written by Gonzalo Yelpo with Yelpo y Facal, Urugay

The decision by the concessionaire of Carrasco International Airport (MVD) not to apply the “Landing Support Price” until the ILS CAT III B system is operational and formally authorized by the aeronautical authority sets a relevant precedent for the airport system and for the relationship between operators, airlines and regulators.

Background

The “Landing Support Price” was incorporated into Annex F of the Comprehensive Management Regime by executive decree, as part of the contractual amendment associated with the upgrade of the ILS to CAT III B. The controversy centered on the moment at which this new charge could begin to be collected: the position initially put forward by the concessionaire took as its reference the completion of the infrastructure works and the corresponding notification to the Control Unit, while the airlines, acting through the AOC, maintained that the charge could only begin to apply once the system was certified and authorized for operational use by the aeronautical authority.

The discussion, far from being merely formal, touched on a structural point of the tariff framework. Annex F expressly defines the prices listed therein as consideration for services rendered, which means that the chargeable event is the service actually available to the user, and not the mere physical existence of the infrastructure or the fulfilment of isolated contractual milestones. Building on that premise, the dialogue process —in which IATA also intervened in support of the AOC’s position, reinforcing the regional and industry-wide dimension of the matter— allowed the issue to be addressed in its proper terrain (service versus works) and to reach a solution consistent with the tariff nature of Annex F.

The Role of the AOC and Industry Coordination

The outcome was a direct consequence of the coordinated work of the airlines through the AOC of Carrasco Airport, which made it possible to raise the issue in an orderly, technical and consistent manner before the concessionaire and the competent authorities. IATA’s involvement in support of the AOC added institutional weight to that effort and confirmed that the concerns raised were not isolated, but rather shared across the broader airline community.

The articulated action of Airport Operators Committees, complemented by the support of industry bodies such as IATA when the matter so warrants, has once again proven to be an effective tool for channeling legitimate industry concerns, avoiding both the dispersion of individual claims and the premature escalation of disputes.

The Guiding Principle: No Fee Without a Service

On the substantive side, the case reaffirms a basic principle of the airport tariff regime: no fee without a service. The discussion was never about questioning the investment made or the strategic value of the project —broadly recognized by the airlines themselves— but about determining the moment at which the service can be considered available for the purposes of triggering the charge. As long as a system of this nature is not authorized, certified and usable under real operational conditions, the service that gives rise to the price simply does not exist. The mere physical existence of the infrastructure, or the expectation of a future entry into service, is not enough to render a regulated charge enforceable, without distorting the very logic that organizes Annex F.

A Constructive Precedent

The outcome confirms that complex discussions can be channelled through technical dialogue, clear fundamentals and coordination among operators, without resorting to litigation or damaging the relationship between the parties. In a context where tariff schemes and airport investment plans are gaining increasing relevance, the ILS CAT III B case at Carrasco offers a valuable lesson: the stability of the system is built by upholding basic principles —the actual service as the cause of the charge— and by strengthening the industry’s natural coordination spaces, with the support of bodies such as IATA when the situation so requires.

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