IATA slams rise in overflight fees

19 countries to raise rates

Plans by 19 Eurocontrol states to increase fees on overflight routes have been slammed by the International Air Transport Association (IATA).

It said the 2.7% rises will cost its members an extra $360m in 2010.

Giovanni Bisignani, its director general and ceo, said the countries raising their fees were "out of control monopolists completely divorced from reality".

The Association, which represents most of the world's legacy carriers, said the decision was made before a meeting due tomorrow (November 25) of the Eurocontrol Enlarged Committee for Route Charges.

Eurocontrol is the organisation for safety of air navigation and which is also striving to create a single European sky.

IATA said the 19 states which planned increases are: Armenia, Serbia-Montenegro, Poland, Romania, Hungary, Austria, Turkey, Bosnia and Herzegovina, Sweden, France, Albania, the United Kingdom, Italy, Ireland, Denmark, Czech Republic, Germany, the Netherlands, and Lithuania.

The eight which plan to freeze charges are:  Belgium, Former Yugoslav Republic of Macedonia, Cyprus, Norway, Spain, Switzerland, Slovenia and Slovakia.

The seven which plan cuts are: Portugal, Greece, Croatia, Moldova, Malta, Bulgaria and Finland.

IATA said the highest increase was proposed by Armenia at 32%.

But, after adjustments for the amount of traffic handled, it said the greatest impact of the increases will be felt by proposals for increases in Poland (18%), Romania (17%), Austria (14%), France (6%), the United Kingdom (5%) and Italy (4%).

Mr Bisignani said: "I applaud the 15 states who plan to reduce or freeze their en route air navigation charges. 

"But the savings they delivered were wiped out by the out-of-control monopolists completely divorced from reality, proposing increases in the middle of an unprecedented industry crisis.

"The impact of the 2.7% increase in unit rates is equal to adding $360m to airline costs. That is not acceptable.  
 
"To survive we need to cut costs. That burden must be shared across the value chain - including our ANSPs partners.

"The unacceptable and out of touch proposals from 19 Eurocontrol states and their ANSPs demonstrate beyond doubt that we must urgently implement a robust performance framework under the Single European Sky regulations."

www.iata.org   www.eurocontrol.int