Lugano Airport was once considered a vibrant hub in Ticino, from which up to 32 scheduled flights departed. After a bankruptcy and a prolonged period of uncertainty, the airport is now once again at a crossroads. Officials in the city of Lugano dream of a return to its former glory and are seeking private investors willing to contribute at least CHF 30 million to finance the urgently needed renovation.
But these ambitious plans could be derailed by an unexpected development in Bern: The Swiss Federal Council plans to discontinue financial support for regional airports. This would deprive Lugano Airport of a significant portion of its revenue and significantly complicate the search for private investors.
An airport in deep sleep: The current situation in Lugano
Anyone entering Lugano Airport today will find a fully functional but unused infrastructure. Check-in counters, baggage drop-off, and customs control are present but unused, as there are no longer any scheduled flights. Airport director Davide Pedrioli leads the tour through the facilities with a mixture of pride and melancholy. He emphasizes that everything is operational, but the necessary passengers are lacking. Following the bankruptcy of the former operating company and the discontinuation of scheduled flights, such as those once operated by Swissair Express and later by Darwin Airline (Adria Airways Switzerland), the airport now primarily serves private aviation and business travelers . Around 10.000 people use the airport annually, mainly from Ticino and Italy, for business trips to other European countries.
Despite the current stagnation, Lugano hasn't given up hope. The airport is considered a key economic driver for the Lugano region, and the city is determined to invest in its revitalization. According to airport director Pedrioli, urgent renovations are needed . The offices and restaurant building, in particular, are outdated. However, the biggest and most expensive requirement is a new and larger hangar to resume and expand flight operations. The city is now seeking private investors for these comprehensive renovations, which will require an investment of several million Swiss francs.
Public-private partnership: A financing strategy
The search for investors is being spearheaded by City Councillor Filippo Lombardi, a former member of the Swiss Council of States from the center-right of Ticino. He emphasizes that the expansion of Lugano Airport is a high priority, but the city does not want to invest taxpayers' money. To achieve this goal, a public-private partnership concept has been developed. This concept will soon be submitted to the Lugano City Council for a vote. If approved, a tender process would follow, aimed at attracting private investors. Lombardi speaks of a financing requirement of at least 30 million Swiss francs , which is to be contributed by private investors.
The hope is that this partnership will revive flight operations and possibly even bring scheduled or charter flights back to Lugano. The airport's strategic location, close to the Italian border and in an economically thriving region, is seen as a key selling point for investors. City officials are convinced that there is demand for air connections to other European countries and that the airport has the potential to become a profitable business.
A “huge blow” from Bern: The end of subsidies
The ambitious plans of the city of Lugano could be hampered by the federal government's austerity measures. Filippo Lombardi is far more concerned about the proposals from Bern, which stipulate that regional airports like Lugano will no longer receive funding for air traffic safety , than the search for investors . According to Lombardi, this involves the reimbursement of half of the kerosene tax generated by regional airports. For Lugano alone, this cut would mean a loss of 5 million Swiss francs , or almost 40 percent of its revenue. Lombardi describes this as a "huge blow" that would significantly hinder the search for private investors. Replacing this lost revenue with public funds from the city and canton would hardly garner a majority.
The only remaining option, according to Lombardi, would be to increase takeoff and landing fees for the airport's customers. This increase would significantly raise costs for private pilots and businesspeople who use the airport. This prospect is met with approval from proponents of cost-cutting measures. Caroline Camponovo of VCS Ticino, an organization that advocates for sensible transport policies, argues that it is wrong for the public sector to subsidize up to 88 percent of security measures at Lugano Airport. She contends that the airport's users, the private jet owners, have the financial means to cover the security costs themselves.
Waiting for the decision: Uncertain prospects for Lugano
Airport Director Davide Pedrioli hopes that those in charge in Bern will eventually relent. He points to the hurdles the austerity program still has to overcome. The decision by the Federal Council and Parliament is expected in the fall. Until then, patience is required at Lugano Airport, and those in charge must deal with the possibility that the financial situation will continue to deteriorate.
The planned tender for private investors will therefore fall into an uncertain phase. The outcome of the parliamentary debate in Switzerland will largely determine how attractive an investment in Lugano Airport is for private investors. Should the state subsidies actually be withdrawn, this could not only jeopardize the city of Lugano's redevelopment plans but also call into question the concept of a public-private partnership.
The future of Lugano Airport therefore depends not only on local efforts and demand for air connections, but also on the overarching austerity policy of the Swiss federal government. The decision from Bern will send a signal to the entire regional aviation sector in Switzerland and could have far-reaching consequences for the country's smaller airports.
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