The rules regarding baggage handling, ramp handling and freight and mail handling are not being complied with at Lisbon, Porto and Faro airports.
The European Commission has decided to refer Portugal to the Court of Justice of the European Union for incorrect application of the rules on airport groundhandling. The rules regarding baggage handling, ramp handling and freight and mail handling are not being complied with at Lisbon, Porto and Faro airports. The Commission is concerned that this results in uneven conditions between possible groundhandlers and in additional costs and lower service quality for airlines and passengers.
Directive 96/67/EC opens the groundhandling services market at airports to competition, including checking-in of passengers, handling of baggage and refuelling of aircraft.
The directive allows Member States to limit the opening-up of the market to a maximum number of suppliers of at least two, for four categories of groundhandling. These categories are: ramp handling (for example marshalling the aircraft or loading and unloading the aircraft), baggage handling, air-side freight and mail handling, and fuel and oil handling. This limitation is, however, subject to compliance with certain criteria, particularly in terms of selecting suppliers (need for a transparent and non-discriminatory tender).
Portugal has limited the number of groundhandling service suppliers for certain categories to two in Lisbon, Porto and Faro airports, which is possible on the basis of Directive 96/67/EC. However, the Commission considers that the selection of groundhandling suppliers for three categories (baggage handling, ramp handling and freight and mail handling between the terminals and aircraft) was not conducted in accordance with the European Directive.
The selection followed by Portugal in 2003 did not concern the selection of a groundhandling supplier but the selection of an investor into a groundhandling company. This groundhandling company was entitled and continued to be entitled to provide the above groundhandling services without any tender. Certain other key criteria of the procedure have not been complied with either: the mandatory consultation of the airlines using these airports did not take place; the supplier selected has not been selected for a maximum market-access period of seven years.
In 2011 Portugal has launched new tender procedures for the selection of suppliers at Lisbon, Porto and Faro airports. These tender procedures are still on-going. Until finalisation of these tender procedures, operators chosen on the basis of the flawed 2003 procedure continue to operate.
The absence of effective competition for the provision of groundhandling services in the airports of Lisbon, Porto and Faro can result in additional costs and lower service quality for airlines. In turn, this affects passengers and freight companies. Furthermore, the absence of a transparent and impartial selection procedure harms competition between possible handlers.
Groundhandling is a key link in the air transport chain. It includes all ground services carried out on behalf of airlines. Although not always visible, passengers’ experiences in airports and in flight depend to a large extent on the smooth operation of groundhandling services.
Photo caption: Faro Airport, Portugal.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
