Despite millions in aid from Flanders and the federal government, totaling 13,5 million euros, Antwerp Airport’s financial situation is so dire that the so-called alarm bell procedure is in effect. This means that any creditor can ask the court to dissolve the company.
Nevertheless, for Flemish Minister of Mobility Annick De Ridder (N-VA), who is from Antwerp, as is Prime Minister Bart De Wever (N-VA), the Flemish support is not up for discussion, even though the government is subsidizing the airport in the Deurne district to the tune of approximately 65 euros per passenger.
However, the majority parties, Vooruit and CD&V, are increasing pressure to halt funding for a loss-making airport, especially in the current budgetary context, where savings and cuts are necessary.
Subsidy-guzzling
It’s too mind-boggling for words. Antwerp Airport, located just 40 kilometers from Brussels Airport, attracted only 210,000 passengers last year, posted a net loss of 658,000 euros, and is also carrying 10 million euros in debt.
And yet, Flanders, which recently acquired a stake in Brussels Airport, continues to contribute money to keep the airport running.
It’s strange, especially when you consider that Antwerp Airport, apart from a handful of scheduled flights by Tui Fly and the Italian airline Skyalps, almost exclusively serves private jets and flight schools – even the brasserie has gone bankrupt – and that the runway is relatively short, meaning that not all aircraft can take off or land there.
In addition, there have been protests from the neighborhood for years, as the airport is situated in the middle of a residential area. For example, appeals have been announced against the new environmental permit, and legal proceedings are still ongoing against illegal expansion on lands designated as an agricultural area.
No subsidy agreement yet, subsidies continue to be paid
To put this into context, the Flemish government owns the infrastructure at the regional airports of Deurne and Ostend. However, its operation is in the hands of the French group Egis, which manages the airports through two airport operating companies, abbreviated as LEMs, LEM Antwerp and LEM Ostend-Bruges. It has concluded an operating agreement with the Flemish government, which runs until 2039.
Subsidies for LEM Antwerp have risen to 5,3 million euros in recent years. In addition, 15,7 million in infrastructure investments are planned for 2025 and 2026. And then there are the federal subsidies for air traffic control, which amounted to around 8,1 million euros last year.
Last year, there were already reports in the press that the airport was in the red. However, research by the newspaper De Standaard and VRT NWS shows that the subsidy agreement with the Flemish Community expired several years ago. Yet, the subsidies continue to be paid, and the financial situation is now so bad that any creditor can ask the court to dissolve the company through the so-called alarm bell procedure.
Political uproar
In response to these reports, the opposition party Groen is once again calling for an audit by the Court of Audit. Still, coalition partners Vooruit and CD&V are also openly questioning the subsidies. The socialists have long been critical of the financing of regional airports.
According to Vooruit, Flanders wastes millions of tax dollars every year on facilities that are becoming increasingly less relevant. “At a time when we are asking everyone to make an effort, it is inexplicable that millions of euros are still going to Antwerp Airport. It is not a core task of the government to subsidize business flights.”
But CD&V also has “serious questions” about the airport’s management. “It is not good financial policy to continue pumping money into a loss-making company. It is even less socially responsible to do so with taxpayers’ money when savings are needed everywhere.”
According to the party, Antwerp Airport has “missed the opportunity in recent years to reinvent itself as an innovative hub where the aviation of the future takes shape.” “Instead, they have started to develop capital-intensive private flights based on state subsidies. That’s like closing your own books. For CD&V, it is difficult to justify the government sponsoring private flights for millions of euros.”
Base for drones?
For Flemish Minister of Mobility Annick De Ridder (N-VA), Flemish support is not up for debate. She states that, “as a resident of Antwerp, she is naturally a fan” of Deurne Airport, and she considers “the continued existence of all Flemish regional airports to be important.”
CEO Nathan De Valck, who has only been in office for a few months after his predecessor had to step down after just three months, also remains confident of a positive outcome and is playing down the fuss surrounding the alarm procedure, calling it “a normal procedure that applies to any company with low capital.”
He also aims to establish a base for drones and develop new, fully electric aircraft capable of carrying 15 to 30 passengers. However, he does not seem to want to change anything immediately about the fact that private jets pay far too little to land at Deurne. In Eindhoven, for example, landing fees are five times higher.
And yet this additional income is urgently needed, because the airport apparently cannot count on more subsidies in the immediate future.
