The airline industry has hibernated during the pandemic and is now ready to fly at full capacity. But a hefty bill from the charging systems could be a deathblow for airlines and passengers, who are threatened by increased ticket prices.
As the pandemic subsides, the aviation industry is getting fresh air again.
Passengers eager to travel are expected to flock as restrictions are eased around the world.
But now the industry and a Swedish authority are warning that large deficits in the charging systems, which have arisen due to the pandemic, will raise ticket prices and slow the airline industry's recovery.
”We want a flight that can handle changeovers, that can handle coming back and that is not suffocated by fee increases,” says Fredrik Kämpfe, industry manager at the Swedish Transport Association, who visited the Riksdag’s transport committee in September to point out the deficits.
The fees in question are money that airlines pay for air navigation services, including air traffic control, and passenger security checks.
Because the government chose to keep flights and airports running during the pandemic, the deficit built up.
For 2020, the debt in the toll systems totals around SEK 2.3 billion, according to a report released by the Swedish Transport Agency in July. In 2021, the debt has continued to grow.
And the debt must now be paid back in the form of increased fees.
In addition to ticket prices being raised, the Swedish Transport Agency warns that accessibility in parts of the country is being threatened. In addition, emissions could increase if airlines choose to take detours around Sweden to avoid expensive fees.
”"You can recover the fee increase over a number of years, so the effect will be in the longer term, but it will still be a significant increase in fees," says Elin Roos, section manager at the Swedish Transport Agency.
When the European Commission determines the fee levels, it takes into account, among other things, cost-efficiency improvements from the authorities that deliver air navigation services.
Fredrik Kämpfe at Transportföretagen believes that the Swedish Civil Aviation Administration, which is responsible for air navigation services in Sweden, has not done enough to pressure down its own costs.
He also thinks that the state must now step in with money to prevent ticket prices from skyrocketing.
”"We are not saying that the state should cover the entire deficit, but some form of risk sharing should be achieved," he says.
The Swedish Transport Agency recently submitted documentation to the European Commission that will form the basis for the fee levels. The agency has also requested that parts of the deficit be covered by the state, but no decision has been made.
”Government support would address a certain part of the deficit and reduce fees,” says Elin Roos at the Swedish Transport Agency.
Fredrik Kämpfe wants the government to review the requirements placed on aviation in terms of climate initiatives and possible tax increases. He believes that some form of respite is needed here.
”"The government must keep the increased costs in mind if it plans any new taxes or fees for aviation, which will drive up costs," he says.
The Center Party's traffic policy Spokesperson Anders Åkesson will take the issue further politically through initiatives in the traffic committee.
The Center will demand that the government proceed with decisions on state subsidies to cover the debts in the fee system.
”"Every red light on Tomas Eneroth's (Minister of Infrastructure, editor's note) desk should be on now. I assume he intends to address this in an extraordinary amending budget," says Anders Åkesson.
Source: DI.SE
