IATA welcomes EC airport charges proposal

New Delhi, Jan 25: The International Air Transport Association (IATA) has welcomed the European Commission (EC) proposal for a directive on airport charges as a first step in the process of making the relationship between airlines and airports better contribute to Europe's competitiveness.

''The proposal moves Europe towards bringing balance back to the relationship between airport monopolies and their customers, said its director general and CEO Giovanni Bisignani.

Complete transparency for airports and consultation with airlines is a good start, he said. The requirement for independent national regulatory authorities, following the International Civil Aviation Organisation (ICAO) principles, is a positive follow-up.

''But it falls far short of expectations in the critical area of setting cost-efficiency targets.'' The Commission has set the stage and is putting the actors in place. That's important. ''But let's not forget the plot -- cost efficiency. In coming months, we will be working with the commission, the parliament and national governments to define cost efficiency parameters. Only then can we call this a success story and a landmark package,'' said Mr Bisignani.

He reiterated the problem. Commercial discipline has made the European airline sector among the world's most competitive and profitable -- contributing significantly to Europe's Lisbon Agenda goals.

Consumers are benefiting from airline fares at least a third lower than a decade ago even as airlines invest billions in new and more environmentally friendly fleets. Now airports need to catch up and keep pace with airline efficiency gains.

But instead of cost reductions, too often we see double-digit increases. ''Look at London Heathrow where we could face a 50 per cent increase between 2008 and 2013 or France, where the government approved a 27 per cent increase in charges at Charles de Gaulle for 2006-2010. It's a real problem. Cost-efficiency targets must be at the core of the solution,'' said Mr Bisignani.

UNI