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    Ground Handling Charges

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    Urfan

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    © All Rights Reserved
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    Ground Handling Charges

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    Urfan
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    Ground Handling Charges

    Uploaded by

    Urfan

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    © All Rights Reserved
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    Ground Handling Charges at

    Monopoly Locations
    Ground handling services should be provided on a competitive basis and ground handling
    charges should be market-determined. If specific conditions do not allow competition, there must
    be meaningful consultation with the airlines.

    INTRODUCTION
    Finally, and in compliance with ICAO’s policies, airport
    In the absence of competition in the provision of ground operators should not impose excessive concession fees on
    handling services at airports, some handlers who benefit ground services providers as revenue from ground handling
    from the monopoly situation have on certain occasions concession must not be maximized3.
    sought excessive charges unrelated to the level of service
    and market prices. Abusive ground handling charges
    negatively impact the airlines’ costs while the monopoly
    KEY CONSIDERATIONS WHEN
    situation can also lead to suboptimal service quality and DETERMINING GROUND
    efficiency in the delivery of essential ground services.
    Excessive turnaround costs for airlines also impact traffic HANDLING CHARGES
    growth with a corresponding negative impact on airport Ground handling charges shall be market-
    revenue. determined through competition to ensure that they
    reflect the most cost-effective level for the provision
    IATA POSITION of optimal ground handling services.
    IATA supports competition in the provision of ground Experience has shown that market-determined
    handling services at airports to ensure they are cost ground handling charges through competition
    effective and that airlines are subject to market determined provide the best outcome: ICAO states that
    ground handling charges. Handlers should not maximize competition may have the beneficial effect of
    revenue from ground handling charges but should rather reducing ground-handling charges without
    ensure cost-based pricing of such charges as stated in compromising the quality of the service provided4,
    ICAO’s guidance1. while the European Commission has noted the
    Where a monopoly exists, the market should be opened up benefits of competition since the opening up of
    to effective competition. If the specific market and/or ground handling services to competition in 1997
    technical conditions at an airport do not allow competition through the Ground Handling Directive5, namely more
    to materialize, meaningful consultation must take place choice for the airlines, improved effective service
    between the monopoly provider and the airlines on the levels and lower fares for the passenger.
    appropriate level of charges to apply, while the offer of If there is a monopoly on the provision of ground
    ground handling services should be tailored to airlines’ handling services at an airport, meaningful
    operational needs. consultation with the airlines based on transparent
    To ensure meaningful consultations, transparency is information is necessary to verify that airlines are
    crucial2 for verifying that charges are cost-related, cost subject to cost-related and effective ground handling
    effective and non-discriminatory, and users shall be charges.
    provided with full and adequate information on the
    assumptions behind the costs underpinning the calculation
    of charges.

    1 4
    ICAO Doc 9587 (third edition) model clause on ground handling refers. ICAO Doc 9562 (third edition) paragraph 5.37 refers.
    2 5
    IATA’s position papers on Transparency and Airlines Engagement in Council Directive 96/67/EC of 15 October 1996 on access to the ground
    Consultations refer. handling market at Community airports.
    3
    ICAO Doc 9082 (ninth edition) paragraph 10 of section II refers.

    July 2019

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