Pricing in Aviation: Issues and Innovations -
Are prices too high, too low or just right?
Day Two - 8th November 2019
Morning Session 1
8:45-9:00 Welcome and Review of Previous Day’s Proceedings
Franz Stefan Meissel, Vice-Dean of Law faculty, University of Vienna
Michael Tretheway, InterVISTAS Consulting Vancouver
Peter Forsyth, Monash University, Melbourne
9:00-9:45 Martin Kunz Lecture
The economics context and evolution of aviation policy:
Is economics good for aviation policy?
Hans-Martin Niemeier, University of Applied Sciences of Bremen
9:45-11:00 Passenger based airport pricing
The economics and implications of airport fee structures is a popular topic among airport scholar and practitioners. Airlines 4 Europe claimed that airport charges increased by 80% over the last decade, whereas ACI Europe claims that they have actually risen only by 25%. What is the actual record? What are the trends to passenger based airport charges? Are they getting higher or lower? Do they reflect the actual cost? Are the charges justified based on airport cost structures? Do they reflect an exercise of market power, or do they represent new costs and/or scarcity rents? Should congestion pricing at airports be justified to finance airport expansion?
Chair: Peter Forsyth, Monash University
Rafael Echevarne, CEO Montego Bay Airport, Jamaica
(Former ACI Chief Economist)
Nikolaus Gretzmacher, Senior Vice President Operations, Vienna Airport
Thomas Reynaert, Managing Director, Airlines for Europe
Fabio Soleri, Aeroporti di Roma
Coffee Break with Poster Session
11:30-13:00 Morning Session 2
The future impact and role of non-aviation revenues for airports
Non-aeronautical revenues are a key contributor to the financial success of airports. But at last year’s conference we heard that nonaeronautical revenues are declining at many airports. According to ACI, total airport industry revenues in 2016 amounted to USD161billion, of which USD89 billion (55%) was aeronautical revenue and USD64 billion (40%) non-aeronautical. What is the impact of online-shopping on commercial revenues? What about new forms of ground transport? What are the trends of the non-aeronautical revenues? How different regulatory modes (single/dual/hybrid till) and ownership models impact non-aero revenue generation? Would revenue-sharing partnerships in terminal management between airports and airlines really work?
Chair: Thomas Immelmann
Walter Seib, CEO of HMSHost International / Autogrill
Romano Pagliari, Cranfield University
Mark Friesen, Managing Partner, QUINTA Consulting
Luigi Battuello, Director Non-Aviation, SEA Milan Airports
14:00-15:15 What is wrong with ATM pricing?
ANSP pricing is governed by the accounting rules established by ICAO last century – ‘cost recovery’ is the basis for ATM charging. It also assumes technology from last century too. In the meantime, the rest of the industry takes a modern, economic pricing approach, with dynamic offer management, continuous pricing, volume discounts, differential pricing and demand-based charging. Digitization is driving different thinking in the way services are delivered, as well as priced. When will the ATM community start to price their product effectively and efficiently, taking advantage of the new digital technologies? Should there be brokers? Should each airline buy its services end-to-end? What difference would it make to how service is delivered?
Chair: Andrew Charlton, ATM Policy Institute
Margaret Arblaster, Monash University, Melbourne, Australia
Lubos Hlinovsky, Czech ANSP
Magdalena Jaworska, PRB and former CEO of Polish Air Navigation Services Agency
Nicole Adler, Hebrew University, Jerusalem, Israel
15:15-15:30 Conference Wrap-Up, Closing Remarks, Presentation of EAC Host 2020
Conference ends 15:30