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You may remember a report from A4E earlier this year claiming that its members are paying 80% more in airport charges in 2014 than they were back in 2005. Europe’s 21 largest airports – which account for 50% of passengers – were accused of increasing their charges by up to 255%.
This report was cited as evidence that airports were abusing their market power and that further regulation is necessary. A4E were also at pains to point out that, in contrast, airlines had reduced their airfares by 20% over the same period.
It’s a modern day tale of good versus evil.
ACI Europe disputes these numbers. Of course. It puts the increase in airport charges at a significantly lower and slightly more palatable 25.4%. This figure is caveated by the fact that this it also represents a significant increase in capacity, connectivity and quality. ACI Europe also disagrees with A4E’s claim that airfares have fallen by 20%, pointing to a source that suggests the figure should be a 29% increase. Touché.
Of course, any report from a lobby group must be treated with great scepticism. They have their obvious interests and causes. Facts are quietly forgotten if they don’t help the party line. Exaggeration is also standard, in the belief that the more sensational the figure, the more notice people will take of it.
So, whose numbers should we believe? We wish we knew. While the truth may never be known, you can be sure however that it lies somewhere between the two estimates.
ACI Europe does make some good points, however. First, that the A4E data had not been adjusted for inflation. Even assuming inflation of 3% per year, over 10 years this can account for over 30% of any increase in prices. Second, it highlights that some of the increase (although it is not clear how much) is a result of the airports taking on new responsibilities, specifically services for passengers with reduced mobility. Third, that the analysis is based on only a small proportion of users, and is not representative of the charges paid by airlines using these airports. However, again, it is not clear what the actual impact of this is. Nevertheless, if you throw enough mud, something will stick.
Of course, this isn’t really about the numbers. They are just there to get your attention. This is about the Airport Charges Directive, which the Commission signalled it is considering reviewing in last year’s Aviation Strategy.
A4E is doing all it can to turn that ‘is considering reviewing’ into a ‘will review’. They want the Directive reformed, with greater regulation and a dual till system top of the agenda. ACI Europe on the other hand wants the opposite. Recent reforms in airport regulation and last year’s Aviation Strategy suggest the Commission will go down the route of less regulation.
Based on current evidence, round one goes to ACI Europe. Let round two commence.
