Proposed increases on airport landing charges sparks backlash from European airlines

Several leading European airlines are calling for a reduction on the landing charges at airports in a bid to encourage more airlines to recommence travel as the industry continues to flounder in the face of the coronavirus pandemic.

With names such as Ryanair, easyJet and Wizz Air, the coalition aims to reduce these fees as they choose to travel in time as passengers start returning in greater numbers.

This lobbying has caught the eye of a number of low-cost airliners who are threatening to boycott airports that overcharge or only use airports with significantly lower rates.

This comes as airports such as Heathrow have proposed a 5% increase to landing costs to attempt to recover losses from the pandemic, which has angered a number of airliners.

Ryanair CEO Michael O'Leary told the FT that airports will be under "ferocious pressure" to recover traffic levels.

In the same interview, O'Leary said: “Aircraft numbers are going to move significantly to wherever we can get the best deals."

Airport revenue is often split into two streams: landing costs as well as individual revenue from the on-site facilities that passengers can use, such as cafes and car parks.

The effects of the pandemic and reduced demand have had a significant impact on both of these outlets, meaning airports have been struggling to make a profit owing to the near-total collapse of demand in the past 11 months.

The Ryanair CEO pointed to an expansion project the airliner is preparing at Venice airport, which offers 18 new routes.

The project was announced in December, for what the aviation company referred to as "competitive pricing."

In its 2020 Airport Industry Connectivity Report released in mid-December, Airports lobby group ACI Europe estimates that at least 6,000 flight routes were lost during the pandemic.

Olivier Jankovec, Director General of ACI EUROPE, said: “The damage is so systemic that relying solely on market forces to restore air connectivity would not be realistic. The EU and governments across Europe must urgently intervene to help jump-start it.

"We need a Recovery Framework for aviation that includes ‘Air Connectivity Restart Schemes’ similar to that seen in Cyprus - with temporary financial contributions aimed at supporting the restart of air routes on a non-discriminatory basis.

“Air connectivity is an essential part of the productive capacity of our societies, with every 10% increase in direct air connectivity delivering a 0.5% increase in GDP per capita. It is what holds Europe together, by enabling local economic development, inward investment and tourism. We will not build back and recover without restoring air connectivity.”

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