Sweden Allocates €90 Million Stabilize Aviation Sector

The Swedish government has revealed a significant investment of one billion 35 million kroner (€90 million) in the aviation sector, which is planned to be included in the upcoming spring budget amendment.

Through a press release issued yesterday, February 21, the government underlines the urgency of this financial intervention to avoid the inevitable surge of ticket prices within the so-called system for security screening of passengers and their luggage (GAS), citing that without this preventive measure, airlines would be forced to pass on the burden of increased costs to passengers, SchengenVisaInfo.com reports.

In this regard, the spokesman for traffic policy for the Swedish Democrats, Thomas Morell, emphasised that in a country like Sweden, characterised by its extended geography at the edges of Europe, aviation takes a leading role in the daily life of its citizens.

According to him, it serves as a lifeline for many businesses nationwide. It fulfils indispensable roles in important societal endeavours, such as ambulance services, police operations, firefighting efforts, and national defence strategies. With the implementation of this investment, Morell asserted, the foundation is being laid to ensure the continued efficiency of air travel in the future.

Sweden is dependent on aviation for the whole country to function. The Swedish aviation industry went through a severe crisis during the pandemic, and the sharp fee increases within the GAS system prevented us from having a competitive flight again.

Highlighting the fragile state of the Swedish aviation sector, Infrastructure and Housing Minister Andreas Carlson said the accumulation of the ongoing COVID-19 pandemic, escalating fuel prices, and geopolitical unrest in neighbouring regions have profoundly impacted aviation operations.

Infrastructure and Housing Minister Andreas Carlson explains that government investment represents a strategic manoeuvre to strengthen the aviation industry’s competitiveness.

According to the government, the standard fee equalisation mechanism implemented through the GAS system is central to this effort. It aggregates security screening costs at all Swedish security-approved airports and distributes them per departing passenger. Under this agreement, the Swedish Transport Agency bills airlines based on passenger volume.

However, the efficiency of the GAS system has been compromised by a shortage precipitated by the COVID-19 pandemic. The drastic reduction in air traffic has resulted in a mismatch between airport security screening costs, which have remained relatively constant, and the declining number of passengers passing through.