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Airport charges directive (2009/12/EC)

FACT SHEET NO.: Cat-No.1 / Subcat-No.1.2-1

General Information

Title

FACT SHEET NO.: Cat-No.1 / Subcat-No.1.2-1

Category

1. Pricing

Subcategory

1.2 Internalisation of external costs

Transport policy measure (TPM)

Airport charges directive (2009/12/EC)

Description of TPM

This Directive sets common principles for the levying of airport charges at Community airports. Airports offer a number of facilities and services related to the operation of aircraft, from landing to take-off, and the processing of passengers and cargo, the cost of which they generally recover through airport charges. The charges may include:- Runway landing and take-off charges - Aircraft parking charges - Charges for the use of an air bridge - Passenger processing chargesAirport charges are paid by the airports users, namely, airlines transporting passengers and/or freight. Indirectly these charges are paid by passengers and freight customers via the ticket price or freight forwarding fee.The directive applies to EU airports above a minimum size, handling more than five million passengers per year. [1]

Implementation examples

UK: one of the few cases where legislation is in place to regulate airport charges. In 2011 nine airports and in 2012 ten airports had to comply with these regulations due to them having over 5mppa in 2009. Three of these airports (Heathrow, Gatwick and Stansted) are already regulated for price control [5].
Germany: before the introduction of the ACD, in each of the Bundesländer a regional airport authority was responsible to supervise the airport regulation. This led to huge differences in implementing the federal law [4, 7].
Italy: the expected increase from 140 million (2010) to 240 million passengers (2020) and 266 million passengers (2030) at Italian airports requires a modernisation and expansion of the airports to meet passenger demand. Studies also identified the need for a simplified regulatory set-up to help improve competitiveness. The Italian civil aviation authority (ENAC) will be in charge of the implementation of the ACD in Italy [6].

Objectives of TPM

- Greater transparency on the costs which charges are to cover. Airports have to provide a detailed breakdown of costs in order to justify the calculation of airport charges.
- Non-discrimination: the airport charges directive establishes minimum standards for the calculation of the charges airlines to ensure fair competition between airlines. Airlines should be charged the same for receiving the same service in an airport. However, airports can differentiate their services as long as the criteria for doing so are clear and transparent. Airports can also vary charges for environmental reasons (e.g. lower charges for more environmentally-friendly aircraft).
- Systems of consultation on charges between airports and airlines (which are already in place at many EU airports) will become mandatory at all airports covered by the Directive.
- Member States will designate an independent supervisory authority to help settle disputes over charges between airports and airlines [ 3].

Choice of transport mode / Multimodality

Minor impact: intra-modal competition with rail transport is possible in the range up to 400-650 km

Origin and/or destination of trip

Possibly airports with just under five million passenger a year will become more attractive

Trip frequency

Small impact (i.e. fewer trips)

Choice of route

No impact (to a certain extent related to destination)

Timing (day, hour)

No impact

Occupancy rate / Loading factor

No impact

Energy efficiency / Energy usage

No impact

Main source

[1] European Commission (2009): DIRECTIVE 2009/12/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 March 2009 on airport charges.
[2] European Commission (2007): Accompanying document to the Proposal for a Directive of the European Parliament and of the Council on airport charges. Summary of the Impact Assessment. Commission Staff Working Document. http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2007/sec_2006_1689_en.pdf
[3] European Commission (2012): Airport charges. http://ec.europa.eu/transport/air/airports/airport_charges_en.htm
[4] G. Wolszczak (2009): Airport Charges Regulation: The Impact of the Institutional Structure on the Regulatory Process. Working Paper of the German Airport Performance Project (GAP). http://userpage.fu-berlin.de/~jmueller/gapprojekt/web/papers.html
[5] Department for Transport (2011): Airport charges directive. Impact Assessment.
http://www.ialibrary.bis.gov.uk/uploaded/uksifia_20112491_Airport%20Charges%20Directive1.pdf
[6] A. Laconi (2012): The Italian implementation of Airport Charges Directive: Decree Law No. 1 of 24th January 2012. The Aviation and Space Journal. January/March 2012 Year XI no. 1
[7] J. Müller, H.M. Niemeier (2012): Reform der ökonomischen Regulierung von Flughäfen in Deutschland, Frankreich und Österreich - Eine Bestandsaufnahme. www.gap-online.de

Traffic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Travel or transport time

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Risk of congestion

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Vehicle mileage

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service and comfort

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The Directive encourages adequate quality level of services. The airports users and managing bodies have the possibility to conclude an agreement on the quality level of services in relation to the airport charges [6].
- Decrease of vehicle mileage expected due to higher transport costs

Quantification of impacts


Economic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Transport costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Private income / commercial turn over

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues in the transport sector

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sectoral competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Spatial competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Housing expenditures

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Insurance costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Health service costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public authorities & adm. burdens on businesses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public income (e.g.: taxes, charges)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Third countries and international relations

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

The Directive is not likely to have significant impacts on competition:
- Due to the already substantial investment costs the additional costs of the ACD do not create extra barriers to market entry. The Directive might reduce the incentives to compete because it obliges the airports and airlines to reveal financial information [5].
- The sectoral competitiveness (especially in relation to high-speed rail) is reduced due to the cost increases.
- Administrative burdens increase (relating to the point that Member States will designate an independent supervisory authority to help settle disputes over charges between airports and airlines.) The supervisory body is responsible for conducting reviews and consultation, publishing annual reports of its activities and ensuring a correct application of the ACD. In the case of the UK annual costs of £36k - £39k are estimated [5].
- (Spatial) competitiveness between airport with over 5 million passengers and airport transporting less than 5 million passengers will increase.
- Changes concerning the revenues of airports and airport users: the Commission defines a cap for a period of four or more years on the total revenues per passenger that the airport may collect. If the airport can successfully reduce its costs below the level of the cap, the airport operator and users share the benefits of any cost savings that the airport is able to realise until the cap is reset.

Quantification of impacts

- Distribution of annual cost by organisational size (example UK): Micro: <1%; Small: 5%; Medium: 10%; Large: 85% [5].
- In order to promote territorial cohesion, Member States have the possibility to apply a common charging system to cover an airport network. Economic transfers between airports in such networks are possible [1].
- Increased airline ticket prices as a consequence of airport charges: Airport charges for operating airlines at the Spanish airports Barajas in Madrid and El Prat in Barcelona have been increased by 50%, which has led to an increase in airline ticket prices of up to nearly € 12 for long-haul flights and up to € 9 for European flights.

Social Impacts
Environmental Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Air pollutants

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noise emissions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Visual quality of the landscape

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Land use

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Climate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Renewable or non-renewable resources

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Implementation phase

Operation phase

Summary / comments concerning the main impacts

Overall a positive impact on the environment is possible: the Directive on airport charges allows differentiated charging on the basis of environmental damage. The ACD is only supposed to have an impact on noise and greenhouse gas emissions where there is an impact on the costs of airport use and hence change in airport use.

Quantification of impacts


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