"IATA calls on airlines to boycott expensive airports"

Saturday, December 10, 2005

Airlines mull boycott of high-fee airports
Strategy seen as only way to drive down rising fees charged by monopoly
airports
The Canadian Press


MONTREAL (CP) - Airlines are considering a boycott of large airports that
they feel charge excessive fees to airlines.

Robert Milton, the pugnacious chairman of Air Canada, said yesterday it may
be the only way for airlines to drive down rising fees charged by monopoly
airports.

Milton said the option was discussed yesterday by the board of the
International Air Transport Association, of which he is chairman.

"Airlines have to start to act and speak in unison," said Milton, speaking
at a conference of airline executives of the Star Alliance network.

"It might lead to things like airlines deciding as a group they will no
longer fly to a particular destination," Milton continued. "There is the
possibility of fairly draconian action being taken by airlines to try to
stem this tide because it is not sustainable from an industry standpoint."

Airlines frequently complain of high fees like landing rights and rents at
airports, but this may be the first time there has been a suggestion of a
combined action to punish airports.

Jaan Albrecht, chief executive of Star Alliance Services GMbH, did not
comment on the boycott idea.

Milton admitted it may be too late or impossible to boycott some airports,
like Toronto's Pearson Airport, Air Canada's hub, described by Milton as
"the most expensive airport on the planet."

But he said emerging airports or those with alternatives could feel the
pinch, and he pointed to the airport at Caracas, Venezuela, as a potential
target.

He accused the government there of levying a variety of fees while giving
preferential treatment to government-owned airline users.

"If we are going to fly to Venezuela it will have to be on a cost-efficient
basis," Milton warned.

"Some (governments) just find us an easy, lazy target. You generally find,
in terms of fiscal performance, the laziest, sloppiest governments in the
world are the ones that come up with these silly charges."

Star Alliance members fly to 853 airports.

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