NMa has reduced pilotage tariffs

The Netherlands Competition Authority (NMa) has set the new 2010 tariffs for registered pilots. These new tariffs are 4.1 per cent lower, or almost €5 million, than the tariffs that the Dutch Pilots' Corporation (NLc) had initially proposed. The NMa believes that registered pilots are able to increase efficiency without sacrificing quality. Customers will see an average price reduction of 2.75 per cent next year instead of a price increase had the NLc's initially proposed tariffs been adopted. These efficiency gains can be achieved, for example, by reducing the amount of availability hours and adjusting them to falling demand for registered pilots. Tariff reductions benefit not just the transport companies (the customers), but also those who buy the products that are transported (the consumers).

Dutch registered pilots are small-business owners that have a monopoly position. The Office of Transport Regulation of the NMa therefore regulates the tariffs that registered pilots charge their customers. Earlier this year, NLc proposed a tariff increase of 19.3 per cent, which was eventually reduced to 1.36 per cent. In addition, NLc was asked to adjust its sales projections in line with the recovering economy, and also to correct a computational error. In addition, the NMa indicated it wanted to keep the tariff surcharge for financing the pre-pensions scheme low. The efficiency gains will result in tariffs be further reduced. Next to scaling back the availability hours (overcapacity), overhead costs are not allowed to increase (compared to 2009), because any overhead costs' increase is not compensated by efficiency gains or quality improvements.