Dutch government fears higher airfares if stake in Caribbean air traffic control is sold
THE HAGUE – The Dutch cabinet fears that airfares to the Caribbean part of the Kingdom will rise if the Netherlands sells its stake in air navigation service provider DC-ANSP. The cabinet has therefore decided to remain a shareholder for the time being, as the Minister of Infrastructure and Water Management has informed the House of Representatives.
The reason is an evaluation of the government’s shareholding, which concluded that ownership is not necessary to safeguard the public interest. According to the researchers, aviation safety is already sufficiently ensured through international regulations and oversight, making additional influence through shareholding unnecessary in principle.
DC-ANSP provides air traffic control services above Curaçao and Bonaire, among others. The Netherlands has held a 7.95 percent stake since the constitutional reform of 2010. The evaluation states that there are no legal or practical obstacles to selling that stake to the other shareholders, Curaçao and Sint Maarten. It also found that the Netherlands’ influence is limited: with a minority stake, The Hague cannot force decisive decisions.
Risks
Nevertheless, the cabinet sees risks in a sale. Curaçao and Sint Maarten have long been pushing for dividend payouts. According to the evaluation, this could result in less money being available for investment and in charges for air navigation services rising. These higher costs could be passed on to airline ticket prices, potentially putting the accessibility of Bonaire in particular under pressure.
In addition to ticket affordability, the Dutch cabinet also values maintaining oversight of operations and influence within the organisation. By remaining a shareholder, the Netherlands retains a seat at the table, even if its formal influence is limited.
According to the evaluation, further investigation is first needed into whether selling the stake is proportionate and whether the risks can be sufficiently mitigated. Only then can a final decision be made on whether or not to divest the government’s shareholding.
