Norwegian believes that a longer period of tax and duty reduction is necessary for the industry to grow again. The airline is also proposing a “climate fund” in lieu of current aviation taxes.
Norwegian airline believes that the tax burden on airlines must be reduced “dramatically over a longer period” if the industry is to have a chance to recover.
It follows from a response to the query that the airline has submitted regarding the government’s work on a new aviation strategy, published on Thursday.
“To ensure economic sustainability, healthy competition in Norwegian aviation and the ability of Norwegian airlines to compete internationally and invest in emission reduction technology, the state must grant airlines a tax ‘amnesty’ for a period to ensure recovery after the pandemic “. Communications Director Anne-Sissel Skånvik writes in Norwegian.
The case continues below the image.
Can’t stand Avinor deficit
The airline proposes to eliminate the airport tax permanently.
Value-added tax should be kept low until airlines have rebuilt themselves and have shown that profitable operations are possible over a longer period of time, Norwegian believes.
At the same time, Norwegian wants the current financing of the airport driver and owner, Avinor, to be reviewed and changed.
Norwegian believes that airlines do not have the financial power to bear Avinor’s losses as a result of reduced traffic and instead proposes concrete measures to reduce costs in the Avinor system.
Wants “climate fund”
Norwegian also believes that Norwegian aviation will not solve major emissions cuts in the coming years without predictable framework conditions that reward leading companies.
Norwegian therefore believes that there is a great need for a close dialogue between the Norwegian aviation industry and the Norwegian authorities, and that in the work on the new aviation strategy, sustainability must take center stage.
“One concrete proposal is to channel current high aviation taxes into a fund that can ensure short-haul, sustainable aviation fuel production in Norway, thereby contributing to thousands of new jobs in the country,” summarizes Skånvik .
The Norwegian authorities should support the establishment of an aviation fund based on the model of the NOx * fund, where the current Norwegian excise tax on CO₂ and / or the air passenger tax constitutes the financing, believes Norwegian.
“The Aviation Fund will be able to have great purchasing power and cover the additional operating costs related to the use of zero and low emission solutions in Norwegian aviation,” he says.
The Norwegian summit notes that large joint elevators will require a high degree of coordination and new instruments throughout the aviation value chain and in various areas of authority.
“A new strategic process can ensure broad anchoring based on knowledge of a realistic, profitable and predictable path to fossil-free aviation by 2050,” concludes Skånvik.
Thanks for the help
Norwegian notes that the pandemic has been brutal. Almost all the planes were parked overnight, with the exception of some planes in Norway.
Three-quarters of the employees outside of Norway lost their jobs and the company now has about 3,000 employees.
“Norway, however, is protected and from October all of our Norwegian pilots will go back to work after a long period of layoff. Without Norwegian rules on layoffs, we would have a completely different situation,” the company writes.
Norwegian claims they have gone through a demanding reorganization process in which debt and liabilities have been reduced by NOK 140 billion.
The company also thanks the authorities for their help.
“We are also pleased with the support that Norwegian and the other companies received through a loan guarantee when COVID-19 had put almost all crews on the ground,” he says.
Norwegian shop stewards oppose seasonal work
Requires direct employment
The employee organization LO notes in its reply letter that aviation employs about 60,000 people and contributes to a safe and efficient infrastructure, ensures settlement and economic growth in Norway.
LO believes that aviation strategy should include all parts of aviation and be clearly statedsteering that safeguards safety, as well as helps reduce the impact of aviation on the climate.
LO further believes that the strategy should facilitate an aviation characterized by healthy and fair competition on equal terms, based on the ‘Norwegian model’.
Including, but not limited to:
- Permanent positions with direct employment in the company associated with the operation of the aircraft operations, and requirements for airlines flying in Norway to accept professional organization.
- Clear rules of the base of operations that clearly define the responsibility of the employer
- Avoid the use of “flags of convenience”
- Reverse regulations allowing the replacement of Norwegian and European employees on Norwegian registered aircraft in intercontinental traffic
LO also calls for upward regulation and legislation to ensure nationally anchored aviation that retains current jobs and creates new ones in Norway.
“Unless there is another form of harmonization in the EU, Norwegian-based airlines run the risk of being overwhelmed on routes from Norway to abroad, as they ultimately face competition that operates with wages and working conditions. significantly lower compared to Norwegian standards. ” , It is stated in the reply letter.
On Wednesday, it also emerged that the Norwegian Competition Authority in its query response fears monopoly and price increases if the state steps in to save airlines in the next economic crisis.
* NOx-fondet. Through the NOX agreement, business organizations will ensure the reduction of nitric oxide gases harmful to the environment. Companies joining the agreement are exempt from state NOx tax in exchange for assuming obligations to the Norwegian Business NOx Fund. The main task of the fund is to finance specific NOx reduction measures.
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