Airport charges slashed around the world, but some hubs still raising fees
In times of economic difficulties and declining traffic one might expect airport charges to be dwindling, or at least being revised downwards to attract new routes or even just to retain existing business. In fact, that is the case, but a survey by the Centre for Asia Pacific Aviation demonstrates it is also notable that charges are in some cases increasing. Additionally, it is a sign of the times that airlines and trade organisations are also making their voice felt.
- Airports worldwide are slashing charges and introducing incentives to combat the economic downturn.
- However, some airports are increasing charges instead of reducing them.
- Some airports are implementing both decreases and increases in various charges, sending mixed messages.
- Political factors play a role in determining airport charges.
- Hub airports are weathering the storm better and are increasing charges.
- Airlines and trade organizations are calling for changes to charges and incentives.
Key points of the Survey and 2,000-word mini-report include:
- Airports around the world are slashing charges and introducing generous incentives to combat economic downturn;
- But there are several that are increasing them, too;
- Some airports are sending out mixed messages with decreases AND increases in various charges;
- Political factors are behind some charges decisions;
- Hub airports are riding the storm better and show it with charges increases;
- Key case studies: Irish government fails to support DAA's tentative efforts to promote new services. Innovative Spanish government decision raises question of whether privatisation would be right for AENA
The full survey tables (to be published in this month's Airport Investor Monthly) cover the period Jan to mid-May 2009. From a purely statistical view the number of reported instances of charge reductions (23) is slightly more than that of increases (21).
Airports cutting charges or introducing incentives include: Egypt Ministry of Tourism, Macau International Airport, Frankfurt-Hahn Airport, Airports of Thailand, Dublin Airport Authority, Greater Toronto Airports Authority, Malaysian Government, Greek Government, Japanese Ministry of Land, Infrastructure, Transport and Tourism, Indonesian Government, Flughafen Wien, Airport Authority Hong Kong, Riga International Airport (Latvia), Dubai Airports and several US airports, including Dallas/Fort Worth International Airport, Atlantic City, Santa Barbara Municipal Airport, Baton Rouge Metro Airport, Allegheny County Airport Authority, Pittsburgh International Airport, Palm Beach International Airport, Lincoln and others…
Airports adding or increasing charges or curtailing incentives: Blackpool International Airport, Bangalore International Airport Ltd, Delhi International Airport Ltd, Copenhagen Airports, Civil Aviation Authority of the Philippines, Dominican Republic, Airports Company South Africa, Angkasa Pura II (Indonesia), Aéroports de Paris, Gujarat Government (India), Christchurch (New Zealand), Irish Government, Los Angeles World Airports, Edmonton, Long Beach (USA), Moscow and others…
Airlines/organisations calling for changes to charges and incentives: UK Competition Commission, Ryanair, easyJet, the American Association of Airport Executives, AirAsia, IATA, Jet Airways, The Netherlands' Competition Authority, Australia's Tourism and Transport Forum (TTF), the Philippine Government, the Spanish Government and others…