Interview

Interview with... Stefano Paleari - Direttore Scientifico ICCSSAI

Direttore Scientifico ICCSSAI


[Cleared n°6 - anno XIII - June 2015]

Interview with... Stefano Paleari - Direttore Scientifico ICCSSAI

 

In the last few years, ENAV has implemented a tariff policy that could facilitate low traffic airports. Can you comment on the role of these airports within the air transport system? 

First, we need to recognize that air transportation has grown up in the last decade, at least in Italy. This is why we need to give credit to all the players and the institutions involved. Underlying this issue, let’s say that for some time now we have been discussing the role of low traffic airports not only in a national context, above all for those airports that are important for local area  connectivity in backward zones or at the margins of the catchment areas of large airports. The European Commission has also issued guidelines to manage co-marketing incentives for airlines, which apply essentially to small airports in search of new traffic. In this context, I think that ENAV’s tariff policy has contributed to keep costs low for these airports and this has certainly been positive. However, this cannot be carried out in isolation. Greater thought needs to be given to the sustainability of the smaller airports. It can’t be a top-down regulatory solution, unless the aim is to start a process. Specifically, we need a European reference point - let’s look at what France and Germany are doing. We also need to do something to lower the break-even point - our fixed costs are too high - and increase the pulling power of small airports, through incentives to group together. The players need to stick together and the legitimate local interests need to take a step back.

 

Handling companies are important players in the air transportation field. How do you think they can influence the system, overall, in the immediate and near future?

Ground operations have always been one of the most critical factors of the air transport industry, thus efficient and effective airport management is instrumental in sustaining the entire system. Given the socio-economic context of continuous growth in traffic, especially with the push from low cost carriers and the increasing tendency of Italians to travel, airports must continue to invest, modernise infrastructure and integrate increasing amounts of new technologies.

As an engineer, I believe that airports are large laboratories for new technologies. They are a blend of advanced industry and services. Liberalisation of the European air transport market has changed the framework in which airlines and airport management companies interact and has transformed aviation into one of the most highly competitive sectors. Airports are a vital part of the aviation system and have an increasingly important role in the economy.

Policies for reinforcing airport infrastructures are therefore a decisive factor in ensuring competitiveness of a territory. A lot needs to be done. Italy invests too little per passenger, in comparison to Europe in general, and airports also now need to be conceived for an aging population that travels and cannot go long distances without help. Undoubtedly, airport management companies impact the system. In other words, their ability to plan and implement new infrastructures on schedule is a key factor in the competitiveness of the country as a whole. But we cannot overlook laws and authorisations. And speed is the foremost factor in competition. Continuous synergy between regulatory and supervisory authorities with airport management companies and a match between timing and the needs of the market are therefore essential.

 

 Are airports ready for the challenges of the future? How do they need to improve?

With all that has been happening lately, it goes without saying that we need to be prepared for future challenges. The market is now mature and it is a mass market, with growing demands and extreme volatility. I imagine airports as the engines of new development, both sustainable and integrated with the territory. I recently spent time at the Max Planck Institute in Berlin. I studied this thoroughly and was able to confirm that development depends on being attractive. The starting point for this is accessibility and quality of service. In other words, the way you arrive somewhere and how you are welcomed. Much is happening in Italian airports, but there is also lots of concern regarding all the obstacles we need overcome, in order to get things done. However all this is relative and I think that airports are the vanguard of our country, just like the high-speed railway infrastructure. Then there is the weak link of intercontinental connectivity and our country needs to take more responsibility. The answer to Brexit is new connection opportunities, not fear.

 

In a few days ICCSAI, l’International Center for Competitiveness Studies in the Aviation Industry, of which you are Research Director, will present the ICCSAI Fact BOOK 2016 – can you give us a glimpse?

Each year, the data we gather and process from Enac, ENAV and other institutions, gives us new information. For example, I am convinced that we need to rethink forecasting models regarding demand. Last year, passenger traffic grew by 4.3% and freight by 5.6% whereas the GDP grew by 0.8%. Furthermore, we are different from Europe with positive characteristics as well. Italy is a country of “niche” airports and as well as “capitals”. Thirdly, the main carriers now carry more than 100 million passengers, more than twice as many as 10 years ago.  It is thus understandable that airports try to aggregate. The concept of “natural monopoly” needs to be updated with these new characteristics. Fourthly, Italy needs to work on long-range routes, freight and sustainability of smaller airports. The Italian Ministry is working on these topics and the Fact Book presents the relevant analytical data, which is after all the job of a research centre such as ours. We are independent and at the service of the different players in the sector.