European member states have approved a revised regulation updating the EU-wide performance targets for air navigation service providers (ANSPs) that will lead to higher air traffic control (ATC) charges for airlines. Previous targets set were based off of 2019 traffic levels, which have subsequently plunged by more than 60 per cent last year due to the COVID-19 crisis, government-imposed travel restrictions and the closure of EU borders. This has resulted in a €5.4bn revenue shortfall for Europe’s ANSPs.
“Like airlines and other aviation stakeholders, air navigation service providers were expected to reduce their costs dramatically over the last year, reflecting the decline in traffic – and not simply continue with business as usual. While ANSP service requirements fell by 60 per cent, they opted to reduce their costs by just one per cent,” said Thomas Reynaert, Managing Director, Airlines for Europe (A4E).
“The targets approved by states are by no means ambitious and will consequently impede the much-needed recovery of our sector, including airlines’ investment capacity to support digitalisation and decarbonisation solutions through our Destination 2050 initiative. States have rather chosen to protect their monopoly ANSPs and themselves from paying for revenue gaps from a crisis which has resulted in €22bn3 in losses for European carriers,” Reynaert added.
“At a time when airlines have already been financially crippled through no fault of their own, we are bitterly disappointed that states continue to throttle the economic and sustainable recovery of the aviation sector, essentially putting regional connectivity now even further at risk,” said Montserrat Barriga, Director General, European Regions Airline Association (ERA).