Fear of leaving Norway

(E24) – Threatening dissolution is not particularly sympathetic, but everyone understands that this kind of competitive bias is not viable, NHO says.

– This would mean a significant competitive disadvantage, says Kristoffer Gustavsen, a Norwegian policy adviser.

He stands inside Gardermoen to explain that the airline is now making serious criticisms of the government.

Simply explained: Norwegian airlines such as Norwegian are now excluded from the EU program that provides support for more expensive non-fossil fuels. Norwegian could get this support if the government introduces the two latest versions of the EU's Renewables Directive.

According to the company, several hundred million kroner are being talked about.

As early as 2025, airlines have committed to mixing two percent biofuel in the tanks of their planes. It will cost Norwegian up to NOK 400 million starting next year.

In 2030, according to Norway, this could be over NOK 1.3 billion.

leading to expensive plane tickets

Norway believes the government should now speed up the introduction of new EU rules on renewable energy. Gustavsen says there are no alternatives.

– Why shouldn't the aviation industry pay more for the large climate footprint you are responsible for?

– Airlines and the aviation industry must pay for their emissions. It's about competing on the same terms as other airlines in Europe, Gustavsen says.

Biofuels are currently estimated to cost three to five times more than fossil fuels. According to the rules of the European Union, up to one hundred percent of the additional cost of sustainable fuel can remain in Norwegian.

– It is very important that politicians sort this out, he says.

If this doesn't happen, according to Gustavsen, plane tickets will become more expensive.

In a worst-case scenario, Norwegian companies believe they will have to leave the country, says NHO Lufford, the interest and employer organization for airlines.

– Not to live with

NHO Luftfurt has sent a letter to the Ministry of Climate and Environment in which they are “deeply concerned” that Norwegian airlines are not getting access to restructuring funds and at the same time have to pay for quotas within the EU's quota system. .

“Overall, this will have dramatic consequences for Norwegian aviation,” it says.

– Erik Lahnstein, president of NHO Luftfart, tells E24 that this is not something Norwegian Airlines can live with over time.

He believes it is urgent to introduce the directive as airlines have already started selling tickets for next year.

– The NHO top says that it is not particularly sympathetic to threaten disintegration, but everyone understands that this kind of competitive bias is not possible.

Fear of companies flagging

Also in Gardermoen are conservative politicians Nikolai Astrup and Erlend Larsen.

The party fears major consequences for Norwegian business if the government does not introduce new EU rules.

– In time, there is every reason to fear that both Widerøe and Norwegian will leave if the government does not address this issue, Astrup says.

He believes that Norwegian companies cannot have additional costs in the range of billions – something that competitors in the EU do not want.

– Aviation is very vulnerable. Now we are over the epidemic. The war in Ukraine has driven up fuel prices and spare parts prices. Plus, they also have to go through the green transition, where they struggle with backsliding, Larsen says.

He now fears thousands of jobs. Norway currently has 5,000 employees.

– I hope the government will take this seriously.