Half a billion kronor in aviation support to reduce ticket prices

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Half a billion kronor in aviation support to reduce ticket prices
Photo: Pontus Lundahl/TT

The war in the Middle East and the closure of the Strait of Hormuz have caused rising prices for jet fuel. That is why the government now wants to support the aviation industry in an additional amending budget.

It is a strong package to prepare for things getting worse, says Andreas Carlson.

The largest part of the package - SEK 400 million - will cover the costs of security checks of luggage and passengers at Swedish airports during the second half of this year. This means that airlines' costs will be reduced by SEK 46 per passenger. This applies to all travel from Sweden, including international flights.

Lower ticket price?

The minister does not guarantee that the cost reduction will lead to lower ticket prices, since fuel prices are volatile and could rise at the same time.

But you can be sure that if we had not removed this fee, these 46 kronor would definitely have remained on every ticket, says Andreas Carlson.

If airlines do not pass the cost reduction through to ticket prices, it will be noticeable, says the minister.

To avoid a situation where domestic routes are reduced or closed, SEK 100 million is being allocated to procure traffic at existing airports if necessary. This will ensure accessibility throughout the country.

We are preparing to temporarily introduce a public service obligation, says Andreas Carlson.

However, the support requires approval from the European Commission.

Safe ambulance flights

In addition, a government grant of SEK 20 million is being directed to the regions to secure medical transport by air ambulance.

The longer the war goes on, the greater the consequences will be, says Finance Minister Elisabeth Svantesson (M).

Both she and Carlson emphasize that there is no shortage of jet fuel or gasoline and diesel in Sweden.

The support for the aviation industry is being criticized by the Green Party, which would have preferred to see investments in trains or production support for sustainable aviation fuels:

"The government continues to shower money on the fossil fuel industry, now through half a billion to foreign airlines. They are worsening fossil fuel dependence instead of accelerating the transition," says Linus Lakso, energy policy spokesperson.

The support of SEK 500 million for aviation is part of a crisis package totaling SEK 17.5 billion.

Previously, the government presented measures worth SEK 8.7 billion, most of which will go to further reducing taxes on gasoline and diesel for five months.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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