Airports and Airlines Winter Operations Economic Policy Aspects. Narjess Teyssier Chief Economic Analysis & Policy Section
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1 Airports and Airlines Winter Operations Economic Policy Aspects Narjess Teyssier Chief Economic Analysis & Policy Section Reykjavik, 10 th October 2011
2 Civil Aviation: the global picture 2.5 Billion passengers
3 Value chain of air transport STATES (Regulatory framework) MROs Airlines ANSPs Airports Ground Handling Aircraft manufacturers Lessors Travel agents & GDS Fuel suppliers Seeks services from
4 Regional traffic overview for 2010 North America Traffic: +4.8% Capacity: +2.8% Load Factor: +1.3 Pt Latin America Traffic: +11.3% Capacity: +6.4% Load Factor: +3.1 Pt Europe Traffic: +5.5% Capacity: +2.7% Load Factor: +2.1 Pt Middle East Traffic: +19.8% Capacity: +15.9% Load Factor: +2.5 Pt Asia Pacific Traffic: +11% Capacity: +6.5% Load Factor: +2.9Pt World Traffic: +8% Capacity: +5.1% Load Factor: +2.2 Pt Africa Traffic: +12.4% Capacity: +9.3% Load Factor: +2 Pt Source: ICAO
5 2010 disruptions: impact on traffic Most severely hit airports shown in total zero-flow rate between Dec Heathrow: 39h50 2. Gatwick: 23h40 3. Paris CDG: 10h40 4. Aberdeen: 6h10 5. Stansted: 6h00 6. Edinburgh: 5h20 7. Frankfurt: 4h50 Source: Eurocontrol, ACI and AEA flights within Europe cancelled during due to volcanic eruption remaining 60,000 represent 150% increase over the previous year s cancellations Frankfurt declined by 1.6% total with -8.3% on the domestic segment Paris (CDG) declined by 2.2% London Heathrow lost 9.7% (- 1/4 domestic) 5
6 Economic impact in UK Economic impact of winter disruptions on UK economy UK s GDP -0.5% Cost to UK economy: 280 million/day Source UK House of Commons Transport Committee Report 6
7 ICAO policies background Chicago Convention basis for key policies (non-discrimination, cost-relatedness, transparency and consultation) to be reflected in national legislation, regulations or policies, and air services agreements Policies are not mandatory but States have a moral obligation to adhere to them: Conferences, Council, Assembly and ensure airports observe them 7
8 Airports responsibility Art. 28 Chicago Convention State should provide in its territory: Airports Radio services Meteorological services Other air navigation facilities to facilitate international air navigation. 8
9 ICAO SARPs on Airports technical responsibility ICAO SARPs on airports (Ann.14): Visual aids Aerodrome maintenance Provision of meteorological information to airports or aircraft: State responsibility (Ann.3) Safety Regularity Efficiency Aerodrome emergency plan (Ann.14) 9
10 ANSPs technical responsibility Objectives of air traffic services (Ann. 11 to the Chicago Convention): prevent collisions between aircraft prevent collisions aircraft on manoeuvring area and obstructions orderly flow of air traffic advice and information 10
11 International conventions and airlines responsibility in flight delays Warsaw Convention 1929: Article 19 : carrier is liable for damage occasioned by delay in the carriage by air of passengers, luggage or goods Montreal Convention 1999: Article 19 : carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo 11
12 Clauses of exoneration Warsaw Convention 1929: Article 20: A carrier is not liable if he proves that he and his agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures Montreal Convention 1999: Article 20 : If a carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation 12
13 ICAO policies and guidance on passenger rights 2003 ATConf/5: ICAO to monitor consumer interest issues; eventually development of a global code of conduct Assist in harmonization process (Doc 9587) 2008 CEANS: take into account interests of users Doc 9082 (par. 19): need to protect interests of passengers and other end users 13
14 Passenger rights: Airlines responsibility Comprehensive monitoring of existing regulations/voluntary commitments Last update Sept EU regulation 261/2004 U.S. regulation DOT-OST
15 EU Consumer protection rules Reg. (EU) No 261/2004 of 11 February 2004: rules on compensation/assistance for air passengers (denied boarding, cancellations, long delays and involuntary downgrading) assistance (accommodation, refreshments, meals and communication facilities) re-routing and refunds compensation of up to 600 per passenger (except in extraordinary circumstances ) Passengers departing from EU It applies (article 3) to Passenger departing from non-eu state if carrier is a EU carrier 15
16 US consumer protection rules DOT Rule No. OST [Apr. 20, 2011] Rule applies to U.S. carriers and foreign carriers operating passenger services to or from U.S. airport (para ) Compensation for lost, damaged or delayed luggage must now include a refund of any baggage fees paid Tarmac delay contingency plans Airlines should not permit an aircraft to remain on the tarmac at a U.S. airport for more than 4 hours without providing passengers an opportunity to deplane except: Safety Disruption of airport operations 16
17 Harmonization issues Which rules apply to delayed flight by a EU carrier departing from U.S. airport? Is it EU, U.S., or/and both?? ATConf/6 desired outcome: updating ICAO guidance, harmonizing relevant rules/fostering compatibility develop a global code of conduct 17
18 Need to define what is exceptional or unforeseen circumstances The European volcanic ash cloud Snow storms in Europe
19 Conclusion The application of the current ICAO s policies and guidance material can assist States and providers to help in the implementation of a harmonized passenger rights regulation 19
20 ICAO All rights reserved. This document and all information contained herein is the sole property of ICAO. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. No part of this document shall be reproduced or disclosed to a third party without prior written permission of ICAO. This document and its content shall not be used for any purpose other than that for which it is supplied. The statements made herein are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, ICAO will be pleased to explain the basis thereof.
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