City of Pärnu debates €600,000 airport subsidy amid ongoing losses
Since the City of Pärnu by agreement covers the local airport's annual losses, there have been calls to reroute funds from maintaining the struggling airport to attracting new flights, "Aktuaalne kaamera" reported.
With only around a thousand passengers this year and state support set to fall in 2025, the city has questioned if it can continue footing the €600,000 bill.
Pärnu Airport, part of the Tallinn Airport group, currently flies to the small island of Ruhnu.
This summer, no international routes flew from or to the airport, a state of affairs likely to continue next year too.
Aircraft maintenance firm Magnetic MRO also operates at the airport, which has also taken on a military utility in the changed security situation.
The state has put up over €18 million toward airport reconstruction, plus grants of more than half a million euros per year as targeted funding.
Despite this, the airport largely relies on subsidies from the City of Pärnu.
Under an agreement valid until 2031, local government covers the airport's annual losses up to €600,000, "Aktuaalne kaamera" reported.
For 2024, "Pärnu's contribution has been agreed at over €300,000," Tallinn Airport board member Anneli Turkin told "Aktuaalne kaamera."
"There is also an agreement in place that if the airport performs better, the city's funding towards Pärnu Airport would fall," she added.
At present, there are no signs of improvement, however.
While commercial revenues at the airport have grown, they remain marginal compared with the subsidies, plus the state funding for regional airports is set to fall next year.
Stakeholders say that developing the airport should represent a joint effort between the public and private sectors, while the exact form of this cooperation will depend on further agreements.
Turkin explained that while the management team focuses on operating Pärnu Airport efficiently, the responsibility for air traffic development and tourism promotion falls to the municipality and local businesses. Although the business plan projected 20,000 annual passengers, the airport has only seen about a thousand visitors this year.
Pärnu Deputy Mayor Meelis Kukk stressed to "Aktuaalne kaamera" the need to boost the airport's operating revenue by expanding aviation-related activities, such as Resource Management Office (RMO) services. He noted that the city must actively work to improve the airport's viability, to avoid potentially wasting up to €600,000.
Pärnu's financial support is focused on maintaining the airport, but summer tourist flights rely on local business funding, which proved lacking last year.
Andrus Aljas, who heads up the town's spa hotels, expressed doubt about future flights, however, due to tax hikes.
He also highlighted what he said was a lack of serious development efforts in respect of Pärnu Airport, suggesting that redirecting maintenance funds to flight subsidies could help establish flight connections.
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Editor: Andrew Whyte, Aleksander Krjukov
Source: 'Aktuaalne kaamera,' reporter Kristi Raidla.