New Impact Analysis for Arendal Airport, Gullknapp

Menon Economics has analysed two scenarios for the future of Gullknapp:
 

1. ALG receives no new operational funding, and activity at the airport must be scaled down. This results in a 65% reduction in current direct and indirect employment.
2. ALG secures annual operational funding of NOK 12 million, reducing limitations on the airport's use and allowing for growth in activity. Total increased direct and indirect employment is estimated to exceed 450 by 2030, representing a 21% growth. Total value creation in this scenario is estimated at NOK 541 million, a 46% increase from the current level.

The difference between the two scenarios is 323 jobs and NOK 400 million in value creation.
The analysis was commissioned by Arendal Municipality.

"We are pleased to receive the analysis as an important knowledge base. It shows that Gullknapp is not only vital for aviation but also for local employment and the economy. With the loss of the flight school, Arendal will lose its only institution of higher education, and a closure of Gullknapp would have serious negative consequences for the local economy and businesses," says Kåre Andersen, head of economic development in Arendal Municipality.

Aviation Cluster in Agder
Together, ALG, OSM Aviation Academy (OSMAA), Norse Atlantic Airways (Norse), and ADS Airport Services form the aviation cluster in Arendal, where all companies' activities are directly or indirectly tied to the operation and maintenance of the airport.

ALG is currently used for education, emergency services, and private flights. Most of the flights at ALG are conducted by the flight school OSMAA, one of two pilot schools in Norway outside of the Air Force.

"Arendal Airport Gullknapp is incredibly important for training future pilots. It is crucial that we receive favorable conditions to grow, so we can meet the increasing demand for pilots both nationally and internationally. Further operation and development of the airport will secure more education spots and strengthen the aviation cluster in Arendal," says Martin Floor, CEO of OSMAA.

Norse Atlantic Airways (Norse) was established in Arendal in 2021, motivated by synergies with OSMAA. Their focus is on flights between the USA and Europe.
 

"Arendal Airport Gullknapp is the foundation of our operations in Norway. Without the flight school’s activity, which trains pilots for us, Norwegian, and Widerøe, we would lose a key recruitment base. We need operating conditions that allow us to run our operations here," says Anders Hall Jomaas, CFO of Norse Atlantic Airways.

Menon Economics further notes that closing ALG would weaken the region's emergency services by reducing the availability of fuel and support services for rescue helicopters and police helicopters.
 

"Gullknapp is used by rescue helicopters during search and rescue operations and for patient transport. The police helicopter has also used Gullknapp for refueling on several occasions, and the air ambulance uses the airport for personnel training. During forest fire suppression in the district, helicopters use the airport for refueling," explains Jan Morten Myklebust, airport manager at ALG.
 

Requesting Funds from the State
Since its opening in 2018, Arendal Airport Gullknapp has faced financial challenges, leading to the closure of its control tower services.

Arendals Fossekompani owns 92.2% of the airport through its company AFK Property AS. The remaining shares are owned by Arendal and Froland municipalities, holding 5.1% and 1%, respectively.

"Arendals Fossekompani has supported Gullknapp with significant funding, but it is now critical to secure external financing and political backing for the airport," says Torkil Mogstad, Executive Vice President of Arendals Fossekompani and Chairman of Arendal Airport, Gullknapp.

 

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ABOUT NORSE ATLANTIC AIRWAYS:
Norse Atlantic Airways is a Norwegian airline offering comfortable and affordable long-haul flights to a range of intercontinental destinations, in addition to extensive charter and ACMI operations. The company was founded by CEO and major shareholder Bjørn Tore Larsen in March 2021 and is headquartered in Arendal. The fleet consists of modern, fuel-efficient, and environmentally friendly Boeing 787 aircraft.
 

ABOUT OSM AVIATION ACADEMY:
OSM Aviation Academy (OSMAA) is one of the largest flight schools in Europe and has provided professional flight training to pilots and airlines since 1963. The flight school established itself in Arendal in 2018 and now has more than 40 employees and over 140 students. OSMAA offers ‘Airline Ready’ flight training, preparing students for careers in aviation and training pilots for Norse Atlantic Airways, Norwegian, Widerøe, and SAS. The flight school is accredited as a vocational school and is the only higher education institution in Arendal.
 

ABOUT MENON ECONOMICS:
Menon Economics is a research-based analysis and consulting company at the intersection of business economics, socioeconomics, and industrial policy. The company offers analysis and advisory services to businesses, organizations, municipalities, counties, and ministries. Their main focus is on empirical analyses of economic policy, and the company’s staff possess high-level economic expertise.