Riga Airport Business Plan and Action Plan for Approved on 18 December 2015
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1 Riga Airport Business Plan and Action Plan for Approved on 18 December 2015
2 Introduction Reasons for drafting a new business plan: Dynamic growth of the aviation industry/changes in airport and airline business models, including the expansion of low-cost carriers materially affecting the aviation industry, and the development of Riga Airport National carrier airbaltic: strategy, operational role and impact on the development, business activities and strategy of Riga Airport Goals of the Business Plan: To reconsider the future development strategy To set the main business targets To evaluate the fundamental assumptions regarding the airport development/growth To define an action plan for with a review period of one year
3 Mission: To provide our clients with reliable infrastructure and excellent aviation and non-aviation services, to support a sustainable route network by expanding the country s connectability with strategically important destinations and to facilitate the growth of the national economy Vision: Riga Airport is number one choice in the Baltic countries for tourists and corporate travellers Strategic goal: To create, sustain and perfect positive client experience by providing top-quality services
4 Concept of Excellence Fulfilling its mission and pursuing the chosen vision, Riga Airport is planning and striving to achieve wellbalanced results answering the short- and long-term needs of its clients and stakeholders and even to exceed them. Riga Airport s concept of excellence is rooted in the fundamental principles of quality management forming the basis of the company s business and its most important undertakings whose implementation is the proof of quality management in its essence and the pledge of Riga Airport s commitment to sustainable excellence and service quality culture. The pursuit of excellence is essential in order to: analyse the company s performance, identify the company s business areas requiring improvements or changes; ensure the uniform understanding in he company regarding its operating model, principles and goals; understand the factors stimulating/jeopardizing the business results and forecast the future performance and results; aggregate the set tasks into a single action plan; ensure sustainable development and substantiate the implementation of the investment programme; encourage the sharing of the internal and external best practices with the clients/stakeholders.
5 Excellence Model* Approach Results Employees Employee-related results Management understanding and support, leadership Strategy Process management, products and services Client satisfaction Main operating results Partnership and resources Public influence Training, creativity and innovations * European Foundation for Quality Management Excellence Model;
6 Passenger Carriage and Anticipated Changes GDP growth ~2% per year Leading position in the Baltic market Growing intensity of population migration ,2 Passenger Traffic Forecast 5,8 6,8 Drop in the number of population In Latvia to 1.6m, in the Baltics to 5.1m (by 2030) Volatility in CIS countries markets Active competition Decrease of transit traffic on short routes Number of flights per resident, compared to the number of population (2014) Large transit centres % 23% 25% - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 Transfer Direct Total
7 Airlines and Their Market Shares in 2015 By welcomed passengers 1,8% 1,0% 1,6% 2,1% 3,8% 4,1% 3,8% Wizz Air 8,8% 0,8% 0,8% 0,8% 0,7% 2,1% 0,8% Ryanair 18,4% Air Baltic Corporation 48,6% Airline Passengers welcomed Air Baltic Corporation Ryanair Wizz Air Lufthansa Aeroflot Norwegian Air Shuttle SmartLynx Airlines Finnair Turkish Airlines LOT Polish Airlines Uzbekistan Airways Ukraine International airlines Transaero Scandinavian Air System Brussels Airlines Other
8 TOP10 Destinations in the Last 5-Year Period By total welcomed passengers with the number of movements indicated per week in London Moscow Frankfurt Oslo Helsinki Stockholm Tallinn Vilnius Brussels Copenhagen Flight weekly frequency 0
9 Market Shares and Indicators of Baltic Countries Airports in 2015 Passenger movements Kaunas 7% Aircraft movements Kaunas 5% Kaunas 10% Cargo Vilnius 29% Riga 45% Vilnius 25% Riga 43% Vilnius 17% Riga 39% Tallinn 19% RIGA TALLINN VILNIUS KAUNAS Passengers Passenger growth 15/14 (%) 7,2% 7,4% 13,4% 3,2% Flights Flight number growth 15/14 (%) 3,4% 9,8% 5,5% 3,4% Cargo (t) Cargo growth 15/14 (%) Tallinn 27% -42,8% -18,7% 2,1% 128,3% Tallinn 34%
10 Performance Targets Indicator (forecast) Passenger number > Share of transfer/transit passengers 25% >23% Number of aircraft movements > Number of destinations (summer/winter) 89/69 90/70 Market share in the Baltics (passengers) 45% >47% Handled cargo > Passenger satisfaction (ASQ general assessment) 3,92 (no 5) 4,25 Airline service punctuality: Ground Handling Services Dept.(VAD) Airport administration (Codes 85, 86, 87, 89) 99.55% 99.58% 99,73% Baggage delivery time (VAD, first bag on the baggage belt) 11.5 min. <10 min. Security check 5.13 < 4 min.
11 Airport Service Quality Indicators (ACI survey data, 3rd and 4th quarter of 2015) 5,00 4,50 4,00 3,61 3,88 3,87 4,01 4,07 4,38 4,54 4,37 4,38 4,34 4,39 4,21 4,47 4,36 4,27 4,33 4,42 4,30 4,18 4,08 3,75 3,95 3,94 3,92 4,28 4,08 4,34 4,27 4,18 4,20 4,15 4,09 4,13 4,16 3,90 3,92 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 ACCESS CHECK IN PASSPORT/PERSONAL ID CONTROL SECURITY FINDING YOUR WAY AIRPORT FACILITIES AIRPORT ENVIRONMENT ARRIVAL SERVICES TOTAL AVERAGE RIX EU, 2-5m airports (avg. of top decile) EU, 5-15m airports (avg. of top decile) EU airports (avg. of top decile)
12 Major Investments in
13 Implementation of EU Fund Project Infrastructure Development of Riga International Airport (Total project costs EUR , of which Cohesion Fund finance EUR ) Construction of an aircraft anti-icing treatment pad S Expansion and strengthening of the runway strip Storm water removal and airfield drainage system Resurfacing of the runway pavement CAT II lighting system modernisation Simple reconstruction of G taxiway Construction of a firefighting depot Simple reconstruction of C taxiway Construction of an aircraft anti-icing treatment pad N Construction of a waste collection hangar Construction of a hangar for washing of airfield equipment Reconstruction of Apron 2 Reconstruction of Apron1 Reconstruction of Apron.3 Construction of Taxiways E and D
14 Terminal Expansion, Stage 5, Phase 1 (Total costs EUR 15.7 m) New non-schengen passengers departure/arrivals area opened in September 2015
15 Improvements of Passenger Service in the Terminal Security control facilities merged into one since May 2015 New self-service check-in kiosks since summer 2015 Extension of the check-in area 7 additional desks In self-service bag drop-off lines in 2016
16 Investment Plan for (EUR 416 m) Investments, in million EUR Infrastructure Security IT Total
17 Major Investments in
18 Airport Infrastructure Development Construction of the 2nd rapid exit taxiway Reconstruction of the technical services building Reconstruction of the storm water drainage system in the airport landside Installation of the axis lights on the apron taxiways Reduction of carbon dioxide emissions in the airport territory lighting infrastructure Improvements in aviation security (EDS equipment) Implementation schedule: Planned costs: EUR 13.5 million
19 Terminal Expansion, Stage 5, Phase 2 9 additional Schengen/non-Schengen boarding gates, new commercial areas, 7 walking stands and 3 airbridges Implementation: end of 2016 Planned costs: EUR 9.1 million
20 Terminal Expansion, Stage 6 - Expansion of the check-in hall - Construction of a new baggage sorting facility - Construction of new car parks - Building of a connection with Rail Baltica station
21 Terminal Expansion, Stage 6 Designing: Construction: Estimated costs: ~EUR 45 million
22 Thank you!
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