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Airport operator Hermes yesterday refuted the passenger levies cited by the International Air Carrier’s Association (IACA), saying the figures quoted were untrue and imaginary.
In a written statement, Hermes said that if the IACA really believed what they were saying, it was based on “wrong information” leading to “completely wrong conclusions and actions”.
Last week, the IACA, which represents 160 charter airlines, and IATA, the International Air Transport Association, which represents 250 scheduled carriers, accused the government of using tourists to pre-finance the island’s two new airports through unprecedented passenger fees.
IACA chairman Roland Taylor, who was on the island for a meeting with Transport Minister Harris Thrassou, said the new rates would make airport charges in Cyprus 50-110 per cent more than in other countries in the region.
The first set of new charges came into effect on April 1. By November, charges per passenger will have risen 77 per cent to 32 euros, Taylor said.
The IACA said the root of the problem was the 33 per cent return the government receives from Hermes as part of the deal. The organisation said it did not know of any other airports that had such an “excessively high” concession fee.
According to the IACA, with the 2008 passenger projections, 223 million euros would be taken in by Hermes in passenger taxes. From this, the Cyprus government would receive 73.6 million euros.
Hermes disputes all of the figures cited by IACA and IATA calling them “absolutely untrue, exaggerated and inaccurate”. The airport operator said charges were levied only on departing, and not arriving passengers.
“The total charges of £18.84 per passenger, which will be applicable after the increases to be effected in November 2007, relate to a return trip,” said Hermes. It said part of this amount was chargeable on departure and part on arrival of a passenger so the passenger is not charged with £18.84 on departure and another £18.84 on arrival.
This meant the total revenue for Hermes Airports Ltd from airport charges for 2008 was expected to be around €100 million and not €223 million that was reported by IATA and IACA representatives, Hermes said. “This amount is therefore imaginary and by far unrealistic,” the statement said.
“Consequently, the amount of €73.6 million that will allegedly be received by the government is again imaginary and unrealistic.”
It also said it was wrong to compare charges in Cyprus with nearby countries that were not members of the EU and which were subsidised. Greece and Malta were also higher than Cyprus, it added.
Hermes, which expects to have new airports up and running in Paphos and Larnaca in 2008 and 2009 respectively, has repeatedly said there was no way it could operate the current airports without improvements, which meant increasing fees. The new fees are “reasonable and justified” it said.
“Substantial improvements and quality upgrading in the provision of services have been made at the existing airports, while construction works at Larnaca and Paphos airports are progressing rapidly,” the company said yesterday.
It listed a number of areas where improvements had been made, such as additional conveyor belts, the renovation of departure and arrivals areas, improvements at the duty free, new toilets, security equipment, runway and parking improvements.
“It is clear that Hermes Airports Ltd, in the short period of time that it has been operating the airports has spent and it is continuing to spend large amounts for the improvement and upgrading of the quality of service of the travelling public,” the statement said. | 
