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(Geneva) – The International Air
Transport Association (IATA) welcomed the European Commission’s
evaluation of the Airport Charges Directive (ACD) which highlights the need to
further strengthen the Directive to protect consumers.

Nearly 60% of passengers in Europe pass through
just 25 airports. Many
airports are able to charge prices that would otherwise not be achieved in a
competitive market. The Commission’s evaluation confirms that further
provisions are required to establish a common framework to regulate airport
charges at EU airports. The report concludes that the existing Directive has
had a positive impact on the airport charges setting process, but that there is
a clear case for further strengthening it to fully achieve its objectives¹.

“The Airport
Charges Directive benefits consumers. And the Commission have rightly concluded
that there is scope for the Directive to be even more effective, if consumer
interests are protected by strong economic regulation of airports with
significant market power,” said Rafael Schvartzman, IATA’s Regional Vice
President for Europe.

Three
key lessons can be drawn from the Commission’s evaluation:

• Consumers need to be at the
  heart of the issue.
  The evaluation confirms that airlines operate in a highly competitive market
  and that reductions in airport charges are passed through to consumers².
  Effective economic regulation of airports with significant market power is a vital
  element in ensuring the economic and social benefits of air transport.
• The effectiveness of the ACD depends
  on stronger powers for regulators.
  The evaluation is clear that Independent Supervisory Authorities (ISAs) should have
  independence and a strong mandate to protect consumers with effective economic
  regulation³.
• The risk of airports abusing
  their significant market power remains,
  as demonstrated in cases where market power assessments have been conducted,
  for example in Ireland, the Netherlands and the UK.⁴

“The next step is to
see an impact assessment of the ACD by the European Commission to analyze the
best approach to fully achieve the objectives that current EU legislation has
not been able to accomplish. A strengthened ACD and targeted economic
regulation will play a major role in protecting consumers and building a more
efficient air transport system, providing greater connectivity across Europe,
with all the benefits that brings,” said Schvartzman.