PPRuNe Forums - View Single Post - German Eurocontrol Charges 16% Up!!
View Single Post
Old 3rd Nov 2001, 14:53
  #11 (permalink)  
The Guvnor
Guest
 
Posts: n/a
Angry

...and with perfect timing I spot this in today's Scotsman:

BAA to increase airport charges
Victoria Thompson

AIRPORTS operator BAA has been given the green light to increase charges to airlines at Heathrow and Gatwick airports in a move that could lead to increased costs for flights from Scotland.

The Civil Aviation Authority has proposed that money from shops and other commercial activities should no longer be used to keep landing charges down.

The measure would be part of a shake-up in the way the air industry regulator polices airport finance.

Airports likely to be affected include Heathrow, Gatwick, Stansted and Manchester, but customers using the airports could end up paying more because of the change of policy.

The CAA has said that it does not expect the extra charges to be passed onto passengers, but responding to the news a spokesperson for British Airways said: "In a competitive aviation market, customers will bear the brunt of any substantial increase in charges."

Any extra costs will be bad news for airlines which are already struggling to overcome the year-long global economic slowdown and the effects of the 11 September attacks on New York and Washington DC.

The average passenger load factor on international flights was just 69 per cent in September, meaning that almost one-third of seats were empty.

It is understood that parking charges for aircraft are also expected to increase as a result of the changes.

The CAA is responsible for setting a price cap on landing charges, in consultation with the Competition Commission.

Airports can then determine their own charges, but are prohibited from going above the price cap.

Up until now, the CAA has taken commercial revenues from airport shops into account when setting the price cap.

The new proposal means revenues will no longer be considered by the CAA, although airports will be free to take them into account when imposing their own charges.

If the CAA proposals are accepted by the Competition Commission, landing charges could rise in April 2003. But British Airways said it did not believe the move to discount revenues from airport shops was "justified or necessary".

BAA said: "The CAA’s proposals address directly the need for airport charges to be set at a level which encourages investment in airports to meet the nation's needs. The proposals are wide ranging."

The Competition Commission will take six months to consider the proposals, starting in February 2002.

The CAA is then expected to set new price caps in October or November, taking into account recommendations from the Commission.

If the proposals are passed, then charges are expected to increase.