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Congress approves 2016 General Budget including Aena’s price reduction Charges,Regulations

Adolfo Suárez Madrid-Barajas Airport, Terminal 4 by Mark - Flickr

Yesterday, the 2016 General Budget process was finalized at the Parliament with the approval of the amendments which were previously included at the Senate. These amendments will be incorporated into the final text which will be published in the Spanish Official Gazette (BOE) on January, 1 2016. As expected, the parliament approved the 1.9% reduction in all the airport charges. This reduction will be effective as of March, 1 2016. Furthermore, the discount in passenger and security charges for passengers connecting flights has increased from 35% to 40%. This will also be effective on March, 1. For this purpose, Aena considers that passengers…

Aena to apply 1.9% reduction in charges as suggested by the CNMC Charges,Regulations

Boeing 727-256 Advanced Aena (ex-Iberia) by Dawlad Ast - Flickr

In spite of the fact that neither Aena nor the Government have made any official announcement yet, this morning, ElConfidencial confirmed that Aena has decided to apply a 1.9% reduction in charges. “Not only will Aena apply a 1.9% reduction in airport charges  as Competition told them to do, but they will reinstate the incentives on new routes and increase of passengers as well”. The decision on the incentives has been made by Aena in light of the positive evolution of air traffic, expected to finish 2015 with a 5% increase in passengers. These incentives were removed by Aena in the original General Budget…

Aena will be able to avoid the price reduction if the budgets are amended Charges,Regulations

  • By – 6 August, 2015
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Thomas Cook Airlines taking off in Lanzarote airport by jBarcena - Flickr.

Yesterday we informed that an Aena airport charges decrease had been confirmed through the State Budget Project. However, it looks like it is not so easy and that confirmation might not be a fact. Yesterday evening ElPais published a comprehensive article reporting that the Spanish National High Court refused all the appeals against Competition (CNMC) regarding Aena airport costs. Their decision was based on the fact that Aena’s prices are a responsibility of the parliament, thus court appeals don’t make sense. Aena’s intention was that Justice prevent the CNMC from forcing them to lower prices but that didn’t work and that’s why the Budgets…

Confirmed: 1.9% reduction in Aena airport charges for 2016 Charges,Regulations

Madrid airport Terminal 4

Yesterday, the General State Budgets for 2016 were presented by the Government in the Congress. The breaking news is that it already contains the 1.9% reduction in Aena airport charges that the CNMC asked them to introduce. Looking up Article 72, paragraph One (page 48) in the budget project, it reads: “Effective on March, 1 2016 and with indefinite validity, the amounts of the airport charges decrease by 1.9% regarding the charges in force on February, 29 2016”. Also, the discount will apply to passengers with connecting flights increasing from 35% to 40%. With this, the Government accepts the request of the CNMC. However, Aena presented an appeal…

The CNMC tells Aena to introduce a 1.9% decrease in airport charges Charges,Regulations

Barcelona by Camilo Rueda López

According to a publication in El Confidencial, the CNMC (the National Market and Competition Commission) has notified Aena of the definitive resolution regarding airport charges for 2016. Their decision imposes a 1.9% decrease that the Ministry of Development (Fomento) should incorporate into its General Budget which will be approved on Friday. Moreover, this scale will serve as a reference for the tariff freezing which should be applied during the following ten years, between 2017 and 2026. This middle ground between the tariff freezing solicited by Aena and the 3.5% decrease recommended by the CNMC seems to be the appropriate solution…

Competition intensifies its demand to Aena: 3.5% reduction for 2016 within 10 days Charges,Regulations

Málaga airport, Terminal 3. Wikimedia Commons.

Aena had frozen charges until 2025 but the National Competition Commission (CNMC) published a report against that decision, urging Aena to lower fees. However, not only Aena said they wouldn’t but they presented an appeal against the CNMC’s report. That appeal was accepted by the National High Court last month and, on Friday, Vozpopuli reported that it is the only way for Aena to avoid having to apply for such reduction. At the moment, unless the National High Court accepts the precautionary measures requested by Aena, the airport charges will have to be lowered 3.5%. This is the level of the reduction required by the…

Unprecedented lobby group formed by Air France KLM, Easyjet, IAG, Lufthansa and Ryanair Airlines,Airports,Regulations

Violeta Bulc- European Commissioner for Transport by epp group - flickr

On June 17th, ElEconomista reported on the formation of an unprecedented lobby group made up of some the biggest names in European commercial aviation. Air France KLM, Easyjet, IAG, Lufthansa and Ryanair have formed a lobby to defend their interests before the drafting of new European air transport policy. The lobby is expected to put pressure on the European Commissioner for Transport, Violeta Bulc, on 80% of the subjects to be covered in this new policy. The lobby has its priorities clear, one of the most important being the reduction of fees in the main European airports. European airport fees…

Aeromur officially drops out of Corvera Airports

EC-IUX, Beech Super King Air B200, (cn BB-1840), TAS Transportes Aéreos del Sur, landing at San Javier by Fotero - Flickr

Despite Aena’s initial hesitation, Murciatoday published a report that Ana Pastor, the Minister of Development, gave her approval of the closure of San Javier airport to civil traffic which is to be replaced by Corvera. Murciatoday mentioned that during Pastor’s recent visit to Murcia, “the subject of the compensation which will have to be paid to Aena for investments made at San Javier when the airport is closed down was once again raised. The figure is currently being quoted in the press at 37 million euros, a debt which will be shouldered by whichever company wins the contract to manage…

Aena tells airlines it will not lower fees Charges,Regulations

Aena Logo by Ricardo Ricote Rodríguez - Flickr

El Economista reported that the third meeting in the consulting process between the administrator of the airport network (Aena) and the airlines that operate in Spain took place yesterday. During the meeting, Aena confirmed that it wants to freeze the fees and subsidies for new routes and increase in passengers at a time in which air traffic is on the rise -the year could end with a 4% increase- and the company is already listed in the stock exchange. The airlines, on the other hand, would like to lower fees that are now frozen until 2025. The Minister of Development,…

Competition might force Aena to lower their airport charges Charges,Regulations

Aena offices in Madrid / Luis García - Wikimedia Commons

The National Competition Commission, which had already expressed their concern about the Aena’s privatisation, has now published a report on Aena’s dual till model.  In theory, the dual till is intended to separate the regulated costs from the ones which are a consequence of the commercial activities. However, Competition believes that the dual till implementation might lead to incremental costs which, in turn, would mean an increase in the airport charges. On Monday, ElConfidencial published a comprehensive article about the report issued by the National Competition Commission. According to this piece, Competition intends to adjust the costs which correspond to the commercial activities and the costs which correspond…