Airlines For Europe 2018: Aviation bosses attend Brussels summit. Ian Taylor reports
Airports body rejects claims of inflated charges
Airing grievances: Airline bosses on stage
Airline chiefs demand EC curbs on airport charges
Leading airline bosses demanded the European Commission [EC] toughen regulations on airports to stem rising charges.
International airlines Group
(IAG) chief executive Willie Walsh said: “We are calling on the EU to strengthen regulation in the interest of consumers. If airport charges were lower, the benefits would be passed on.” Walsh suggested charges at
Europe’s biggest airports had grown by 80% in the past 10 years “while passenger charges decreased 20%”. He said: “We want the EC to
focus on airport cost efficiency and genuine transparency. We want airlines to have meaningful
“Too many airports tell us they are spending €2 billion on some marble palace”
consultations with airports [on airport development programmes]. We want specific regulations for airports with the biggest market power.” Ryanair chief executive Michael O’Leary agreed, saying: “We want [the EC] to replace ineffective airport regulation with effective regulation. Too many airports tell us they are spending €2 billion on some marble palace or, in the case of Heathrow, £14 billion. “It takes some inventiveness
to blow that amount on a runway that costs £120 million. We don’t need some grandiose palace. We want reform to end the gold- plating of airport developments.” Walsh said: “The price Heathrow
is talking about is ridiculous. “They first said £16 billion, now
they are talking about £14 billion. If they thought they could get away with it, they would say £24 billion. “We are their biggest customer and Heathrow treats us appallingly. Their costs are out of control. We have already knocked £2 billion off the price. I’m going to attack them every day.” Walsh asked: “Who goes to an airport to look at a waterfall? “You go to board a plane. I don’t want marble palaces.”
Airports’ association ACI Europe hit back strongly at claims by some European airlines that airports inflate charges to pay for “marble palaces” and “egregious gold-plating”. It dismissed claims from IAG
chief executive Willie Walsh and Ryanair chief Michael O’Leary that charges at large airports have doubled in the last 10 years while average fares have fallen from €199 to €96. The association said charges
increased by 25.4% at the largest airports and by 23.3% at all airports on average “without accounting for the rebates and incentives offered to airlines by airports to develop connectivity”. It said ticket prices had risen
by 29% in 10 years, according to Eurostat, and rejected the airline bosses’ claims that lower airport charges would be passed on to consumers. “Fares are primarily driven
by the level of competition on any given route, along with fuel and labour costs, not airport charges,” ACI Europe said. “On monopoly routes, airlines charge high fares that bear no relation to airport charges.” The association said Europe’s
largest 21 airports had invested €53 billion over a 10-year period, increasing capacity by 177.4 million passengers a year.
Ryanair’s O’Leary tips European carriers to fail this year
An aviation downturn is “imminent”, warned Ryanair chief executive Michael O’Leary as Lufthansa chief Carston Spohr insisted “I am against insolvency protection”.
O’Leary said: “The next downturn is imminent. There
will be other carriers that fail in Europe this year.” Three European airlines failed
last year: Alitalia went into administration in May, Air Berlin ceased flying in October and Monarch Airlines failed in October. Asked which carrier might
be next to fail, O’Leary repeated a claim made last year, saying: “Norwegian will be the next one.” Norwegian Air chief executive Bjorn Kjos was not at the summit. The low-cost carrier has dismissed claims it is at risk and announced long-haul growth this
year despite revealing greater- than-expected losses last month. Spohr said a downturn would “help make the industry more healthy”, adding: “I am against insolvency protection for consumers because they should choose airlines that are healthy.”
15 March 2018
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