European Parliament announced (05-May-2010) aviation security measures that go beyond basic EU requirements - such as body scanners - should be paid for by member states, rather than airlines or passengers, when it approved a draft directive on aviation security charges. As states in the Council are opposed to public funding of security charges, this law is likely to go to a second reading. MEPs have stated that states should remain free to decide how to share the cost of basic measures covered by existing EU rules (metal and explosive detectors, sniffer dogs, hand searches, liquid screeners) but should be required to foot the bill if they choose to introduce body scanners, for instance, which are not yet listed as a standard EU security technique. Many EU governments are opposed to a directive that would require public financing of security charges, since they are currently free to apply their own rules: in most cases the airport authorities now pass on the security costs to airlines, which then pass them on to passengers. The amended directive also stipulates which information airports should provide to airlines each year, and vice versa, so that the level of security charges resulting from commercial agreements between them is justified and based on objective criteria. Information about security charges levied by particular airports and airlines should be publicly accessible, whereas all other information "shall be regarded as confidential or economically sensitive and handled accordingly", says the EP amendment. [more]
Airport security: EU states should bear cost of extra measures
You may also be interested in the following articles...
Singapore Airlines promotes ASEAN-EU/Japan/Korea open skies to gain more USA fifth freedom flights
Linking Asia with North America has been the market cornerstone for Korean Air and Cathay Pacific while producing a growth market for relatively new entrants like ANA and EVA Air. Yet, while northeast Asian airlines have the geography for profitable nonstop North America flying, southeast Asian airlines are challenged in serving the route.
Singapore Airlines feels the need for a significant North American presence to diversify its network and offset pressure from Gulf airlines, which have profoundly weakened SIA in its core Asia-Europe and Australia-Europe markets. Although Singapore Airlines plans to resume nonstop North American flights, these are token services for strategic purposes.
The primary objective has to be securing more fifth freedom rights for one-stop service. Singapore is encouraging the ASEAN bloc to secure open skies with Japan, Korea and the EU since open skies will entail unlimited fifth freedom rights. Korea is unlikely to agree, with Japan hesitant. Fifth freedom liberalisation is a contentious item in the otherwise benign EU-ASEAN negotiations. Countries worry that granting unlimited fifths opens Pandora's box to growth – not just from SIA, but any number of airlines that are quiescent today but could aspire to be powerhouses in the future.
Brexit follow-up Part 2: European airlines feel yield pressure; long-term impact unknowable
Part 1 of CAPA's Brexit follow-up report assessed the ASK exposure of UK and non-UK airlines to market segments where existing traffic rights could potentially change once the UK finally leaves the European Union. This second part reviews recent comments by leading European-listed airlines on how they see the impact of Brexit, both in the short term and in the longer term. Most of them acknowledge that there are considerable uncertainties, while simultaneously insisting that they will not be significantly affected in the long run.
There have been two initial impacts on airlines. First, Brexit has added to economic uncertainty, thereby muting demand and lowering yields. The magnitude and duration of this impact is unpredictable. Secondly, the consequent weakening of the GBP has made outbound international travel from the UK more expensive and less appealing, and lowered the value of GBP revenue earned by airlines.
The longer term impact will depend on whatever new traffic rights regime is negotiated between the UK and the EU. As a number of the airlines have acknowledged, this remains unknown and is, indeed, unknowable until the UK formally triggers its exit from the EU and then completes its two-year exit negotiations.