Revenues from airport charges are the lifeblood of airports needed to recover costs and to finance infrastructure for the benefit of the traveling public.Īirport charges are small % of total air fare (2019 USD) Even though airline-related revenues rank third after non-aeronautical revenues and passenger related charges in terms of airport revenues source, they are still vital for the financial viability of airports. And 24% of all airport revenues come from charges that are levied on airlines. In other words, this means that when traffic rises, charges fall (and vice versa).Įven though airport charges represent a small proportion of airline costs and have a minimal impact on passengers, the revenue generated from aeronautical charges represent as much as 55% of all airport revenues (including passenger and aircraft related charges). Yet, it is important to remind critics that regulated airport charges across many jurisdictions in their current state are inversely linked to traffic levels. That is, if airports had price flexibility based on the competitive landscape many of them face, charges that are levied on airlines would adjust to certain realities and market conditions. The industry is also at an important crossroads in how we think about the economic regulation of airports and airport charges. Source: ACI World *Based on industry sources subject to variance across jurisdictions and historical elasticities between operating expenditures (OPEX) and airport traffic levels Airport charges: Turning the page on the regulatory relics of the past As airports remain an immovable asset with limited or no alternative uses, the heightened debt levels and the changing risk profiles of the industry has meant that financing costs are increasing. The current crisis represents an unprecedented challenge for the industry’s financial viability as airports have had to refinance and negotiate terms with creditors. On top of this challenge, there is also no denying the fact that financial support from governments to airports due to COVID-19 has been relatively limited across multiple jurisdictions compared to air carriers. Fundamentally, airports will remain infrastructure-intensive businesses for the foreseeable future-this translates into unavoidable high fixed costs that must be financed. However, even with significant cost-cutting exercises throughout the pandemic, the financial stress endured by airport operators due to sustained passenger traffic losses could have longer term consequences in terms of slowing down future infrastructure development. The Passenger has the right to receive, from the airline, in the Portuguese language, clear and objective information regarding its conditions of carriage.Like other businesses in the aviation ecosystem, airports are businesses in their own right. However, transfer from one person to another shall be subject exclusively to the rules that the carrier imposes on it, notwithstanding the requirements which the aeronautical authority may establish with respect to the identification of a passenger.įares rules must be available and kept updated by airlines at all its points of sales, services and on their websites. The ticket is personal and non-transferable. The validity of the ticket is one (1) year from the date of its issuance, subject to the conditions of the application of the tariff. Date of birth, in the case of passengers aged 12 or less, in addition to complying with all other previous formalities.Ī sale receipt, itinerary summary or equivalent document must be issued, and made available to the passenger in paper or electronic format.Airline procedures for boarding, according to the nature of the flight.Identification of the successive carrier, where applicable. Identification of the carrier that effectively operates the flight, in cases of "code share" flights.Baggage allowance, by type, volume and weight.Total amount paid for the ticket in national currency.Detailed amount of all government taxes, fees, airport charges.Fare of the air transport service in national currency.Class of service, fares or other detailed information that identify the type of transport.Itinerary of the trip, including all stopovers (routes, origin and destination of the flight, date and time).Name and, when applicable, the passenger's last two surnames.The Ticket must contain the following information: The purpose of the air transport contract is to set a balance between passengers and airlines rights and duties. The Ticket is the transport contract between passenger and airline.
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