Large European airports are out-of-control monopolies and need to be regulated by newly created national authorities "with teeth," IATA DG and CEO Giovanni Bisignani said Friday at a meeting between the European Commission and 11 aviation organizations to discuss airport policy.In a direct appeal to Jacques Barrot, EC VP responsible for transport and energy, Bisignani said that since 2001, "Europe's airlines have achieved a 9% reduction in aircraft operating costs, a 24% reduction in distribution and back office costs and a 14% increase in pilot productivity. Airports, on the other hand, gave the airlines a 13% increase in per-passenger costs with a total bill for airlines and their users of $14.5 billion" over the same period.

While some, such as Manchester, Rome and Birmingham, have achieved double-digit reductions in per-passenger charges, Bisignani claimed that "many more airports are moving in the wrong direction, with double-digit increases between 2001 and 2004." These include Aeroports de Paris, up 44%; Amsterdam, up 34%; Stockholm, up 35%; Spanish Airports, up 24%, and Munich, up 26%. He called the situation "an embarrassing example of airports living in the dark ages."

He asked Barrot to begin by developing a "Directive for airport charges" that "must require robust independent national regulation of airport monopolies over 5 million passengers [annual]--Europe's top 50." He added, "We are not asking anything that we have not done ourselves." He also said that existing airport regulators have proved themselves to be ineffective in controlling spiraling airport charges.

The Directive should fulfill four objectives: "Take politics out of airport management; comply with ICAO principles, including nondiscrimination; ensure stakeholder engagement with real and transparent consultation; and above all, act as a substitute for competition ensuring continuous improvement on cost efficiency--not only preventing increases above inflation, but challenging airports to do better by reducing charges."