In a report published on June 15 on the French airport network, the Court of Auditors focused on the region and singled out the management of intermediate airports, boosted by subsidies.
A 150-page report, published by the Court of Auditors on June 15, clearly called on the State and communities to “rationalize” the management of these platforms.
In this public report, the Court focused on Occitanie. Unsurprisingly, the financial jurisdiction considers that the Occitan network has two weaknesses: the airports are too close to each other and they compete with each other. Bottom line, to safeguard the platforms, communities must use public funding.
An ineffective network
Not only are the airports in competition, but they offer identical connections. This is the case for Nîmes and Béziers located 57.8 km (39 minutes) and 70.7 km (48 minutes) from Montpellier. Three platforms which offer Morocco (Fez or Marrakech from Nîmes and Montpellier) or Stockholm (Béziers and Montpellier). This is also the case for the airports of Pau (Nouvelle-Aquitaine) and Tarbes in Occitanie, 50 km apart and which compete for the connection to Paris-Orly. Two platforms which “partly share the same catchment area… There are thus eight flights per week between Pau and Paris-Orly between 6:30 a.m. and 1:30 p.m. and twelve per week between Tarbes and Paris-Orly at the same times”. indicates the Court. Tarbes airport welcomes less than 500,000 passengers per year although it is designed to accommodate 1.5 million.
That of Carcassonne is in an “attraction zone shared by five airports, making the Aude department one of the best served in Occitanie in terms of airports”.
Aberrations as many Occitans go to Marseille or Barcelona for their big departures. “Marseille Provence airport receives more than a million passengers residing in Hérault each year (300,000 for Toulouse),” underlines the Court
A very expensive promotion
The report also denounces the marketing and promotion contracts concluded with low-cost airlines, which benefit from almost free or subsidized use of the airport service. Thus, Ryanair and its subsidiary received nearly €33 million between 2017 and 2019 from six Occitan airports: Béziers, Carcassonne, Nîmes, Perpignan, Rodez and Tarbes. “SPLAR (Carcassonne, Perpignan and Tarbes) forecasts provide for marketing expenses of €85.90 million from 2023 to 2029, representing 115% of its forecast operating deficit,” notes the report which adds that “Rodez, which spent €0.88 million, thus displays an operating deficit excluding subsidies of €3.70 million in 2019. Or Carcassonne, “very significantly in deficit of €2.90 million in 2019, which pays average marketing aid of €2.30 million per year, from 2017 to 2019”.
Béziers, Nîmes…Very severe reports
A week after emphasizing the fragility of Béziers airport, the Occitanie regional audit chamber took an interest in the Nîmes platform. An equally severe report which notes in both cases that the structures are dependent on a single company: Ryanair.
When airports face competition from neighbors in Marseille, Montpellier and even internationally, from Barcelona. The chamber insists on the deficits of “commercial aviation” when “the most optimistic traffic projections do not allow a balance point to be reached without public aid, which amounts to €8.10 million, (cumulative) between 2022 and 2028. Especially since some of this financial aid could turn out to be illegal, because it “has not been notified to the European Commission”, underlines the report. Which is nuanced on the Nîmes project, to host the European center of excellence for civil security, in view of a “financial impact undetermined to date”.
The Court recalls that the European Commission handed down two decisions qualifying as illegal the aid paid to Ryanair in Nîmes in 2014 and in Montpellier in 2019. Results: Ryanair left Montpellier airport in 2019 following the decision to remove the aid marketing. A choice demonstrating that marketing aid can be used to put pressure on exhausted airports.
An airport observatory
Intermediate airports are financed by the State and the regions. They receive large subsidies in the face of the impossibility of making a profit. The Occitanie region, owner of Carcassonne airport and majority in the mixed syndicates owning those of Tarbes and Perpignan, created a local regional airport public company (SPLAR) in 2019 and implemented integrated governance. As such, the Court of Auditors proposes to create an “airport observatory” and recommends “harmonizing the airport network… in consultation with the Regions”.
Although it is strict on the accounts, the Court was nevertheless careful not to mention or suggest any closure.
The Occitanie regional chamber of accounts will make public a report on Friday, November 10 on the theme of “airport network in Occitanie”.
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