Government donates pandemic – destroys aviation business – dramatically increases taxes Business

What the pandemic did not end will be completed by the authorities. This is a sad joke for the Lithuanian aviation industry, which is familiar with the new rates. October 26 At the initiative of the Transportation Competition Agency (TKA), the decision was made to increase the remuneration for services rendered.

The new tolls surprised

The state-owned public transportation agency, Transport Competence Agency, oversees the aviation sector, issues licenses, and is responsible for accident analysis. She reviews fares every year, but this year her growth has surprised airmen.

“It just came to our attention then. This is a hasty step that will have a significant negative impact on Lithuanian aviation companies.” 15 minutes said Artūras Stankevičius, director of the Civil Aviation Association, which unites aviation companies.

For example, the annual maintenance fee of the airline increases from € 3,180 to € 16,429.

According to him, as Lithuanian companies ask for help during the second wave of COVID-19, it was decided not to help the aviation industry, one of the business areas most affected by the pandemic, but to increase the tax burden.

Agency: The fees must cover our costs.

On average, tolls increase between 12 and 13 percent. on the basis that the TKA budget is planned to increase by 2021.

How 15 minutes explained Agnė Mažeikytė, Head of Communication of the Agency, the fees for the services of the Agency are calculated according to a special methodology approved by the Government.

“It forces us to recalculate the fees once a year, taking into account the costs incurred by the institution last year. Therefore, the new toll rates approved by the Minister of Transport and Communications last week are based on the cost base incurred by the institution in 2019, ”said A. Mažeikytė.

A. Stankevičius says he doesn’t understand that logic. “They do not see that there was another situation in 2019 and almost no one spoke of the pandemic,” he asked.

It is true that TKA confirmed that it intended to substantially review the charges and not simply adjust them to the costs incurred.

“We analyze our business processes, we discuss with the aviation maintenance specialists how long it takes them to accomplish one task or another when providing specific services to clients. This is the first time such a comprehensive review has been carried out, so our current fees really reflect the costs incurred by the institution, ”he said.

According to the representative, there are charges that are increasing, but also those that have decreased by more than 30%, so the individual situation of each airline with the new TKA charges will be different.

The minister signed only after the election.

The head of the association noted that the change in toll rates was signed by the Minister of Transport and Communications J. Narkevičius immediately after the election, and the airlines did not even know the latest draft of their order, regardless of the current situation. in the industry.

J. Narkevičius, representing Lithuania’s Polish election campaign, the Union of Christian Families, did not join the Seimas for the next term.

“The aviation industry is one of the business sectors most affected by COVID-19. Currently, 45.8% of flights are operated alone. less than at the same time last year. At the peak of the pandemic, restrictions were lifted to 70.8 percent. flights worldwide, ”said A. Stankevičius.

“There was no clear answer on why taxes are rising so much. We have just sent our comments, hoping not to approve this project. But things turned out differently,” the head of the association was angry.

He also drew attention to the new entrants. “Three new airlines are arriving in Lithuania. What will Lithuania be like now that fares have been increased when the countries of the world are trying to save the aviation business?”, The director of the association was surprised.

For example, the Latvian airline Air Baltic Corporation is establishing a branch in Lithuania. The BNS company stated that this is related to its plans to expand Lithuania’s connection to the world.