The Avinor model must be improved, not removed – Statement

Avinor has been in the wind this autumn, since it has become clear to everyone that we have a demanding financial situation. We have read dramatic headlines that we have been close to the brink of bankruptcy, and that closure of airports has been considered. The government has clarified that the airport structure must remain fixed. And Avinor is in no danger of going out of business. But aviation in Norway faces demanding challenges. There is essentially broad political agreement that the Avinor model serves Norway and aviation well. Avinor operates a network of 43 airports across the country and an air traffic control service for both the civil and military sectors – as well as a number of socially mandated tasks for healthcare, defense and the justice sector, among others. Large profits from the largest and most profitable airports help finance the many small and unprofitable ones. Half of Avinor’s income comes from the airlines, for the use of our airports. A quarter comes from shops, restaurants and public transport. The last quarter comes from duty free. Some give the impression that the Avinor model is dependent on growth in aviation. It’s wrong. We depend on passengers and traffic. And that there is a balance between income and expenditure. The challenges for Avinor become great when the income as a result of lower traffic falls, the fees for using our airports are under-regulated over several years, the state takes away sources of income from us and we are charged with new tasks with associated costs. It is this mix of challenges that we have been working on this autumn. Passenger numbers at Avinor’s airports are around 90 per cent of the level before the pandemic. People’s travel patterns have changed. There are far fewer business travelers than before. Norwegians’ domestic travel activity has leveled off. On the other hand, it is a long-term trend that more foreigners come to Norway as tourists. In a time characterized by increased costs, higher interest rates, war, general unrest and uncertainty, travel is a balancing item. Over many years, Avinor has operated increasingly efficiently. Thus, the level of fees that the airlines face is very competitive compared to the fees at the main airports in our neighboring countries. We have also cut close to NOK 1 billion in costs during and after the pandemic. When the airlines nevertheless experience an overall higher tax level in Norway, it is because the state’s fiscal taxes in the form of the air passenger tax and CO2 tax have increased significantly. When everything in society becomes more expensive, Avinor must also propose an increase in our fees. The Ministry of Transport has now approved a modest increase, of around NOK 8 per passenger, in the fee that the airlines pay to Avinor. It is not the fee to Avinor that is the driver behind increased flight prices. Some people question whether it is right that tax-free income should help finance airports around the country. Norway is obliged by international agreements to allow the duty-free sale of certain goods for international travellers. There has been broad political agreement that profits from duty-free sales at the airports should contribute to the self-financing Avinor model. We relate to that. In recent years, changes have been made to the tax-free scheme. You can no longer exchange the tobacco quota for wine. The tobacco quota was later halved. With this, Avinor loses around NOK 400 million a year. We also relate to these political changes, but the consequences must be dealt with, and that is what we are dealing with now. Although several of our challenges are about income, we shall continue to cut costs and operate as efficiently as possible, and adopt new technology and solve our tasks smarter. We make extensive priorities for the Avinor model to work. At the same time, we will maintain the international reputation our airports have, in terms of efficiency, quality and punctuality. By 2050, aviation must be fossil-free. It is a goal that the entire industry stands for. Some suggest that we should stop flying in view of the climate. Here we have to have two thoughts in our heads at the same time. We must develop aviation, not dismantle it. We cannot park the planes on the ground, then take off again the day we have sufficient sustainable jet fuel, electric planes or hydrogen solutions. Aviation must have the power to invest in climate solutions. In order to achieve the goals, aviation needs measures from the authorities in both the “whip” and “carrot” category. On the day aviation has solved the climate challenge, there are hardly any other forms of transport that are as nature- and climate-friendly. The government has announced adjustments to the Avinor model, with a view to improving the income side and challenging the cost side. Avinor, for its part, will continue to streamline and modernize the way we operate the country’s unique aviation network. The model must be improved, not removed.



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