IATA bucks rate hikes in 19 Euro control states

November 27, 2009, 2:54pm

The International Air Transport Association (IATA) is against the proposals from 19 of 34 Euro-control states to increase overflight route charges in 2010.

IATA said the proposals by the 19 states will result in a 2.7 percent net increase in average unit rates in 2010 or US$360 million.

These proposals were made in advance of the 25 November meeting of the Eurocontrol Enlarged Committee for Route Charges that will be attended by states representing air navigation service providers (ANSPs) and airlines in the region.

“I applaud the 15 states who plan to reduce or freeze their en route air navigation charges. But the savings they delivered were wiped out by the out-of-control monopolists completely divorced from reality, proposing increases in the middle of an unprecedented industry crisis," said IATA director-general and CEO Giovanni Bisignani.

"The impact of the 2.7% increase in unit rates is equal to adding US$360 million to airline costs. That is not acceptable,” said Bisignani.

IATA, with the full endorsement of the European Commission, urged all providers of air navigation services in Eurocontrol to freeze or reduce unit rates in 2010.

The response breaks down as follows: Eight states proposed to freeze unit rates at 2009 levels: Belgium, Former Yugoslav Republic of Macedonia, Cyprus, Norway, Spain, Switzerland, Slovenia and Slovakia; seven states proposed reductions below 2009 levels: Portugal, Greece, Croatia, Moldova, Malta, Bulgaria and Finland; 19 states proposed increases over 2009 levels: Armenia, Serbia-Montenegro, Poland, Romania, Hungary, Austria, Turkey, Bosnia and Herzegovina, Sweden, France, Albania, the United Kingdom, Italy, Ireland, Denmark, Czech Republic, Germany, the Netherlands, and Lithuania.

The highest increase was proposed by Armenia at 32%. Adjusting for the amount of traffic handled, the greatest impact of the increases will be felt by proposals for increases in Poland (+18%), Romania (+17%), Austria (+14%), France (+6%), the United Kingdom (+5%) and Italy (+4%).