• 

  TAP Air Portugal

  IATA/ICAO Code:

  TP/TAP

  Airline Type:

  Full Service Carrier

  Hub(s):

  Lisbon Airport

  Year Founded:

  1945

  Alliance:

  Star Alliance

  CEO:

  Luís Rodrigues

  Country:

  Portugal

For the third time this year, airport operator Aeroportos de Portugal (ANA Airports) wants to increase regulated fees across the country's national airports. The increase will be at an average of approximately 10.81% from February 1st next year, and flag carrier TAP Air Portugal is anything but pleased.

Aeroportos de Portugal cites 'high inflation curbs'

As mentioned, this is not the first time that ANA Airports has intended to increase regulated costs across the airports this year. The most recent happened on September 13th, when an additional €3.54 ($3.53) was charged per passenger embarked, regardless of their destination. The €3.54 was already a 20% increase compared to the first change of the year in February, which was an additional €2.95 ($2.94) per passenger embarked.

According to ANA Airports then, the reasons for increasing the fees in September were due to how the additional amount would provide security services related to civil aviation, such as future installation, operation, and maintenance of vital systems for checking baggage. The February and September revisions were approved by the National Civil Aviation Authority (ANAC) reasonably quickly.

However, this latest revision would require passengers to pay slightly more from February next year. The values proposed by ANA Airports would represent an increase per passenger of approximately 35 cents in the Azores region, 79 cents in Madeira, 81 cents in Porto, 80 cents in Faro, and €1.53 ($1.53) in Lisbon. If anything, the latest revisions are quite a jump, but ANA Airports said it is for traffic, ground handling, and baggage handling.

Furthermore, ANA Airports states that the revision for 2023 already aligns with the new model provided for in the contract with the State, which is set to prolong until the end of the concession period in 2062. Putting it simply, the economic regulation formula of the concession contract will remove the contributions of commercial revenues in the future calculation of fees to ensure that airport charges remain slightly above inflation as a curbing measure.

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TAP views the revision as 'unjustified'

In light of the latest revisions, it's not surprising that TAP Air Portugal felt grave concerns over the airport charges sought by ANA Airports. The flag carrier believes the costs are disproportionate, especially considering how Portuguese airports have lacked significant investments in recent years. And given how chaotic Lisbon Airport has been for airlines and passengers as of late, the sudden €1.53 hike seems unjustified.

Even before the previous two revisions, TAP noted that the fees charged for even passengers on domestic flights between Portuguese airports were significantly higher than passengers charged at other European airports and hubs of other leading European airlines competing with TAP. If ANAC approves the recent revision, TAP foresees it would be detrimental to Portugal's aviation industry.

With airlines already feeling the financial pinch from surging jet fuel prices, offsetting the increased airport charges would require higher costs being passed down to passengers. In a statement, TAP emphasized the consequences, saying:

"The increases will contribute to worsening the economic situation of TAP Air Portugal, the main customer of the national airports, and the passengers in general. Especially the Portuguese passengers who are living in the autonomous regions."

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Bottom line

Indeed, the increased airport charges would eventually be passed down to the passengers, meaning they would pay much closer to an additional €4 ($3.99) at the least and more than €5.05 ($5.03) if the revisions were approved. In a way, the competitiveness of Portugal as a tourist destination could be reduced due to the alarmingly increased prices, and airlines such as TAP could continue to suffer the consequences.

Still, the Star Alliance member airline will be willing to play an active part in the consultation process launched by ANA Airports and will inform the ANAC and other relevant authorities of its definite rejection of the increased charges. The airline will also emphasize the need to find a different approach concerning airport charges that can work as a competitive factor for the Portuguese economy.