AEA CONDEMNS UK AIRPORT CHARGES INCREASE
The Association of European Airlines has hit out at the green light given by the UK Civil Aviation Authority for massive increases in user charges at the airports run by BAA Limited, notably London Heathrow which is an important destination for most of the Association’s 33 members and the main operating base for its three UK member airlines.
The CAA performs the role of BAA’s economic regulator, in view of the airports’ monopoly pricing power, and is supposed to defend the interests of BAA’s customers, namely the airlines and their passengers. Instead, this decision appears to protect the airport owners against the consequences of the commercial risks they took when buying BAA in 2006 – something which the Regulator expressly said it would not do.
Said AEA Secretary General Ulrich Schulte-Strathaus: “European airlines operate in a competitive, liberalised marketplace, which puts a premium on efficiency and guarantees their customers the widest choice of service and range of prices. Too often airports operate a pricing structure on a ‘take it or leave’ basis”.
Currently, a EU package of airport-related measures is progressing through the EU legislative labyrinth. AEA is arguing strongly for a pricing regime which imposes a similar cost discipline on the airports, overseen by a strong and independent national regulator.
“In the past, we have applauded the UK model as an example of how a European regulatory system might work”, said Mr Schulte-Strathaus. “What we are seeing now is the CAA rubber-stamping a price hike which most competition authorities would crack down on, as a clear abuse of dominant position”.