The Civil Aviation Authority received 900 million in emergency funds to keep flights running during the pandemic. But despite the aviation industry risking increased fees, the authority will not use the government money.
”The crisis after the pandemic crisis for aviation is that we have to pay the whole bill,” says Fredrik Kämpfe at Transportföretagen.
The aviation industry has been hit hard by the pandemic, and delays in mass vaccination against Covid-19 are bringing airlines to their knees.
Now the Swedish aviation industry looks set to face the next big blow that could slow the recovery: fee increases.
”"The crisis after the pandemic crisis for aviation is that we have to pay the whole bill. This means that prices are going up and the recovery for society risks taking longer," says Fredrik Kämpfe at the industry organization Transportföretagen.
The Swedish Civil Aviation Administration (LFV) provides air traffic services for aviation. This includes traffic management, surveillance and navigation.
The authority covers most of its costs with fees collected from aviation operators, but since the pandemic forced the planes to the ground, LFV's revenue was cut.
To ensure that LFV can continue to deliver services, the Riksdag hammered through an additional 900 million kronor to the authority in June last year.
But LFV will not use the money.
The reason is that LFV says it is hindered by an EU decision that was made last fall, which means that LFV will receive coverage for what are called "justified costs" during the pandemic.
”"Now that we have received a decision that involves revenue, we no longer have a loss of revenue, and it is a condition for the addition to be used according to the parliamentary decision," says Magnus Corell, Director General at LFV.
The EU jointly decides on air traffic charges. The levels are determined, among other things, by the costs incurred by those providing air navigation services. If costs are reduced, the charges will decrease.
According to Director General Magnus Corell, the EU decision last fall, regarding the so-called "justified costs", means that the loss of revenue will be recovered through the fees that airlines pay from 2023 onwards.
This means a risk of increased fees and a more difficult recovery for the bleeding aviation industry.
”There will be a fee item that covers 2020 and 2021 in addition to other fees,” says Magnus Corell.
The transport companies believe that LFV has not done enough to reduce its costs and that the costs of the pandemic are now being completely passed on to the industry.
The industry organization also believes that the government contribution could have been helpful in reducing fees for airlines.
”"LFV has not lifted every stone, they have not made an effort. The consequence of LFV's underperformance is that we have to make more cost savings in order to be able to fly. The responsibility for keeping the air open for socially critical flights is now completely transferred to the industry," says Fredrik Kämpfe.
The fact that LFV is returning the 900 million kronor to the state, in the midst of a burning crisis in the aviation industry, has also raised questions in the Riksdag.
On Thursday next week, LFV's Director General Ann Persson Grivas will appear before the Riksdag's Transport Committee to explain why the authority is returning the crisis money.
The committee also summoned Infrastructure Minister Tomas Eneroth in April due to LFV's announcement.
Source: di.se
