Subject: Aviation User Charges

Approved: February 20,1985
Revised: October 3,1987
Revised: May 6, 1999
Revised: October 13, 2000
Preamble

The costs of providing air navigation services and airports are recovered from users as user charges, fees and/or taxes. Business aviation is therefore directly affected by the related policies of ICAO, States, Regional bodies, Air Navigation Service Providers and Airport Authorities/Operators.

Charges for the provision of other services e.g. Customs, Immigration and Security are also of concern to business aviation.

The objective of IBAC Policy is to achieve fair and equitable treatment of business aviation.

Policy

It is IBAC policy :

With respect to Non-discrimination

Charges should not discriminate against civil aviation, including in relation to other modes of transportation.

With respect to Revenue Appropriation

The revenue generated from charges, fees and/or taxes imposed on aviation users is for the benefit of civil aviation and should not be used for any other purpose.

With respect to Cost-based Principle

Charges should be cost- based for those aeronautical facilities and services which have a direct relationship with, and specifically benefit civil aviation operations. The cost base must be determined using sound cost accounting methods, be transparent and available for user scrutiny.

With respect to Public and Socio-economic benefits

Civil aviation is important for society, therefore facilities and services should not be addressed in isolation but as part of a State’s national or regional transportation systems policy. Funding for civil aviation infrastructure should therefore be supported by general revenues collected by the State or region.

With respect to Government Responsibilities

Governments should refrain from imposing charges for services which are their primary responsibility viz. for security, immigration and customs.

With respect to Consultation

Charges, including increases thereof, should be imposed only after consultation with users, including business aviation .

With respect to Cost allocation

IBAC accepts the principle that the users of various aviation facilities and services should pay charges based on a pro rata, allocated and reasonable share of the costs of providing and operating such facilities and services.

With respect to ICAO Policy

IBAC supports the policy guidance for States approved by the ICAO Council which is published in ICAO Document 9082 “ Statements by the Council to Contracting States on Charges for Airport and Air Navigation Services.”

IBAC urges States to adhere to these Statements.

With respect to Economic Regulation

Commercial, including Privatized entities, when such exist, such as Air Navigation Services Providers or Airport Operators, with monopoly status and imposing charges on users should be within the jurisdiction of a national Competition Bureau, Monopolies Commission or equivalent body.

With respect to Search and Rescue

Search and Rescue (SAR) Services are a humanitarian obligation of States, for the benefit of society as a whole. Therefore SAR costs should be financed by public funds.

With respect to Aerodrome Rescue and Fire Fighting Services

The availability and extent of Aerodrome Rescue and Fire Fighting Services (RFFS) should be determined on the basis of an overall risk assessment/risk management process in consultation with operators. The provision of RFFS should be subsidized from general revenues.

With respect to En-route Charges

The use of aircraft mass as an inversely proportional factor in the computation of charges, although intended to ensure that large aircraft are not treated inequitably, has the effect of under-recovering from users with the ability to pay and who generally derive higher value from the services provided.

Source of Policy: (1) Original, Governing Board, Montreal, February 19-20, 1985

(2) Revision, Governing Board, New Orleans, October 2-3, 1987

(3) Revision, Governing Board, Montreal, May 6-7, 1999

(4) Revision, Governing Board, New Orleans, October 13, 2000