EC Harmonises Air Navigation Service Charges

December 8, 2006 // Published as a news service by IHS

Vice president Jacques Barrot, EC commissioner in charge of transport, said, "The development of a common charging scheme for air navigation services is another major step in creating the "single European sky." The new rules provide that charging policy shall be established in consultation with airspace users. This will ensure that the charges levied are fair, transparent and reflect the real cost of services."

The regulation concerns the financing of air navigation service provision (the guidance from an air traffic controller to a pilot to guarantee a safe and efficient flight). Yearly turnover of the air navigation service industry amounts to about €7 billion: for every euro spent on an airline ticket today, some 6% is devoted to air navigation services.

The provision of air navigation services is, in principle, not subject to normal market forces of supply and demand. Indeed, airplanes tend to follow fixed routes and cannot choose which member states' airspaces to cross. That is why air navigation is a service of public interest where costs and charges must be regulated.

The regulation is based on the Eurocontrol multilateral agreement. Beyond enhancing enforcement of this international system, the regulation brings clear additional benefits: it is part of the single European sky legislation and will contribute to its implementation, leading to more cost-efficiency. The definition of charging zones paves the way to a more integrated management of the airspace in regional airspace blocks. The regulation also promotes transparency of accounts and reinforces consultation mechanisms of airspace users.

As the European Community rule is fully consistent with the current system, the impact in the short term is expected to be fairly limited. The inclusion of terminal charges in the scheme may lead to a limited increase of costs for airline companies mostly relying on short-haul routes. This is in line with the basic "user pays" principle. Indeed, aviation is the only transport mode where infrastructure is exclusively financed through user charges.

The adoption of the regulation will be followed later this year by a proposal for a directive on airport charges, forming part of the so-called "airport package." This latter will also seek to enshrine the principles of transparency, non-discrimination, consultation and cost-efficiency to the charges regime imposed by airport operators.

Further information on the single European sky is available on the EU web page on: Air Traffic Management.

Source: European Commission.