Avinor's financial challenges and rescue measures

#NordicNews on air traffic and Norway

Avinor endeavours to secure airports and aviation services during economic turbulence

Norway's state-owned airport operator Avinor is struggling with financial challenges due to the decline in passenger numbers during and after the coronavirus pandemic. The government plans to increase the airport tax paid by airlines to Avinor by NOK 200 million in 2023 and 2024 to avoid airport closures. A further increase could follow in 2025 and 2026.

Transport Minister Jon-Ivar Nygård emphasised the need to maintain a good service for passengers and airlines throughout the country without having to close airports.

The decline in air traffic is expected to last longer than previously anticipated, resulting in a significant loss of revenue for Avinor. The state, as owner, will take measures to address the company's difficult situation. The "Avinor model" allows the company to operate unprofitable airports in remote regions, supported by profits from larger airports such as Oslo. The revenue comes from airlines and commercial sources.

To compensate for the tax increase, a possible reduction in the fiscal passenger tax is being considered. The overall levies for the aviation industry will be taken into account, according to the Minister of Transport.

The government is also considering financially supporting Avinor by funding tasks such as ambulance standby and border control. In addition, Avinor could be authorised to sell non-tax-free goods in duty-free shops, which could also enable the sale of local products.

In order to take appropriate measures, a company audit is being carried out to look at rationalisation measures and investments at Avinor.

More on Avinor in Norway.

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