Europe Throws Another Coronacrisis Lifeline To Airlines And Defers Air Traffic Control Fee Payments

Airlines flying in European air space will not have to pay charges to air traffic controllers until later this year or early 2021 thanks to a relief package brokered by Eurocontrol, the Brussels-based intergovernmental organization that coordinates air traffic flows across the region and collects route charges from air carriers on behalf of its members states. The financial aid measure was in the making since several weeks and now has been approved by the Eurocontrol’s 41 member states. It permits airlines to delay payment of air traffic control (ATC) charges due for February through to May, enabling them to preserve up to €1.1 billion ($1.2 billion) in cash as they try survive a near total collapse of demand due to coronavirus pandemic and government-imposed travel restrictions or bans. The number of flights operating daily in European airspace has declined by 90%, Eurocontrol data shows. This dramatic reduction in operations is likely to continue for several weeks to come, hence the postponement of four months of ATC charges.

The bill for en-route air traffic management charges for the European system for February totalled €518 million; the invoices for each airline were raised in mid-March, with payment due by 13 April for disbursement to the individual states. Eurocontrol member states now have agreed to defer that bill until November, and to delay payment of charges for March, April and May to 2021.

“Many airlines contacted Eurocontrol to confirm that they would not be in a position to facilitate their next payments,” said the Irish boss of Eurocontrol, Eamonn Brennan. Arranging the relief measure was complex and challenging as it involved a lot of stakeholders and money, he explained, but he noted: “In times of crisis, Eurocontrol has to be seen to be relevant and helpful to the industry.”

Europe’s different airline trade associations welcomed the relief measure. “This swift action taken by the Eurocontrol member states will provide airlines with more flexibility as they financially plan for the future,” said European Regions Airline Association director general Montserrat Barriga. “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.”

“We profoundly thank Eurocontrol, European states and ANSPs, for postponing more than €1 billion in air navigation fees,” said Rafael Schvartzman, regional vice-president for Europe at the International Air Transport Association. “This is exactly the kind of solidarity which the industry needs to show during this period of deep and unprecedented crisis.”

The European Business Aviation Association, Airlines International Representation in Europe and Airlines for Europe (A4E), also welcomed Eurocontrol member states’ decision to defer ATC fee payments. However, for A4E the measure in insufficient because it “only moves airlines’ current liquidity crisis to a future date.” Rather than a temporary deferment of four months of en-route charges, A4E is requesting a full-year waiver of ATC charges. A4E defends the interests of the region’s largest airlines such as Ryanair, easyJet, Lufthansa Group, International Airlines Group and Air France- KLM. “Supporting short term liquidity will not be enough to ensure the survival of the aviation sector and preserve a functioning market for the passenger,” said A4E managing director Thomas Reynaert. “Further support measures, including a full-year waiver of ATC charges, would provide airlines with the flexibility needed to get back on their feet once the health crisis has passed.”