Swiss Federal Audit Office – Report: Skyguide probably needs more federal funds – News

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  • According to the Swiss Federal Audit Office (SFAO), Skyguide air traffic control could be dependent on further federal aid.
  • Skyguide intends to use part of the CHF 500 million granted because of the corona pandemic to pay off an old loan.
  • This reduces the federal funds that were actually earmarked to cover the funding gap caused by the pandemic.

The SFAO came to this conclusion in a report that it published on Wednesday evening. In it, the SFAO examined whether the amounts requested from the federal government correspond to the actual needs and to what extent the financing needs are related to the corona pandemic.

The SFAO comes to the conclusion that the need is justified, but that the CHF 500 million could not be enough and Skyguide would probably have been dependent on federal aid even without the pandemic. Skyguide contradicts the latter. Skyguide would be a sustainable company without the direct and indirect consequences of the crisis, Skyguide writes in the statement in the report.

No flights – no fees

Normally, the company finances itself with fees for arrivals and departures as well as for overflights. Air traffic has collapsed because of the pandemic. Skyguide estimates that this will result in a shortfall of CHF 280 million in 2020 and 2021.

The Federal Council jumped into the breach and paid half a billion francs from the federal treasury for the federal operation in several stages – of which at least 150 million francs as an equity increase, 250 million francs as a loan and a further 100 million francs in the estimate for 2022.

It is about ensuring liquidity. From 2023, lost income from 2020 can be offset against the airlines over a period of seven years by means of a fee increase.

Criticism of planned austerity measures


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The Swiss Federal Audit Office has criticized the planned design of the austerity measures. The Federal Council demanded savings of CHF 100 million and more for the financial aid.

According to the report, Skyguide envisages savings of around CHF 127 million by 2024. From the point of view of the SFAO, however, these are primarily averted cost increases. From the point of view of the SFAO, the planned savings in wage costs are also not enough: Because of the rising average wages, no reduction will be achieved by 2024.

Skyguide is fighting back

The SFAO also criticizes the fact that Skyguide also counts the short-time work compensation of CHF 18 million requested because of the corona pandemic as savings. The SFAO writes that it is incomprehensible to state these as savings and to relieve the management of further savings measures to this extent.

Skyguide defends itself against this criticism. Short-time work is a savings measure because it leads to direct cost savings. The insurance benefits paid out were based on the regularly paid contributions.

The Federal Council is therefore planning CHF 220 million more than the expected reimbursement amount due to the crisis. From the point of view of financial control, it is therefore conceivable that the federal funds will also be used for financing gaps of other origin than the pandemic.

Old debts – great uncertainties

According to the report, Skyguide intends to use the federal loan of CHF 250 million to repay the debt of a loan of CHF 200 million that Skyguide took out from Postfinance in 2011 and which fell due in October 2021. That seems reasonable and justifiable. However, this does not improve the liquidity situation to the same extent as if the full CHF 500 million had been available, writes the SFAO.

Due to uncertainties, financial control also sees a “significant risk” that taxpayers will have to pay for additional funds. Skyguide calculated its liquidity requirements on the assumption that the business volume of 2019 will be reached again in 2025. However, it is unclear when and how the aviation industry will recover. Due to a lack of reserves, even small deviations could result in the 500 million francs not being enough.

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