infrastructure enhancement and financing projects are presently in operation around the world – as yet mainly in developing countries.
While those current financial arrangements are all of relatively short term nature, it would seem to me that an opportunity exists for various financial institutions, working with us, to develop a new type of low risk, long term debt financing for aviation infrastructure – a brand new aviation financial instrument.
These could, typically, be 25 year bonds, carrying an attractive rate of interest. They would at the same time be low-risk, with their viability guaranteed by the contracted cash-flow from future user charges.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
