DENMARK. The two largest airlines operating at Copenhagen Kastrup Airport, SAS and Sterling, have threatened to reduce their services at the location if they are unable to come to an agreement over airport charges.
The threat was made following this week’s opening of negotiations between Copenhagen Airports and a number of the largest airlines, with regard to charges for the period 2006-2008. Both SAS and low-cost carrier Sterling insist that they will move traffic to Stockholm Arlanda if current charges are not reduced.
“Charges must come down under any circumstances,” proclaimed Sterling Commercial Director Stefan Vilner. “We cannot accept a situation in which the airport earns over DKK800 million (US$139 million) before tax, while the rest of us are losing over DKK1 billion (US$173 million).”
However, pointed out Copenhagen Airports Financial Director Torben Thyregod, “There is dramatic price competition and a lot of overcapacity, so it is basically very difficult to imagine that the airline groups could earn any money at the moment.”
He added that, if no agreement is reached, Copenhagen Airports is legally entitled to increase charges by +2%. This increase is based on passenger growth and “price development”.
The airline groups have agreed to come up with a proposal over the next month, before meeting again with Copenhagen Airports.
In the case of Sterling, the company is likely to be under new ownership by the time an agreement with Copenhagen Airports is thrashed out. This is because the two owners, Bonheur and Ganger Rolf, recently agreed in principle to sell the airline to Fons Eignarhaldsfelag for DKK400 million (US$70 million).
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