Airport World Issue 3 2013 | Page 10

NEWS

ACI Europe issues State aid warning

The importance of Europe ’ s regional airports and an ever increasing threat to their livelihoods due to proposed new EU legislation was top of the agenda at ACI Europe ’ s Regional Airports ’ Conference & Exhibition in Lyon .
In his opening remarks , ACI Europe ’ s director general , Olivier Jankovec , noted that over the last 15 years , regional airports have been the most “ dynamic segment of the European airport industry in terms of passenger growth ”.
He said : “ Regional airports have been the primary enabler of European connectivity , with more than 70 of them now hosting single or even multi-airline bases . With most of Europe mired in recession , their role as essential public transport infrastructure driving local economic capabilities is coming to the fore .
“ More than ever , communities across Europe are relying on their airports to support inward investments , exports , tourism and wider economic regeneration .”
However , he warned that the European Commission ’ s proposed implementation of stricter rules on State aid for airports – ACI Europe believes that aid is crucial for airports handling up to one million passengers per annum while the EU believes the figure should be only 200,000 – posed a very real threat to future survival of many of Europe ’ s smaller airports .
He said that he feared that if the Commission gets its way , up to 80 airports across Europe faced the risk of closure .
Jankovec stated that the facts don ’ t lie and that size really does matter , with 51 % of airports handling less that 5mppa and 65 % of those with less than 1mppa operating at a loss .
He told Airport World : “ We believe that the critical threshold for an airport to be able to cover all of its operating costs is generally around one million passengers per annum . So , on that basis , we are telling the Commission that for airports handling less than one million passengers , you need to allow some form of operating aid .
“ We are not saying that this should take the form of a blank cheque , but there must be some possibility of public financing for these smaller airports in recognition of their inability to cover their losses .
“ You have to remember that because of their size , it is much more difficult for small airports to develop their retail and F & B concessions and other sources of non-aeronautical revenue which they can then use to attract airlines and develop their facilities .
“ To put it simply , in many ways public financing plays the role that non-aeronautical revenues do for the bigger guys . Losing any small regional airport will decrease connectivity and have damaging consequences for surrounding communities and economies .”
Jankovec also claimed that it was time for the EU to address and effectively outlaw the one-bag policy being imposed by certain low-cost carriers due to its detrimental impact on vital retail / F & B revenues at regional airports .
Later in the conference , the Europe Commission ’ s head of unit , Alain Alexis , came under fire from delegates for the EU ’ s alleged anti-competitive legislation towards small airports and for allocating € 32 billion to the rail industry and just € 7 billion to aviation , which was argued didn ’ t allow for a level playing field .
Other topics covered during the conference included enhancing relationships with the community / local businesses / government ; marketing and social media ; and regulatory framework – opportunities and threats .

News in brief

The Australian Competition and Consumer Commission ( ACCC ) has revealed that passenger satisfaction levels at Sydney Airport are at their highest levels for 10 years . According to the ACCC ’ s monitoring report , greater value and choice across the airport and strong investment in improved facilities are the key reasons for rising satisfaction levels .
Los Angeles International Airport ’ s new breed of volunteers are a lively bunch , drink a lot of water and are a bit furrier than normal – but it ’ s alright , as they are dogs ! The four-legged volunteers are part of the gateway ’ s new PUP ( Pets Unstressing Passengers ) initiative .
Dubai International Airport has become the world ’ s leading hub for A380 operations , according to published airline industry flight schedule data for 2012 . The data shows the airport had 7,259 A380 scheduled flights to 28 destinations , the majority of which were operated by Emirates . Paul Griffiths , CEO of Dubai Airports , said : “ The opening of Concourse A earlier this year was a
$ 3 billion validation of our intention to be the world ’ s premiere A380 hub .”
Italian specialty store Bottega dei Sapori will open at Pittsburgh International Airport ( PIT ) this summer . In March this year , AIRMALL announced its partnership with Airest Collezioni to bring a selection of luxury brands to PIT . The new stores are part of a $ 10 million upgrade , a yearlong construction project that will result in the most significant overhaul of the concessions programme since the airport opened in 1992 .
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AIRPORT WORLD / JUNE-JULY 2013