Airlines’ study claims airports overcharge passengers

Airport dismiss findings and say they subsidise carriers

The study commissioned by Airlines for Europe (A4E), whose members include Ryanair and Aer Lingus, claims that airports average earnings margins are 46 per cent, indicating “extraordinary levels” of profitability.

The study commissioned by Airlines for Europe (A4E), whose members include Ryanair and Aer Lingus, claims that airports average earnings margins are 46 per cent, indicating “extraordinary levels” of profitability.

 

Europe’s airports are overcharging passengers and abusing market power, a new study commissioned by the continent’s biggest airlines claims.

The study commissioned by Airlines for Europe (A4E), whose members include Ryanair and Aer Lingus, claims that airports average earnings margins are 46 per cent, indicating “extraordinary levels” of profitability.

The report, by consultants York Aviation, prompted the airline organisation’s managing director, Thomas Reynaert, to call on the European Commission to speed up its review of the rules governing airport charges.

Mr Reynaert argued that Europe needed new laws to tackle “supernormal returns” by airports which he labelled “bad for consumers, bad for tourism, bad for national economies”.

The airlines want a new system of regulating airport charges, included in air fares, introduced across Europe.

Under current “dual till” rules, airports do not have to invest profits from businesses such as restaurants, shops and car parks in lowering charges for passengers.

Carriers want a single-till system, where these profits are deducted from the cost of providing services to airlines before determining passenger charges.

Airports Council International (ACI) Europe said that none of the airline chief executives at the A4E event where the findings were released would confirm that cutting charges would result in lower air fares.

Olivier Jankovec, Director General of ACI Europe argued that the EU’s airports subsidise airlines by €10.4 billion a-year.

“This is because of the gap between airport revenues from charges paid by airlines/passengers and airports’ total costs,” he said.

He added that airlines only covered airports’ operating costs, funding for maintaining and expanding infrastructure came from profits on their commercial activities.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.