AEA slams Irish fees rise

Increases creating "vicious spiral"

The Association of European Airlines (AEA) has hit out at a 17% increase in fees charged to airlines by Ireland's air navigation service.

The Association, which represents most of Europe's leading legacy carriers, said the rise came "hot on the heels" of the country's €10 increase in air passenger tax.

It is the third time in a month that the AEA had hit out at increases in fees by suppliers.

It has condemned both the Polish air authorities (PANSA) for imposing a 32% increase on fees for flying across the country and the 10% increase in health tests for aircraft and passengers arriving in the US.

This was imposed by the US Animal and Plant Health Inspection Service (APHIS,) and came into effect on November 1.

The AEA claims this "cost-recovery pricing" was a "substantial contributor to the industry's financial difficulties and an obstacle to recovery".

Speaking of the Irish increases, Ulrich Schulte-Strathaus, the AEA's secretary general, said: "It doesn't take a genius to work out what will happen when you put a €10 surcharge on airfares in the middle of the worst recession on record.

"Your traffic will go into free-fall. If this results in a massive hike in user fees, you have initiated a vicious spiral which, for the sake of the Irish economy and the travelling public, cannot be allowed to take hold".

He called on the Irish Government to scrap the ticket tax and impose efficiency targets on the air navigation provider by freezing user fees. 

Mr Schulte-Strathaus also noted that EU transport commissioner Antonio Tajani had written to EU Member States, urging them "not to approve increases of levies imposed on airlines by airports and air navigation providers during the market crisis".

The Association has predicted an operating loss of €2.9b in 2009 for its members, 50% more than in 2008.

www.aea.be