Tallinn Airport to receive €14.5 million to keep fees low, new investments

Tallinn Airport.
Tallinn Airport. Source: Siim Lõvi /ERR

Tallinn Airport will receive an additional €14.5 million from the government to become more energy efficient and to increase competitiveness by keeping airport fees low.

Minister of Climate Kristen Michal (Reform) said Tallinn Airport will receive money from CO2 funds between 2024-2027.

"The initial ideas are to insulate buildings, heat them, and reinforce the electricity grids so that renewable energy can be used and recharged in the future. For example, the airport has more than 5,000 light fittings, which they plan to convert to LED lamps," said Michal.  

Due to the additional funding, the airport's own investment spending would be reduced, which would allow the fees to remain the same.

"The agreement is that next year the airport fees will not go up, which means that they will get more money from this program to invest. This will help them to stay in good competition with other airports in terms of charges and keep their charges at a reasonable level," stated Michal.

Kristen Michal. Source: ERR

Tallinn Airport raised its fees by €3 to €10.50 in May. While airline RyanAir said this was too high, Estonia's Competition Authority considered it reasonable.

Aviation expert Sven Kukemelk said it was inevitable.

"Tallinn Airport had not changed airport charges for over 10 years before this spring, in a situation where wages are rising, energy prices are rising, technology prices are going up, on top of inflation. It is not sustainable to continue to operate the airport at this level," said Kukemelk.

Michal said fees should now be able to stay at this level until 2027.

Tallinn Airport did not want to comment as a final funding decision has not yet been made.


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Editor: Marko Tooming, Helen Wright

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