Sign in Subscribe
European Union

IATA Calls for Strengthening European Aviation Competitiveness and Connectivity

Strategic Insights

— 2 min read

The International Air Transport Association (IATA) has urged the European Commission to ensure that the upcoming European Union (EU) Aviation Package strengthens the competitiveness and connectivity of the European economy, and benefits European consumers. Airline Director General Tony Tyler emphasized the crucial role of air connectivity in driving economic and social prosperity in the EU, citing European airlines' struggles due to unreasonable taxes, high infrastructure costs, and outdated regulations.

Key Takeaways:

  • European airlines have operated on an average EBIT margin of 2.3% since 2010, lagging behind their North American counterparts by a cumulative $29.8 billion in profitability.
  • The proposed Aviation Package must address weaknesses in the EU air transport sector, including unreasonably high taxes, inefficient infrastructure, and unfit regulations.
  • IATA is calling for the Commission to strengthen European aviation in five key areas: passenger taxes, security, consumer protection, carbon emissions, and air traffic management modernization.
  • The Commission is urged to apply the EU's own 'Better Regulation' guidelines to revise Regulation 261 on passenger rights to align with the International Civil Aviation Organization (ICAO) draft core principles on consumer protection.
  • The Aviation Package should reinforce the push for a global Market-Based Measure for aviation carbon emissions, as agreed upon at the 2013 ICAO Assembly.
  • A funding solution for the Single European Sky (SESAR) beyond 2020 and increased funding for airborne projects to 50% are required to modernize air traffic management.
  • IATA raised concerns about the proposed Aviation Package's weaker regulatory environment for airport charges, which could reduce benefits to passengers and incentivize airports to reduce costs and efficiency.
  • Airport costs per passenger have risen more than 30% since the year 2000, whereas air ticket prices have fallen by 37% in real terms.

Statistics:

  • European airlines have operated on an average EBIT margin of 2.3% since 2010.
  • The cumulative loss in profitability for European airlines compared to their North American counterparts is $29.8 billion.
  • Air transport in the EU supports more than 9 million jobs and EUR500 billion in GDP.
  • The price of air tickets has fallen by 37% since the year 2000, whereas airport costs per passenger have risen more than 30%.
  • The Aviation Package proposes a weaker regulatory environment for airport charges, which could reduce the benefits to passengers.

Sources:

  • The International Air Transport Association (IATA)
  • The European Commission
  • IATA, "Bruges Declaration" (2011)
  • ACI, "Smart Security" initiative
  • ICAO Air Transport Regulatory Panel, "Draft core principles on consumer protection" (2014)
  • ICAO, "2013 ICAO Assembly"
  • IATA, "Airport Charges Regulation"

Read more