MercoPress. South Atlantic News Agency

Deal to keep landing fees in Gibraltar unchanged

The two airlines serving Gibraltar are close to finalising an agreement with the Ministry of Defence that could rule out the need for a further rise to landing fees at Gibraltar airport, reports the Gibraltar Chronicle.

The deal hinges on the airlines operating their services within an agreed time window, or risk paying additional charges. That would enable the MoD to keep down the staff costs it currently pays to maintain the runway open from morning through to evening.

The MoD argues that commercial flights generate a substantial financial burden that is unrelated to military activity. It has already increased its fees once by 8.4% this year and was planning a second 25% by the summer.

If the deal with the airlines is sealed, that second increase may not be necessary. The controversy over landing fees has threatened a rift between the MoD and the Gibraltar Government, which is in talks with several airlines in a bid to increase the number of flights to the Rock.

It is not clear what impact, if any, an agreement between the MoD and existing carriers would have on any possible new entrants.

Gibraltar Chief Minister Peter Caruana discussed issues relating to the runway during a recent meeting with Geoff Hoon, Minister for Europe at the Foreign & Commonwealth Office.

There was a clear acknowledgement of areas of concern, not just relating to landing fees but also to the role of the MoD within any future airport agreement under the trilateral process (UK/Spain/Gibraltar).

"In the light of some very strong representations that Peter Caruana has made to me, I will certainly be going back to discuss these matters with my former colleagues in the Ministry of Defence with a view to recognising that we?are moving towards some practical improvements in the use of the airport," said Mr Hoon, who was formerly Britain's Secretary of State for Defence.

"I will ensure that all parts of the British Government work together on this and I will be discussing that with my colleagues in the Ministry of Defence." "It is an important issue".