Swiss air navigation service Skyguide is asking for a "political solution from Switzerland" to fund a revenue shortfall until the proposed Functional Airspace Block Europe Central (FABEC) initiative is implemented.

Skyguide says there is a SFr65 million ($55.8 million) funding gap because of its legal mandate to provide services on behalf of Switzerland at 12 regional airports and in adjacent airspace areas delegated to its control.

The latter aspect particularly concerns southern Germany, which does not remunerate Skyguide for its services, but also parts of Italy and a small area of Austria. Neighbouring parts of France under Skyguide control contribute SFr58 million.

"We need the southern part of Germany for operational reasons to control approach traffic into Zurich," says Skyguide. "There is no contact between Switzerland and Germany to regulate these things, Germany does not contribute at all.

"Our argument is that we need money from the Swiss state. The Swiss state should find a solution to compensate the shortfall." But there is no definite, planned date for an agreement on dividing airspace responsibility and revenue under the FABEC plan. The latter proposes co-operation between the air navigation service providers of Belgium, France, Luxembourg, Germany, the Netherlands, and the upper area control centre at Maastricht, which is operated by Eurocontrol.

Skyguide is contemplating raising charges to ease its financial situation, but concedes it already operates one of the most expensive navigation services regimes in Europe. However, it is not ruling out hiking charges should revenue shortfall continue.

"If no solution can be found in the foreseeable future, we will have to substantially increase our charges," says Skyguide chief executive Daniel Weder. "We have taken every possible action to position our company well. There's nothing more we can do."

Skyguide generated operating revenue of SFr372.3 million for 2008, up 0.7%, but posted an operating deficit of SFr5.1 million, compared with SFr4.6 million in 2007.

The service provider has also been affected by what it says was a "sizeable decline" in flight numbers towards the end of last year, although it nonetheless handles 3,400 civil and military flights a day.

Source: Flight International