IATA Calls for Planned ATC Rate Increase To Be Revoked

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*Originally posted on travelradar.aero - the leading aviation news source*

The International Air Transport Association (IATA) has called on Denmark and Iceland to revoke the planned increase in air traffic charges (ATC), calling the move a “cash grab.”

The fees charged by the Danish and Icelandic Air Navigation Service Providers (ANSP) are set to increase by up to 30% on 1st January 2023.

The fees incurred by airlines wanting to cross airspace managed by the two ANSPs will rise at the beginning of the year, affecting many North Atlantic routes. The increase was announced unilaterally without user consultation, input or justification.

In response to the announcement, IATA has written to the Danish Transport, Construction and Housing Authority, and Isavia ANS, calling for the plans to be scrapped.

“This is a cash grab by two monopoly suppliers with no justification. It must be stopped.” said Peter Cerdá, IATA’s Regional Vice President in the Americas, “Why should airlines pay a higher price for a service by a monopoly supplier that has not changed and with nothing to justify the higher cost?”

ICAO Guidelines Not Followed

The International Civil Aviation Organization (ICAO) provides guidelines to ANSPs to ensure a transparent consultation process. Following these guidelines is a well-established international practice which seems to have been ignored by the Nordic ANSPs.

As part of this exercise, detailed information on the proposed increases, including differences in cost structure, traffic data of the past five years and the 2023 traffic forecast, needs to be made available to airlines.

With IATA representing some 290 airlines, comprising 83% of global air traffic, they have some pull within the industry.

Mr Cerdá went on to offer an alternative to the air traffic charge rate increase, saying,

“Rather than ramping up charges, the providers should be looking to achieving efficiencies that will keep costs under control. And if efficiencies cannot be found, then it is time for these suppliers to sit in consultation with their customers to review proposals.”

Travel Radar has reached out to Naviair and Isavia for comment.

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