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ACI NEWS AW3 2023 NEWS

News from ACI World, ACI Asia-Pacific and ACI EUROPE

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We report on the latest news, views and developments from ACI World, ACI Asia-Pacific and ACI EUROPE.

ACI World news: New Sustainability Expansion Plan for Montréal

ACI World has partnered with the Canadian Government, Government of Québec and City of Montréal on a new Sustainability Expansion Plan for Montréal, which will be funded by Montréal International.

The plan sees continued investment in Montréal, the world capital of civil aviation, and in the sustainability of airports as essential enablers of economic growth and prosperity.

The Sustainability Expansion Plan strengthens ACI World’s sustainability initiatives that support its global airport membership in all disciplines of airport management and that align with the United Nations 2030 Agenda for Sustainable Development.

The plan also contributes to ACI World and its member airports’ commitment to reaching the aviation industry’s goal of net zero carbon emissions by 2050, supporting the sustainable growth of the sector and generating social and economic benefits for the communities it serves.

ACI World director general, Luis Felipe de Oliveira, noted: “The Sustainability Expansion Plan builds on a long-standing cooperation with Montréal International and its partners, the Government of Canada, the Government of Québec and the City of Montréal.

“The plan represents an important milestone in the strengthening of ACI World’s sustainability initiatives that support our global airport members.

“Despite the difficulties faced by the sector in the last few years, the expansion plan ensures our long-term commitment with Montréal and its position as the World Capital of Civil Aviation, providing employment and relevance to the whole aviation ecosystem.”

Montréal International’s CEO, Stéphane Paquet noted: “Since the 1940s, Montréal has been recognised worldwide as a hub for civil aviation. The city’s fame in this sector is due in large part to international organisations such as ACI World that develop cutting-edge programmes like the Sustainability Expansion Plan launched on May 5th.

“We ought to be proud and grateful for such initiatives that help build a green and inclusive economy and demonstrate Montréal’s international organisations’ leadership in decarbonising our planet.”


Streamlining resources for small and emerging airports

ACI World is streamlining its resources for small and emerging airports to foster their continued growth and sustainable development.

The move, which includes offering certain programmes and services at a lower rate, follows the ACI World Resolution ‘Support and assistance for small, emerging and regional airports’, approved at the 32nd World Annual General Assembly.

The resolution recognises the positive externalities and financial challenges of small and emerging airports. Furthermore, it calls on governments and industry to support their capital and human resource development plans and facilitate their transition to renewable energy.

According to the 2021 ACI Airport Economics Report, it is estimated that as much as 90% of the world’s airports are categorised as small (serving five million passengers or less per annum). Additionally, it is estimated that 68% of airports globally operate at a net loss and that 97% of those loss-making airports handle fewer than one million passengers per annum.

Nevertheless, despite these challenges, the viability of small and emerging airports remains crucial to the development of local and global connectivity, cohesion and territorial equality, social and economic development, as well as the potential for growth of their individual regions – in turn, supporting many of the United Nations Sustainable Development Goals.

“In many communities, small and emerging airports play a crucial role in the lives of millions of people – as employers, facilitators of tourism and trade, and even as key lifelines that support critical services,” noted ACI World director, Luis Felipe de Oliveira.


Restoring air connectivity in Asia-Pacific and the Middle East

At its 18th Regional Assembly in Kobe, Japan, ACI Asia-Pacific made a resolution to promote, restore and develop air connectivity in Asia-Pacific and the Middle East to ensure social and economic development as well as support the United Nations Sustainable Development Goals.

The resolution emphasises the importance of fully restoring and further developing air connectivity in the region, recognising the essential role that airports, driven by efficient and affordable air connectivity, can play in driving economic growth and social development.

Between 2019-2022, there has been a significant drop in the number of direct routes, flight frequencies and available seat capacity in Asia-Pacific as a result of the full-scale global COVID-19 transportation crisis.

By contrast, airports in the Middle East Region have recovered much faster, especially the large international airports.

Based on the preliminary findings of the ACI Asia-Pacific study on Airport Connectivity, conducted with the assistance of PwC, medium/large airports in Asia-Pacific region, more largely dependent on international traffic, faced a 42% reduction in the connectivity index by August 2022, compared to a 17% reduction reported at small airports which benefited from a more resilient domestic traffic.

Airports in the Middle East, the other hand, have recovered much faster, with a 19% increase in connectivity at large/medium airports and 5% increase at small airports.

Recognising the circumstances in which airports are operating, characterised by increased airfares, reduced airlines’ competition and aviation ecosystem workforce, and significant resources required to finance the necessary modernisation of infrastructure, the ACI Asia-Pacific Board encourages airport operators to open a new dialogue with national authorities and industry stakeholders to modernise the aviation sector.

Commenting on the resolution, Emmanuel Menanteau, president of ACI Asia-Pacific, said: “Connectivity is a critical enabler for social and economic wealth.

“Restoring air connectivity in Asia-Pacific and development of more routes in the Middle East is essential to support the recovery of their economies. This resolution reaffirms the commitment of the airport community of Asia-Pacific and the Middle East to work together with national and regional authorities in an economically and environmentally sustainable manner for the benefit of passengers as well as local communities served by the airports.”


ACI EUROPE news: Call for European Commission to update EU Airport Slot Regulation

ACI EUROPE has renewed its call for the European Commission to bring the EU Airport Slot Regulation up to date.

In a letter from ACI EUROPE president and executive vice president of Aena, Javier Marín, to EU Transport Commissioner Vălean, the Commission was praised for its ambitious work to date in preparing the ground for a revision of the Regulation currently in place – which is 30 years old.

However, ACI EUROPE believes that the Commission must now take the next step and move forwards with a legislative proposal to future-proof the single aviation market.

The current EU Airport Slot Regulation is largely based on principles set by incumbent airlines for incumbent airlines, with airports having no say on the way their capacity is allocated and used. As such, the Regulation reflects an era that is no longer – when national airlines dominated and low cost carriers had yet to emerge, competition was scarce and airport capacity unconstrained.

The loopholes and deficiencies of the EU Airport Slot Regulation are now plain to see, according Marín.

He said: “Practices such as slot hoarding, overbidding, ‘double-dipping’, slot leasing, secondary trading and abuse of the New Entrant rule by multi-airline groups go against the spirit of the single aviation market by limiting competition, connectivity and consumer choice”.

As Europe accounts for more than half of the world’s most congested airports and as congestion is set to worsen since creating new airport capacity is ever more difficult, updating airport slot rules is fundamental to protect the integrity and well-functioning of the single aviation market.

This, says ACI EUROPE, is paramount to safeguard consumer interest and regional connectivity in the context of airline consolidation – through mergers, market exit or attrition.

The European airport industry is not calling for a revolution but for a legitimate, necessary and overdue evolution of airport slot rules, says ACI EUROPE. The full text of the letter sent to Transport Commissioner Vălean and also shared with Competition Commissioner Vestager can be found here.

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