About Riga international airport

About Riga international airport

Riga Technical University

Faculty of Engineering Economics

Riga international airport

Riga 2004

|Contents |

|1 |1 291 |1 340 |1 299 |-3.1 |

|2 |1 349 |1 338 |1 290 |-3.6 |

|3 |1 516 |1 545 |1 572 |1.7 |

|4 |1 443 |1 493 |1 699 |13.8 |

|5 |1 744 |1 728 |1 680 |-2.8 |

|6 |1 600 |1 783 |1 654 |-7.2 |

|7 |1 464 |1 622 |1 694 |4.4 |

|8 |1 650 |1 839 |1 747 |-5.0 |

|9 |1 602 |1 694 |1 623 |-4.2 |

|10 |1 645 |1 682 |1 653 |-1.7 |

|11 |1 479 |1 540 |1 430 |-7.1 |

|12 |1 287 |1 306 |1 335 |2.2 |

|Total: |18 070 |18 910 |18 676 |-1.2 |

Table 1. Aircraft movements

Passenger figures exceed 600 000, i.e. by 1.7% more than in 2001 for

the second consecutive year. Altogether, the airport handled 18 676 flights

falling behind the previous report year by 1.2% due to “Austrian Airlines”,

“Estonian Air” and the Swedish airline “Trygg-Flyg” deceasing flights to

Riga.

For the third year air cargo transportation has grown considerably

with turnover exceeding 6 000 tons for the first time, i.e. by 26.3% over

the previous year. Cargo transportation import (78.2%) still significantly

exceeds export (21.8%).

To achieve these results the airport staff had to be more purposeful,

determined and competent than in the previous report period.

12 carriers including “Air Baltic”, “Aeroflot”, “Austrian Airlines”,

“Belavia”, “British Airways”, “?SA”, “Estonian Air”, “Finnair”, “Latpass

Airlines”, “LOT”, “Lufthansa” and “Trygg-Flyg” provided scheduled passenger

flights from “Riga” airport in 2002.

Scheduled direct flights linked Riga with 16 European cities including

Berlin, Frankfurt, Helsinki, Jonkoping, Kiev, Copenhagen, London, Moscow,

Minsk, Prague, Stockholm, Tallinn, Tel Aviv, Warsaw, Vilnius and Vienna.

|Month |2000 |2001 |2002 |2002/2001(%) |

|1 |302 |346 |502 |45.1 |

|2 |323 |371 |473 |27.5 |

|3 |400 |449 |559 |24.5 |

|4 |346 |421 |561 |33.3 |

|5 |359 |485 |379 |-21.9 |

|6 |350 |446 |428 |-4.0 |

|7 |346 |429 |354 |-17.5 |

|8 |424 |438 |403 |-8.0 |

|9 |430 |395 |546 |38.2 |

|10 |507 |451 |685 |51.9 |

|11 |386 |529 |573 |8.3 |

|12 |485 |449 |1 117 |148.8 |

|Total |4 658 |5 209 |6 580 |26.3 |

Table 2. Cargo transportation (t)

Major passenger flows and routes of scheduled flights.

In 2002 the flight map changed slightly with “Air Baltic” exploring

new destinations and starting flights to Berlin in May and later to Vienna.

Additionally, “Air Baltic” resumed flights to Moscow, Warsaw and Prague,

which had been suspended as unprofitable the previous years. Thus, the

Latvian aviation market was considerably divided. “Air Baltic” improved its

position, but “Austrian Airlines” discontinued flights from Vienna to Riga

due to the imposed flight reduction. In comparison with the last year, the

dynamics of passenger growth for the above destinations dropped

considerably by 885 on the Warsaw route, 22.8% on the Vienna route and

17.3% on the Moscow route.

|Month |2000 |2001 |2002 |2002/2001(%) |

|1 |35 235 |38 681 |38 377 |-0.8 |

|2 |35 637 |38 243 |37 477 |-2.0 |

|3 |45 454 |46 510 |45 393 |-2.4 |

|4 |45 087 |48 154 |48 420 |0.6 |

|5 |54 308 |57 248 |55 802 |-2.5 |

|6 |56 017 |68 036 |63 980 |-6.0 |

|7 |53 123 |61 247 |62 114 |1.4 |

|8 |56 140 |67 041 |62 485 |-6.8 |

|9 |55 810 |60 879 |63 294 |4.0 |

|10 |51 645 |51 872 |61 270 |18.1 |

|11 |44 804 |43 924 |49 357 |12.4 |

|12 |41 096 |40 812 |45 353 |11.1 |

|Total |574 356 |622 647 |633 322 |1.7 |

Table 3. Passenger movements

In 2002 73 passengers out of every 100 handled in Riga (including

transit) travelled to or from Western Europe. Altogether scheduled flights

to Western Europe were responsible for the growth of passengers figures

(almost 11 000). Berlin, with the highest passengers growth rate ranks

first among the cities of Western Europe (it should be mentioned, however,

that in 2001 there were no scheduled flights on this route); followed by

London with 6.9% and Frankfurt with 6.4%. However, there is an exception.

For the first time passengers figures on the Helsinki route have dropped by

almost 3 000 or 3.9% in comparison with the last year. Nevertheless,

Helsinki ranks 2 nd on the list of the most popular destinations. For the

second successive year passenger figures on the Stockholm route have

dropped sharply by almost 14 000 or 21%. Accordingly, a Stockholm rank 6th

instead of the previous 3rd, but the Copenhagen has constantly been number

one since 1996, despite a passenger growth rate, which has slowed down on

the route.

In 2002 passenger figures for Eastern and Central Europe have grown

slightly. Some destinations have faced radical changes. As in previous

years, passengers figures decreased by 17.3% on the Moscow route. For the

second year after resuming scheduled flights on the Tallinn route passenger

figures went down by 11.4%. Passengers figures on the Prague route

increased significantly by 27.7% for the second year. It should be

underlined that the Prague route has the highest absolute growth rate, i.e.

by 13 000 passengers more and even surpasses the Copenhagen route.

Accordingly, Prague shows a very convincing growth and ranks 3rd instead of

being 6th in 2001 on the list of the most popular destinations. The success

allowed “?SA” to pull ahead of such major airlines as “British Airways”,

“Lufthansa” and “Finnair”. A couple of years ago such a forecast would have

seemed unbelievable. “?SA” passengers figures have almost tripled compared

with 1999 and almost doubled compared with 2000.

Only three of the carriers providing scheduled flights to Riga during

the report year have carried fewer passengers than in 2001, i.e. “Aeroflot”

with 29.6%, “Finnair” with 16.3% and “LOT” with 2.7%. These airlines have

reduced flight frequency by 35.8%, 2.4% and 1.7% respectively. “Air Baltic”

has carried the majority of passengers to and from Riga, i.e. 43% of the

total number of passengers. “?SA” with 10% of passengers handled at “Riga”

airport ranks 2nd. As in 2001, “British Airways” with 9% ranks 3rd,

“Lufthansa” with 8% ranks 4th, “Finnair” with 8% is 5th, but “Latcharter”

with 7% is 6th.

|City |2000 |2001 |2002 |2002/2001(%) |

|Copenhagen |137 895 |152 109 |152 109 |3.0 |

|Helsinki |65 670 |71 712 |71 712 |-3.9 |

|Prague |34 741 |50 084 |50 084 |27.7 |

|Frankfurt |51 669 |54 715 |54 715 |6.4 |

|London |50 115 |53 274 |53 274 |6.9 |

|Stockholm |71 145 |65 094 |65 094 |-21.0 |

|Moscow |44 194 |41 810 |41 810 |-17.3 |

|Warsaw |10 349 |19 687 |19 687 |1.7 |

|Vienna |20 404 |20 567 |20 567 |-22.8 |

|Kiev |11 087 |11 231 |11 231 |8.2 |

|Tallinn |14 066 |11 086 |11 086 |-11.4 |

|Mugla |2 778 |3 186 |3 186 |2.3x |

|Berlin | |391 |391 |18.0x |

|Vilnius |9 821 |6 680 |6 680 |-3.1 |

|Barcelona |3 514 |2 497 |2 497 |1.6x |

|Heraklion |2 232 |1 115 |1 115 |-3.1 |

|Others |36 374 |57 409 |56 294 | |

|Total |574 356 |622 647 |622 647 |1.7 |

Table 4. Passenger movements per city

Air cargo

In 2002 the handled cargo volume has increased by more than 1 300 tons

when compared to the previous year. Riga International Airport has never

faced such an important increase in cargo volume before.

Of all the carries providing scheduled flights, “?SA” achieved the

highest growth of both cargo volume and passengers figures; while

“Aeroflot” had the highest rate of cargo volume. Contrary to passenger

figures, cargo volume dropped by 20.9% for “British Airways” and by 10.5%

for “Lufthansa” for the second year. Cargo volume also slightly decreased

also for “Finnair”. Nevertheless, “Finnair” is the major air cargo carrier

in Riga with 20% of the total cargo volume handled at the airport ((25% in

2001); followed by “Air Baltic” with 16% (21% in 2001); “SAS” with 15% (18%

in 2002); “?SA” with 7% (6% in 2001); “Aeroflot” with 6% (5% in 2001);

“Lufthansa” with 5% (7% in 2001); and “British Airways” with 2% in 2001).

|Airline |2000 |2001 |2002 |2002/2001(%) |

|Finnair |934 |1 323 |1 308 |-1.1 |

|Air Baltic |1 041 |1 099 |1 045 |-4.9 |

|SAS |845 |952 |971 |2.0 |

|?SA |249 |305 |429 |40.7 |

|Aeroflot |209 |277 |394 |42.2 |

|Lufthansa |453 |389 |348 |-10.5 |

|British Airways |304 |191 |151 |-20.9 |

|Concors | |137 |145 |5.6 |

|Air Polonia | |7 |117 |16.7x |

|LOT |112 |112 |115 |2.7 |

|Austrian Airlines |36 |36 |23 |-36.0 |

|White Eagle |190 |101 | | |

|Aviation | | | | |

|Others |210 |280 |1 534 | |

|Total |4 658 |5 209 |6 580 |26.3 |

Table 5. Cargo transportation (t)

Modernization and extension of the airport

During the report year attention was paid to the reinforcement and

technical upgrading of aviation security measures. “Riga” Airport

investment in aviation security has always been balanced. In view of the

11th September terrorist attacks the airport carried out unscheduled

activities to reinforce security, transferring a major part of the

investment initially planned for infrastructure development to security.

In the middle of 2002 cargo X-ray equipment was obtained and

installed. Latvia is a member of European Aviation Conference (ECAC), which

set 1 January 2003 the deadline for the introduction of the 100% screening

of checked baggage at international airports. If this requirement had not

been met, the aircraft departing from Riga would have faced long handling

delays at other European airports; while all the baggage arriving from

“Riga” airport would have been subject to time-consuming security controls.

At the end of 2002 “Riga” airport launched automatic baggage screening

equipment- which is a part of the common baggage security control system-

to provide maximum safety and convenience for passengers. The producer of

the equipment is the well-known company ‘Heimann”. The system facilitates

three-level baggage control. The automatic baggage screening equipment has

the capacity to process 1 200 baggage units per hour. Accordingly, two

systems facilitate security control of 2 400 baggage units per hour. The

installed equipment ensures security control fully compliant with the EU

requirements in the field of aviation security. In addition to baggage

control equipment, a computer room was arranged and 47 airport employees

were trained. Altogether, security equipment and the reconstruction of

baggage conveyors cost the airport 1.6 million EUR.

To reinforce security in the major areas and facilities at the

airport, the aircraft handling area and the technical area of the airfield

was fenced off and a checkpoint was arranged.

During the report year the 2nd and 3rd floor reconstruction of the

passenger terminal continued. Airline agencies moved to comfortable offices

and after the reconstruction the 3rd level of passenger terminal was

opened. After many years the restaurant run by the well-known Latvian

company “Lido” has been opened at the airport. The airport guests have an

opportunity both to enjoy the “Lido” menu and have a panoramic view over

the airfield, which was impossible for a long time due to the

reconstruction. The terminal has also become friendlier to passengers with

special needs, as the lift facilitates access to any level of the terminal.

In the winter season airfield maintenance requires extra effort and

costs. It is extremely important to ensure the airport operation

irrespective of the weather and provide all flights according to the flight

schedule. Therefore the airport has upgraded transport and emergency

systems by obtaining two multi-functional airfield maintenance vehicles

produced by the well-known company “Marcel Boschung AG”. The vehicles

remove snow from runway, taxiways and apron areas and provide anti-icing of

surfaces. In the summer season the vehicles are used to collect garbage and

dust.

Equipment for the treatment of land amelioration systems, loading and

digging was obtained. An airfield area of 10 ha was cleared of underbrush,

thus increasing ground capacity.

“Riga” airports is the second of the European airports having

introduced the passenger loyalty programme N.O.V.A. to the benefit of our

passengers, despite the fact that it does not bring the airport any extra

profit. However, the programme enables the airport to keep in touch with

passengers regularly and not only while they are travelling.

Financial performance

SJSC Riga International Airport ended the financial year 2002 with

202.4 thousand LVL profit. Aviation services with 6 242 100 LVL or 75%

account for the major revenue share of economic activity. Revenue share of

other services increased year on the year and amounted to 2 033 400 LVL in

2002.

Runway and airport infrastructure maintenance, salaries, and credit

interest payments comprise the major expenditure share of economic

activity.

In 2002 the airport continued to invest resources in the development

of infrastructure and purchasing of runway maintenance equipment. One of

the main investments was purchasing of a new automatic baggage screening to

provide maximum safety for passengers.

Selected bibliography

1. Wells Alexander “Airport planning and management”/London: McGraw-Hill,

2003

2. Starptautisk?s lidostas “R?ga” 2002. gada p?rskats/ R?ga: RIX, 2003

3. www.riga-airport.com