Algarve MP slams airport operator over new car rental fees

airportdropoffAlgarve MP Cristóvão Norte has denounced the commercial behaviour of airports operator ANA in its dealings with car rental companies.

Norte, an Algarve PSD MP, said today that the "predatory practices" of ANA against rent-a-car companies constitute an "abuse of its dominance."

At issue is a new rule devised by ANA to start charging a fee of €10 to €17 per car rented to customers at the airports that the French group runs in Portugal.

The regulation from ANA is scheduled to start on April 1, 2014,  according to information released by the Algarve Association of Car Renters.

Norte believes that ANA "under the guise of wanting to bring discipline to the car rental concession areas has suggested a scheme that is an intolerable abuse of its dominant market position" and which affects an estimated fifty small and medium car rental businesses in the sector.

"It almost seems that this measure was designed to annihilate them and to crush the competition," added the MP.

For the year ahead, contracts with customers and tour operators are already concluded so the car rental companies will have to adsorb the extra fees themselves.

The Social Democrat considers that the airport infrastructure company "has a public responsibility and a leading role in the region's economy" and that there should be "equal opportunities instead of moving towards a model that favors a few and loads costs on consumers."

Norte is to alert the Competition Authority and ask it to intervene, "if necessary as a precaution" to prevent the application of the new ANA charging structure. Norte also will be directing questions to the Ministry of Economy in order to ascertain whether the ANA concession contract is being followed to the letter.

ANA is now owned by the French Vinci Group on a long term contract to run Portugal's main airports and it is unlikely that the government will want to get involved in ANA's pricing policies having just received over a billion euros from the ANA sale.

It is not only the car rental companies that are complaining. Several airline companies have seen the impact of prices rises on their balance sheets and the Representative Airline Association (RENA) has already complained that "ANA has acted with the sole purpose of maximizing its profits, burdening companies in an intolerable manner" says Paul Geisler, president of RENA.

The official, who is a known critic of the modus operandi of ANA, said that "since the signing of the ANA concession agreement, in less than a year the rates at Lisbon airport have been the subject of three price hikes, which translate into an overall increase of over 10%," adding that this does not help any airline’s efforts to attract more passengers, especailly in these times of crisis.