"IATA Director Objects to Airports Being Stable and Profitable, Says ACI Should Encourage Overhaul of Airport Business Practices"

Saturday, December 2, 2005

IATA Director Says ACI Should Encourage Overhaul of Airport Business
Practices By Graeme Kennedy New Zealand - The National Business Review


The International Air Transport Association has launched an attack on the
major airports, saying their business models are archaic, inefficient and
wasteful. 

Iata director general Giovanni Bisignani said the airports should become
more transparent in their financial dealings with airlines which last year
paid $US45 billion in airport and air traffic control charges.

He said Airports Council International - which held its world annual meeting
in Auckland last month - should encourage an overhaul of airport business
practices. 

"But ACI has failed to lead its members toward the efficiency that is the
reality of aviation today," Mr Bisignani said. "Their current business
models hide inefficiencies and rake in profits.

Misery Loves Company

"The proof is in ACI's statement that airports have been stable and
profitable during the most turbulent five years in aviation history; that is
a comfortable situation which must be challenged.

"They cannot consider airlines as cash cows."

Mr Bisignani said airports often built "expensive cathedrals" rather than
tailoring new facilities to meet carriers' needs.

He urged ACI to benchmark efficiencies and become more transparent as a
first step to improving airports' dealings with airlines. But he said he
could not estimate what savings might come from a new model.

"I don't know how much we can expect to get from airports but if you don't
push you don't get," he said.

Mr Bisignani said airport charges were highest in Latin America, Asia and
some parts of Europe.

Iata has been driving increased efficiencies in the airline industry, saving
$US350 million with new landing procedures at Hong Kong and constantly
helping carriers find economies in new route planning.


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