The airports vs airlines battle needs a new approach
No one loves airports. Passengers begrudge waiting for check-in, baggage drop and security. Airlines hate them because they have to pay for runways, terminals and ground services through charges levied by airports that are, more often than not, monopolies. And now, airport investors are feeling aggrieved because their investments are not as stable and low risk as they seemed a few years ago.
Chatting to big European airport investors in recent weeks, the mood was pretty downbeat. The Dutch government has imposed the world’s first environmentally-driven cap on the number of flights at an airport. Schiphol will be limited to 11 per cent fewer flights than in 2019. In Spain regulators rejected airport operator Aena’s request to boost charges as a means to recover some €2bn in Covid-19 losses.
And any day now, a row could kick off between the UK’s Heathrow and airlines as the Civil Aviation Authority prepares to publish its final decision on what level of charges the airport can impose. Having substantially raised the price cap to compensate Heathrow for Covid-19, the regulator is proposing they be cut over five years to 2026.
This story originally appeared on: Financial Times - Author:Peggy Hollinger
