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The European Commission recently published a new package of measures for the air transport sector. Apart from reducing capacity bottlenecks at European airports and introducing new regulations on aircraft noise, it is also planned to improve quality and efficiency of ground handling services. This sector is notably very labour-intensive and employs about 60,000 people in Europe. However, the Commission’s new liberalisation plans come under strong criticism from labour representatives - wage dumping and cuts in social services are to be feared.
Airport ground handling services have been liberalised to a large degree since 1996. Every major airport now has several service providers. There are currently four service categories, i.e. baggage handling, ramp-handling services, fuel and oil handling and freight and mail handling, which according to the current Regulation are limited to two providers. This Regulation is now to be softened; in future airlines shall be able to choose between three service providers. However, experience has shown that the 1996 Regulation has worsened rather than improved the quality of ground handling.

The Commission indirectly admits this by stating that 70 % of delays are caused by problems on the ground. In doing so it does passengers a disservice. Yes, this will certainly increase competition, but at the expense of the quality of ground handling equipment and employees. As usual, once services have been put out to tender, the winner will be the provider who submits the cheapest offer, including the one, who saves the most on infrastructure and in particular on employee salaries. Whether wage dumping and cuts in the ground handling infrastructure will be able to guarantee the high degree of safety and reliability, which is essential for air traffic, must be seriously put into question.

Still, in its new Proposal, the Commission provides for minimum mandatory training for employees. With regard to tenders, a passage will be permitted, which provides for the requirement that successful undertakings are obliged to take over employees of the previous contractor. If the Commission gets its way, it will be the airport management, which in future has to assume the coordination of ground handling.

Since the Commission continues to write its legislative proposals with blinkers on, one can only hope that the Council and the European Parliament, who are now having their say, will come to the conclusion that more competition does not necessarily mean better quality and more efficiency, but that quite the opposite might be the case.