Brussels, 26/07/2012 (Agence Europe) - European airlines are finding it hard to swallow the severe rise in taxes levied in Spanish airports since 1 July. Low-cost company Ryanair is even planning to reduce its flight schedules to the airports of Barcelona and Madrid for this very reason. The Association of European Airlines (AEA) has urged the Commission to open an investigation to ascertain whether the tax is lawful, considering the Spanish government's approach disproportionate and unacceptable, especially given that the tax is levied retroactively.
Unacceptable for the AEA. At the initiative of the Spanish government, the national state-owned airport operator, AENA, has imposed extra airport charges since 1 July, which almost doubles charges levied in airports, especially in Madrid and Barcelona. The AEA is particularly peeved that the taxes are levied retroactively: - tickets bought before 1 July, for flights after that date, are also subject to the tax. AEA Secretary General Athar Husain Khan finds this quite unacceptable, stating in the press on 25 July: “Adding extra burden on both airlines and passengers in this current economic situation is a grave mistake”. Given that the number of passengers travelling to Spanish airports declined during the first half of this year (4.6%), the AEA argues that it would have been better to reduce airport taxes in order to boost tourism, that is so badly needed by Spain to kick-start economic recovery.
Ryanair retaliates. The adverse effects of the tax could be felt very rapidly, as the Irish low-cost company Ryanair is planning to review its flight schedules to Spain as of November this year. Fifteen routes could disappear and the frequency of flights to and from a further 46 destinations is to be reduced. The frequency of flights to and from Dublin and Barcelona's El Prat Airport will be reduced from 14 a week to 10 a week, with, as a result, the loss of 2.3 million passengers and more than 2,000 jobs at the two Spanish airports, Ryanair Chief Executive Officer Michael O'Leary predicts. Considering the rise in taxes exorbitant, O'Leary announced in Madrid that it would be possible to avoid the flight schedule reductions made by his company if the Spain government backpedalled on the tax increase.
Commission action necessary. The AEA calls on the Commission to act as gendarme in the affair. The association stresses that the Spanish decision was taken without formal consultation and without justification, although this was stipulated as a requirement in the European directive on airport charges (2009/12). (MD/transl.jl)