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Stronger regulation of powerful airports needed to protect consumers

Stronger regulation of powerful airports needed to protect consumers

GENEVA, Switzerland – The International Air Transport Association (IATA) welcomed the European Commission’s evaluation of the Airport Charges Directive (ACD) which highlights the need to further strengthen the directive to protect consumers.

Nearly 60 percent of passengers in Europe pass through just 25 airports. Many airports are able to charge prices that would otherwise not be achieved in a competitive market. The Commission’s evaluation confirms that further provisions are required to establish a common framework to regulate airport charges at EU airports. The report concludes that the existing directive has had a positive impact on the airport charges setting process, but that there is a clear case for further strengthening it to fully achieve its objectives.

“The Airport Charges Directive benefits consumers. And the Commission have rightly concluded that there is scope for the Directive to be even more effective if consumer interests are protected by strong economic regulation of airports with significant market power,” said Rafael Schvartzman, IATA’s regional vice president for Europe.

Three key lessons can be drawn from the Commission’s evaluation:

  • Consumers need to be at the heart of the issue. The evaluation confirms that airlines operate in a highly competitive market and that reductions in airport charges are passed through to consumers. Effective economic regulation of airports with significant market power is a vital element in ensuring the economic and…

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