Major Fee Increase on the Horizon
Amsterdam’s Schiphol Airport is preparing to implement a remarkable fee increase of 41% for airlines in the upcoming year. This decision, announced by the Royal Schiphol Group, aims to address challenges posed by soaring inflation and rising interest rates experienced over the past three years. The hike will impose additional costs primarily on airlines operating noisier aircraft and those scheduled for night flights.
Future Fee Structure and Passenger Impact
Alongside the dramatic increase in 2024, Schiphol plans to raise fees by 6% in 2026, followed by a decrease of 7.5% in 2027. Despite this fluctuation, airlines will still incur an average increase of about €15 per passenger departing locally by 2027 compared to rates in 2024. Schiphol has justified this increase as a necessary step to compensate for pandemic-related losses and to meet ongoing economic pressures.
Investments in Airport Improvements
The airport intends to utilize the additional revenue to enhance infrastructure and services for both airlines and passengers while improving working conditions for its employees. To support these improvements, Schiphol has earmarked an investment of approximately €6 billion over the next five years, focusing on quality enhancements and essential maintenance. To alleviate the financial strain on airlines, Schiphol also plans to contribute €100 million towards these initiatives.
Focus on Noise Reduction and Sustainability
Robert Carsouw, CFO of the Royal Schiphol Group, emphasized that the fee increase is essential for financing improvements in quality and sustainability at Schiphol. He mentioned that the higher costs would also deter the use of noisy aircraft and night flights, thereby minimizing disturbances for nearby residents. These steps aim to create a better environment while sustaining operational efficiency at the airport.
Criticism from KLM
The decision to raise fees has faced backlash, particularly from KLM, the national carrier of the Netherlands. KLM’s CEO, Marjan Rintel, criticized Schiphol’s approach, asserting that the airport is unfairly shifting the financial burden of setbacks and pandemic-related losses onto travelers. She warned that such steep charges are likely to lead to increased ticket prices, which could jeopardize Schiphol’s status as a competitive international hub, ultimately affecting the connectivity and economic stability of the Netherlands.
SOURCE: Ref Image from Financial Times
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