Airports hit back at IATA claims on charges

ACI World chief says IATA ‘claims made about the airport industry are out of context and don’t reflect the efforts made by airports to support the aviation ecosystem’

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A nearly deserted terminal at Hong Kong International Airport. (PHOTO: Shutterstock)

https://www.singaporeairshow.com/exhibit/participation-options?&utm_source=ventura_media&utm_medium=referral&utm_campaign=banner&utm_content=participation_option&utm_term=asian_aviationThe head of the main trade group representing the world’s airports took issue with comments by the head of the International Air Transport Association (IATA) that claimed airports were imposing “outrageous” charges on airlines.

ACI World Director General Luis Felipe de Oliveira.

ACI World Director General Luis Felipe de Oliveira, which represents airports, said “After a period that saw unprecedented collaboration and unity of airports and airlines in surviving this crisis and rebuilding passenger confidence, it is disappointing to hear this tone of statements coming from IATA. Claims made about the airport industry are out of context and don’t reflect the efforts made by airports to support the aviation ecosystem during the pandemic.

“Airports have also experienced enormous financial stress and had to make drastic cuts to keep afloat. And in many jurisdictions, airports did not receive the same level of support compared to air carriers. To keep facilities running and safe to operate cargo and humanitarian flights during the pandemic, for example, airports incurred large costs. Fundamentally, airports will always remain infrastructure-intensive businesses—this translates into a high ratio of fixed costs. In addition, despite these fixed costs that airports face, the industry has been supportive of the airline community during the crisis, which includes the following:

  • A recent survey of airport operators spanning all regions of the world and different airport sizes in terms of traffic levels showed that the majority of airports—nearly 70 percent—had implemented some form of discount or incentives in their airport charging schemes to address the impacts of COVID-19 and support a recovery. Also, during 2020, many airport operators deferred or waived certain airport charges in support of their airline clients.
  • IATA’s own data shows that at the depths of the crisis, there was actually a decrease in user charges as a share of airline costs. An analysis of charges, which contain both air traffic control and airport charges, shows that these charges are only approximately 5 percent of airline cost items in 2020, and this share decreased from pre-COVID 2019 levels.

“Overall, airports are also businesses in their own right that have suffered great financial stress during the COVID-19 crisis and the historic downturn of passenger traffic,” de Oliveira said. “In fact, this may be a moment to rethink the economic oversight of airport charges to something that is more reflective of market conditions allowing for risk to be shared across airlines and airports. Airports will remain infrastructure-intensive businesses—which means inevitable high fixed costs which must be maintained for the benefit of passengers and the communities that airports serve. We will continue to collaborate with our airline partners and other stakeholders to rebuild a sector that is resilient and sustainable—but it needs to be fair for the entire aviation ecosystem.”

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