air transport economics

Air Transport Economics

In the HCAA’s regime, the Air Transport Economics domain plays a vital part in regulating the aviation industry so as to realize the efficient performance of the market.

Air Transport agreements. Bilateral and multilateral air service agreements provide the basis for airlines of the countries involved to provide international air services.

Traffic Rights. The traffic rights between two countries are regulated by the Air Transport Agreements. The allocation of air traffic rights is carried out in order to select the air carriers to be designated for air carriage between two countries.

Airlines Economic Licensing. Any airline that plans to provide commercial services must obtain a so called “commercial operating licence”. Following the initial application, HCAA reviews the financial and economic state of licensed air carriers in order to assess, on a continuous basis, that the financial requirements given by the law are satisfied.

Public Service Obligations (PSO). Public Service Obligations routes are considered necessary to provide air connection to remote or rural communities, but which are unlikely to be profitable on a commercial basis. The imposition of PSO air services within Greece has ensured appropriate levels of air service, having made a significant contribution to the lifting of isolation and to the enhancement of the development of the regions concerned.

Regulated Charges. These charges help to incorporate the four key charging principles of non-discrimination, cost-relatedness, transparency and consultation with air transportation users. Regulated charges are Aeronautical, Non-Aeronautical, and Air-Navigation charges.

Concession Agreements. Between the Greek State and “Athens International Airport”, “Fraport Greece” and the “New International Airport of Heraklion Crete”, a number of Concession Agreements have been ratified for the Development, Construction, Operation and Maintenance of airports.

Air Navigation Services Performance Plan. An independent Performance Review System covering all aspects of ATM in the ECAC area “has been established to put greater emphasis on performance and improved cost-effectiveness, in response to objectives set at a political level”.

Facilitation.  In order to ensure the unimpeded flow of international traffic (passengers, cargo and mail) through the Greek airports, HCAA in close co-operation with State and private entities, secures the application of ICAO and EU legislation on Air Transport Facilitation. In this scope, a significant importance, among others,  is given to the infrastructure and the procedures regarding the travel of Persons with Reduced Mobility (PRMs).