EU plans to tackle rising airport costs

Published January 25, 2007

BRUSSELS, Jan 24: The European Commission laid out plans on Wednesday to tackle skyrocketting airport fees charged to airlines, and ultimately to passengers, by making the system more transparent and setting up independent regulators.

With airport fees on the rise, EU Tranport Commissioner Jacques Barrot acknowledged that recently there had often been "a conflictual climate between airlines and airports."

He said that stepping up transparency on the one hand and introducing regulators to referee disputes on the other would create a "double system that should allow for fee costs to be moderate."

The airport fees, which make up four to eight per cent of airlines' operating costs, are paid for takeoffs and landings, parking, security and passenger handling.

According to the International Air Transport Association (IATA), 15 of the 25 most expensive airports are in Europe, with Paris, Frankfurt and Athens airports among the top.

Airlines are angry that airport fees have taken off in recent years while they have struggled to cut costs.

Barrot said the independent regulator system was already in place and working in Britain and that governments should not be handed the role because they "sometimes favour one company or might want to privatise an airport... and to boost its revenues.

"The Commission came up with its proposals only after "extremely thorough talks" with airport authorities and airlines, Barrot stressed.—AFP