NMa is consulting stakeholders about investigation into dominant position of Amsterdam airport Schiphol

Starting today, the Netherlands Competition Authority (NMa) is consulting with relevant stakeholders about its conclusions on the dominant position of Amsterdam Airport Schiphol (Schiphol). As requested by the Dutch Ministry of Transport, Public Works and Water Management, the NMa has investigated whether Schiphol has a dominant position on one or more markets for aviation activities and for activities closely related to aviation activities.

In addition, the NMa has examined what qualitative reasons can be found that would justify the continuation of sector-specific regulation on the market(s) in question, such as, for example, the risk of abusing the (possible) dominant position. The investigation itself was conducted by German Aviation Performance (GAP), a research collaboration between various German universities. The consultation about the investigation's findings will close on March 26th, 2010. The Ministry of Transport, Public Works and Water Management will take into account the final conclusions in its evaluation of the Dutch Aviation Act.

The NMa has identified three different types of activities: (1) aviation activities, (2) activities that are closely related to aviation activities, and (3) other non-aviation activities. The NMa has provisionally ruled that sector-specific regulation of tariffs and conditions for aviation activities is still justified because of the current market situation of Schiphol. After all, there is a genuine risk of Schiphol abusing its dominant position on the market for these activities. Aviation activities include the activities of Schiphol offered to airlines, such as activities related to aircraft take-offs and landings, aircraft parking, passenger and baggage handling, and passenger and baggage security activities, including customs and immigration facilities. According to the NMa, competition oversight under the Dutch Competition Act would not be enough here, since this often involves protracted proceedings, and it only allows intervention after the abuse has already taken place.

With regard to the activities closely related to aviation activities, the NMa advises to introduce sector-specific regulation on the provision of access to the infrastructure for ground-handling services. This involves possible access fees that Schiphol could charge companies offering passenger-handling services, freight and mail services, and aircraft-handling services. In practice, this would hardly change current regulation, since Schiphol does not currently charge such access fees. However, the NMa believes it would better dovetail with the total regulatory system, which currently does include access fees for fuel supply and catering. Furthermore, all of the costs of these ground-handling services fall under the current regulation, so it would only be more correct to have any revenues fall thereunder as well. Moreover, such a regulatory amendment would lead to little to no additional regulatory costs.

With regard to another activity that falls under the activities closely related to aviation activities, which is the rental of operationally necessary spaces, the NMa believes that sector-specific regulation is undesirable. This concerns, for example, spaces for employees and storage. The NMa is of the opinion that general competition law would suffice here – same goes for other non-aviation activities, such as parking and rental of retail space.