Tallinn Airport to increase passenger fees
Tallinn Airport is set to introduce a security fee of €2.87 and also increase fees for passengers with special needs by €0.18. Both charges will be reflected in ticket prices and apply at Pärnu, Kuressaare and Kärdla airports from January 1, 2025 and at Tallinn and Tartu airports from April 1, 2025.
According to a Tallinn Airport press release, the reasons for introducing the security fee are the obligation to ensure high quality of security service in a situation where airport costs have increased by almost 30 percent over the past year.
In addition, the expectations of the owner, which in this case is the Estonian state, regarding the company's financial targets have also changed, the airport said, adding that it needs to ensure a stable and sustainable financial position in order to finance future development plans.
Airports have a legal obligation to consult airlines on airport charges every year.
"We have spoken with all the airlines flying to Tallinn about the change in charges. It was clear that no airline was happy to hear about the introduction of the security charge. However, the change and the reasons for it were understood and our prices remain competitive. We will raise prices as little as possible and we believe that a €3 increase in fares will not make people change their travel plans," said Tallinn Airport Board Chair Riivo Tuvike.
"To cover security costs, which are increasing at the same rate as the number of passengers, the solution is to introduce a security charge. Targeted funding and the security charge do not fully cover the costs of security and so the difference is covered by the airport," said Tuvike, adding that most EU countries have already introduced a security charge because they are not able to fully cover the costs of airport security and the emergency services.
Iceland currently has the highest airport security charges in Europe, amounting to €20.20. Latvia has a security charge of €5.96 and Finland €5.71, while Lithuania has not yet introduced one.
The charge for passengers with special needs will be €0.48 per departing passenger. According to Tallinn Airport, the reason for the change is the increase in the number of passengers with special needs using the services provided, which has led to an rise in costs.
Tallinn Airport to expand passenger terminal
Tuvike said that the expansion of Tallinn Airport's passenger terminal will be a priority in the coming years. The terminal, which was built to handle 2.8 million passengers, is reaching its capacity limit. With a record 3.5 million people passing through the airport in 2024 so far, the number of passengers is expected to grow further in the coming years. Work to expand the passenger terminal will therefore begin as early as next year. The investment on that project will amount to approximately €53 million.
Estonian Minister of Infrastructure Vladimir Svet (SDE) has signed an agreement, according to which the Estonian state will invest €14.4 million from CO2 funds to improve the energy efficiency of Tallinn and Estonia's regional airports. The funds will be used to improve heating solutions in the buildings, make electricity networks more efficient and carry out other necessary works to make energy use at Estonian airports more sustainable. Of those funds, €9.3 million will be used to improve energy efficiency and upgrade the electricity grid at Tallinn Airport.
The remaining €5.1 million will be used for airport and terminal reconstruction works at Tartu, Kärdla, Kuressaare and Ruhnu airports.
The state can only use the public funds earmarked for this purpose to make the heating solutions and electricity networks of the airport buildings more efficient. The reconstruction works will be financed from greenhouse gas emissions trading revenues and paid to Tallinn Airport in instalments between 2024 and 2027.
Background
The principles for the calculation and implementation of airport charges are well regulated internationally. In the European Union, the setting of airport charges is governed by EU Directive 2009/12/EC, which lays out the principles of non-discrimination, transparency and consultation. These principles ensure fair and open communication between airports and airlines and have been transposed into the Estonian Aviation Act.
Airport charges are composed of many different elements, which can be roughly divided into two categories: per aircraft charges (e.g. landing, parking charges) and per passenger charges (e.g. passenger charges, security charges). The relative ratios of these charges may vary from airport to airport.
---
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Marko Tooming, Michael Cole