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: IHG to Take Over Hotel in Novena, Singapore  Virgin Australia Signs Expanded Agreement with Sabre  Dorsett to Take Over Property in Singapore; Roy Liang Appointed GM  Airbus Extends Production of ACH130 Aston Martin Edition  Falcon 6X Ready for Global 40-Stop, 150-Hour Proving Campaign  Yiannis Kosmas Appointed GM of Anantara Bazaruto Island Resort in Mozambique  Creative Studio for ACJ TwoTwenty Opens in Toulouse, France  ATR Helping Indonesia to Implement Performance Based Navigation  Changi Airport to Reopen T2 on 29 May  IHG Signs Kimpton Hotel in Hua Hin, Thailand  Marriott Signs 1,049-Room All-Inclusive Autograph Collection Resort in Cancun, Mexico  Qantas Partners Zip to Offer Fly Now, Pay Later  Dassault Begins Production of Falcon 10X  Andrea Orrú Appointed GM of Al Baleed Resort Salalah by Anantara in Oman  Embraer Partners 4AIR to Offer Complimentary Carbon Offsetting  Fiji Men and New Zealand Women Win France Sevens in Toulouse  Anantara Resort to Open on Koh Yao Yai, Thailand  United Opens 30,000 sqft Club Lounge at Newark Liberty Int. Airport  Jon Cannon Appointed GM of Mövenpick Hotel Sukhumvit 15 Bangkok  IAG Orders 50 Boeing 737-8-200s and 737-10s  Mathieu Hellec Appointed GM of Anantara Maia Seychelles Villas  Airbus Selects Honeywell's New FMS for Future A320, A330 and A350 Aircraft  China Airlines Publishes Second TCFD Report  Fiji to Host Pacific Nations Cup 2022 in July  Google Cloud, AI, NDC and More - Airline Retailing Interview with Darren Rickey, Sabre  Mandarin Oriental to Open Second Luxury Hotel in London, England  Supersports Laguna Phuket Marathon 2022 to Take Place 11-12 June  Langham Appoints Sherona Shng as Regional Vice President Operations - Asia  ATR Unveils Vision of Future Regional Turboprop Aircraft  Maren Kuehl Appointed GM of Anantara Al Jabal Al Akhdar in Oman  United Airlines Applies to Launch Washington - Cape Town Flights  China Airlines Launches New Protective Kit for Passengers  Marriott Partners Yahoo to Launch Media Network  Plaza Premium Opens Lounge at Edinburgh Airport in Scotland  Malaysia Airlines and Qatar Airways Expand Codeshare Agreement  Sabre's Initiatives to Retain and Attract Top Talent  Yotel Gets Creative with Dual-Branded Property in Miami  Rosewood Signs Second Residential Project in Florida  Air France Unveils New Business Class Seat  Saab Appoints Viktor Wallström as SVP and Head of Group Communications  Accor Opens First of Two Mövenpick Hotels in New Zealand  Marriott Signs Adults-Only, All-Inclusive Luxury Resort in Dominican Republic  Sabre Recognized as System Provider in IATA’s Airline Retailing Maturity Index  Hong Kong Airport Reports 109.4% Increase in Passengers; Cargo Down Slightly  Fiji Airways Upgrades Technology with Amadeus’ Digital Experience Suite  Cebu Pacific Reports Q1 2022 Results  Burberry Reopens Qatar Duty Free Outlet at HIA  Four Seasons Kyoto Appoints Director of F&B, Culinary Operations  Jumeirah Opens Luxury Resort in Bali, Indonesia  Marriott Opens First AC Hotel in Australia  Star Alliance to Launch Co-Branded Regional Credit Card; Enable Paid Access to Lounges  Cathay Pacific Reports Increase in Cargo and Passenger Traffic  Fly Dhaka Partners AirAsia Consulting  Int. Travel Forecast to Fully Recover by 2025; Asia Pacific Lagging  CWT Appoints Interim CFO and Chief Partnership Officer  Host Countries of Next Five Rugby World Cups Confirmed  Langham Gold Coast to Open in June  SIA Appoints Leslie Thng as CEO of Scoot  Virgin Limited Edition to Open 28-Room Luxury Hotel in Mallorca  Pitak 'Chin' Norathepkitti Appointed GM of Anantara Chiang Mai Resort  ITA Airways Takes Delivery of First Airbus A350  Singapore Airlines Extends Sponsorship of Formula 1 Grand Prix  All Nippon Airways Joins airasia SuperApp's OTA Platform  Air Astana Celebrates 20th Anniversary of First Commercial Flight  Accor to Convert QE2 Cruise Ship into Floating MGallery Hotel  Lufthansa Orders 16 Boeing Cargo and Passenger Aircraft  Sabre Completes Acquisition of Nuvola  NAC to Become Launch Lessor of Embraer’s P2F Conversions  Qatar’s Hamad Int. Airport Reports 162% Increase in Passengers  Grand Hyatt Kuwait to Celebrate Grand Opening in Autumn  JAC Takes Delivery of 9th ATR 42-600  Etihad Unveils New Economy Class Furnishings and Tableware  Marriott Signs Second JW Hotel in Japan  Jetstar to Launch Canberra Flights from Melbourne and Gold Coast  Four Seasons Signs Luxury Hotel and Residences in Muscat, Oman  Airbus Establishes Air Mobility Initiative in Bavaria  Qantas Launches Promotion on 1,700+ Points Planes  Etihad Completes Sustainable Flight Tests Operating 42 EcoFlights Over 5 Days  Embraer Concludes Series of Experimental Flights in Rio de Janeiro, Brazil  Swiss-Belhotel Aiming to Double Portfolio by 2030  Four Seasons Partners Bryte to Bring AI Technology to Sleep Experience  The Slate Phuket Becomes Dog-Friendly; Charges 1,500 Baht Per Dog, Per Night  Lee Kelly to Join 45 Park Lane in London as GM  China Airlines Participates in SkyTeam's Sustainable Flight Challenge  Boeing to Establish Research & Technology Hub; Names Arlington Office as Global HQ  Emirates to Showcase Premium Economy Class Cabin at Arabian Travel Market 2022  It’s a Penalty Publishes Impact Report from Super Bowl LVI Campaign  EGNOS V3 to Enhance Navigation and Security for More Destinations in Europe  Qantas Unveils Plan to Buy Alliance Aviation Services  Mapping Travel's New Normal - Sabre Study Highlights Prominent Shifts  Aviation: International RPKs Increase 285.3%  Emirates Celebrates Museum of the Future with Custom A380 Livery  Thai Airways Resumes Bali Flights; Launches Chatbot  China Airlines Operates Songshan - Tokyo Haneda Flights with A321neo  Cebu Pacific Resumes Jet Operations at Bicol Int. Airport  SHVO, Rosewood and Peter Marino to Renovate The Raleigh, Miami Beach  Growing Challenges for Air Cargo as Demand Falls  Pullman Cairns Appoints Mark Burns as General Manager  Accelya Establishes Center of Excellence in Pune, India  IHG Appoints Danny Ha as Development Representative - Korea  Emirates Resumes Flights to Bali, Indonesia  Yotel Signs WTC Hotel in Lisbon, Portugal  Travel Industry Interview with Kurt Ekert, President of Sabre  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2022 TravelNewsAsia.com