- Airlines warn of tariffs
- Increased fees and reactions
- Calls for independent review
In reaction to the UK aviation regulator’s air traffic control cost hike, airlines have warned passengers of higher tariffs.
Costs to Passengers and Airline Covering Expenses
Following a UK air traffic control debacle in August that caused lengthy flight delays and stranded thousands, airlines are covering the associated expenses.
Fee Increase and Reaction from Airlines
Until 2027, the fare per flight will increase from £47 to £64, or approximately 43p per passenger.
The airlines stated that, in light of the recent disruption, the increases “cannot be justified.”
Calls for Independent Review and Reimbursement Demands
The increase in fees was “yet another kick in the teeth for passengers who have been plagued by problems this summer, including the August Nats [National Air Traffic Services] IT failure,” according to Tim Alderslade, chief executive officer of industry organisation Airlines UK.
Passengers, according to the organisation, which represents airlines such as British Airways, EasyJet, Jet2, Ryanair, Virgin Atlantic, and Tui, would “inevitably foot the bill for increases in the millions of pounds.”
He added that a broader, independent review of Nats’s regulation is unquestionably necessary to safeguard passengers and prevent airlines from being compelled to bear millions of pounds in costs as the insurer of last resort for non-accidental failures.
Ryanair CEO Michael O’Leary said the company was “astonished” and asked that the CAA rescind its “illogical” fare rise.
He stated that “until Nats delivers the service for which it is already being compensated,” no price increases should be implemented, and “any additional price increases will only be used to fund more undeserved dividends for its shareholders.”
A National Air Traffic Services system that independently processes flight plans malfunctioned in August, cancelling 2,000 flights. As a result, passengers were left stranded.
Many rushed to rebook flights, sleeping on airport floors or homemade mattresses.
Airlines spent a lot to house stranded travellers and reschedule flights after the IT failure. Certain airlines, Ryanair being one, have demanded that these expenses be reimbursed by Nats.
Nats apologised for the inconvenience and said actions have been made to prevent the “extremely rare” system breakdown.
Nats confirmed that it will not directly reimburse airlines for August expenses caused by technical breakdown.
The Civil Aviation Authority (CAA) authorised Nats to raise prices unrelated to the system failure probe.
The increase in fees was referred to as “airway robbery” by Jonathan Hinkles, the CEO of Loganair, a Scottish airline, and he stated that airlines would attempt to reroute flights from over the United Kingdom to “cheaper airspace in Ireland.”
Despite the increased fuel consumption and emissions associated with flying this extended route, the cost savings resulting from avoiding these avaricious NATS charges are sufficient, he wrote on LinkedIn.
Mr. Hinkles also argued that if airlines avoided UK airspace, it would result in decreased revenue for Nationals. Thereby increasing the “burden for those left behind with no alternative,” including Loganair, a regional airline.
However, Mike Clancy, general secretary of the Prospect union, stated that investment is crucial to sustaining the United Kingdom’s “one of the best safety records despite having some of the most congested and complex airspace in the world.”
The CAA said Nats will “recoup its operating expenses” and that its decision was “consistent” with its “safe operation.”
Airlines’ Response and Future Considerations
Airlines are billed for services rendered within the airspace of the United Kingdom and the North Atlantic.
Andrew Walker, the CAA’s top economist, said the independent IT fiasco inquiry will prompt extra regulatory measures.
According to aviation executive Tim Jeans, the decision would be taken “extremely poorly.”
As Nats operates as a monopoly, airlines and the industry are compelled to accept these charges. It appears that the CAA has accepted Nats’s position, which essentially states that…charges must increase,” as he put it.
