Airlines and passengers are facing higher costs to help struggling service provider National Air Traffic Services (Nats) recoup losses incurred during the pandemic and improve aviation safety.
The Civil Aviation Authority (CAA), the UK’s aviation regulator, has confirmed that NATS can charge airlines £64 per aircraft, an increase from the current price of £47. Costs are calculated from this year to 2027.
This means the average cost of UK air transport services per passenger per flight will rise by an average of 43 pence to around £2.08, the CAA said, adding that adding new prices would ensure the quality and safety of the service.
Airlines, which largely pass on costs to customers by raising ticket prices, reacted angrily to the hike, calling it “another kick in the teeth” for passengers.
NATS was embroiled in controversy after its secure surveillance system for aircraft in UK airspace unexpectedly went down in August, leading to thousands of flight cancellations and delays across the UK and Europe.
The airlines told MPs that the failure, which is now the subject of an independent investigation, cost them millions of pounds in passenger compensation which they believe they should be compensated by the National Authority and ultimately taxpayers.
Ryanair boss Michael O’Leary criticized Nats for the collapse of the system, saying it was synonymous with regulatory incompetence and mismanagement. He said the boss should resign or be fired.
The CAA said the issue of investigating the new allegations arose before the Nats’ loss in August and was not relevant to the review and investigation of the incident. It is reported that the investigation into the incidents is still ongoing.
Tim Alderslade, chief executive of aviation lobby group Airlines UK, said: “This is another blow for passengers who have faced problems this summer, including the National Security Service IT system failure in August, and who will inevitably face millions in bills pounds for an increase that simply cannot be justified, while it remains unclear what measures will be put in place to ensure this failure does not happen again for airlines and their customers.
“Clearly a wider independent investigation into how NATS is regulated is needed to protect passengers and ensure that airlines are not always forced to act as insurers of last resort and incur millions of pounds of costs. To suffer failures that are not their fault. .” . »
The CAA said prices between 2015 and 2019 are expected to remain below average pre-pandemic levels and broadly in line with European peers in the UK.
Andrew Walker, CAA’s chief economist, said the charges would “provide the resources and investment needed to deliver a consistent, high-quality passenger experience and modernize services” and help address the challenges caused by the pandemic, contain and recover losses.
He said price controls were aimed at ensuring “efficient service and value for money”. “Implementing productivity, efficiency and environmental sustainability targets will help create an improved airspace system that benefits everyone,” he added.
“We are also aware of the disruption caused by a technical issue in August and will consider further regulatory action following the results of the independent review.”
A Nats spokesperson said they are reviewing the CAA’s final decision.
Source: I News
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