IATA Director General Giovanni Bisignani’s roadshow made a stop in London, where the industry lobby group bemoaned a range of issues and a perceived lack of aviation policy in the U.K.
Bisignani argues that “the government’s policy pillars of excessive taxes, inefficient airport regulation and limiting growth will destroy” the U.K.’s legacy as a champion of aviation.
An issue that this week already drew criticism for British airlines is the potential sale of more of the U.K.’s stake in the NATS air traffic management consortium. Bisignani warns that “any change to the structure must be carefully considered. A golden share or keeping some of the shares for the government are options. And any change must include an effective regulatory structure that drives further efficiencies.”
Also in Bisignani’s crosshairs was, once again, the air passenger duty—long a subject of airline ire and of the IATA boss. “In November, air passenger duty (APD) increased to £2.7 billion annually,” he notes, adding, “That’s enough to offset all of the U.K.’s aviation emissions four times. To borrow a U.K. phrase, this is potty.”
Bisignani argued before the U.K. Aviation Club that “APD must disappear… because it is an unjustified burden and certainly by the time any emissions trading scheme (ETS) is imposed.”
Bisignani also charged that “the U.K. has failed to maintain the cost competitiveness of its airports. The World Economic Forum’s Travel and Tourism Competitiveness Report ranks the U.K. dead last on price competitiveness—133 out of 133 countries. And it is No. 129 on fuel prices and 121 on ticket taxes and airport charges.” He contends that lack of a forceful regulator is to blame.
The failure to further develop capacity at London Heathrow Aiport was another target. “The government’s decision to ignore decades of studies supporting additional capacity at Heathrow was incredibly short-sighted.”
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