National Markets and Competition Commission (CNMC) urges airport manager Aena to adopt “appropriate measures” to “effectively” avoid potential conflicts of interest in its tenders with Enaire, like the imminent liberalization of the aforementioned Spanish control towers.
CNMC, if an Enaire subsidiary participates in tenders, “Shareholder ties between Aena and Enaire may affect the impartiality of their proposals”.
The editor would therefore guess Aena’s potential conflict of interest with Enaire, public body appointed to the management of air navigation in Spain. Enaire currently controls air traffic at 21 underegulated towers and owns 51% of Aena’s capital.
Thus, CNMC answers Enaire’s question about the possibility of forming a subsidiary (EGS – Enaire Global Services SA). Bids for air control towers called by Aena and other European and international managers.
In your inquiry, Enaire questioned the regulator whether there would be a “risk of conflict of interest” due to the business ties between Aena and Enaire. and on the application of competition policy to the Enaire group.
And following the model of other European Union countries, the group is considering joining the process through a subsidiary. In Spain there are already two private companies operating in liberalized control towers (Ferronats and Saerco).
The government is preparing to liberalize control towers at seven Spanish airports.: Tenerife South, Tenerife North, Malaga, Gran Canaria, Bilbao, Santiago and Palma de Mallorca. It will be the largest privatization of air traffic control management in Spain since the liberalization of this sector began in 2010.
The control towers to be liberalized will be decided by the Ministry of Transport, Mobility and Urban Agenda (MITMA).. Aena will seek public tenders and select operators responsible for air traffic control.
With this second phase of liberalization, the Executive tries to deliver this service in the most efficient way. In 2018, a CNMC report recommended that the Government expand the liberalization that began in 2010 to cover more towers. “To achieve additional efficiencies in this and related markets to drive savings, quality improvements and increases in consumer well-being.”
It can affect impartiality
CNMC warns “If the Enaire subsidiary bids, the shareholding ties between Aena and Enaire may affect the impartiality of their bids.”
Also, the CNMC points out that all operators (public or private) should be allowed to participate. duly approved by a national authority Control of the European Union in Aena tenders.
Possibility to exclude Enaire
For this reason he thinks Aena must take “appropriate measures” to effectively avoid potential conflicts of interest in its proposals.. “If it did and more effective solutions could not be found, removing Enaire or its subsidiary EGS from the process may be a necessary solution,” the Commission warns.
The independent regulatory body responsible for markets and ensuring effective competition, Aena’s should design tender procedures “so that the greatest possible number of operators can participate and avoid unfair restrictions on competition”.
The CNMC reminds that it may be consulted on the design of these procedures. “Defence-of-competition regulations do not prevent companies from being established and participating in public tenders. In all cases, the market behavior of Enaire and its subsidiary EGS must comply with national and European competition rules,” he explains.
The board chaired by Cani Fernández explains that it has prepared this report only while performing its advisory function. Therefore, their consideration “does not condition or bind future actions from the perspective of sanctions for the actions of the operator in question.”