Airports Charging Airlines: Understanding The Complex Payment System

Airlines incur a variety of expenses to ensure their aircraft can take off and land at airports. These expenses are ultimately passed on to the passengers through ticket prices. Airports charge airlines for the use of their facilities, including runways, gates, and terminals. These charges are typically based on factors such as aircraft weight, number of seats, time of day, and operator class. Additionally, airlines must pay landing fees, ground handling fees, and government taxes. The rates charged by airports vary, and signatory airlines that have signed lease agreements may receive discounts on certain fees.

Landing fees

The rates for landing fees are set based on the airport's operational costs, and these rates can vary significantly between airports and countries. For example, in 2016, the Cost Per Enplaned Passenger (CPE), which includes landing fees and other charges, was $25.45 at JFK Airport and $10.10 at SEA Airport.

In addition to landing fees, airlines must pay various other charges and taxes, such as government taxes, overflight fees, and ground handling fees. These charges are often incorporated into the price of airline tickets, along with carrier-imposed fees and airport charges.

Gate fees

While gate fees are usually part of landing fees, there are instances where airlines may incur additional gate-related charges. For example, signatory airlines (those with lease agreements or cargo airlines with a set number of weekly flights) may rent gate space as part of their lease agreements. However, if they require additional gates due to increased flights or new destinations, they will be charged for the extra gates. Signatory airlines may be charged around $350 per turn for an extra gate, while non-signatory airlines may pay closer to $600 per turn.

The cost of maintaining the terminal is typically included in the lease fees for signatory airlines. On the other hand, non-signatory airlines are required to pay terminal usage fees, which are calculated per enplaned passenger. For instance, an airline with a departing flight of 150 passengers may pay around $1050 in terminal usage fees.

It is important to note that the rates charged by airports can vary. Airports set their rates based on their operational costs, and signatory airlines often receive discounts on most fees. Additionally, rates may differ for domestic and international flights, with charges per passenger for landing and passenger facilities.

Ground handling fees

Ground handling costs differ depending on the airport, time of day, and the equipment required. For example, at Dubai (OMDB) and Stansted (EGSS), the cost of parking on the airport-controlled ramp areas is much higher than on the ground handler GA ramp. Certain locations impose surcharges for after-hours and late-night operations, especially if the ground handler does not normally operate at that location. In many cases, the handling charge will depend on the time spent on the ground.

Handling costs also vary by the size of the aircraft, the services needed, and any services required outside of normal operating hours. For example, a large or wide-body aircraft operating at a smaller airport may require the ground handler to rent specific ground support equipment (GSE) such as an LD6 loader, ground power unit (GPU), and/or stairs for the aircraft. This equipment may need to be brought in from another airport, incurring additional costs.

In addition to ground handling fees, there are also various other airport fees that airlines must pay, including landing fees, gate fees, terminal usage fees, and de-icing fees. These fees can vary greatly between airports, with the CPE (Cost Per Enplaned Passenger) at JFK in 2016 being $25.45, compared to $10.10 at SEA, and $7.20 at an unnamed airport.

Overflight fees

Some countries, like Afghanistan, charge a flat fee for overflight, while others, like China, require an overflight permit in addition to a fee. Canada calculates its overflight fees based on a combination of weight and distance, with a higher rate for foreign-registered aircraft compared to Canadian-registered ones.

The cost of overflight fees can vary depending on factors such as the aircraft's weight, distance travelled, and the number of passengers. These fees are usually incorporated into the price of an airline ticket and passed on to the relevant government bodies.

Taxes

Government taxes are an integral part of the fees levied on airlines by airports. These taxes are determined by the respective governments and are often incorporated into the price of airline tickets, subsequently passed on to the relevant government bodies. The UK, for instance, has one of the highest tax rates in this regard, with its Air Passenger Duty (APD) levied on top of other applicable taxes.

Landing fees are another significant expense for airlines, and they are often included in the package of charges associated with aircraft landing and take-off. These fees can be based on various factors, including the weight of the aircraft, the number of seats, the time of day, the operator class, and the home airport. Some airports may also implement landing fees as a strategy to discourage certain types of aircraft or operators from utilising the airport facilities.

In addition to landing fees, airlines are subject to various other charges when using airport infrastructure. These charges may include fees for the use of runways, taxiways, gates, parking, hangars, and passenger terminals. Airports may also levy surcharges or rebates for factors such as noise, peak-hour operations, and extended parking durations.

The rates charged by airports are influenced by the organisation managing the airport, as well as the state or local administration. The International Civil Aviation Organization (ICAO) provides recommendations and guidelines to standardise airport charges and ensure non-discrimination against airlines. Despite these efforts, challenges remain in achieving consistent application, particularly within the European Union.

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