Flight fees at Vagar Airport
It would be beneficial for the tourist industry, P/F Vagar Airport and P/F Atlantic Airways if the passenger fee to the Faroes was abolished
Vagar Airport is not the most expensive airport Atlantic Airways frequents and the Government Minister does not determine the fees
P/F Vagar airport is, as is the rest of the people in the Faroes, together with Atlantic Airways, the Government Minister for Trade & Industry and the Government Minister for Tourism, interested in having as low travel costs as possible. P/F Vagar Airport must however, as a responsible limited company, ensure that Vagar Airport does not continue to sustain an operational loss.
P/F Atlantic Airways has from time to time, imposed a special additional fee upon airfare tickets, (fuel fee) and occasionally increased its prices.
The female chairman of the Board of Directors for Vagar Airport, Mrs Kitty May Ellefsen, has no doubts that when the Management at P/F Atlantic Airways has had time to think things through, it will understand the necessity for P/F Vagar Airport to update its surcharges, which have not been updated since 2001. It may be mentioned that there did not exist a balance between income and expenditure then either.
On the other hand, it would be beneficial for the tourist industry, P/F Vagar Airport and P/F Atlantic Airways if the Government passenger travel surcharge was abolished altogether. This additional expense is D.kr. 120.- for every passenger and politicians are in total control of this fee.
Vagar Airport not the most expensive airport
The Government Minister for tourism said on the Faroe TV news last night, that Vagar Airport is the most expensive airport Atlantic Airways frequents.
Regarding passenger fees, Vagar Airport is at the higher end of the scale. However, Narsarsuaq in Greenland has a passenger fee that is higher by a half of what it is at Vagar Airport. Regarding the take-off fee and other affiliated costs, which P/F Atlantic Airways has to pay to utilise the airport, the costs at P/F Vagar Airport are the lowest of the airports P/F Atlantic Airways frequents.
Government Minister does not determine fees
Last night on the TV news, it was reported that it was the Government Minister for Trade & Industry who determined the fees at Vagar Airport. This is not correct. P/F Vagar Airport propose the fees and the Ministry for Trade & Industry act as the approving authority.
Why is Vagar Airport increasing its surcharges?
P/F Vagar Airport took over control of all airport related activities on July of 2008. The Board of Directors has since confirmed that the company has over the years from 1995 sustained an annual loss of on average D.kr. 15,2 million ? D.kr 11 million in 2008. One major reason for this loss is that the usage charges to use the airport have been considerably lower than the cost required to operate the airport. The usage charges imposed upon P/ F Atlantic Airways are considerably lower that P/F Atlantic Airways pays at most other airports.
P/F Vagar Airport is partner to an international set of regulations. This area is very closely legislated and stringent demands apply to the airport, e.g. for example security demands. Demands for airports have been considerably toughened over the years and more demanding routines implemented, for example the security checks on passengers and their luggage. All this costs money, but they are simultaneously required demands imposed upon P/F Vagar Airport to implement and all carry an additional cost.
This additional cost must be met either by the user ? passengers and airline companies ? or by the taxpayer. Vagar Airport estimates that it is correct that the users have to meet these additional costs.
As explained previously, the passenger charges will be phased over a period spanning 2 ¼ years. This year the passenger surcharge will be increased by d.kr 35.-. In 2010 it will be increased by D.kr. 10.- and again in 2011, by D.kr 10.-
P/F Vagar Airport