Copenhagen Airport and airlines agree on prices and incentives to restart passenger traffic
COPENHAGEN: With the aviation industry on its knees due to the COVID-19 pandemic, Copenhagen Airport and airlines have struck an agreement providing the necessary commercial framework for a restart of traffic and the route network at CPH.
The agreement essentially sets out prices and incentives for flying to and from CPH over the coming years, amending their earlier contract reached in 2018.
The agreement sets out the charges for using the airport runways, terminals and services. Charges have been kept stable relative to historical rates so as to ensure predictability for all parties involved, thus considering the interests of both network carriers and the airlines using the GO terminal.
The charges agreement has now been approved by the Danish Civil Aviation and Railway Authority in a very efficient process that allows the agreement to take effect already now, in March 2021, and expire 31 December 2023.
Combined with various adjustments to the existing incentive program and the implementation of a new incentive program for selected intercontinental routes, the adjusted agreement ensures that CPH will retain its competitive position as one of the cheapest major airports in Europe.
“Being a responsible company, we’ve carefully reviewed all our operations and plans in light of the past year’s market collapse with supply in abundance but no demand. The revenue we derive from our core business – aircraft carrying passengers – is the key component of our financial performance, so it was very important for us to reach an agreement with our customers that’ll enable us to build on a new foundation post-Corona,” said Thomas Woldbye, CEO of Copenhagen Airports A/S.
“It’s necessary both for the airlines and for us to have a foundation providing a stable framework. The adjusted agreement provides clarity, which is absolutely essential. For the entire industry, from this point on, it’s all about getting the passengers back,” he added.