Travel Industry News at TravelNewsAsia.com since 1997
Thu, 7 October 2021

Outrageous Airport and ANSP Charges Will Stall Recovery, IATA Warns

IATA used its AGM in Boston earlier this week to warn the industry that planned increases in charges by airports and air navigation service providers (ANSPs) will stall recovery in air travel and damage international connectivity.

Confirmed airport and ANSP charges increases have already reached $2.3 billion and further increases could be ten fold that number if proposals already tabled by airports and ANSPs are granted.

A $2.3 billion charges increase during this crisis is outrageous, said Willie Walsh, IATAs Director General. We all want to put COVID19 behind us. But placing the financial burden of a crisis of apocalyptic proportions on the backs of your customers, just because you can, is a commercial strategy that only a monopoly could dream up. At an absolute minimum, cost reductionnot charges increasesmust be top of the agenda for every airport and ANSP. It is for their customer airlines.

Signs at London Heathrow T2. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

A case in point is found among European air navigation service providers. Collectively, ANSPs of the 29 Eurocontrol states, the majority of which are state owned, are looking to recoup almost $9.3 billion (8 billion) from airlines to cover revenues not realized in 2020/2021. They want to do this to recover the revenue and profits they missed when airlines were unable to fly during the pandemic. Moreover, they want to do this in addition to a 40% increase planned for 2022 alone.

Other examples include:

- Heathrow Airport pushing to increase charges by over 90% in 2022;

- Amsterdam Schiphol Airport requesting to increase charges by over 40% over the next three years;

- Airports Company South Africa (ACSA) asking to increase charges by 38% in 2022;

- NavCanada increasing charges by 30% over five years; and

- Ethiopian ANSP raising charges by 35% in 2021.

Today, I am ringing the alarm, Walsh said. This must stop if the industry is to have a fair opportunity at recovery. Infrastructure shareholders, governmental or private, have benefited from stable returns pre-crisis. They must now play their part in the recovery. It is unacceptable behavior to benefit from your customers during good times and stick it to them in bad times. Doing so has broad implications. Air transport is critical to support economic recovery post pandemic. We should not compromise the recovery with the irresponsibility and greed of some of our partners who have not addressed costs or tapped their shareholders for support.

Some regulators have already understood the danger being posed by the behavior of infrastructure providers. Regulators in India and Spain successfully intervened on the increases proposed by airports. They provide an example for other regulators to follow.

The Australian Competition & Consumer Commission also warned in their recently published report that increasing charges to recover lost profits from the pandemic will demonstrate airports systematically taking advantage of their market power, damaging the vulnerable airline sectors ability to recover at the expense of both consumers and the economy.

Airlines undertook drastic cost cutting from the outset of the pandemic, reducing operating costs by 35% compared to pre-crisis levels. This was supported by increased commercial borrowing and shareholder contributions. Airlines also sought government aid, the majority of which was in the form of loans that need to be paid back. Of the $243 billion that was made available to airlines, $81 billion supported payrolls and approximately $110 billion was in support that needs to be paid back. As a result, airlines have amassed a huge debt burden of over $650 billion. Any defaults could result in airline failures and the loss of tens of thousands of jobs.

IATA urged airports and ANSPs to apply solutions to address the financial impact of the pandemic including: implementing sustainable cost control measures, tapping shareholders, accessing capital markets and seeking government aid.

See latest Travel Industry News, Video Interviews, Pictures, Podcasts and other news regarding: IATA, Airport, Air Traffic.

Headlines: Banyan Tree to Launch 5 New Brands; Double Footprint by 2025  Global Recovery in Air Travel Continued in October  Bangkok Riverside Fest to Take Place 25-27 February  Malaysia Airlines to Trial Flymingo Connect IFE System  IHG Appoints Adeline Phua as Director of Development SEA and Korea  Jonathan Crook to Move from New York to Istanbul as MD of The Peninsula Hotel  Hong Kong Tightens Inbound Control Measures; Adds Countries to Group A  IAG Signs NDC Agreement with Travelport  Accor Signs Two Hotels in Conakry, Guinea  Emirates to Resume Flights to Abuja and Lagos, Nigeria  Cathay Pacific to Add HBO Max Originals to IFE in January 2022  Global Demand for Air Cargo Continues to Grow; Up 10.4% in October  Archipelago Signs Distribution Agreement with Sabre  Bangkok Airways Resumes Flights to Phnom Penh, Cambodia  Amanda Hyndman Returns to Hong Kong as GM and AVP of Operations  ITA Airways Orders 28 Airbus Aircraft  United Airlines Makes History with Special SAF Flight  Millennium to Transition Hotels to IDeaS G3 RMS  PW812D Certification Moves Falcon 6X a Step Closer to Entry into Service  American Airlines Signs New SAF Offtake Agreement with Aemetis  Cebu Pacific Takes Delivery of 459-Seat Airbus A330neo  Hilton Signs Waldorf Astoria in Osaka; Conrad Hotel in Chongqing  Paul King Returns to Maldives as Executive Chef of Dusit Thani Resort  Blanket Travel Bans Will Not Prevent International Spread of COVID19  Embraer Signs MOU with Pratt & Whitney to Test 100% SAF in E195-E2s  Qatar Airways to Launch Flights to Tashkent, Uzbekistan  Cathay Pacific Cargo Launches Click & Ship Digital Booking Platform  Ligula Hospitality Selects Atomize as RMS Provider  Relief Packages at HKIA Extended Until End-January 2022  Malaysia Airlines Launches VTL Flights Between KL and Singapore  China Airlines Takes Delivery of First A321neo Aircraft  Vietnam Airlines Launches First Scheduled Flights to USA  Year13 to Help Accor Recruit 1,200 People in Australia  Accelya Appoints Jim Davidson as President and Chief Strategy Officer  ECLIF3 Study Resumes with 100% SAF Powering Both Engines of A350  Waiting for May Restaurant to Open in Chiang Mai on 5 December  AirAsia Launches VTL Flights Between KL and Singapore  Alannia Resorts Upgrades PMS  Finnair Launches New Tool to Verify COVID19 Vaccine Certificates  Qatar Hosts Inaugural FIFA Arab Cup  Ritz-Carlton Opens Hotel in Harbin, China  Garuda Indonesia Signs MOU with Singapore Airlines  Qantas to Expand FFP with Green Membership Tier  Vietjet Signs Agreements with SR Technics and Swiss Aviation Software  Starlux Airlines to Launch Flights Between Taipei and Fukuoka, Japan  ADE Completes First Installation of Inmarsat's GX Aviation on an AirAsia A320  Singapore Airlines Opens Ticket Sales on More Vaccinated Travel Lanes  JW Marriott Orlando Bonnet Creek Resort & Spa Opens Four Family Suites  B.1.1.529 Concerns Lead UK to Ban Passenger Planes from Six Countries in Africa  Accor Wins Naming Rights for Stadium Australia in Sydney  Hong Kong Int. Airport's Flight Token Wins Best Innovation Award  ADNEC Continues Diversification with Acquisition of Etihad Holidays  Air Astana to Resume Flights Between Almaty and New Delhi, India  Minor Hotels Expands Anantara Brand to Budapest, Hungary  Emirates Signs Codeshare Agreement with airBaltic  Qantas Unveils Plans for Queensland Network  Malaysia Airlines Signs MOU with UCSI Group  Smiths Detection and Microsoft Working to Combat Wildlife Trafficking  Marriott Opens 7th Hotel in Melbourne, Australia  Embraer Showcasing E195-E2 TechLion at Selangor Aviation Show  Singha Estate Breaks Ground on New Resort in Maldives  Singapore Airlines Launches Flight Pass  Bangkok Airways to Resume Flights from Samui and Phuket to U-Tapao  China Airlines Testing New Wireless IFE System on Boeing 737-800s  CBRE Appoints Chris Ely as Head of Hotel Asset Management, Asia  Asia Pacific Airlines Report October 2021 Traffic Figures  Alessio Minetto Joins The Woodward, Geneva as GM  Singapore Airlines and Scoot to Resume Flights to India  Dusit to Manage Ananda's New Residential Project in Bangkok  Martin Fabiano Returns to Jakarta as GM of the Sari Pacific Hotel  Chidchanok Pasinpong Appointed GM of the Avani Sukhumvit Bangkok Hotel  IATA Publishes Blueprint for Simplifying Travel  Korea Tourism Organization Uses Extended Reality for Extensive New Campaign  Amadeus Research Looks at Importance of Transparent Pricing for Airlines  Embraer Signs MOU with Royal Netherlands Aerospace Center  Sandra Watermann Appointed Cluster GM of Two Hotels in Phuket, Thailand  CMA CGM Signs Binding MOU with Airbus for Four A350F Aircraft  Hi Fly Airbus A340-313HGW Makes History with Antarctica Flight  Malaysia and Singapore Airlines to Expand Codeshare Agreement  Sabre Moves from Pilot to General Launch of NDC Content in GetThere  Qantas Accelerates Return of Airbus A380 to Service  Marriott Signs Second W Hotel in Dubai  Indonesia Orders Two Airbus A400M Aircraft; Signs LOI for 4 More  Air Tanzania Orders 4 Boeing Aircraft at Dubai Airshow  Darren Darwin Appointed GM of Avani+ Khao Lak Resort in Thailand  Executive Appointments at CWT  Cathay Pacific Reports Increase in Cargo and Passenger Numbers  Four Seasons Jackson Hole Appoints Sean Casserly as Resort Manager  Emirates A380 to Operate One of Three Daily Return Flights to Bangkok, Thailand  Accor Partners Qantas for Double Loyalty Rewards  TUI Signs Distribution Agreement with Sabre Hospitality Solutions  Naowarat Arunkong Returns to Hua Hin as Cluster GM of Two Resorts  SITA Upgrading Passenger Experience at Frankfurt Airport with 87 TS6 Kiosks  Boeing 777-9 Visits Qatar Airways in Doha  Airbus Partners Thales and Diehl for eVTOL Development  BA and AA Offer Free COVID19 Test Kits to Business Class Travellers  flypop Partners Hi Fly to Launch Zero LOPA Cargo Operations  Eve Partners Senna for eVTOL Inspiration  Singapore Airlines Unveils New Economy and Business Class Cabins  Cathay Pacific / HSBC Hong Kong Sevens 2022 Moved from April to November  New Indian Airline Orders 72 Boeing 737 MAX Aircraft  ATPCO to Update Industry Collaboration Framework with Two New Councils  New Japanese Airline Signs LOI with ATR  BEIA Appoints Steve Armitage as Independent Chair  Emirates Orders Two Boeing 777 Freighters at Dubai Airshow 2021  Alpha Star Aviation Becomes Launch Customer of ACJ's New IFE Technology  IATA Warns of Skilled Labor Shortage for Ground Handling Providers  Russian Helicopters Establishes Alpha Aviation JV in UAE  ALC Signs LOI for 111 Airbus Aircraft; Becomes Launch Lessor for A350F  IATA Appoints Marie Owens Thomsen as Chief Economist  Korean Air Receives Vietnam's Approval for Asiana Acquisition  Six Senses Signs Very Special Hotel in Lisbon, Portugal  United Airlines Increases Flights to Las Vegas for CES 2022  TAROM Orders Three ATR 72-600 Aircraft  Spain Orders Three Airbus A330MRTT Aircraft  DHL Express Orders Nine More Boeing 767-300BCFs  UAE Air Force & Air Defence Orders Two Airbus A330MRTT Aircraft  Indigo Partners Orders 255 A321neo Family Aircraft at Dubai Airshow  Korean Air Reports Q3 Profit; Cargo Breaking Records  Boeing to Open Three More Passenger to Cargo Conversion Lines  HKIA Reports Increase in Cargo and Passenger Numbers in October  Thai AirAsia Reports Q3 2021 Results  Cathay Pacific to Require All Eligible Aircrew to Get Third Dose of COVID19 Vaccine  Binter Canarias Orders Four ATR 72-600 Aircraft  Court Approves CWT's Recapitalization Plan  SIA Expects Passenger Capacity to Reach 43% of Pre-COVID Levels by December  Boeing to Showcase 777X at Dubai Airshow  United Airlines to Launch Flights to Amman, Jordan  Mandarin Oriental Reports First Profit Since Q4 2019  Envision Digital and SITA to Develop Net Zero Carbon Solutions for Airports  Embraer Starts Building Hungary's First KC-390 Millennium Aircraft  Qatar Cargo First to Implement IATA CO2NNECT  Elbit Systems to Upgrade Electronic Warfare Capabilities of UK's Royal Navy  SLH Signs First Hotel in Sapporo, Japan  PPHG Appoints Cristian Nannucci as GM of Two Properties in KL  AirAsia Group Appoints Colin Currie as CCO  China Southern Expands Codeshare Agreement with Qatar Airways  Fello'fly Could Significantly Boost Environmental Performance of Aircraft  SITA Develops Solution for Offline EPL Verification  Thai Cargo to Operate Flights to 30 Destinations in Winter Schedule  Eve Partners Widerøe Zero to Develop eVTOL Operations in Scandinavia  Courtyard by Marriott Hotel Opens in Phuket Town, Thailand  IHG Appoints Mark Winterton as GM of voco Orchard Singapore  Pan Pacific Signs Two Properties in Kuala Lumpur, Malaysia  Travellers Must be Fully Vaccinated to Fly with AirAsia Malaysia  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS News Feed and Ticker  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Receive our Latest Travel News Daily Email free of charge by entering your email address and name in the boxes to the right and clicking subscribe. By subscribing, you agree with Revue's Terms of Service and Privacy Policy. You can also receive the news by WhatsApp, stay updated with our RSS Feed Travel Industry News by TravelNewsAsia.com, and even Add the Headlines to Your Website free of charge. Have questions? Please read our travel news FAQ.

     
Advertising
Advertising
Copyright © 1997-2021 TravelNewsAsia.com