Public Services To Be Chargeable

A new Act concerning public utilities came into force on January 1st, 2004, which will be enforced within the CAA only from January 1st, 2005 following a statutory transitional period. The Act emphasises business principles and further clarifies the roles of commercial enterprises as managers of certain public sector services. The change may also be interpreted as emphasising the principle that air transport pays only for the services it needs. The aim is to fund public sector services on the client–supplier principle.

Public sector duties are those for which there is no market demand or obvious customer. The public duties of the CAA at present include assisting with regional control, certain general rescue duties, airport services for training activities and – to a certain extent – the maintenance of some financially unprofitable airports.

Under the new Act, the management of public services will be organized so that clients pay for the services they require. The client may be the government – a ministry, institution, local authority – or some other interested body. The CAA’s view is that if no genuine customer or willingness to pay emerges then the CAA will terminate the relevant service. Depending on definitions, we are talking about a sum of around six or seven million euros a year. To put this in perspective, the CAA’s annual turnover is about 220 million euros.

The changes ushered in by the new Act will, in the CAA’s view, improve competitive conditions for aviation against other transport operators but certain inconsistencies will remain to distort competition.