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IATA notes bright prospects for Polish aviation but fuel charges and ATC costs remain a concern

17-May-2012 8:36 AM

IATA called (16-May-2012) upon the Polish Government to accelerate its pro-aviation policies to enable aviation to facilitate economic growth and development in the country. “Aviation plays a major role in Poland, contributing PLN 6.8 billion to Polish GDP plus an additional PLN 1.6 billion in catalytic benefits through tourism,” IATA director general and CEO Tony Tyler said. He however noted that some economic opportunities provided by aviation are going unused. “In 2009 there were 18 million air travellers in Poland. This accounts for just 2% of the total European market. Moreover, only 5% of visitors to Poland arrive by air. If we can achieve a common vision to further improving the environment for air transport to do business here, I am convinced that the prospects for Polish aviation are indeed very bright.” Mr Tyler identified two major areas in which IATA is working with the Polish government to make aviation more competitive:

  • Fuel charges: The price of jet fuel at Warsaw Airport is among the highest in Europe largely owing to the monopoly position of the fuel supplier and the lack of cost transparency of fuel facilities and services, IATA noted. The Polish Airports Authority (PPL) recently agreed to changes in how fuel is supplied at Warsaw. In Apr-2012, a second supplier obtained access to the jet fuel market. IATA also welcomed the support of Poland’s Air Transport Department in addressing revisions to the Goods and Services Tax Act that resulted in some airlines not being VAT-exempt on fuel purchases for international services;
  • Air Traffic Control:  Polish en routes air navigation charges were reduced by 0.2% this year and terminal navigation charges saw a 32% reduction although IATA noted "these reductions are mainly the result of a significant reallocation of costs from the terminal navigation charges to the en route cost base, assisted by a traffic forecast significantly higher than the European average. As a result of the cost-reallocation the Polish en route cost base has actually increased at three times the European average. And the Polish Air Navigation Service National Performance Plan for a 6.7% cost efficiency improvement in the 2012 to 2014 period falls short of the EC target of a 10.1% improvement for the period". [more - original PR] [more - original PR - Speech]