Airports and lobbying

Not if, but how, and when

June 2006

2

• Monitoring potential changes to law and regulations • Ensuring makers of new rules and regulations

understand issues, and impact of changes• Proactive intervention with regulators

– Ensuring new rules are appropriate– Minimising unintended consequences of changes

• Often, regulators themselves struggle to understand – Inter-connectedness of industry – Implications of changes– Impact of actions and non-action

• Maintaining a presence – share of consideration– Airports cannot up-grade

Lobbying

3

Why airports need to lobby

• Historically, ‘aviation’ = ‘airlines’• Those days are gone

– Each part of air transport has own requirements/needs/goals

• Airlines see the world in a particular way– IATA, AEA, ALTA have particular agenda– That is often in conflict with airports

• National, regional and international issues– ACI does a good job – but lone voice– Needs support from members

• Need an integrated, complementary agenda – Watching out for YOUR position in a global system

• Each airport has its own, independent position

4

• Slots

• Charges

• Environment/Air Traffic Control

• State Aid

• ‘Natural Monopoly’ Fallacy

Issues

5

Slots• ‘Use it or lose it’ rule freeze: Europe needs education

– Who makes slots?– Who owns slots?

• If slots are tradable – why should airlines alone benefit?

• Slots are an issue of capacity– Need to be seen as part of wider debate– Role too for ANSPs– Airlines will never accept this

• Intelligent slot regulatory regime will provide incentives for all players

6

Charges• Charges debate focuses on stopping ‘monopoly pricing’• ACI – Europe able to bring some sense to EU debate

– Limit on size of airports affected– Need for intelligent consultation– No decision on single/dual till

• Charges are always a complex debate– Every airport is different

• Airlines assume that airports are not businesses– Therefore a need to lobby on true nature of modern airports– Each airport is different– Each airport has to make its own point

• Can also join with airlines to make appropriate changes

7

Environment• Role of airports not well understood• Significant role to play• Part of capacity debate

– Runway/run-off areas/ramp/taxi-way all relevant– ANSP connection– Gate-to-gate implies airports are involved– Access links

• Funding available• This is a global issue with regional implications• And a local focus• Airports need to engage now on this

8

Air Traffic Control• SES/ATC system and capacity - big issue

• All acknowledge need to work ‘gate-to-gate’– That involves airports

• Work now on ATC – – when delays arise– All will blame the airports

• Must get in front of this argument

• A huge role to play regionally and nationally– Need facts and language – Build bridges with regulator, ANSP and airlines

9

State Aid

• Rules on what is, and is not State Aid change– Reflecting political issues– Economic reality

• Clearly, some aid is State Aid– But not all

• Recent subtle changes of emphasis– Scope for airports to shape debate

• Complex area, but not impossible– Need good, pro-active view

10

The ‘natural monopoly’ fallacy

• It is easy to let this fallacy rule– IATA in print that this is case

• MUST NOT – will impact all regulations– No market based solutions for monopolies– Only more regulations

• Airports are not monopolies– Look at Ciudad Real– LCC example shows what can be done

• Need a competitive regulatory framework– Good for airports, airlines, and passengers

11

Conclusion• Airports have roles and positions to put forward• Need to know what is likely to change

– Try to stop ill-informed rules and regulations– Try to be sure that actions fit within the rules

• Your position is part of the industry position– But not always the same as the industry position

• Getting the right regulation:– Can have value

• Slots• State Aid

– Can make sure obligations are balanced:• Environment• ATC

• Airports are not natural monopolies – so must behave like their competitors

Aviation Advocacy Sarl Rue de la Gare 17 1260 Nyon Switzerland Phone: + 41 22 361 23 63 info@aviationadvocacy.aero www.aviationadvocacy.aero