"European Regional Airports Start Forum To Defend Interests"

Monday, May 17, 2004

European Regional Airports Start Forum To Defend Interests
Dow Jones


The member airports of FARE expressed concern at the meeting that the EU
Commission is reported to be drafting guidelines, based on the decision
in Charleroi, on incentives that public airports can grant to airlines
in order to attract passengers to their airports. Despite requests from
the regional airports, the regions (through the Assembly of European
Regions (AER)), and the European Low Fares Airline Association (ELFAA),
the Commission has not yet consulted with the main parties that will be
affected by such guidelines. 

Speaking at the FARE meeting in Pisa this afternoon, Mr. Ballini said
"the partnership between regional airports and the low fares airlines
following liberalization of the air transport market has been
remarkable. The viability of regional airports was threatened by the
trend of the traditional network airlines of terminating direct services
from the regional airports in favor of connecting services through their
main hub airports. Low fares airlines like Ryanair have adopted the
business model of direct point-to-point services from regional airports
by providing very low fares, which in turn attracts large numbers of
passengers to the regional airports. This has made regional airports
viable and profitable gateways to the regions, which also benefits the
regions in terms of greater tourism numbers and tourist spend." 

"We are therefore greatly concerned that the Commission may produce
guidelines based on the Charleroi decision which would seriously
undermine the ability of publicly owned regional airports to continue to
use commercially accepted tools, such as discounting based on the
volumes of passengers brought to the airport and joint promotion. This
would place publicly owned airports at a serious competitive
disadvantage vis-a-vis our private counterparts. Regional airports are
now operating in a competitive environment and must be allowed to offer
competitive terms to airlines willing to deliver large passenger volumes
to our airports. 

"We have therefore agreed at today's meeting to adopt a joint approach
between FARE, the AER and ELFAA to present a common position on
guidelines to the EU Commission. These guidelines would ensure
transparency and fairness in the terms granted by a publicly owned
airports to airlines but would also allow publicly owned airports to act
as prudent market investors and compete with privately owned airports." 

"We are seeking an urgent meeting with the European Commission to
discuss this common position and to ensure that the very positive
partnership between regional airports and low fares airlines, and the
huge benefits this brings to the regions, is not damaged by guidelines
that do not reflect current market realities."


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