FAREACI SMAG

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FARE/ACI SMAG

• Regional Airports in Europe
• A Highly Competitive Marketplace

Claudio Boccardo CEO Verona Airport Board Member
Forum of European Regional Airports
(FARE) Member ACI EUROPE SMAG Small and
Medium Size Airports Action Group ECAC / EU
Conference Dialogue with Industry 20.11.2007 -
Lisbon
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• What is FARE? www.regionalairports
  .eu
• Founded in 2004, response to Commissions
  Charleroi case and increased EC regulation of
  sector
• Created to provide a unique and independent voice
  for the regional airport industry
• Membership of over 50 regional airports across
  Europe and growing
• Members range from small aerodromes to medium
  sized (3m pax)
• Focus on EU regulatory affairs affecting Europes
  regional airports
• Strong working relationships with partner
  industry organisations (ACI Europe, ELFAA and
  others)
• Effective voice of Europes regional airports

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SMAG

• What is ACI SMAG?
• ACI EUROPEs dedicated forum and Action Group for
  regional airports, established in 2006
• Represents the interests of some 237 regional
  airports in 45 countries usually with traffic
  below 5 million passengers
• Focus on EU regulatory and policy issues
  affecting regional airports as well as best
  practices and industry network
• Close link established with Committee of the
  Regions and European Commission (partner of the
  Committee of the Regions and EC Open Days)
• 136 airports have already joined SMAG as active
  members - Linked to 5 national airport
  associations ALFA ACI, UAF, Assaeroporti, AOA,
  ADV

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The Capacity Crunch A Regional Solution

• Regional Airports are a big part of the solution
• Hubs will not provide unconstrained capacity
• Passengers now demanding more point to point
  services
• Regional airports fastest growing sector
• Low cost/regional carriers will continue to grow
  their share of short haul market
• EU must recognise changing marketplace
• Regional airports can play a key role in solving
  the capacity crunch

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Regional Airports The realities of todays
market

• Regional airports are businesses successful
  management requires freedom to operate them as
  such
• Regional airports face considerable competition
  in attracting and retaining business
• The competitive nature of the sector must be
  reflected in the level of regulation
• Proposed European regulatory system will create
  massive problems
• Proposal will remove much commercial freedom
  from a very competitive sector

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Proposed Airport Charges Directive

• Airport Charges
• Undefined benefits at a high cost to Europes
  Regional Airports
• FARE/SMAG support the Commissions objective of
  bringing transparency and implement ICAO
  principles
• But regional airports are no natural monopolies
  
• Europes regional airports sector is already
  highly-competitive, due largely to the growth and
  influence of low-cost carriers
• Application of the proposed Directive to regional
  airports will significantly increase the
  regulatory burden for no apparent reason

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Proposed Airport Charges Directive

• Airport Charges
• Undefined benefits at a high cost to Europes
  Regional Airports
• Transparency provision means excessive
  reporting for regional airports
• Quality Standards provision will unfairly
  disadvantage small airports
• Differentiation of Charges - no criteria means
  regional airports forced to offer tailored
  services without justification
• Security Charges insufficient cover for major
  investments
• Independent Regulatory Authority more costs
  for regional airports. Risk of having the
  independent regulator ultimately setting the
  level of the charges

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Proposed Airport Charges Directive

• Airport Charges
• FARE/SMAG proposals
• Raise application threshold significantly, using
  national market share or via market tests
• Question relevance of applying Directive to at
  least one airport per Member State
• Status Support in Parliament and Committee of
  the Regions, Commission opposes meaningful change
  to application threshold
• Next Steps Parliaments position, Transport
  Council position and Commission response

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EU Regional Airports Policy

• Regional Airports both saviour and villain?
• Regional airports are a big part of the solution
  to the capacity crunch
• But sector repeatedly hit by poorly-conceived
  regulation
• Inconsistent approach demonstrates the need for a
  coherent EU regional airports policy
• Policy should embrace regional airports concept
  and link to EUs regional development priorities
• Regions must have freedom to invest in their
  airports
• Policy should safeguard sustainable development
  of regional airports sector, promote local
  co-modality and competition

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A Strong Regional Voice Required in Brussels

• Why
• EU Airport Charges Directive proposal driven by
  airlines
• Competition between regional airports ignored by
  European Institutions
• Regions need freedom to invest in key airport
  infrastructure and services
• EU needs to realise the role played by regional
  airports to their communities

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Thank you very much for your attention

• Questions and comments