Spain Refuses to Increase Airport Fares

The International Air Transport Association (IATA) has acknowledged the decision of the Spanish government to refuse the proposal of Aeropuerto Españoles y Navegación Aérea (AENA) to make up for the losses caused by COVID-19 amounting to 2.3 billion euros by raising airfares.

In a press release issued today, IATA said that last year AENA provided this proposal to the Directorate General of Civil Aviation, trying to recover earnings not collected due to the COVID-19 crisis, our friends at SchengenVisaInfo.com report.

According to an announcement issued last year on October 4, the increased tariffs of two billion euros confirmed by the airports and Air Navigation Service Provider (ANSP) could also lead to an increase of ten times if there was an official proposal to make such a move.

Commenting on the situation, IATA’s Director General Willie Walsh said at the time that such actions were unacceptable and should be stopped. Soon after the International Air Transport Association claimed that the increase in tariffs at airports would hinder the recovery of air travel, the International Airports Council for Europe (ACI) responded by saying that the association had painted a wrong picture of the airport industry.

“By requesting systematic freezes or reductions in airport charges, IATA is clearly forcing airports into further financial distress to the exclusive benefit of airlines. Frozen or lower airport charges would not prevent airlines from exercising their pricing power over consumers and raise airfares,” the statement of ACI Europe reads.

According to today’s press release of IATA, as reflected in the 2020 financial statements and their results for the first nine months of 2022, the impact on travel as a result of the pandemic situation did not have a substantial impact on the financial sustainability of AENA.

Rafael Schvartzman, IATA’s Regional Vice President for Europe, also noted that they welcome the fact that DGAC and the Ministry of Transport have accepted the rejection of an unjustified request for a cost increase which will also risk the recovery of air travel.

“This is a logical decision based on solid financial evidence, and it sends a strong message to other airports and air navigation service providers tempted to follow a similar approach, that such monopolistic behaviour will not be accepted,” he pointed in this regard, adding that passing of this burden is not the way to encourage travel.

However, IATA considers the current Spanish Airport Regulation Document (DORA) as a support for the recovery of air transport and the stimulation of tourism in a sustainable and predictable framework for the period 2022-2026.

“This framework, which also includes the freezing of charges for the next five years, still guarantees the future development needs and investments in sustainable aviation infrastructure in Spain to enable connectivity and address future passenger demand,” the statement published by IATA reads.

Yet the head of Airports Council International (ACI) for Europe, Olivier Jankovec, said in early November 2021 that European airports are expected to prove another year of lost revenue which is also caused by low costs and accumulated debt.

He also argued that the growth and dominance of ultra-low-cost carriers – led by Ryanair and Wizzair – means unprecedented competitive pressure on Europe’s airports.