Aviation Intelligence Reporter – February 2012
Crystal Ball Grazing
RP2: It Spells Competition and Structural Reform
ETS – Extra Ticket Supplement
Slot Reform – Who owns what?
Lobbying for Biz-Av: Truth or Fiction?
Rendering unto Caesar only that which is Caesar’s
Passenger Rights – Bring the Kids and Fly to Turkey
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click hereCrystal Ball Grazing
Welcome to 2012. If you happen to be Mayan it promises to be a watershed year. The Mayan calendar predicts the world will end on November 21. It still gives even Mayans enough time to experience most of the year. So it remains worthwhile for the Aviation Intelligence Reporter to take a look at what that might happen; and given that this is aviation regulation we are talking about, what might not change at all.
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RP2: It Spells Competition and Structural Reform
After 65 years, there is still no sign of the airline industry reforming and opening itself up to competition in any meaningful way. If you think that harsh, ponder alliances for a moment. In what rational universe would alliances be considered the pinnacle of competitive structure?
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ETS – Extra Ticket Supplement
The war of words over the European ETS is now in full swing. Increasingly, it is looking like a phony war.
Governments around the world have thrown the switch to ’outrage’. With elections in a number of major countries this year, including the USA, India and Russia, one could expect nothing less. China changes leaders, too. This is a ‘red meat’ issue – parliamentarians around the world can look and sound tough by bashing up Europeans. Some Europeans even speak French, apparently.
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Slot Reform – Who owns what?
The Commission released its proposals for slot reform at the beginning of December. Notwithstanding the many advanced copies of these proposals that had been floating around, right on cue there was faux outrage and mock horror at what was proposed. Predictably, everyone found something to detest, in exactly the expected areas.
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Lobbying for Biz-Av: Truth or Fiction?
European government treatment of business aviation reflects its enduring popular image as a luxury. Rather than offering a helping hand, governments are exploiting this perception with quick deficit-fix taxes on private jet use. Airport Passenger Duty on private jet flights has been agreed in the UK, but the delayed implementation infuriated some parts of the popular press. In Italy jets are automatically taxed for parking longer than 48 hours.
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Rendering unto Caesar only that which is Caesar’s
Ask people in other industries taxed as much as aviation – alcohol or tobacco for example – what they think of tax increases, and they will ask if this question is off or on the record. On the record expect the usual diatribe about greedy governments and nanny-states. Off the record, you will get a warm grin. When taxes go up on alcohol by, say, 7.5 cents, the price goes up by 10 cents. Every time; track it and see for yourself.
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Passenger Rights – Bring the Kids and Fly to Turkey
Despite the sinking of the Costa Concordia off the Italian coast in January, air carriers simply cannot assume that the Commission will turn its attention only to passengers aboard ships. DG MOVE is in the midst of an impact assessment for possible review of the already draconian Regulation 261/2004, which obliges airlines to pay for virtually any problem that passengers encounter in delays or denials. A proposal to revise 261, and probably strengthen it further, is expected by year-end.
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