Policy & strategy - Articles and news items

Facilitating increased globalisation

Issue 3 2005, Past issues / 16 September 2005 /

TIACA uses its partnerships with Government and trade organisations to progress the cause of air cargo and global economic development.

With the increasing complexity of air transport and international trade, TIACA has found it helpful to interface with other industry, trade and official organisations in order to share ideas, efforts and positions. This reflects our firm conviction of the benefits of a systematic development of inter-institutional contact and collaboration.

In respect of other industry and trade associations, TIACA has maintained regular contact with, and participated in events sponsored by the Airports Council International (ACI), the Air Transport Association (ATA), Cargo Network Services (CNS), the Global Express Association (GEA) and the International Federation of Freight Forwarders Associations (FIATA). TIACA finds that it shares many of the goals of these organisations, especially as they pertain to commercial air transport liberalisation, customs reform and trade facilitation.

All of these organisations are aware of the well established relationship between air cargo growth and growth in gross domestic product (GDP). They share TIACA’s belief that the two are mutually causal and highly interdependent. (more…)

The privatisation path in Hungary

Issue 3 2005, Past issues / 16 September 2005 /

The UK became the first country to privatise its airports almost 20 years ago, a trend subsequently copied around the world to help fuel infrastructure investment.

The privatisation path is now being pursued in Hungary. The imminent involvement of the private sector at Budapest airport provides an opportunity to examine why airport privatisations have been successful and discover how the experience can benefit Hungary’s most important airport.

Like Budapest the British Airports Authority in the UK, known since privatisation as BAA plc, was originally managed directly by the UK Ministry of Transport. Its directors were appointed by the Ministry and its investments were controlled by the state. With six million passengers a year Budapest is in the same position today as Gatwick was in the early 1980s.

There is little doubt that Budapest has the potential to make as successful a transition to the private sector as BAA. But selecting the right framework for the privatisation is vital; the Government must select a partner equally committed to prolonged success. Without this, Budapest will not deliver the long term development needed by passengers, airlines and the Hungarian community. (more…)

Congestion and slot allocation

Issue 3 2005, Past issues / 16 September 2005 /

Co-ordinating and allocating flights may traditionally be a back-room activity, but current capacity constraints mean that it is rapidly coming to the fore.

It is a fact that large airports are congested and will probably stay that way. In Europe and elsewhere the development of air traffic demand has outpaced the development of capacities in recent times. Furthermore major airports do not expect any substantial change to this situation in the foreseeable future. This is in spite of some impressive expansion programmes we can presently see at airports such as Madrid Barajas today and probably at Frankfurt in a few years from now.

Of course there are other airports that still have available capacity, some of them a significant amount, to the extent that one can even talk about an under-usage of capacities. The reason for this situation is quite simple. Certain airports and at certain times of the day or week, are more attractive to airlines than others. (more…)

Why UK airport capacity matters

Issue 2 2005, Past issues / 10 June 2005 /

The impending threat of ‘capacity crunch’ has prompted the UK airport industry into action over its own future.

Much has been made during the past few years of the possibility for a ‘capacity crunch’ at major UK airports. The prospect of this and the consequent damage it would cause the UK economy was the driving force behind the December 2003 Government White Paper ‘The Future of Air Transport’ that called, inter alia, for new runways at Stansted, Birmingham and Edinburgh airports.

But how real is the possibility of ‘capacity crunch’ and what impact – if any – would this have on the wider European and World economy? Increasingly, the evidence is that aviation growth in the UK is being restricted by the lack of capacity in the south east of the country and that if this is not addressed the knock-on effect for the European economy will be significant.

In an article on European Airport Capacity in Aerlines Magazine 29, Eelman, Schumacher & Becker identified five main elements that restrict airport capacity: limited area, long project approval procedures, heated discussions with the community surrounding the airport, ongoing privatisation and lack of political backing. At many large UK airports, particularly those in the south east of England, several of these principles apply. (more…)