Download Presidents Assembly Brussels PA0108

Effectively implementing the
Airport Charges Directive
“NOW”
Workshop University of Rome “Tor Vergata”
13th March 2009
Athar Husain Khan
General Manager Infrastructure
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 1
The Association of European Airlines
AEA member airlines' brands give credibility
and weight to the Association…
AEA leverages this weight and gives it
back, multiplied, to each individual
member.
member airlines
passengers
flights a day
destinations in
countries
tonnes of cargo
employees
Total turnover of
ACD addresses a structural problem structurally
 This time the EU institutions adopted a balanced proposal which, while by no means
ideal, is an important first step in remedying this situation”.
 The Directive [ ... ] would place on the airports an obligation to consult with their
airline customers, to provide transparency in their pricing calculations, and subject
them to the jurisdiction of an independent national regulator; these principles would
be applied throughout the European Union on the larger airports and thereby
increase the pressure on all key airports to become cost efficient.
 Unfortunately, the new rules will not be available to redress the current
situation. “This legislation will have to be transposed into national law – within two
years”
 It puts a premium on efficiency, to the benefit of both sectors and of the travelling
public. It will make air transport more resistant to external shocks and economic
downturns – something which, as the present crisis is demonstrating, is very much
lacking right now”.
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 3
The worst crisis since the 1930s
1973-75 1979-80
Oil crisis Oil crisis
7
1981-83
Economic
crisis
6
%
5
2001-03
9/11
Economic
1990-92
1997-98
crisis
Economic
Asian
crisis
Financial
crisis
2008-?
2007
8
1989
Timeline of crises since 1961 (GDP Growth)
4
3
2
World recession =
GDP growth below 3%
1
Source: AEA research, IMF data
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 4
2009
2005
2003
2001
1999
1997
1995
1993
1991
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
1965
1963
1961
0
Employment: 15,000 jobs lost already
Thousands
Further Job Losses are inevitable
AEA Carriers' total FTE count to 2007, announced cuts through 2008 to date
500
To date AEA carriers have already announced
15,000 job losses + another 5,000 positions
affected by other labour cost saving measures
(unpaid leave,reduced working hours,..) More
are likely to follow.
40,000 job losses
450
400
350
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 5
2007
2006
2008 & to
date
Source: AEA Yearbook & staff research
2005
2004
2003
2002
2001
2000
300
AEA Airline financial outlook is dismal
AEA Airlines will once again post losses in 2009
after just 5 years of profits
5
4
Operating Profit
Net Profit (after Interest)
3
EUR bn
2
1
0
-1
-2
-3
Forecast Loss
-1.5bn to -2.5bn
-4
2000
2001
2002
2003
2004
2005
Source: AEA
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 6
2006
2007
2008e
2009f
Airport Charges developments
Imposed Airport Charges for 2009
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 7
Vienna
Stockholm
Spanish Airports
Prague
Oslo
Orly
Munich
Helsinki
Heathrow
Gatwick
Frankfurt
Copenhagen
Charles de Gaulle
36
33
30
27
24
21
18
15
12
9
6
3
0
-3
-6
-9
-12
-15
Now ...
“Bukhra?
Ba-ath Bukhra!”
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 8
Great potential of the ACD
 Application of ICAO Policies to larger airports
 National Independent Supervisory Authority with “teeth”
 Non-discrimination
 Adequate transparency and consultation
 Cost effectiveness
 Pre-financing only under ICAO Policies
 Member States to decide on “till”
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 9
Key is the transposition and implementation
 Economic regulation:
 Non-discrimination
 Compulsory procedure for regular consultation
 Changes to charges only in agreement
 Facilitate transparency by both airlines and airports
 Procedures for disputes
 “Till”
 Pre-financing
 National Independent Supervisory Authority:
 Ministry of Finance, Transport, Economic Affairs
 Civil Aviation Authority, Government Agency
 Competition Authority
 Lodging appeal with courts
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 10
Crisis measures Airport Charges
 Member States to ensure:
 A full freeze of airport charges at the levels of 1st January 2009,
for the duration of at least two upcoming and consecutive IATA
seasons.
 Commission to act:
 Adoption of a Communication to urge the Member States to act
as if the ACD were already transposed;
 And to include and implement all necessary provisions.
 AEA requests that the Member States, Commission and airports
abolish the ‘cost recovery rule’ immediately where it is applied
Workshop on Airport Charges – Tor Vergata, 13 March 2009 / Slide - 11
[email protected]