The new quarterly report for Avinor, which was published on Tuesday afternoon, points to a challenging economy in the coming years. – The Ministry of Transport determined that the basic structure of the company must remain, but that the financial framework conditions must be strengthened. Avinor appreciated that. At the same time, we expect that the financial situation will be strained in the coming years, also with the measures now outlined by the owner, says CEO Abraham Foss in the press release. The report states that income is increasing, but not enough. – The geopolitical and economic development in the world also increases uncertainty, says Foss. news has tried to contact CEO Abraham Foss. The company states that Foss is in Asia and cannot answer questions from the media until Friday. The report was long overdue and was not published until 16.30 despite a signal that the report would come at 12:00 on Tuesday. There has been great excitement about the report after it became clear that the company is in serious financial trouble. The government has been open about the fact that the temporary handshake in the form of increased airport taxes is not sufficient to get the company up from its knees. According to Transport Minister Jon-Ivar Nygård, Avinor has “demonstrated” that fewer airports can be a cost-saving measure. The minister has confirmed that closing down airports is not relevant. Nevertheless, there are signs that the pressure on the airport structure is increasing. In Bergensavisen, commentator Svein Tore Havre is ironic about the fact that “pig village” Sogn og Fjordane, with its 110,000 inhabitants, has four airports on “every headland and every hill”. – Four airports with routes to two destinations at a sky-high price for taxpayers is not a viable solution, he writes. – The financial challenges facing Avinor mean that we have to turn over all stones, says Transport Minister Jon-Ivar Nygård to news. Photo: NTB – We will be careful with argus eye The money squeeze for Avinor started when air traffic collapsed during the corona shutdown. Avinor assumed that air traffic would pick up again, but instead there are signs that the pandemic has created lasting changes in travel patterns. Especially among business travelers. According to E24, Avinor was therefore only days away from “financial collapse” when the government offered NOK 200 million in “emergency aid” earlier in November. Today, at least 35 out of 43 Norwegian airports are operating at a deficit. Illustration: Avinor The money squeeze for Avinor is a political embarrassment for the Støre government, which in Hurdalsplattforma (2021) promised to “maintain and further develop the current airport structure”. – I am not worried that Førde airport will be closed, but we will be careful with argus eye, says Jenny Følling (Sp), who is the mayor of Sunnfjord. The mayor’s colleague in Gloppen, Arnar Kvernevik (Ap), believes that the short-haul network is facing “a golden age”. In the new national aviation strategy, it is stated that Norway will be a pioneering country for electric aircraft, and that the first electric aircraft will be phased into the FOT routes from 2028–2029. – If the local communities are to be closed, it is important to have access to an effective and widespread flight route offer, says Kvernevik. Avinor’s income has taken a nosedive a year after Norwegians started flying less and the government cut the tax-free quota. All photos: NTBI In the second quarter, Avinor had a profit before tax of around NOK 244 million, down from NOK 463 million in the same period last year. Normally, tax revenue accounts for just under half of Avinor’s total revenue. Income from commercial operations makes up the rest. Avinor’s airports are very different in size and traffic volume. Oslo Airport is by far the largest airport and normally accounts for more than half of the air traffic in Norway and around 70 percent of all international traffic. – It is absurd that we should be dependent on continued growth in air traffic. Others ask whether it is right that Avinor should be a district political instrument. – The entire Avinor model is ripe for an overhaul, writes Aftenposten in its leadership position. “The sale of duty-free alcohol to foreign travelers will be necessary to maintain airports in pig-infested areas. This is absurd,” they write. The Nature Conservancy believes that the current funding arrangement “constructs a conflict between environmental care and district policy”. – It is absurd that the operation of the small airports in the districts should be dependent on continued growth in air traffic, says Pernille Bonnevie Hansen, who is deputy director of the Nature Conservation Association. She calls it a paradox that the government has found itself in a position where it hopes for traffic growth for reasons of district politics. – We already pollute twice as much as Swedes, French and Germans with our flights. Becoming dependent on growth is completely contrary to our climate goals. She adds: – An obvious step is for the state to finance the district airports directly, not through growth for which we have no room. 27 of Avinor’s airports are short-haul airports, with runways between 800 and 1,200 metres. These are trafficked by smaller aircraft of the Dash 8 type, ambulance aircraft and private aircraft. All photos: NTBI In 2019, Oslo airport had 28 million passengers and 244,000 aircraft movements, while Berlevåg had 5,600 passengers and 1,560 aircraft movements. Avinor was hit hard financially by the pandemic and received a total of NOK 7.4 billion in operating subsidies from the state in 2020 and 2021. Sustainable and safe aviation”, it says that Avinor is in a “strained financial situation”. This is the Avinor model The Avinor model means that Avinor must be self-financing to the greatest extent possible, and that the company must operate co-financing between economically profitable and unprofitable airports. Avinor’s mission in society is to own, operate and develop a nationwide network of airports for the civil sector and a combined aviation security service for the civil and military sectors. In its role as owner, the state decides which airports the company will develop and operate. Avinor is currently responsible for 43 air ports, including the heliport at Værøy. In addition, Avinor owns Haugesund Airport, which is leased to external operators, and Fagernes Airport, which has been closed down and planned to be sold. Source: The government’s aviation strategy – The entire Norwegian airport model is at stake Last Friday, the Progressive Party presented its alternative budget for 2024. There they propose to remove the air passenger tax and to reverse “the petty cut in the tax-free quota”. The cut in the tax-free scheme is said to have cost Avinor NOK 236 million. – It is dramatic that the entire Norwegian airport model is at stake, says Frp representative Morten Stordalen to news. – The government can improve Avinor’s finances with the stroke of a pen if they introduce the old tax-free scheme. The government protects all airports and specifies that the current airport structure is fixed – whatever the cost. Photo: Ministry of Transport
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