“We are pleased that we have concluded an agreement for our coming low-cost facility. For no matter how we look at it, Copenhagen Airport and Denmark will not be able to compete internationally without a simple, inexpensive and efficient product targeting low-cost carriers. With passengers increasingly demanding more and cheaper travel options, the new agreement is designed specifically for that purpose, said Brian Petersen, CEO of Copenhagen Airports, adding:
“With the number of low-cost passengers higher than ever, there is a raison d’être for Swift already two months before the opening. A very large part of the low-cost traffic growth seen during the past 18 months has come about exactly because we had announced the opening of Swift, said Brian Petersen.
In July, Copenhagen Airport recorded more than 400,000 low-cost passengers in a single month for the first time ever, and the low-cost market share was 18.5%. The low-cost carriers year-to-date market share is 17.6%, which is about 3% higher than in 2009.
An airport for everyone
The price for using CPH Swift has been determined based on detailed discussions during which the parties have sought to take into account the many different interests of the various users in connection with determining the terms and conditions for using Copenhagen Airport. The low-cost facility is an important part of CPH’s efforts to hold its own in the strong international competition by being an attractive airport to all types of airlines.
“The price structure means that Copenhagen Airport will strengthen its position in the intensive competition among the major European airports. The opening of CPH Swift and the differentiated prices will enable us to accommodate the different demands that network carriers and low-cost carriers have for airport facilities, said Brian Petersen.
All charges to be adjusted
The new long-term charges agreement recently approved by the Danish Civil Aviation Administration (CAA-DK) is a supplement to the existing price agreement from the autumn of 2009 and will be in force until 31 March 2015. The parties to the new agreement are CPH and SAS, Cimber Sterling, Norwegian and IATA, representing approximately 88% of traffic at Copenhagen Airport.
Under the agreement, all passenger-related charges will be changed to better reflect the underlying costs, and a certain part of the prices will be facility specific. This ensures that CPH complies with the EU directive on airport charges from 2009 which must be implemented into Danish law by 15 March 2011.
The implementation of cost-related prices means that passenger charges for other international departures and domestic transfers will be reduced, whereas prices for domestic departures, international transfer, security and handling will be increased.
“We have now reached what we believe is a balanced agreement, which will form the basis for many new routes and a substantial improvement of Denmark's international accessibility, said Brian Petersen.
CPH introduces an environmental charge
In addition to the changed passenger charges, the agreement also includes a new charge based on aircraft emissions of nitrogen oxides (NOx) designed to promote the use of more environmentally friendly aircraft.
The existing take-off charge has been reduced by 5%, and a NOx charge of DKK 16.50 per kilo of NOx emitted will be levied, to the effect that carriers using the most environmentally friendly aircraft and engines will pay a lower take-off charge than under the current charges agreement. Conversely, older types of aircraft with older engine technology will pay a higher take-off charge than today.
Overall, the NOx charge is revenue neutral, and the NOx charge will be used for purposes such as supporting CPH’s environmental initiatives at the airport. These may comprise improvements of both environmental and noise conditions.
Overview of charges
The table below shows the prices for using Copenhagen Airport under the new charges agreement as from 31 October 2010:
Type of charge New agreement Existing agreement Passenger charge at Swift
67,18
-
Passenger charge for other international departures87,18
103,75
Passenger charge for domestic departures39,11
28,81
Passenger charge for international transfers52,65
41,65
Passenger charge for domestic transfers23,62
23,81
Security charge38,92
32,43
Security charge for transfers25,69
21,41
Handling charge for international departures12,50
10,42
Handling charge for domestic departures6,25
5,21
The complete charges agreement is available at the CPH website here.
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