02.08.2006
Lower Danish passenger tax boosts domestic traffic

The 50% reduction of the government’s passenger tax has boosted domestic air traffic and will lead to intensified competition in the autumn when Sterling begins to fly the Copenhagen–Aalborg route.

The number of passengers who choose to fly between the various parts of the Denmark has grown significantly since the government reduced its tax on airline passengers. The number of passengers between Copenhagen and the provinces grew by 100,000 or 12.6% year on year in the first six months of 2006.

There are now prospects of even stronger growth when competition on the most important route – the Copenhagen–Aalborg route – intensifies this coming autumn. Danish-based low-cost airline Sterling today announced that from 18 September 2006 they intend to launch three daily frequencies on the route, which is already served by SAS and Cimber Air.

More options for passengers

Copenhagen Airport is pleased to see this growth in domestic traffic, which is attributed to the government passenger tax being phased out. The tax, which formerly added DKK 150 to the price of a return trip on a domestic route, was reduced by 50% on 1 January 2006 and will be completely eliminated from 2007.

“The phasing out of the passenger tax has really boosted domestic air traffic, and SAS and other airlines have increased the availability of low-fare tickets. The launch by Sterling of flights to Aalborg will further intensify competition and give passengers even more options,” said Niels Boserup, President & CEO of Copenhagen Airports A/S.

Significant traffic growth

Domestic traffic to and from Copenhagen peaked in 1996 at 2.9 million passengers, but the number of passengers dropped after the Great Belt Link was opened and the government passenger tax was introduced in 1998. The number of passengers throughed out in 2003 with 1.57 million passengers.

Since then, the number of domestic passengers has grown moderately, reaching 1,655,000 last year. The improvement has been significant since the turn of the year, and the number of domestic passengers totalled 885,000 in the first six months of 2006.