Airlines’ study claims airports overcharge passengers

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”.

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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.