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INFORMATION
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ECONOMIC ANALYSIS AND POLICY (EAP) SECTION

JOINT FINANCING (JF) UNIT


DANISH/ICELANDIC AGREEMENTS


Two Joint Financing Agreements cover the operation and financing of facilities and services provided by Denmark and Iceland respectively for civil aircraft flying across the North Atlantic, north of the 45oN latitude. These services comprise air traffic control, communications and meteorology.

The first joint financing arrangement, for weather ships in the North Atlantic, came into existence in 1946 and was followed by arrangements governing a broader scope of services later in the 1940s. These original arrangements were revised in 1956 and adopted as the Danish and Icelandic Joint Financing Agreements.

Today, the services continue to be provided and financed in accordance with these two Agreements, as amended and updated by the Montreal Protocols of 1982. At present, 23 States with civil aircraft flying across the North Atlantic are parties to the Agreements, including the two Provider States, Denmark and Iceland. All States whose aircraft make a significant number of North Atlantic crossings are invited to adhere to these Agreements.

Five percent of the costs of the services are being paid by the Governments of Denmark and Iceland in consideration of special benefits derived from operating the services. Most of the remaining 95 % of the costs are recovered from the users. The United Kingdom National Air Traffic Services Limited serves as billing and collecting agent. The small portion of the costs which is not allocable to international civil aviation is recovered from the States parties to the Agreements based on the percentage of North Atlantic crossings performed by aircraft operators from those States.