Airlines want tax rethink

Both associations have pointed out to the government the high increase in airport taxes imposed last year, the hike of 10.2 percent planned under this year's national budget, the lower demand for air travel and the fact that the Spanish Airports Authority (AENA) wants to see itself out of debt and into positive figures by next year.

The request by the ALA and the AOC comes in response to last week's statement by AENA President José Manuel Vargas that increases in airport taxes over the next three years will be aligned to the cost of living index plus 5 decimal points as permitted by law.

The associations are suggesting instead that rather than putting up taxes by similar amounts at all airports, except Barajas in Madrid and El Prat in Barcelona where increases will be much higher, AENA should consider linking taxes to quality of service and that assessing levels of taxes at different airports should be undertaken in conjunction with airlines so that tariffs can be matched up accordingly.

Spokesmen for both the ALA and the AOC said that transit passengers shouldn't have to pay the same quota of taxes as those who use Barajas (Madrid) and El Prat (Barcelona) as a start or end destination. The associations said that keeping the costs down for transit passengers will eventually boost the profitability of hub systems.

The associations said that AENA has to re-examine why it is currently in its present economic plight and how it should rethink its future economy. Spanish airports, said the ALA and the AOC are an essential tool for the growth of the Spanish economy and tourism in particular.

Meanwhile, the AENA said yesterday that it is planning to boost income from advertising at Spanish airports by 30% over the next six years. Bids are being accepted until 23rd July for airport advertising for six years, renewable over a four year period. Publicity will be divided up into four main geographical areas of Spain. AENA said that airport publicity managers will be rewarded for achieving targets.