US conference calls for more airport deregulation

US. At its annual conference held in Salt Lake City recently, Airports Council International (ACI) North America released its most recent data on the region’s airports and their economic impact. US airports created an estimated US$507 billion in economic activity in 2001. They account for some 1.9 million jobs on-airport and a further 4.8 million jobs are created in local communities.

In the long term ACI reaffirmed that domestic passenger volumes are projected to grow to 915 million departures in 2013, up from 628 million in 2001. Canadian airports generate C$34.1 billion (US$22.6 billion) each year in economic activity. They account for some 304,000 jobs on-airport and 161,000 jobs are created in local communities. Domestic passenger volume for Canada’s airports is projected to grow to 73 million in 2014, from 52.9 million (year 2000 figures).

At the conference ACI-North America president David Plavin said that given the fragile state of airlines and their cost consciousness, airports now had to more without adding additional passenger facility charges (PFCs). Plavin said it makes sense for US airports to move more into commercial services, passenger handling and ground operations (rather than airlines) as in most of the world outside North America.

Plavin also argued for more deregulation of the economic side of airports, rather than ring fencing all aviation finances within the FAA system. This would free up more airports to invest, particularly those with a broad mix of airline users.

Under the current system US airports are encouraged to have exclusive gates and exclusive terminals for airlines because they are forced to have somebody on the other end of a lease agreement, for funding purposes.

“The one thing that we all agree on, is that all the airport money should be kept on the airport. The second thing is that airports shouldn’t be able to discriminate unreasonably [in setting airline charges]. I think if those are the two guidelines, then other measures are totally unnecessary,” said Plavin.

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