/ 17 July 2007

Concern over airport service charges

With airports around the world planning to increase tariffs to fund expansion, global airlines lobby group the International Air Transport Association (Iata) said it was unfair that airlines and passengers had to pay for costs incurred by airport operators.

Iata said that infrastructure charges by operators were now the second-largest external cost to airlines, after fuel, the Business Day reported on Tuesday.

The association said airlines and passengers paid about $43,5-billion a year to airports and air-navigation service providers.

Airports Company South Africa (Acsa) said last week it would increase its passenger service charges on average 11% a year over the next five years to fund part of its R20-billion expansion.

Domestic passenger charges would increase by R12,27 to R38,59 a ticket.

Charges on tickets for regional flights would increase from R53,51 to R79,82 and international passengers would pay R105,26, up from R70,18.

Iata has called on governments to strengthen the capacities of airport regulators.

”Airport regulators are phantoms,” said Iata director general and chief executive Giovanni Bisignani.

”While we are moving in the right direction with air-navigation service providers, too many airports still operate as happy monopolies. Their financial results — with earnings before interest and taxes up more than 40% — prove that it is a dream world for airports and a nightmare for airlines.”

Iata said governments should give airport regulators teeth by incorporating cost-efficiency targets for airport regulators.

Travellers could benefit from even more affordable air fares if airport operators reduced their high landing, parking and passenger service levies. — Sapa