Is Dutch politics sounding the death knell for Amsterdam-Schiphol?

What's going on in the minds of Dutch politicians? The environment is a major issue for the planet, but it also seems to be the bedrock of local politicians' bidding war. And it looks threatening for Amsterdam Schiphol airport, one of the two major hubs of the Air France-KLM group.

A plan to reduce flights at Schiphol from 2024 onwards

On 1 September, the Dutch government announced that it wanted to reduce noise pollution and CO2 emissions from aviation more sharply at the airport.Amsterdam Schiphol. It would like to see the number of flights reduced from 500,000 to 452,500 a year from November 2024.. Let a decrease of 9.5 % compared to 2019 levels and even a reduction on the previous proposal of 460,000 flights/year.

Transport Minister Mark Harbers justified the decision by explaining that ". while aviation brings a lot to the Netherlands, we need to be aware of the negative effects on the people who live near the airport" .

KLM, the main operator at Schiphol, was quick to respond. In a press release, the company's CEO, Marjan Rintel, condemned the fact that " the Minister chooses to focus unilaterally on capacity reduction as the sole objective. We find this incomprehensible. It's not about the number of air movements, it's about noise reduction.. However, the noise objectives can be achieved in a better way, which would be genuinely beneficial for local residents, the climate, the airlines and the Dutch economy." she explained.

KLM's environmental alternative

Last June, KLM presented a plan to reduce the impact of aviation activity at Schiphol. A plan that has been verified by independent environmental impact assessment bodies. KLM affirms that the introduction of new-generation aircraft that are quieter and more fuel-efficient, as well as improved management of movements on the ground and in the air, will bring about the same objectives. than those of the Minister. Or even better.

The Minister has set a target of reducing noise by 15% at night and 24% over 24 hours by November 2024.. KLM expects to complete night-time noise reduction by early 2024. And points out that the 24-hour targets will be met from 2026 with the delivery of new aircraft. According to KLM, the social cost of its plan will also be lower. It is estimated to cost €25 million a year, compared with €1 billion for the transport minister's plan..

Unfortunately, this is no longer the only obstacle facing the airline. A new front has just been opened, this time by the Dutch parliament. wants to pass a law that would tax transfer passengers.

Transfer passengers in the eye of the storm

According to Parliament, such a tax proposal should be adopted because transfer passengers make no economic contribution whatsoever to the surrounding communities. Apart - of course - from causing more damage to the environment.

The tax would probably be modelled on the €28.20 already paid by departing passengers.. This means that, if it reaches the same amount, thea passenger transferring to Amsterdam would pay an additional €56.40 for a return ticket. Such taxation would certainly discourage passengers from transiting via Schiphol.

According to airport figures, transfer traffic is a major component of the Dutch airport's business. Out of 52.47 million passengers in 2022, transfer traffic generated 19.25 million. This represents 36.6% of total traffic. In the first eight months of 2023, transfer traffic accounted for 35.9%. Or 14.6 million out of 40.72 million passengers.

KLM immediately took action. For the company, transfer passengers represent 60% of the total number of passengers. ! Marjan Rintel believes that Schiphol could lose a third of its transfer passengers as a result.

Limiting flights and taxing transfer passengers would be the only way to ground KLM and Schiphol airport. But general elections scheduled for November could once again change the situation...