Industry Charges, Fuel Fees & Taxation
The first quarter of 2013 has seen some positive developments:
- Japan: longer-term airport charges and fuel fee agreements have been secured with Kansai and Narita airports.
- Sierra Leone: the imposition of a large security fee has been avoided. We are now fighting a similar proposal in Liberia.
- Changes to the jet fuel price formula in Ghana and Uruguay have generated significant savings for the industry.
However, the industry’s cost challenges continue:
- IATA is maintaining the fight against high airport charges at Indian airports; legal challenges are being pursued against the massive increases at DEL and BOM. IATA’s lobbying pressure appears to be getting traction with the halving of Airport Development Fee at DEL and Delhi airport revealing its intention to seek a reduction in airport charges from the regulator from April 2014.
- Weak targets and states’ resistance continue to impede progress on the Single European Sky; IATA is lobbying to ensure the drive for cost-efficiency in European ATC is realized.
- At the recent ICAO Air Transport Conference, IATA and ACI recommendations on eliminating taxation on air transport which is not reinvested in infrastructure were largely endorsed.
More on Charges & Economic Regulation policy activities.