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Deregulation doesn't fly ?

by Elco B Fri Apr 14th, 2006 at 03:06:13 PM EST

This short diary is about the Association of European Airlines (AEA), competitiveness and  the EU.

           


 The AEA calls for coherent EU wide airport policy to "make Europe's aviation more competitive". This call was made to the European Commission just before the dialogue on 6 and 7 April in Brussels , initiative taken by Vice President Barrot with participation from representatives of AEA and non-AEA airlines, European airports, air navigation service providers, pilots, trade unions, handlers and civil aviation authorities.

"Airport charges have increased way above national inflation rates in Europe over the
past years," says AEA Secretary General Ulrich Schulte-Strathaus. "The fees and
charges at Europe's major airports increased irrespective of whether the Member
State was in an economic downturn or not. Making Europe's airports more expensive
does not make them more competitive internationally."

As the myth goes there should be less regulation to open the markets and bring prices down, one expects for a call in that direction as seen in the energy debate.

But in the same press-release we read :

The AEA advocated a stronger role of the EU Commission in spelling out principles which should govern the airline-airport relationship.

 Under the chairmanship of  the Austrian Presidency of the EU a Aviation summit takes place from 4-5 May in Salzburg and will engage national and EU regulators in a high level dialogue with the aviation industry.
 

The key objective of this dialogue between airlines, airports and governments is to promote the competitiveness of European air transport. Infrastructure, capacity, the internal and the external dimension of this industry are demanding simple and effective regulation.

Et voilà , competitiveness by regulation .
Deregulation doesn't fly !

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Deregulating de facto monopolies seldom results in savings, does it?
by Trond Ove on Sat Apr 15th, 2006 at 12:02:31 PM EST
If the airline industry was completely de-regulated and received no gov't support it would collapse.  Even in the "free and de-regulated" market of the US the airlines get huge chunks of gov't bucks -- notably to purchase the aircraft in the first place but there are other direct and indirect subsidies as well.

This:

Making Europe's airports more expensive
does not make them more competitive internationally

is just stupid.

If I need to fly to Paris on a business trip flying to a cheaper airport, Bombay - fer instance, isn't going to do me a bit of good.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sat Apr 15th, 2006 at 12:51:31 PM EST


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