Court of Audit: 46 million invested in Airport Eelde based on far too rosy analysis

Groningen Airport Eelde (GAE) has no prospect of cost-effective operation in the coming years. This is stated in a report by the Northern Court of Audit. The study is a follow-up to the study she conducted in 2013.

The report also states that GAE prepared an overly optimistic analysis in 2016, which ultimately led to an investment of 46 million euros. ‘Gateway to the North’ was chosen because that was the only scenario that produced a positive result.

According to the Court of Audit, the analysis at the time was based on optimistic assumptions, which did not fall within the guidelines that were customary at the time. According to the audit office, passenger numbers and benefits in travel time are overestimated and not all negative external effects have been included in the analysis.

According to the audit office, the shareholders have no insight into the development of the airport because their picture is outdated. Also, according to the report, there is no recent analysis of the added value or necessity of keeping the airport of this size open.

GAE’s new strategy regarding the so-called Route Fund, with which the airport wanted to find new flight destinations, has failed and the feasibility of the airport’s new future plans is being questioned by external experts. The shareholders want to maintain the airport, but the government does not intend to take on (part of) the costs.

The Court also makes recommendations. For example, the report states that she would like new plans from GAE to be tested externally with both optimistic and pessimistic conclusions. They also want the Provincial Executive to carry out an analysis based on realistic assumptions.

If the provinces of Groningen and Drenthe, as shareholders, want to maintain the airport in its current form, they must guarantee the costs of so-called NEDAB (non-economic services of general interest) and they must be willing to invest in the airport.

In a reaction in the report, the Provincial Executive of Drenthe says that it cannot agree with the conclusion of the Northern Court of Audit. According to the provincial government, the analysis was done by leading agencies. They also indicate that they have always kept the Provincial Council informed.

They also say that they are looking for a realistic revenue model, but that this cannot be realized without NEDAB support for the time being. GS indicates that a new multi-year plan will be presented to the shareholders by 1 May at the latest.

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