ERA points out obstacles to airline growth

Intra-European airlines have seen healthy growth during 2005 and are reaching new levels of competitiveness but are still seeing costs rise, according to European Regions Airline Association Director General Mike Ambrose.

“Airlines have proved themselves well managed enough to survive and grow during recent, tough times. They have a better product as a result. Even so, obstacles continue to be thrust in their way,” he commented.

“Fuel prices have soared and will probably never return to previous levels. This is enough of an incentive to burn less fuel without the need for additional, so-called environmental taxes, which do nothing but swell Government coffers.”

The Association is also aggrieved over proposals for a Poverty Tax on air fares. Mike Ambrose commented: “This is an example of the paucity of imagination that exists in Europe’s politicians and administrations. Any kind of third world debt is the responsibility of the Community at large should not fall on one industry. The positive characteristics of the industry should be used, if anything, to benefit poorer nations.”

Celebrating its 25th anniversary at era2005, the Association’s General Assembly in Gothenburg, Sweden, ERA is airing concerns over a number of outstanding issues, including EASA's cash flow problems and inadequate resources. Intra-European airlines believe the Agency is failing to achieve its original objectives and NAAs recharging EASA at high rates for the work that they are having to do on EASA's behalf.

Passenger Compensation rules are proving to be very troublesome for airlines. Said Ambrose: “Most of the things that ERA warned the European Commission (EC) about have happened while the EC has shown an appalling lack of concern regarding the misleading information it provides to the public.

“This has been made worse by national and international media ignoring the facts. It is impossible to express Passenger Compensation legislation in a simple sound-bite. Non-industry media simply cannot grasp the fact that the complexities of this Regulation cannot be captured within their customary requirement of 20 seconds or 100 words.“

On a more positive note, the European Commission appears to have a higher concern for cost/benefit analyses when considering drafting new proposals. “ERA applauds the EC’s recognition of this need and wants to see it applied to proposals on issues such as Passengers With Reduced Mobility (PRMs),” Ambrose asserted.

A rapidly emerging issue for Europe’s internal airlines is that of objective accident investigation.

Mike Ambrose explained: “The bulk of EC states have a situation where accident investigation is handed over immediately to state judicial or law enforcement agencies which have the objective of attributing blame rather than investigating cause to prevent recurrence. Making a mistake should not lead to criminal punishment but should be used to prevent future accidents through objective investigation.

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