With passenger traffic in 2020 only a third of what it was in 2019 (70 million in 2020 compared with 214 million in 2019)France's airports are getting ready to fight back. A recovery that will not be so easy according to Thomas Juin, Chairman of the Union of French Airports UAF. Airports face a number of challenges: high fixed costs, and higher taxes than elsewhere in Europe. Added to this is a growing public distrust of air travel, which is stigmatised as the polluter to be destroyed.
" We...
With passenger traffic in 2020 only a third of what it was in 2019 (70 million in 2020 compared with 214 million in 2019)France's airports are getting ready to fight back. A recovery that will not be so easy according to Thomas Juin, Chairman of the Union of French Airports UAF. Airports face a number of challenges: high fixed costs, and taxation that is often higher than elsewhere in Europe. Added to this is a growing public distrust of air travel, which is stigmatised as the polluter to be destroyed.
" We have cut back on everything possible to reduce our costs. But if airlines are more agile because 70% of their costs are variable charges, airports have fixed charges representing 80% of their costs, "explains Thomas Juin. The UAF President is therefore calling for a re-evaluation of airport charges. " We would like the French government to step up to the plate on the security tax. This is a government task that airports have taken on through the airport tax. But with the collapse in traffic, revenues have fallen. But it's a huge fixed cost that hasn't changed, "he adds.
Making French air transport more competitive in Europe
It is true that the State has granted advances in the form of credit, but these are insufficient in the face of current uncertainties. Uncertainty is in fact the quarantines imposed by the States. " It is illusory to consider any recovery until the quarantine problems have been resolved. We're a little more optimistic about the idea of a digital health certificate. It is clearly the tool that governments need to agree on a guarantee to resume travel while limiting the risks, "analyses the UAF President. According to the UAF, France cannot afford to miss out on a recovery this summer.
Another aspect that is handicapping airports: very high taxes for airlines flying into France. And therefore harmful to the recovery. " We are facing a unprecedented destruction of aerial connectivity built up over the last thirty years. Admittedly, it will take less time to get it back, but taxation is a real issue.says Thomas Juin. According to figures produced by UAF, the countries with the smallest improvement in connectivity between 2009 and 2019 are those that tax airlines the most heavily. This is the case not only in France, but also in the UK and Germany.
Between 2009 and 2019 direct connectivity from France improved by 8.9%19% in Spain, 17.5% in Italy and 20.9% in the European Union. The same applies to indirect connectivity - i.e. routes offered via a third-party airport. Lhe French economy grew by 18.21TP3Q over the period 2009-2019. However, this figure is well behind Spain's 43.8%, Italy's 30.1% and the EU's 50.5%.
According to the UAF, it will take two years to rebuild the country's connectivity. However, airlines have drastically reduced their offer and we can expect greater selectivity in the future when they densify their networks. " They will be looking at two important elements: passenger potential and taxation. Too wide a tax gap will have a formidable effect, as companies will want to rebuild their profit margins as quickly as possible." says Thomas Juin. Especially as he predicts a rapid rise in the popularity of low-cost carriers.. Who are particularly sensitive to tax incentives...
The citizens' convention against air transport
Finally, UAF is concerned about the new law on ecological transition. " We consider the philosophy of this law resulting from the citizens' convention is ineffective and inappropriate. We all agree at UAF that aviation must reduce CO 2 emissions. We have a number of initiatives in this direction, such as alternative fuels. We are also considering a bonus/malus system for airlines with the latest generation of less polluting aircraft.underlines the UAF President.
But for UAF, the law actually treats air transport as a problem. " Emissions are the problem. By banning airport expansion, imposing additional taxes or reducing domestic flights, we are denying aircraft their economic role. It is unreasonable to believe that trains will totally replace planes. That's not the truth, especially when it comes to region-to-region connections, "analyses Thomas Juin.
All these factors will obviously influence the way travellers will travel in the future. The UAF expects traffic to pick up again this year in early summer. " There's no doubt that people want to travel. In the short term, however, we will have to deal with the issue of supply attrition with fewer aircraft in the fleet" says Thomas Juin. All that remains now is to hope that the French government will be receptive to the airports' demands.
