Dutch regulator faces backlash following rejected complaints by airlines, industries regarding AMS charges

This story has been updated with comments from AMS. The Dutch Authority for Consumer & Markets (ACM) last week rejected complaints made by airlines and industry organizations like Air Cargo Netherlands (ACN) and the Board of Airline Representatives in the Netherlands (BARIN) regarding the recent increase in charges at Amsterdam Airport Schiphol (AMS), leading industry stakeholders, including KLM, to lodge additional complaints over the price hike. A 37% increase in fees, divided into 9%, 12% and another 12%, respectively, will be implemented at AMS over a three-year period spanning between 2022 and 2024. The first increase went into effect April 1, according to the Dutch regulator. [caption id="attachment_67136" align="alignright" width="365"] Cargo is loaded onto the main deck of a freighter at Amsterdam Schiphol (AMS). Photo: AMS[/caption] ACM, which regulates airport charges, decided the proposed price increases were “not unreasonable,” following complaints filed by 10 airlines and three trade associations, according to an April 24 statement. The additional fees, which were initially announced in October 2021 , are to help settle any financial losses incurred at AMS due to the COVID-19 pandemic. The Dutch regulator noted “the distribution that Schiphol used is in line with the cost-oriented pricing principle laid down in the Dutch Aviation Act.” AMS’ financial settlement was lowered to 45 million euros following the regulator’s preliminary findings. ACM’s objection to the filed complaints is a “major disappointment,” Maarten van As, managing director at Air Cargo Netherlands, told Air Cargo World . “Parties involved are preparing an appeal to the Court of Appeal for Business as [they] think the ACM interpretated the Dutch Aviation Act too strictly,” van As said. “In this way, this Act protects monopolist Schiphol [from] whatever happens. This is the only thing we can do at this moment as Royal Schiphol Group only focuses on their financial indicators.” Carrier KLM and its affiliates were among the “extremely disappointed” parties and plan to lodge an appeal against the decision with the Dutch Trade and Industry Appeals Tribunal (CBb), according to an April 21 statement from the carrier. The carrier had initially filed a complaint in November 2021 on behalf of KLM Cityhopper, Transavia, Martinair and Air France. Like ACN, KLM views Dutch regulator’s interpretation of the Aviation Act as “extremely strict,” according to the statement. “The ACM does not protect the users against excessive charges by the monopolist Schiphol (the original purpose of the Aviation Act), but instead shifts all of the monopolists’ business risks that have arisen during the COVID period on to the airlines,” the carrier noted in the statement. “There is no alternative infrastructure of this scale in the Netherlands. Airlines are therefore forced to purchase their services from Schiphol.” However, Schiphol sees ACM's decision as confirmation that the rates have been set correctly, an AMS spokesperson told Air Cargo World . " The rates are the result of careful consultation with the airlines," the spokesperson said. "In doing so, we keep an eye on the balance between Schiphol's competitive position and financial health and the importance of sustainability. Schiphol will provide the requested additional information on two initiatives from the five-year investment program." Alternative options The International Air Transport Association (IATA) is also considering an appeal of the decision, noting that other airports have provided examples of ways to protect consumers. For instance, Directorate General of Civil Aviation calculated that Spanish airport operator AENA had sufficient cash reserves to cover the losses imposed by COVID-19, and would benefit from the strengthening return of traffic, according to an April 26 statement by IATA. “Schiphol is in a similar situation, and the regulator should be similarly robust,” IATA said. Prior to the pandemic, AMS reported 742 million euros of dividends between 2015 and 2019, and has “several options” to help finance short-term losses. However, the regulator noted that if Schiphol were to handle the costs itself, the difference would ultimately be paid for by taxpayers as the Dutch state and the municipality of Amsterdam are the airport’s largest shareholders. In addition, Schiphol has announced higher costs for the use of the Cargo Port Community System (Cargonaut), ACN’s van As said. Fees are expected to increase by 3% in 2023, 5% in 2024 and another 3% in 2025. While AMS continues to work on an innovative new cargo strategy that focuses on digitalization, sustainability and accommodating for scarce capacity and landside congestion, van As noted that the increased charges are a “very one-sided cost discussion [that] might damage the strong hub position of Schiphol airport.” AMS ranked No. 16 in Air Cargo World ’s most recent Top 50 Cargo Airports ranking, based on 2020 tonnage. In March AMS saw a 16.3% year-over-year increase to 128,198 tonnes of cargo. The Air Cargo Tech Summit, the new airfreight logistics event presented by Air Cargo World , will take place LIVE in Miami from June 6-7. Learn more and register here.

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