Aena, a state-owned company that manages general interest airports in Spain, has appealed against the imposition of the National Commission of Markets and Competition (CNMC) to approve a 1.44% cut in airport fees to be paid by airlines as of March, as reflected in its annual financial report submitted to the National Securities Market Commission (CNMV).
Currently, fares are regulated by the Airport Regulation Document (DORA) for the period of 2017-2021, which was approved by the Government and which establishes a compulsory reduction in airport charges of 11% over these five years, equivalent to an average reduction of 2.2% per year.
However, each year’s decrease is calculated on the basis of actual cost recovery from previous years and traffic forecasts, so Aena can modulate the reduction or even freeze the charges, as it did in 2019.
For this year, the Spanish airport manager had proposed a reduction of 1.17% applicable from March 1st, but the employers of the airlines did not consider it sufficient and appealed to the CNMC, which through a resolution last December gave them the reason and reduced the maximum annual income per passenger adjusted (IMAAJ) for 2020 to $11.24 (€10.27) per passenger (compared to $11.40 (€10.42) in 2019), representing a reduction of 1.44%.
Discover the latest financial and economic news, plus insight and analysis into the UK, and global markets. Stay informed with the breaking business headlines from around the world and across the spectrum of the Born2Invest mobile app and its business news section.
The CNMC “overreaches” by applying different traffic estimates
The main argument of the CNMC to impose this greater reduction is the difference in the estimate of passenger traffic for this year: the airport manager calculates a 1.1% growth – which has now increased to 1.9% – while the supervisor forecasts an increase of 2.7%. According to Aena’s criteria, the CNMC “exceeds the limits by applying different traffic estimates.”
On February 7th, Aena filed “two contentious administrative appeals against two resolutions of the CNMC of December 11th, 2019,” according to the public-private entity in its financial report. Aena intends to “challenge the scope of the CNMC’s competence” to “determine a different estimate or forecast of traffic based on its own sources.”
“Against the law”
In the report, Aena argued that in order to update the airport tariffs for 2020 and as the law dictates, it developed the consultation process with the airline associations during the months of May, June, and July. “Aena provided users and the CNMC with the information required by the regulations and with a proposal for tariffs which met the requirements laid down in the Airport Regulation Document (DORA),” it stated.
In this sense, Aena assures that the resolution of the CNMC “must be annulled” because it is “contravening the legal criteria for the determination of tariffs” by correcting the parameters based on the “pretensions of the Associations” of airlines -ALA, IATA, and ACETA- “even when they go against the provisions of Law 18/2014.”
“The contested resolution applies a series of IMAAJ establishment criteria that are openly and straightforwardly separated from Law 18/2014; which makes it necessary to correct them, in order to avoid the incorrect application of the Law and the distortions for future periods that could be derived from the application of the (arbitrary) criteria of the CNMC”, it stated in its financial report.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in vozpopuli, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Binance: Problems with Paysafe and SEPA – Customers Should Exchange Euro for Tether
It is known that Binance has problems with regulators in several European countries, including Germany. But the fact that support...
Qualitime Plans to Reach a Turnover of €11 Million in 2026
At the moment, Qualitime application has 1,800 registered visitors from the main laboratories in the country and about 400 health...
Peruvian Mining Companies Urged to Focus on Redouble ESG Certification Efforts
Experts recently said that the ESG certification of mining companies with operations in Peru will become increasingly important. They also...
Safeguarding Your Business Funds in Periods of Economic Uncertainty
The dust hasn’t yet settled from the 2023 banking crisis, and another closure could very well be right around the...
Audax, a Low-Risk ESG Company According to Morningstar Sustainalytics ESG Rating
In summary, Audax has demonstrated its leadership in sustainability and ESG performance by earning an "ESG Low-Risk Company" rating from...
Business1 week ago
Use This AI-Powered Money Saving App to Boost Your Finances
Markets4 days ago
Markets Heated Up This Past Week as Guidance from the Fed Was Bearish
Crowdfunding2 weeks ago
Out Of Raises €2.4 Million Through Equity Crowdfunding, in 2 Weeks
Fintech1 day ago
CNBV Calls for Unity in the Mexican Fintech Sector to Drive its Development