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Rethinking the business model of low-cost airlines

By #!31Thu, 25 Jan 2024 07:38:00 +0100p0031#31Thu, 25 Jan 2024 07:38:00 +0100p-7Europe/Paris3131Europe/Parisx31 25am31am-31Thu, 25 Jan 2024 07:38:00 +0100p7Europe/Paris3131Europe/Parisx312024Thu, 25 Jan 2024 07:38:00 +0100387381amThursday=94#!31Thu, 25 Jan 2024 07:38:00 +0100pEurope/Paris1#January 25th, 2024#!31Thu, 25 Jan 2024 07:38:00 +0100p0031#/31Thu, 25 Jan 2024 07:38:00 +0100p-7Europe/Paris3131Europe/Parisx31#!31Thu, 25 Jan 2024 07:38:00 +0100pEurope/Paris1#Airports

Reconfiguration of the Tariff System at Toulouse-Blagnac Airport

In light of a recent resolution by France's highest administrative court on December 21, 2023, the French transport sector's supervisory body, the Autorité de Régulation des Transports (ART), is being urged to reassess the application of a brand-new baggage tax scale within the Toulouse-Blagnac stopover. Revealed by Contexte on January 5, 2024, the ruling suggests that the measure mainly benefits discount carriers.

An Advantageous Tariff for Economic Operators?

Since the beginning of April 2022, the entity in charge of managing this airport has opted for a tariff system based on the use of facilities linked to baggage sorting and traceability. This initiative means lower costs for airlines that limit the transport of checked baggage.

This is a direct advantage for low-cost carriers, which favor short- and medium-haul routes with fewer baggage items. Smaller French airlines, such as Air Antilles, Air Corsica and ASL Airlines France, take a dim view of this. United under the banner of the Syndicat des Compagnies Aériennes Autonomes (Scara), they appealed to the Conseil d'Etat in March 2022 to contest this decision.

Arguments against the New Tariff System

  • The costs of baggage sorting services are normally included in the passenger tax, given the essential nature of these services for airport operations, regardless of the quantity of baggage.
  • The existence of significant fixed costs and minimal variable costs for these services makes it difficult to justify an additional tariff based on the volume of baggage handled.

The reversal of the ART's decision by the Conseil d'État on December 21, 2023 marked a turning point, particularly hotly debated among the shareholders of the Toulouse stopover.

Consequences for local quality of life and the airline business model

The vice-president of the Collectif Contre les Nuisances Aériennes de l'Agglomération Toulousaine (CCNAT), Jérôme Favrel, has expressed concern about the transformation of Toulouse-Blagnac into a hub for low-cost carriers. This change, he says, has a seasonal impact on traffic and increases nuisance for local residents seeking peace and quiet during the winter months.

Low-cost carriers such as Ryanair, Volotea and EasyJet have recently been criticized for failing to comply with the night-time schedules imposed by Toulouse-Blagnac airport. A June 2023 report by the French Airport Nuisance Control Authority (ACNUSA) confirms a notable deterioration in punctuality, leading to adverse effects for neighboring communities and residents.

This makes it imperative to rethink the business model adopted by low-cost airlines, in order to balance price competitiveness with the needs and well-being of small airlines and the local communities affected.

Emeline Dudoura

Hello, my name is Emeline and I'm 44 years old. After having been a flight attendant for many years, I'm currently retraining. Passionate about service and discovery, I'd now like to put my skills at the service of new professional opportunities. Welcome to my website!

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