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Norwegian air passenger tax could be replaced with ‘sustainable’ model

Norway’s Air Passenger Tax (Flypassasjeravgiften) could be replaced in a new government strategy for aviation.

An aircraft of Scandinavian Airlines SAS
An aircraft of Scandinavian Airlines SAS lands at Copenhagen Airport in Denmark on January 20th 2022. Norway is set to reform its Passenger Air Tax. Photo: Mads Claus Rasmussen / Ritzau Scanpix / AFP

The government is set to propose changes this autumn that would see the Air Passenger Tax replaced by a different taxation, it said in a statement.

The existing flight tax is currently suspended as part of Covid-19 economic relief. It reinstatement after the coronavirus suspension was scheduled to end on January 1st this year, but has been delayed until July 1st.

Normally, the tax adds levies of up to 214 kroner to fare prices for passengers.

The Ministry of Transport plans to present a new strategy for taxing air travel in the autumn as part of a wider proposal for the country’s aviation sector.

The plan will describe how emissions from aviation can be reduced and how the government can both reduce prices and increase the number of services on short haul services, the government said in the statement.

“It is a target that the Air Passenger Tax will be replaced with a tax that has a genuine climate effect and better geographical profile,” it said.

Prices for passengers could be as much as halved on so-called FOT routes as part of the plan, meanwhile.

FOT routes are domestic routes which do not operate at a profit and are financed by the state. These include services operated by airline Widerøe between Førde and Oslo in the south of Norway and Lakselv and Tromsø in the north.

The government has already consulted the industry, including airlines Norwegian, SAS and Widerøe, as well as industry interest groups and environmental organisations as to how the reforms might take shape, it said in the statement.

“The aim of the aviation strategy is to contribute to sustainable Norwegian aviation. It will be mostly focused on commercial flight but the strategy will also encompass other parts of the aviation sector such as helicopter businesses and drones. New technology, education, competencies and passenger rights are other theme to be touched upon by the strategy,” the government statement reads.

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TRAVEL NEWS

Norwegian Air Shuttle pilots threaten summer strike 

Norwegian Air Shuttle pilots could strike from June if an agreement on wages and working conditions isn’t reached by the end of May. 

Norwegian Air Shuttle pilots threaten summer strike 

A mediation deadline of May 31st has been set with Norwegian Air Shuttle pilots, the Norwegian Pilot Union and the airline yet to agree on a package for wages and working conditions, business news site E24 reports. 

The leader of the organisation representing pilots, Alf Hansen, said that there would be a “great danger of a strike” if the pilots’ demands were not met.

Hansen said that pilots were asking for a better work-life balance as part of the proposed collective bargaining agreement. 

READ ALSO: What is a Norwegian collective bargaining agreement?

“We pilots have to be at work when most people want to go out and travel, but like others we also have to have a life with the family outside of work. Demands have therefore been put forward for a more even workload and a longer notification period for changes to the work programme,” he said. 

“Through difficult periods and reconstruction in the company, we have contributed to growth and profits. Now is the time to close the pay gap for colleagues in the company who work at other bases in Europe. The company must realise that we are part of a European labour market and must be paid accordingly,” he added. 

The Confederation of Norwegian Enterprise (NHO) would also be negotiating on behalf of the airline. 

Norwegian has recovered from a difficult financial situation in recent years and was given the green light to complete the acquisition of the regional airline Widerøe at the end of last year. 

During the airline’s last quarterly presentation, CEO Geir Karlsen said that the company hoped for a “record summer season.” 

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