ACI Asia-Pacific and Middle East advocates holistic airport charge reforms for sustainable growth: What you need to know?

Tuesday, November 5, 2024

At the ICAO Workshop on Airport and Air Navigation Services Charges in Qatar, ACI Asia-Pacific & Middle East (ACI APAC & MID) emphasized the need for a comprehensive approach to airport charges that promotes sustainable growth and aligns with socio-economic goals.

Ilia Lioutov, Head of Middle East and Economics at ACI APAC & MID, stressed that airport charges should not be solely cost-focused but should adopt a balanced, demand-sensitive model that supports socio-economic growth, efficient capacity utilization, and environmental sustainability.

Lioutov highlighted that a holistic framework would better reflect the full economic contributions of airports, ensuring that charges support connectivity expansion, including underserved routes, while adapting to broader market demands.

The presentation also pointed to regulatory inflexibility during the COVID-19 crisis, which prevented airports from adjusting charges in response to plummeting demand, impacting future investments and financing capabilities.

Additionally, ACI APAC & MID advocated for inflation adjustments in airport charges, especially given the Middle East’s accumulated inflation exceeding 200% in two decades.

Regular, incremental adjustments are critical to meeting the rising operational costs and future capital expenditures associated with the region’s projected growth.

Lioutov reiterated ACI’s opposition to aviation taxes that do not benefit the industry, cautioning that such taxes could inhibit growth and the industry’s ability to meet rising demand.

The workshop, attended by regional regulators, IATA, CANSO, AACO, and civil aviation authorities, underscored the importance of a nuanced regulatory approach that fosters both financial and operational sustainability across the aviation ecosystem.

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