AIRLINES THREATEN TO AX FLIGHTS

Info-Prod Research (Middle East), August, 2002 by Info-Prod Strategic Business Information

The Civil Aviation Authority (CAA) has published proposals to restructure its airport charges in a way which the airlines believe will devastate the Norwegian air transport industry. The airlines have calculated that the change will cost an additional NOK 1 billion a year. And if they are to meet these increased costs they see no alternative to a major cut in the number of flights being scheduled. Airports in the north of Norway and the northern part of the west country are most vulnerable to cuts in services.

Air fares could also rise. Industry representatives agree that the new budget airline,Norwegian, which recently won a major contract from the Norwegian state,will suffer most. (Source: Odin.dep.no)