The Strategy and Implementation of Riga airport as a Baltic Hub
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1 The Strategy and Implementation of Riga airport as a Baltic Hub NCCL Executive Industrial Policy Seminar Riga, November 5, 2009 Arturs Saveljevs Director Commercial Department
2 Introduction to RIGA Airport RIGA Airport was built in It was used for domestic flights within the USSR After Latvia regained its independence in 1991 RIGA Airport became an international Airport RIGA International Airport is operated by SJSC RIGA International Airport The owner of all shares is the Republic of Latvia Airport occupies the area of 650 ha Airport has more than 1300 employees The annual turnover is 35 million EUR (2008)
3 Continuing development Runway rehabilitation (1994) New arrivals terminal (1999) Pier (2001) New terminal (~2013) Non-Schengen terminal (2006) Runway extension (2008)
4 Passenger statistics +27% +17% +10% +77% +33% breakthrough: Airport charges were lowered Latvia joined European Union First low-cost airlines started their operations at RIX
5 Baltic Passenger Traffic Today RIGA International Airport is the no.1 airport in the Baltic States, providing Service of the highest quality and having a very significant role in the development of Latvia * * forecast Source: Riga Airport, Tallinn Airport, Vilnius Airport
6 RIX, the centre of the Baltic s! Riga is located within a 300km radius of all three Baltic capital cities The map illustrates a 300km radius from capital cities Vilnius and Tallinn Riga has a direct access to more than 7 million citizens of Baltic states RIGA International Airport is the principal gateway for international visitors to Latvia and Baltic States
7 Passenger Traffic Forecast Passengers (m) Source: IATA IATA s Long Term Passenger Forecast suggests that Riga Airport will be handling 14 million passengers by 2032
8 Airlines serving Riga
9 Market Share Jan-Sep 2009 (Passenger Base) 22 % 65 % Air Baltic Corporation Ryanair KLM SmartLynx Airlines Norwegian Air Shuttle CSA Lufthansa Finnair Aeroflot Turkish Airlines * top 10 airlines The main carrier at RIGA International airport is Air Baltic the national airline of Latvia
10 Successful Development of Passenger Transfer Hub Jan-Sep % of RIX passengers were transfer passengers 93% Transfer 2007 O&D Jan-Sep 2009 Transfer O&D 7% 68% % Transfer O&D 84% In JAN SEP 2009 the transfer passenger volume has grown by 194 % comparing to the same period in % Source: Riga Airport
11 Riga Airport s Network
12 Integral Part of the Baltic Sea Region More than 370 direct flights per week to Baltic Sea Region, the fastest growing region in Europe!
13 East meets West in Riga! Expanding Eastern network
14 RIX, the most competitive airport for location and price! Airport fee Passenger fee Per departing PAX Landing fee Per 1000 t (MTOW) Old fees EUR 8.12 EUR New fees 3.10 EUR 2.05 EUR November 1, 2009 RIX has introduced the lowest fees in Europe for a capital city airport Airport services charges for B in EUR RIX (Riga) TLL (Tallin) VNO (Vilnius) HEL (Helsinki) * ARN (Stockholm)** CPH (Copenhagen) OSL (Oslo) LED (St.Petersburg) WAW (Warsaw)*** total cost Currency exchange rates used from July 2009 Source: Riga International Airport, Tallinn Airport, Vilnius Airport, Helsinki Airport Arlanda Airport, Copenhagen Airport, Oslo Airport, St. Petersburg Airport, Warsaw Airport
15 Business Park development The total area of Business Park is more than 90 ha Logistic centre, cargo warehouses, mail sorting centre, pilot s academy are already built Hotels, exhibition centre, convention centre, office buildings, car parks will be built in the near future Total investments: ~ 300 million EUR
16 Baltic Business Aviation Centre 1 st stage of the Project includes: Construction of Business Aviation passenger terminal (~400 m 2 ) Construction of aircraft hangar (~2500 m2) After opening: BBAC will be able to handle more than 2000 flights per year More than 50 Business Aviation aircrafts is planned to be based at RIGA International airport TOTAL investments: ~ EUR Opening date: 31 MAR 2010
17 MRO Centre The Project includes: Construction of technical hangar for aircrafts: B737, B757, A319, A320, A321, etc. (~ m 2 ) Development of technical laboratories Development of educational center for aviation engineers and technicians TOTAL investments: ~ EUR Opening: 2012
18 Aviation vs Non-aviation * 77% Aviation income 23% Non-aviation income 58% Aviation income % Non-aviation income 60% 40% Aviation income Non-aviation income Non-aviation income share has grown from 23 % in 2000 to 42 % in 2009 (forecast) * forecast
19 International recognition RIGA International Airport - winner of Routes Europe the Airport Marketing Award 2009 as the best airport in Scandinavia & the Baltic s
20 Conclusion For a regional airport to achieve positive results in a tight competition it is vital to work hand in hand with government institutions and airlines To become a successful airport it is very important to be commercially orientated, putting as much emphasis on non-aviation business as on aviation business
21 Thank you!
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