May 9, 2011
Traffic at the world's airports is back to pre-economic crisis levels, according to Angela Gittens the director general of the Airports Council International (ACI).
In a speech to International Civil Aviation Organisation (ICAO) council members Gittens said: "The time is right to pursue strategies that further strengthen the industry to withstand future shocks and ensure high quality service for consumers."
She highlighted the impact of two key business constraints – fixed operating costs and the high cost of capital.
She said: "In a downturn these stay constant whereas airports suffer revenue loss linked to fewer passengers resulting from reduced demand, carrier service and route adjustments, bankruptcies and mergers.
"During this latest economic downturn, the increasingly diversified portfolio of airport revenues served as a lifeline - a clear signal that airport entrepreneurship is critical in our very competitive global airport market.
She added: "We need better understanding from our airport partners so that we can put to rest misunderstanding and specious debate about user charges.
"Naturally, airports charge for the services that airlines require since they have to spend money provide and maintain facilities for aircraft to land and park. The global average airplane cost of USD$4 per passenger is a great bargain. Where can you even park a car for USD$4 today."
She referred to predictions that air traffic will double within 20 years. She said: "Airports must now build the capacity needed without further delay to plans for expansion and modernisation. Government and private investors must not be shy about committing to infrastructure that is so crucially linked to economic development."
She added that ACI expects a new wave of private investment in airports in both developing and advance markets at a time when government resources are limited.
(Airwise)
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