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16. October 2022

Liège Airport contests wing-clipping permit

For the first time in the history of the Belgian airport, local politicians want to set tight limits on its further growth. In a recent decision, they adopted environmental regulations that Liege Airport's management considers tend to threaten LGG’s existence. It is a surprising political advance, because until now the Walloon regional government has always strongly supported the airport’s development. So no wonder that LGG’s management is challenging the new environmental permit issued by the responsible politicians. At a press conference, Liège Airport CEO, Laurent Jossart, went as far as saying that the tightened operating conditions will consign the airport’s entire business plan to the waste bin.

The provisions of the new environmental permit would half LGG’s annual cargo throughput if implemented, criticizes LGG Chief Laurent Jossart – courtesy:  LGG
The provisions of the new environmental permit would half LGG’s annual cargo throughput if implemented, criticizes LGG Chief Laurent Jossart – courtesy: LGG

The management, apart from Mr. Jossart, represented by President of the Board, Marc Renoupez, and Vice-President, Stéphane Burton, admitted that the new permit came as a shock. “Both Liège and Charleroi airports have enjoyed the support of the Walloon regional government for over 20 years,” they said. “The Board of Liège Airport, of which the region is a stakeholder, had agreed to an ambitious Master Plan and Business Plan 2020-2040, in December 2020.”

The latter is based on a volume of 2,450,000 tons by 2040, an investment plan of more than € 600 million over the next 20 years, and impressive employment growth. It is within this framework that the LGG teams initiated the procedure for the renewal of the environmental permit two years ago, reminded Mr. Jossart. “On top of this, the management of the airport has launched an environmental master plan. A first pro-active landing fees mechanism will be implemented as from 01JAN23, to incite financially airlines to operate their daytime flights with aircraft with a good acoustic performance.”

The management agrees with the greater part of the conditions laid out in the 245-page permit document, with the exception of two, so it appears. Neither was subject to concertation with the airport management.

50,000 movements cap
The new permit puts a cap of 50,000 annual movements on aircraft carrying over 34 tons. A noise quantity indicator for night operations (between 11 p.m. and 6 a.m.) has been added to this, subject to a reduction of the quota by 5% between 2024 and 2033, and by 3% from 2034 through to 2040. This would lead to an 80% reduction in the number of night operations in the 20 years to come.

“According to our business plan, we would accommodate 171,416 night operations by 2040, but with this cap only 17,496 would be possible,” said Mr. Jossart. “Night operations are an indispensable condition for the present and future success of our airport. In 2021, 86% of the FedEx flights were performed during the night, and so were 30% of the operations of the other airlines.”

The CEO added that, for FedEx as well as for the other integrators like UPS and DHL, night operations are an integral part of their business model. For perishables, too, night operations are indispensable to allowing them to reach their markets in time.

“In air cargo operations, there is another concept of punctuality. Whereas in passenger traffic, fifteen minutes are already considered a delay, in cargo this is one hour. It brings the flexibility which is at the core of the business. No operator is able to commit to a cap and an unknown limitation based on a future reference. They will prefer to move to competing airports instead.” Mr. Jossart admitted, however, that FedEx’s decision to move part of its traffic to its CDG hub was not prompted by the new permit.

Halving the volume
First estimations of the impact of the new environmental permit on LGG’s volumes give a maximum of 675,000 tons - half of the 1,410,000 tons of 2021, and way behind the 2,450,000 tons projected for 2040 in the business plan. The executive recalled the clause in the airport’s exploitation regulation, authorizing 24/7 operations at Liège Airport. “The new environmental permit questions this principle endorsed by the Walloon legislator,” Mr. Jossart stated.

The new permit would also have a dramatic impact on employment, today estimated at 10,000 FTE. Implementing the new permit would cost 5,000 of these FTE, and, over the next 20 years, the loss would be in the region of 14,000 FTE.

Appeal
LGG’s operation was challenged by residents of surrounding communities, in the province of Liège, as well as in the neighboring provinces of Belgian and Dutch Limburg, supported by environmental groups. These objections were reflected in the new permit.

On 15SEP22, Liège Airport launched an appeal against the new permit, together with most of its customers such as FedEx, ASL, X-Air Services, Bel Air Cargo, and Challenge Group. Mr. Jossart said that further developments on the issue would be made clear in the months to come.

Marcel Schoeters in Liège


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