EASYJET URGES EU TO BREAK DOWN WALLS OF AVIATION PROTECTIONISM

2012-10-11 — /travelprnews.com/ — Carolyn McCall, CEO of easyJet, today encouraged the EU to break down the remaining walls of protectionism in European aviation on slots and ground handling.

Speaking at the European Aviation Club before an audience of MEPs, EU officials, academics and aviation industry representatives, she urged the EU to continue the liberalisation of European aviation that was launched with the opening of Europe’s skies in 1994.

“Europe’s free market created a revolution in European aviation. It has given airlines like easyJet the chance to grow across Europe to meet passenger demand. In the years since then, passengers across Europe have benefited from 170% more routes at fares 40% lower.

“Smaller cities and regions across Europe now have aviation links they never had before, stimulating trade and tourism and providing the platform for economic growth.

“Despite the best intentions of Europe’s single aviation market we too often find that we are being held back by the defensive walls of protectionism which still shield airports, airlines and ground handling from the benefits of true and full competition.

“In particular, Europe must now press ahead with reform of the allocation of slots at airports to enable new entrants to build up enough frequencies to mount serious challenges to the legacy operators and overhaul the archaic practices around ground handling to ensure there is real competition at every airport.

“If the EU pushes through these reforms European consumers will benefit from more new routes, more services and lower fares.”

easyJet is a product of the EU Single Market. Since it was established in the UK in 1995, easyJet has grown to become the fourth largest airline in Europe and now flies more than 58 million passengers per year. This success has been achieved by providing affordable and convenient flights, with safety as the number one priority. The airline has grown because it has provided what passengers want at a price they like.

easyJet welcomes initiatives from Brussels that help airlines improve their passengers’ experience and create the right incentives for airlines to use airport infrastructure more efficiently.

However, easyJet is concerned that some elements of the Airports Package proposals rely too heavily on extra rules that will reduce its ability to serve its passengers well and make it more difficult to keep prices at a reasonable level.

Slots

easyJet encourages the EU to press ahead with reform of the allocation of slots at airports to enable new entrants to build up enough frequencies to mount serious challenges to the legacy operators.

easyJet strongly supports an increase in the new entrant threshold in order to promote stronger challengers to the established carriers.

easyJet also supports secondary trading to encourage the efficient use of slots.

easyJet does not see local rules as the answer to this problem – a patchwork of rules risks creating incoherence.

Ground Handling

easyJet believes that ground handlers should face the same breadth of competition that their customers, the airlines, do to ensure that there is real competition at every airport and serious competitive pressure on suppliers to improve the service they offer.

On self-handling, easyJet strongly supports giving airlines the freedom to take control of their own ground handling when they aren’t happy with the services offered at an airport.

easyJet also believes that requiring three licences at big European airports instead of two is important because it means the difference between healthy competition and a high cost duopoly.

However, easyJet strongly disagrees with third parties setting minimum quality standards – easyJet knows what its customers need and want, and knows that if quality is poor it will sell fewer tickets.

easyJet does not think poor ground handlers should be protected with longer licences and subcontracting limits – if a ground handler is bad, they should not keep their place at the airport for ten years.

Ends

For further information or for a copy of the speech please contact the easyJet Press Office on 01582 525252.

Notes to editors

The European Commission published the Better Airports Package proposal in December 2011.

The package is divided into three sections: slots, ground-handling and airport noise and could change the way these areas are regulated across Europe from 2014.

As required under the EU’s legislative process (codecision) the proposals are currently being considered by the European Council – which represents the views of EU Member State governments – and by the European Parliament, which represents the views of the EU’s citizens. Both institutions have the power to amend the Commission’s original proposal. They each work to a separate timetable based on the political priorities of their respective institutions. If neither institution comes to an agreement then the package is rejected outright.

The Council has already considered ground handling and noise and is currently evaluating the slots proposal. The European Parliament hopes to approve the whole package by the end of this year. Various reports have recently been tabled and will be subject to voting in Parliament over the coming two months at committee and then plenary levels.

In order for the 2014 timetable to be effective the package needs to be adopted by the end of the year.

About easyJet:

easyJet operates Europe’s No. 1 air transport network with a leading presence on Europe’s top 100 routes and at Europe’s 50 largest airports.

easyJet flies on more than 600 routes between more than 130 airports in 30 countries. More than 300 million Europeans live within one hour’s drive of an easyJet airport, more than any other airline.

The airline takes sustainability seriously. easyJet invests in the latest technology, operates efficiently and fills most of its seats which means that an easyJet passenger’s carbon footprint is 22% less than a passenger on a traditional airline, flying the same aircraft on the same route.

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