EUROCONTROL member states’ have bowed to industry pressure and has made the decision to defer air traffic control fees as part of a financial package to enabling airlines to postpone the payment of up to €1.1bn of air traffic control fees over the coming months until November.
The move was welcomed by the European Regional Airlines Association which said the decision comes “as relief measures for Europe’s airlines are urgently required to ensure recovery is possible and the future viability of the industry.”
The ERA said that in light of COVID-19, airlines are facing a significant cash liquidity issue due to little, or in many cases no commercial operations.
“As a result, deferring the payment of airspace user fees has been a matter of urgency and ERA is pleased by this decision taken by the EUROCONTROL member states to relieve this burden on airlines,” said the ERA.
According to the industry group n 2020, the cost for the European air traffic management (ATM) system was planned at €8.2bn for en route services, based on the traffic forecasted and the cost of service provision by the Air Navigation Service Providers (ANSPs).
The total bill for February was €518m and the invoices for each airline were raised in mid-March, with payment due by 13 April 2020 for immediate disbursement to the individual states. This has now been deferred to November.
ERA Director General Montserrat Barriga said: “With air traffic down 90 per cent across Europe, there has been an urgent need to mitigate the devastating effects of this significant and unprecedented liquidity crisis. This swift action taken by the
EUROCONTROL member states will provide airlines with more flexibility as they financially plan for the future. Aviation will be instrumental in Europe’s economic recovery and financial relief measures are needed urgently to ensure our airlines can continue to operate, providing connectivity, once we move towards recovery. Today’s announcement by EUROCONTROL will certainly aid our airlines in this recovery process.”
The move was also welcomed by UK Transport Secretary, Grant Shapps who said, “This is a very difficult time for airlines, but they continue to provide a vital service bringing UK citizens home and transporting vital medical supplies.
“Deferring these charges will further help airlines, on top of the unprecedented package of economic measures recently announced by the Chancellor, to support businesses through this challenging period.”