The Ministry of Transport and Communications will attract private capital for the management of airports and will expand the geography of flights

Date

2009 12 09

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We consider that the international airports of Vilnius, Kaunas and Palanga from the status of State enterprise should develop into the joint stock companies. Their management should be coordinated both in terms of planning and purchasing of certain services. For a more efficient management of airports’ the operators with international experience should be attracted”, said Vice-Minister Rimvydas Vaštakas.  
In the course of preparation of this management model for airports the international practice was regarded. Airports that are not enough oriented to the commercial activities have not enough private capital involvement that should improve the efficiency of management. In many European airports usually the main motive is the profitability together with passenger flows. Often airports attract private capital. 
While speaking of activities of the Ministry regarding the development of the geography of regular flights, the Vice-Minister presented conclusions and recommendations of the feasibility study on the establishment of the base airport. Due to a very high financial risk and strict EU requirements forbidding State financial aid, the consultants that have been making the study do not recommend to establish a new airline company with participation of State capital. For the improvement of air transport they suggest a programme of routes development.    
“Basing on the conclusions of experts and regarding the experience of other countries we submitted to the Government the most efficient to our mind and least risky programme for routes promotion. Regarding the market of Baltic countries we propose, as an additional variant, the consideration of possibilities of the joint Baltic airlines company”, said Vice-Minister Rimvydas Vaštakas.