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Air carriers form new association to fight rising costs at European airports

MUSTERING against rising costs of continental European airports, five of its biggest carriers have formed a new airline association.

The new Airlines for Europe (AFE) group has been formed by IAG, Air France-KLM, Lufthansa, easyjet and Ryanair and hopes to attract more members over the coming months.

It was launched on the eve of the European Union Aviation Summit in Amsterdam, reported London's Air Cargo News.

The five AFE chief executives - Alexandre de Juniac, Carolyn McCall, Willie Walsh, Carsten Spohr and Michael O'Leary said: "We welcome the European Commission's Aviation Strategy for a stronger and more competitive European aviation industry.

"But we need to act now - large scale airport monopolies, high charges, taxation and inefficiencies characterise the aviation supply chain.

"We want to work with the commission and the member states to implement the strategy, and we call on the member states to support the work of the Commission to reduce monopoly supplier costs," they said in a statement.

Reuters said the new association was formed after IAG left the Association of European Airlines over what it saw as ineffectiveness.

Leading airport group Airports Council International (ACI) Europe dismissed the claims of "large scale airport monopolies".

ACI Europe director general Olivier Jankovec said: "These airlines are building their unity on our back, as they are unable to come together on major strategic policy issues such as Open Skies, let alone foster wider aviation industry alignment.

"For them, airports are just scapegoats. Their tired call for even more regulation of airports is just about boosting their profits, or supporting their own lack of competitiveness.

"There is absolutely nothing for the consumer with this agenda, let alone for Europe's connectivity. The airlines are wilfully ignoring today's market reality of ever-increasing airport competition," Mr Jankovec said.

It also said it could not see understand figures quoted by the new association.

AFE suggested airport charges had risen by more than three quarters over the last 10 years while airfares from European airlines had decreased by 20 per cent over the same period.

ACI Europe added: "Airlines have an unfortunate tendency to forget that they pay below-cost prices for the airport facilities and services they use - and AFE appears to be no different.

"Even at the largest airports, charges levied on airlines and passengers do not cover the full cost of operating and developing the airport infrastructure - leading to a de facto subsidisation of the airline industry by European airports," it statement said.