Wednesday, May 09, 2012

Stupid And Crazy: Spain's airports

Following the previous feature about the profitability of Palma's Son Sant Joan, more on airports and this time their lack of profitability.

The national government's minister for development (which covers transport) has announced that there is to be a study of the viability and profitability of the whole of Spain's network of airports. The number of airports that this network comprises varies depending on which report you come across. It fluctuates between 46 and 49. Whatever the actual figure (and let's get round the confusion by saying that there are nearly 50), the fact is that there are way more airports in Spain than in, just as an example, Germany. Way more to the tune of there being twice as many for a population almost half the size.

At the end of the previous article, I concluded by sounding a warning for Menorca. Its airport is heavily in debt and its losses last year were among the highest of any airport in the Spanish network. It would, however, be most unlikely that Menorca would lose its airport, given that it is essential and that it would qualify for being maintained under a criterion of "public benefit", but there are plenty of airports within the network that could well face the axe.

The minister, Ana Pastor, has admitted that any adjustment to or rationalisation of the airport network would be "complicated". The complication is created by an infrastructure of airports which is, in her words, "stupid and crazy". There are far too many airports and far too many that came into being for no particularly good reason.

The growth in the airport network was symptomatic of the construction-led infrastructure boom in Spain which has been partly responsible for the mess the country is now in. While the continuance of older airports, such as Menorca's, despite its loss-making, is fully justifiable, the continuance of some newer ones is much harder to justify. Only ten of the airports in the network make a positive return, and of those which don't there are examples of airports having been built which were as a result of sheer folly. Which brings us to the case of Castellón airport. 

This airport, less than an hour away from Valencia's main airport, was built at a cost of 150 million euros. It was opened in March last year. To date, there has not been a single flight. The reasons why not are many, one of them having been the absence of the necessary licence. It is said that Castellón now has an agreement with Jet2 to start flights next year and that negotiations are ongoing with other airlines, but in the meantime, and in addition to the cost of its construction, the runway will have to be re-built as it is too narrow, 30 million euros have apparently been eaten up on advertising the airport and 300,000 euros have been spent on a truly hideous sculpture.

The sculpture tells its own tale. Featured within it is the face of Carlos Fabra, a leading Partido Popular politician and a prime mover behind the airport's construction. Fabra has been implicated, on more than one occasion, in corruption cases.

Castellón is perhaps an extreme example of the profligacy of the development of Spain's airport network. It is an example also, however, of how regional administrations have contributed to Spain's economic plight by embarking on wholly unnecessary projects.

Flavour of the month it is to give the regional governments a good kicking, but a recent and insightful article by a Spanish journalist writing in English for the "El Pais" newspaper's English website argued that the problem lies not with the system of regional government but with the politicians it gives rise to. It is a fair point, but the trouble is that if you give someone a toy then they will play with it, which is precisely what has happened. Hence the pointless, expensive and sometimes unused infrastructure projects that proliferate across Spain, of which regional airports are a case in point.

When the development minister speaks of "stupid and crazy" infrastructure, she could as easily be referring to projects other than just airports. Mallorca has its own examples, the current building of the Palacio de Congresos in Palma being one. The impression has been given that the only reason for it coming into existence is because other Spanish cities have got similar convention centres; an exercise in me-too in other words.

Me-too has been the real impulse behind all the airports, and of the new ones, none are profitable. Stupid and crazy? Discuss.


Any comments to andrew@thealcudiaguide.com please.

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