European air navigation fee deferral aims to assist struggling airlines

Up to E1.1b in European air navigation charge payments is being deferred under an agreement intended to assist airlines struggling under the impact of the coronavirus outbreak. Eurocontrol says its members have agreed the deferral as part of a financial package to provide “liquidity support”. Eurocontrol data for 43 associated countries in the region shows that traffic had fallen by more than 90% in 33 of them by 5 April, compared with the previous year. “Many airlines contacted Eurocontrol to confirm that they would not be in a position to facilitate their next payments,” says DG Eamonn Brennan. “This payment deferral will ease the immediate burden on airlines and it provides certainty on financial planning to both airlines and the air navigation service providers on when payments will be made after the crisis has abated.” Eurocontrol calculates route charges for air navigation by combining a distance factor with an aircraft weight factor and a country-specific unit rate. Eurocontrol had previously been estimating route charges for 2020 would total E8.2b, based on a 3.4% rise in traffic service units to 173m.<br/>