Lithuanian airports: after the merger rise in performance by more than one tenth

Date

2015 07 07

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Lithuanian airports: after the merger rise in performance by more than one tenth
Lithuanian airports: after the merger rise in performance by more than one tenth
The sales of aviation and non-aviation services of Lithuanian airports grew 13 percent compared to the same period last year.The increase in sales has enabled the airports to earn more profit, compared to 2014, and it is now 65 percent higher so far this year, in comparison to January – May the year previous. The profit from earnings before interest, taxes, depreciation and amortization increased to 33 percent i.e. 2 percentage points. After the European Union’s decision to exclude the financing of airport operations, aviation and non-aviation revenue, this grow is critical in order to maintain and expand an expensive infrastructure.
 
In order to raise the performance of Lithuanian airports and benefit of the state even more, it is expected that in the near future the company will be managed and developed through concession agreements.
 
“I am delighted that a long-planned decision to merge Lithuanian airports served the purpose. As always, there were a number of skeptics but the results of the very first year show the viability of the three international air gateways and the growing prospects: air transport possibilities from Lithuania have never been so broad,” said Minister of Transport and Communications of the Republic of Lithuania Rimantas Sinkevičius.
 
Over a year after the reorganization, a lot was done: after adoption of complex decisions and clarified functions of units and staff, the three airports with different systems and standards started to work unanimously. A lot of attention was reportedly paid to the harmonization of infrastructure in joining the airports as a single network; standardizing aviation security and flight safety, as well as increasing the range of services and improving their quality. As a result, the company’s operating costs in the first five months of this year increased by 9 percent compared with the same period in 2014.
 
“Lithuanian Airports have two faces – one seen by Lithuanian passengers on the interior, the other seen by foreign guests on the exterior. First of all, we are an air gateway into the world for Lithuanians; it is therefore our goal to increase the number of countries and cities reached from Lithuania, thus creating better opportunities for business and tourism. Secondly, we are the first object the foreigner sees in our country; hence, we aim to create as good impression as possible by our services and service quality,” said Gediminas Almantas, CEO of Lithuanian Airports.
 
Currently, 17 airlines operate at Lithuanian airports and offer flights to 60 destinations. This year, the country’s three airports are expected to handle over 3.8 million passengers, with 1.9 million already having travelled through Lithuanian airport during the first six months of 2015.
 
According to the strategy of Lithuanian Airports, Vilnius Airport is the principal airport in the country, while Kaunas Airport is implementing the AeroHub KUN investment project, which aims at making it the base for aviation-related businesses. Palanga Airport is targeted at the needs of the Klaipėda Region and the handling of inbound tourism. 
 

In the first five months of 2015 one employee of Lithuanian airports serviced 2.7 thousand passengers. Compared to the same period in 2014, the operating efficiency increased by 11 percent.