The International Air Transport Association (IATA) calls on the European Union, in order to defend the interests of passengers, to tighten the rules on monopolies at European airports and on uncontrolled airport charges – which, according to the entity’s report, have doubled in the last decade.
Enhancing efficiency, he said, will contribute to lower airfare costs, as well as boosting travel and competitiveness. According to a study by IATA itself, between 2006 and 2016 airport charges went from 16 euros to 33 euros collected from passengers.
On the other hand, IATA claims that the average cost of unidirectional air fares (including ancillary fees and fares) at 28 major European airports remained practically unchanged over the last ten years, with a relatively modest increase of 2% from 216 euros to 220 euros.
“Airlines, as well as all competitive companies, are constantly struggling to improve their efficiency. European airports, however, are isolated from competitive forces, “said Iata CEO Alexandre de Juniac.
WHAT DOES THAT MEAN?
Such deregulation corresponds to a cost of 17 euros in airport charges per trip, without taking into account the return. According to Iata, the blame for the growth in charges is the strong privatization trend, which has also almost doubled.
“In many cases, privatization has failed to deliver the promised benefits to passengers. Moreover, it has even raised the price of some of its fees, “explains Juniac.
To do so, the executive charges the European Union with effective and strong economic regulation. “[The regulation] is necessary to prevent airport monopolies from taking travelers’ money to reward the profits of investors.”