INTERLAKEN, Switzerland - Less than 10 years after the beginning of air transport liberalization (or deregulation) in Europe, the continent's regional airlines fear a return to what they regard as "the bad old days."

Proposals to rework procedures governing airport slot allocation and to modify air traffic service charges, and fear of environmental policies favoring larger aircraft are identified as major issues, with officials raising the specter of "re-regulation."

European Regions Airline Association (ERA) executives pledged at their 20th-anniversary assembly here on September 28-29 to participate fully in industry, airport and regulatory discussions and consultations to the more than 80 member operators. In return they emphasized that the airlines, which carry 70 million passengers a year, must support their initiatives.

Passenger growth among 29 ERA reporting carriers has averaged 10% during the first six months of 2000. But this growth trend disguises wide disparities across the membership: while one in six airlines has seen passenger numbers fall, 31% have enjoyed growth of more than 20% and a similar proportion saw an increase of between 11% and 20%. Load factors during January-June have grown by almost one percentage point over 1999's first half to 56.4%.

ERA statistics show members' aircraft being worked ever harder: in 1999 turboprop aircraft averaged more than 2,300hr utilization, while jets recorded over 2,700hr.

Increased use has been accompanied by increased delays. During January-June, only 56% of flights departed on time - a one-percentage point decline over the first six months of 1999, although departures within 15 minutes of schedule remain unchanged at 77%, says ERA.

Integration is key

The past 20 years have seen a major change in the provision of European air traffic services, according to ERA director-general Mike Ambrose. While States have been able to recover all costs from operators throughout the period, one factor that is different is that ATC delays have become unacceptable, says Ambrose.

ERA infrastructure and environment (IE) work group chairman David Quick reports that over half of the air-traffic centers currently responsible for delays will have insufficient capacity by 2003.

A major factor is the lack of integration: the 65 centers use 31 systems, operating 22 computer systems with 33 computer languages and made by 18 manufacturers.

"Europe is nowhere near having an integrated system," says IE director Barbara Ambrose. ERA is lobbying against proposed possible changes to the Eurocontrol charging formula, saying that the existing system works and represents the best compromise.

European Union proposals to revise airport-slot regulations would remove "grandfather" rights, impose a 10-year limit on new slots, and discriminate against small aircraft, according to Ambrose.

ERA air-transport policy director Andrew Clarke says that most of the European Commission's "radical proposals would not be in the interest of consumers."

He says that the three most significant EC objectives will not be met. Capacity will not be increased nor delays reduced because of inadequate analyses. Stability will not be maintained because the EC proposes to confiscate slots in mid-season where it perceives abuse or misuse. Also, incumbent carriers could lose existing slots.

On the question of competition from new entrants - the third objective- officials give a cautious "Yes, but..." response. Competition could be enhanced but "at the expense of existing or new services to Europe's regions."

Clarke points out that the proposals discriminate against small aircraft, and against new entrants if there is perceived to be comparable surface transport. ERA plans to evaluate the impact of the proposals and to provide lobbying material for use with national European governments.

Other issues debated

Regional airlines are vulnerable to environmental policies that might be used to increase aircraft size as a way to accommodate increased traffic, says ERA. Congestion has led to a scarcity of capacity and "some States are keen to use charging policies to manipulate the use of scarce capacity." The IE work group is pressing for better management of the central European air-traffic system. Proposed pricing mechanisms aimed at modifying existing air-traffic system charges would impose massive cost increases on almost all ERA member airlines, says the group.

ERA is also fighting gaseous emissions charges, which are applied at some airports in Sweden and Switzerland and which they fear could be incorporated into en route navigation fees. They argue that such charges are not an effective environmental-protection measure. The EC would prefer kerosene tax, while the ERA wants the EC to investigate emissions trading and voluntary agreements.