UK airlines to save millions as navigation charges deferred
- charges paid by airlines for air navigation services while flying through European airspace can now be deferred for up to 14 months
- this could save UK airlines tens of millions of pounds a month
- the government continues to work closely with the aviation sector to support airlines affected by the coronavirus pandemic
Airlines will be able to temporarily defer the payment of air navigation charges, saving them tens of millions of pounds, following action from UK government.
This measure should provide financial relief to airlines struggling as a result of the coronavirus pandemic. Airlines will be able to defer the payment of charges for air navigation services in UK and European airspace for the months of February-May 2020 for up to 14 months.
In February, the 10 largest UK airlines would have been expected to pay a total of £47.2 million for flights in European airspace. EUROCONTROL, the organisation which manages charging for navigation services across Europe, estimates that European airlines could defer €1.1 billion in route charges in total thanks to the move.
The UK government holds a 10% share in the vote for any such action passed by EUROCONTROL and voted in favour of the proposals, helping protect UK airlines and ease some of the current financial burdens faced by the sector as a result of the impacts coronavirus.
Transport Secretary Grant Shapps said:
This is a very difficult time for airlines, but they continue to provide a vital service bringing UK citizens home and transporting vital medical supplies.
Deferring these charges will further help airlines, on top of the unprecedented package of economic measures recently announced by the Chancellor, to support businesses through this challenging period.
