Key events in Review of the President and CEO. Finavia in brief. The importance of air traffic. Air traffic in a changed environment

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1 J O U R N E Y S A N D L A N D S C A P E S F i n a v i a s a n n u a l r e p o r t

2 New York 8:40 F i n a v i a s a n n u a l r e p o r t C O N T E N T S Toronto 8:40 Boston 8:30 R E V I E W Reykjavik 3: Key events in 2009 Review of the President and CEO Finavia in brief The importance of air traffic Air traffic in a changed environment Personnel and Finavia as an employer Airports, customers and the environment A year of changes at Helsinki Airport Finavia s Board of Directors and management group Dublin 3:10 Manchester 3: B O A R D O F D I R E C T O R S R E P O R T A N D F I N A N C I A L S T A T E M E N T S Board of Directors report Key figures Income statement Balance sheet Cash flow statement Notes to the financial statements Auditor s report Lisbon 4:40 Ponta Delgada 6:10 London 3:10 Paris 3:05 Madrid 4:20 Biarritz 3:40 Malaga 4:45 Palma de Mallorca 4:00 Barcelona 3:45 Funchal 5:45 Faro 4:45 Jerez de la Frontera 4:35 Alicante 4:25 2 J O U R N E Y S A N D L A N D S C A P E S Tenerife 6:20 Las Palmas 6:05

3 Athens 3:40 Heraklion 3:55 Samos 3:50 Kos 3:50 Istanbul 3:15 Tokyo 9:25 Nagoya 9:35 Osaka 9:45 Seoul 8:35 Hong Kong 9:50 Beijing 7:40 Shanghai 8:55 Bangkok 9:45 Petrozavodsk 1:20 Bergen 1:55 Oslo 1:30 Gothenburg 1:25 Stockholm 0:55 Norrköping 1:20 Visby 1:30 HELSINKI St. Petersburg 0:55 Tallinn 0:35 Moscow 1:50 Delhi 6:40 Billund 2:20 Copenhagen 1:35 Riga 0:55 Vilnus 1:15 Ekatarinburg 2:45 3:10 Amsterdam 2:35 Brussels 2:40 Geneva 3:00 Düsseldorf 2:25 Zurich 2:55 Milan 3:15 Frankfurt 2:40 Stuttgart 2:50 Hamburg 1:55 Munich 2:35 Venice 3:10 Ljubljana 2:35 Berlin 2:00 Prague 2:20 Vienna 2:30 Budapest 2:25 Krakow 1:45 Warsaw 1:45 Bucharest 2:30 Kiev 1:45 Dubai 5:55 Nice 3:35 Pisa 2:55 Rome 3:35 Split 3:00 Dubrovnik 3:30 Larnaca 4:00 Malta 4:05 Chania 3:50 Rhodes 4:00 F I N AV I A. a n n u a l r e p o r t 3 Paphos 4:15

4 The year2009 The number of parking spaces at Helsinki Airport increased by 2,400 when Finavia opened the new multi-storey car park on 3 February. The NORACON agreement was signed on 9 February. As a member of the NORACON consortium, Finavia will have the opportunity to be involved in SESAR, the EU s research and development programme which focuses on developing air navigation systems and technologies. The programme s cost estimate is EUR 2.1 billion. NORACON Agreement Construction of the ring rail line got underway at Helsinki Airport. The railway line, which will be built from the main line via Helsinki Airport to Vantaankoski, will be completed in Finavia s Board of Directors decided that all of Finland s regional air navigation services will be provided by the Southern Finland Air Navigation Centre located in Aitovuori, Tampere. A new operating model will be introduced during Construction of the rail ring line started During July, Finavia made free Internet connections available at 13 airports: Joensuu, Jyväskylä, Kajaani, Kittilä, Kruunupyy, Kuopio, Oulu, Pori, Rovaniemi, Savonlinna, Tampere-Pirkkala, Turku and Vaasa. Free Internet access has been available at Helsinki Airport prior to this. Free Internet connections Expansion of Kuusamo Airport was completed Environmental permits for Jyväskylä and Kuopio Division of the terminals changed The arrivals area of the expansion of Kuusamo Airport was opened on 24 February. The area contains the handing and reclaim facilities for arriving baggage and two baggage conveyors. A cooperation procedure was carried out within Finavia in March June, the aim of which was to achieve savings of around EUR 5 million. Finavia, the City of Oulu and the region of Oulu agreed on expanding the capacity of Oulu Airport and the renovation of the terminal and structures in accordance with the Government s stimulus decision. The Eastern Finland Environmental Permit Authority granted the environmental permits required under the Environmental Protection Act to Jyväskylä and Kuopio airports. The division of the terminals at Helsinki Airport into the domestic and international terminals was abandoned on 5 August. Departures and arrivals take place according to which terminal the airline operates from. 4 J O U R N E Y S A N D L A N D S C A P E S

5 The first section of the terminal extension at Helsinki Airport was opened for passengers on 27 August. In addition, the extension will house a new baggage handling centre. A 280-metre tunnel will connect the present and future baggage facilities of the international terminal. Finavia reduced its airport and air navigation charges as well as security charges for commercial civil aviation. The temporary discount period began on 1 September 2009, and the discount percentage until the end of the year was approximately 10 per cent. Helsinki Airport s terminal expansion was opened on 11 December 2009 for use by long-haul passengers. Finavia reached an agreement with Palace Kämp Hotellit Oy on the operation of the hotel located at Helsinki Airport. The Palace Airport located in Terminal 2 was opened on 1 January New baggage handling centre Reduction in charges Terminal expansion opened Online service upgraded Mariehamn chosen as Airport of the Year Finavia was incorporated Mariehamn was chosen as the 2009 Airport of the Year. The selection was made based on a number of factors, including the airport s success in controlling costs during the economic downturn. In addition, the Finavia s online service was updated to serve air employees at Mariehamn Airport passengers more effectively. have adopted a new operating The changes concerned the model that aims to create Group website (finavia.fi) change. as well as the websites of the other airports, excluding Helsinki Airport. For additional information on the events during 2009, please see: The Civil Aviation Administration Finavia was incorporated at the start of On 28 April 2009, the Cabinet Committee on Economic Policy supported the proposal of the Ministry of Transport and Communications on incorporating Finavia as of 1 January The parliamentary reading on 4 November 2009 adopted Finavia s conversion into a limited liability company. F I N AV I A. a n n u a l r e p o r t 5

6 2009 Review of the President and CEO The year 2009 was challenging for Finavia and the aviation sector at large. After a long upward trend, the world economy took a steep downward turn in 2008, reducing passenger numbers globally. In Finland, passenger numbers decreased by 7.7 per cent in 2009, with the total number of passengers decreasing by as much as 12.2 per cent in domestic air traffic and by 4.8 per cent in international scheduled air services. These changes were reflected in the profitability of the entire sector. Price erosion worsened the situation for air carriers, with reduced passenger numbers, especially in more expensive seating. Investing in customers and more responsibility for the aviation sector Finavia is fully aware of its role as an important player in the aviation sector, and is willing to carry its share of the overall responsibility. Because of the difficult situation, Finavia s Board of Directors decided to reduce air navigation charges, airport charges and security charges for commercial civil air traffic by approximately 10 per cent, in line with the policies suggested during the government budget session. These temporary reductions became effective on 1 September The reductions were implemented to improve the conditions for air traffic, especially domestic traffic, which is facing a challenging situation. The reductions, however, had an adverse effect on Finavia s finances, reducing its annual income by approximately EUR 20 million. Finavia s investments in enhanced efficiency help air carriers that are struggling with profitability. Air traffic charges have decreased in real terms for several years now, although Finavia has at the same time been carrying out an extensive investment programme based on the customer demand of air carriers. Prices have increased by a maximum of one-half of the inflation rate; improved efficiency accounts for the remaining difference. Finavia s active pricing policy aims at fostering positive development in the supply of air traffic. The company s price level ranks in the lowest third in Europe; for example, security charges in Finland are less than half of those in Central Europe. Our prices will continue to decrease in 2010 because of competitive tendering of services and new contract structures. The prices for air navigation services, however, are clearly unprofitable. This has been compensated for with income from Finavia s commercial operations, which remained at the previous year s level despite reduced passenger numbers, creating the preconditions for supply. Adjusting costs to reduced income In addition to the reductions in charges for air carriers, Finavia s finances were affected by the deterioration in the aviation market. We were forced to initiate the first ever company-wide cooperation negotiations. These negotiations were carried out in an open and supportive atmosphere. The negotiating committee discussed what measures should be taken to reach a goal of EUR 5 million in savings. The committee and employee organisations agreed to exchange holiday bonuses for time off and implement temporary lay-offs. Despite the supportive atmosphere and positive results, the negotiations were demanding. I would like to take this opportunity to thank the staff representatives for their good understanding of the impacts of the global economic crisis on the aviation sector and Finavia s need to ensure its longterm development prospects. 6 J O U R N E Y S A N D L A N D S C A P E S

7 F I N AV I A. a n n u a l r e p o r t 7

8 Finavia s operations promote Finnish competitive Air traffic links Finland to the rest of the world Economic cycles change, and passenger numbers fluctuate accordingly. Air traffic, however, remains important for Finland. Finland is a large northern country surrounded by seas, located relatively far from important export destinations, the cultural and scientific centres of the world, and the hubs of the European Union as well as popular holiday destinations in the sun. Air traffic is crucial for the vitality of Finnish society, and has no alternatives. Air traffic services strengthen Finland s presence in Europe and around the world. Finavia is committed to fostering Finland s competitiveness and well-being. We further develop airport services in collaboration with different sub-regions of Finland to best meet the needs of local actors. In addition to promoting equality among the regions, our network of 25 airports reduces the environmental impact of land transport. As a result of this dense network, air transport is a fast, safe and often energy-efficient alternative to land transport. Air traffic accounts for approximately 2 per cent of all greenhouse gas emissions from traffic. The environmental impact of traffic can be reduced through commonsense actions. Emissions from aircraft approaching an airport, for example, can be reduced by 10 to 30 per cent through continuous descent methods. As many as 60 per cent of the flights approaching Helsinki Airport already use this environmentally friendly landing method. Helsinki Airport is the heart of the airport network The recession did not affect Helsinki Airport s position as a hub for air traffic between Europe and Asia. This is also reflected in Finnair s strategy, in which Asian flights play a central role. Helsinki Airport is the leading northern European airport for long-haul traffic between Europe and Asia, with its 1,335,100 transfer passengers. The high number of passengers enables an extensive route network that would not otherwise be possible in a country like Finland, which has such a low population. In air traffic to Europe, for example, most of the direct routes are based on traffic from Asia. For this reason, Helsinki Airport s strong position in the international competition for transfer passengers is crucial to Finland as a whole. Investments in Helsinki Airport should be viewed as investments in the airport network and air traffic as well as Finland s competitiveness and global presence. The investments in maintaining and improving the competitiveness of Helsinki Airport have been extensive. The extension of the international terminal was opened on 10 December 2009, providing increased ease of travel and memorable experiences for passengers. The new baggage handling centre in the terminal will be opened in The high capacity and speed of this new state-of-the-art system are important competitive assets for Helsinki Airport, which aims to become the world s quickest transfer airport. In marketing, the Via Helsinki concept spotlights Helsinki Airport as a major transfer airport. In addition to the favourable competitive position created by Finavia, the task of ensuring an efficient travel chain, excellent passenger experiences and maintaining a good reputation requires that all the players operating at Helsinki Airport have efficient operations and that the labour market works. The types of delays and cancellations we experienced in autumn 2009 may compromise the strong competitive position we all need. The decisions about the investments in Helsinki Airport were made in Although passenger numbers decreased considerably in 2009, the target volume for air traffic to Asia was achieved, and Terminal 2 operates at full capacity during peak periods. We will continue to further develop the airport, and, for example, Finavia will contribute to the funding of the ring rail line for four years, beginning in When completed, the ring rail line will connect Helsinki Airport to Helsinki city centre. Other investments in the airport network in 2009 included the extension and renovation of Kuusamo Airport. In addition, the extension of the Oulu terminal was launched as part of the government s stimulus scheme. From a state-owned enterprise to a limited liability company The year 2009 was Finavia s last year of operation as a stateowned enterprise. The Finnish Parliament passed a bill that, as of 2010, turned the Finnish Civil Aviation Administration Finavia into Finavia Oyj, a limited liability company owned entirely by the state. Preparations to incorporate Finavia were made throughout Much like any other changes, the new corporate form may raise concerns among employees and customers as to the continuity of operational policies. The new corporate form, however, is a natural step in Finavia s development. It will not af- 8 J O U R N E Y S A N D L A N D S C A P E S

9 ness and well-being. fect our strategic decisions; rather, it will enhance our ability to implement them. All employees, for example, will be transferred to the new company and will retain their employment status, terms of employment and pension arrangements. We are strongly committed to maintaining the airport network to the extent that the demand for scheduled air services allows. We will also provide customer-oriented services based on the needs of civil air carriers and the Air Force. We adhere to the International Civil Aviation Organization s and the European Union s principles of transparency, cost-relatedness and non-discrimination in pricing. One of the purposes of incorporation is to be able to produce cost-effective services for customers. Cost-based pricing allows for competitive prices for each customer group. It also lays the foundation for the balanced development of services and the maintenance of the airport network as a whole. Ready for a new era The year 2010 will be the most challenging in Finavia s history. We predict that domestic passenger numbers will decrease by approximately 5 per cent. Passenger numbers in international air traffic will remain stable we may even see a slight increase, partly because of the low passenger numbers in The development in passenger numbers is, however, highly dependent on the global economy in general and the Finnish economy in particular. The greatest challenges for the company s finances include the price reductions for customers and a transitional pension arrangement related to the incorporation that will burden the company with additional costs of EUR 35 million. In the difficult economic situation, we must explore all options to generate income and control costs. We must also critically assess our own operations and consider whether we do everything that needs to be done ourselves and whether the service level that is currently maintained throughout the network the most sensible one in terms of the operations. A solid foundation for the company was created through ownership arrangements: the assets transferred to it as a contribution in kind, our factors of production, were re-valued at a lower value based on the expected yield in the sector. The write-down was EUR 230 million, which reduced Finavia s income in its last year of operation before the incorporation, as did the provision of EUR 45 million for the funding of the ring rail line. Finavia Group s result before these items relating to the incorporation was EUR 25.4 million. The recession has caused permanent changes in the aviation sector. Many air carriers are struggling with profitability, so a consolidation trend is to be expected. Budget airlines have increased their market share in Finland to 9 per cent, reaching new customer groups. Finavia has further developed customer collaboration to better meet customers needs and to offer more customer-oriented solutions in a cost-efficient way. Finavia has a strong foundation, and its restructured organisation offers excellent support for daily operations and future challenges. In the difficult economic situation, our competent and highly motivated employees have proven their ability to innovate and work for the common good of Finavia and the aviation sector. Finavia Oyj will continue on this course. Samuli Haapasalo President and CEO F I N AV I A. a n n u a l r e p o r t 9

10 Finavia in brief Finavia offers internationally competitive, safe and reliable airport and air navigation services. Airport Operations is responsible for Finavia s network of airports. It provides airport services and is responsible for airport processes, the external and internal infrastructure and services of terminals, from the construction of premises to the efficiency of the service chain. The task of Air Navigation Operations is to improve the ability of our customers to operate by providing safe services that produce added value. It is responsible for managing the use of airspace and air navigation services in its area of responsibility the airspace above Finland and the international maritime area. Air navigation services covering the whole country ensure safe and efficient air traffic in Finland s airspace, which has a fairly low level of traffic compared with Central Europe. Commercial Operations is responsible for the centralised planning and development of commercial services at Finavia s airports in cooperation with companies that operate at the airport. The services encompass shops, kiosks, restaurants and meeting services at the airports, as well as parking and advertising spaces. Various partners operating at the airports produce the bulk of the services. Airpro. Finavia s subsidiary Airpro Oy develops and provides traffic, airport and travel services for passengers as well as travel and tourism companies. Airpro s strength lies in the versatile competences of its employees, thanks to whom the various tasks at the airports are carried out professionally. Real Estate Operations LAK. Lentoasemakiinteistöt Oyj is a subsidiary of Finavia. LAK s objective is to provide the best solutions for business premises at the airports. LAK rents business premises in the buildings it owns at the airports, mostly to companies whose operations are connected to aviation. The company owns office and logistics properties, as well as premises required for the storage and maintenance of aircraft, primarily at Helsinki Airport. The company also develops sites for its customers if necessary. J O U R N E Y S A N D L A N D S C A P E S 10

11 Finavia s values S a f e t y > > > > The safety of air traffic is the starting point of our operations and is an issue we are totally committed to. Safety is achieved through our professional competence, cooperation and sense of responsibility. E f f i c i e n c y a n d t h e a b i l i t y t o i n n o va t e > > > > We use our initiative, develop our professional skills and are prepared to be innovative. We take environmental matters into consideration. C u s t o m e r b e n e f i t > > > > Creating benefit for the customer drives our operations. The customer can trust us in every situation. We react quickly and effectively to customer feedback. C o o p e r a t i o n > > > > We value each other s work. Our cooperation is based on discussion, openness and mutual trust. L I N K S R E L A T I N G T O F I N AV I A S O P E R A T I O N S : Finavia s homepage: Airpro Oy: LAK Airport Real Estates Plc: Safe runway campaign: Finavia s environmental review is published separately in print every year. Also online: Aeronautical information publications: F I N AV I A. a n n u a l r e p o r t 11

12 The importance of air traffic Finland is strongly involved in globalisation: compared at the international level, the Finnish economy is exceptionally dependent on foreign trade, which accounted for 45 per cent of the country s gross national product in Although the proportion of foreign trade has slightly decreased during the recession, exports remain crucial to Finland s well-being. In a networked economy, companies seek partners from around the world. Finland is the home of many leading global companies and their networks of subcontractors. While maintaining operations in Finland, these companies have actively sought expansion in Europe and beyond. The success of these companies in an open economy is based on fast connections to important markets and partners. Although technological development creates new opportunities for interaction, personal meetings and workforce mobility remain important. Many companies choose their locations on the basis of air traffic connections. While international routes have linked Finland to the global economy, domestic air connections have maintained and enhanced the country s vitality and regional equality. Close interaction serves business and leisure travel Frequent connections to the rest of the world are important not only to the economy but also to other sectors of society. Universities, for example, are critically dependent on interaction with the international scientific community. The European Union s procedures demand close interaction among member states, and cultural exports also depend on international connections. The extensive network of airports has brought holiday destinations both in Finland and abroad within the reach of every traveller, regardless of where they live. The traffic is two-way: going abroad from Finland and coming to Finland from abroad. Using the fastest route from Europe to Japan, it takes business travellers only ten hours to fly to important meetings in Tokyo. Polish construction professionals have a direct, fast and effortless air connection to Olkiluoto in Finland, where they are building a new nuclear power plant. Tens of thousands of British tourists enjoy the true winter spirit in Lapland, while Finns enjoy the sunshine far away from home. The control and regulation of air navigation is Europe-wide or global. In Europe, high volumes of traffic in the airspace present challenges, and the European Union is seeking to harmonise the use and regulation of airspace across its member states through the Single European Sky (SES) initiative. The Single European Sky ATM Research Programme (SESAR) was launched to attain the goals of the SES. Finavia is responsible for controlling the use of Finland s airspace and providing air navigation services at airports. The company also participates in international operations in the 12 J O U R N E Y S A N D L A N D S C A P E S

13 H e l s i n k i S t P e t e r s b u r g 1 hr, 18 flights a week At one time, visitors had to bring stone with them as construction material for St Petersburg, which has been built on marshland. Nowadays a passport and visa are all that are needed to enter this metropolis of 5 million residents, which has entered a new age of splendour. istockphoto.com/anton_sokolov F I N AV I A. a n n u a l r e p o r t 13

14 Rapid connections to markets and cooperation partners sector. Matts-Anders Nyberg, planning director of Finavia s Air Navigation Operations, serves as the head of the project office of the North European ANS Providers (NEAP). Anne Ilola, director of Finavia s Air Navigation Operations, acts as chair of the highest decision-making body of the NEAP consortium. Finavia s active approach to European cooperation aims to ensure that Finland s specific circumstances are considered when decisions are made on international air navigation policies. International cooperation also allows Finland to share its cost-effective operating models with other countries. As part of the SES process initiated by the European Commission, Europe will be divided into nine functional airspace blocks by the end of Finland will be part of the North European Functional Airspace Block (NEFAB). These airspace arrangements are intended to ensure aircraft have the most direct routes to their destinations. This will allow for smoother traffic flow as well as reduced fuel consumption and emissions. Multinational airspace blocks that extend beyond national borders assume that the member countries have common air navigation services and operating methods. Finland develops air navigation practices in collaboration with the other member countries of NEFAB. Reorganised area control centres According to the requirements of the SES initiative, operations and services must be as cost-efficient as possible. As part of the process, Finavia has implemented structural changes in its services. Air navigation services provided by Finavia are based on four national service concepts established in 2008: Enroute Services, the international airport, joint operation airport, and basic airport concepts. This operating model allows for less complicated and more efficient operations, with the concepts defining common methods for providing services. Efficiency measures required by the European Union mainly focus on the Enroute Services concept. This concept includes services such as air traffic services, airspace management, air traffic flow control, air search and rescue, briefing services, and airspace control. Finland s area control centre is responsible for providing air navigation services for the Enroute Services concept. As part of the efficiency measures, regional organisations were dismantled in 2009, and area control operations were transferred directly under production control. In addition, Finavia s Board of Directors has decided that in the future all area control services will be provided by the Air Navigation Services Centre for South Finland, which is located in Aitovuori in Tampere. Accordingly, the Rovaniemi and Tampere Area Control Centres will be merged in November 2010, and air rescue services will be centred in Tampere. This organisational change allows for more efficient planning and clearer management. Compared to the previous operating model, the centralisation of services will produce savings of EUR 4 million. A vitally important network of 25 airports We cannot help our geography, as a Finnish saying puts it. Finland s distant and northern location isolates the country from the rest of Europe and the fast European land transport con- Turnover by business EUR million Airport Operations Air Navigation Operations Commercial Operations Other Delays caused by air traffic control % Percentage of delayed flights of all flights Share of delayed flights resulting from Finland source: Eurocontrol: CFMU Air navigation and route charges 2009 Aircraft type A320 EUR Route charges Air navigation charges Keflavik Tallinn Riga Dublin Warsaw St. Petersburg Helsinki Prague Athens Lisbon Stockholm - Arlanda Vilnius Vienna Paris - CdG Copenhagen Oslo Amsterdam Rome London - Heathrow Frankfurt Zurich Brussels Madrid 14 J O U R N E Y S A N D L A N D S C A P E S

15 Airports as a responsible part of the surrounding society Air traffic brings the different parts of Finland closer together and links the country to the rest of the world. Compared to land or rail traffic, air traffic needs little infrastructure. The FIN-MIPS project studied the consumption of natural resources in transport in Finland. According to the study, air traffic is more eco-friendly than rail traffic in terms of the natural resources consumed by the type of traffic and its infrastrucare a necessity for the country s well-being. nections. Sea, rail and land transport are usually the most sensible options for transporting goods, but air transport is often the only sensible option for people in Finland, unlike in the densely populated areas of Central Europe, for example. Furthermore, the delivery of goods does not always allow for extra days: every hour counts if production in a factory is halted because of a missing spare part. The goal of Finavia s strategy is to ensure the competitiveness of Finland and its different sub-regions in air traffic. Finavia is committed to enhancing Finland s competitiveness and promoting well-being in Finland through its customeroriented operations. Relative to the population, Finland has one of the densest airport networks in the world. Because of this network, every Finn lives a relatively short distance from an airport. The small traffic streams at regional airports do not allow for direct flights to major European destinations, but Finns have access to them, and everywhere else in the world, through Helsinki Airport. Airports significantly enhance the vitality of regional economies. According to a research project on the economic effects of Helsinki Airport, produced by the Helsinki School of Economics in 2007, Helsinki Airport creates approximately 14,000 jobs directly and 72,000 jobs indirectly. Their combined share accounts for 3.17 per cent of the Finnish gross national product. Services provided by airports are developed in collaboration with different sub-regions of Finland to better meet local customer needs. Transparent, cost-based and equal pricing Finavia s network consists of 25 airports, of which 21 serve scheduled air services. In addition, the network includes three military airports. Airport funding is based on the overall profitability of Finavia s business operations and on what is known as the network principle. This means that the entire airport network is available to the State as a purely commercial business without it having to use budget financing for the air traffic infrastructure. The network model is used in large European countries that are sparsely populated and in countries where air traffic is needed to connect islands and archipelagos to the mainland. Air traffic charges constitute two-thirds of Finavia s income; in terms of size, these fees rank in the lowest third in Europe. Low prices enhance the international competitiveness of Finnish airports, attracting more flights. The remaining third comes from other operations. Finavia s service charges for air carriers are the same at all airports, with only a small variation in prices for the different service levels. Finavia adheres to the International Civil Aviation Organization s and the European Union s principles of transparency, cost-relatedness and non-discrimination in pricing. Income from commercial operations supports small airports The European Union s Airport Charges Directive allows for national airport networks and common pricing within these networks. Furthermore, profitable large airports are allowed to support small airports. The directive is already in effect and is binding on Finland. It will be transposed into Finnish legislation within the framework of the Directive s transitional arrangements, most likely in The low volume of operations at Finavia s small airports is not enough to cover their costs. The financial losses of small airports are covered by income from commercial operations, in accordance with the principles of the directive. Finavia s commercial income is mainly generated at Helsinki Airport. This includes rental income from business premises at airports as well as income from parking, advertising spaces and tax-free sales. The services required by air carriers at an airport may vary, and therefore so may the prices for these services. Finavia is aiming to develop a service offering that provides the optimal level of service for all players. This principle is apparent, for example, in Turku and Tampere, where Finavia also has lowcost terminals. Open to all air carriers, these terminals have been especially popular among budget airlines, which have attracted new customer groups to these airports, allowing for more diverse route offerings. The increase in traffic improves the airport utilisation rate and benefits the maintaining of the entire network. F I N AV I A. a n n u a l r e p o r t 15

16 The infrastructure for air traffic is light: six kilo ture in relation to the passenger-kilometres and tonne-kilometres travelled. Finavia aims for air traffic to have as low an impact on the environment as possible. Airports require environmental permits covering all the operations and their environmental impacts. During the application process, these are scrutinised in a public procedure, after which a permit can be issued for the airport as well as regulations pertaining to the airport s operations. Successful permit procedures usually require close collaboration with local interest groups. Finavia cooperates closely with, for example, residents in the areas adjacent to Helsinki Airport. A public hearing related to the environmental permit application attracted a turnout of approximately one hundred people at Tikkurila high school. Environmental permit procedures for the Kuopio, Jyväskylä and Halli airports were completed in In addition, two permits are being heard in administrative courts and six permits are being considered by the environmental permit authorities. Noise reports were drawn up for five airports and noise measurements were carried out at two airports. Finavia s environmental unit will publish a separate environmental report for Air traffic bears its own responsibility in climate work Climate warming is a global challenge that concerns all areas of society. Transport accounts for 13 per cent of all greenhouse gas emissions caused by humans. Globally, air traffic represents 2 per cent of carbon dioxide emissions and 3 to 4 percent of the climate effect of emissions. The aviation sector is a pioneer in the use of economic instruments to control emissions. The European Union has been active in this respect and has incorporated air traffic into its emission trading system as of This is a step in the right direction: air traffic is international, so the measures for reducing its emissions should be based on international agreements. Finavia has been involved in drawing up the climate policy programme of the Ministry of Transport and Communications and is implementing its goals in many ways. In addition, Finavia is developing its cooperation with traffic planners to ensure local public transport connections for airports. Finavia is contributing to the funding of the ring rail line for four years, beginning in When completed, the ring rail line will connect Helsinki Airport to Helsinki city centre as well as other parts of the country. Destinations of international air passengers 2009 Destinations of domestic air passengers 2009 Number of passengers in Europe and between Europe and Asia+Australasia EU Asia Rest of Europe North America Africa Middle East South America Helsinki Airport Oulu Rovaniemi Kuopio Vaasa Kittilä Other (15 airports) Europe Europe-Far East Australasia Statistics of the AEA containing only passengers on European air carriers (excl low-cost carriers). 16 J O U R N E Y S A N D L A N D S C A P E S

17 metres of runway takes you from Helsinki to Kajaani. FINAVIA Key figures (EUR million) Turnover change (%) 7.6 % -5.7 % Operating margin margin as % of turnover 27.5 % 25.1 % Operating profit operating profit as % of turnover 13.3 % % Profit profit as % of turnover 11.1 % % Return on capital invested (%) 5.3 % % Return on basic capital (%) 18.8 % % Return on total capital (%) 4.1 % % Equity ratio (%) 71.2 % 51.6 % Capital investments Capital investments as a % of turnover 34.6 % 25.8 % Average traffic price change (%) Man-years Salaries and bonuses Finavia Group Key figures (EUR million) Turnover change (%) 8.3 % -4.5 % Operating profit operating profit as % of turnover 13.9 % % Profit profit as % of turnover 10.5 % % Return on capital invested (%) 5.5 % % Return on total capital (%) 3.7 % % Equity ratio (%) 61.8 % 44.7 % Capital investments, euro Capital investments as a % of turnover 33.5 % 24.4 % Balance sheet total Man-years (person-workday total as man-years = personnel average) F I N AV I A. a n n u a l r e p o r t 17

18 Air traffic in a changed environment The year 2009 was characterised by a deep and swift economic crisis that left no part of the world unaffected. The deterioration in economies and negative growth numbers were reflected in air traffic statistics as well: passenger numbers decreased in Finland and elsewhere in the world. The number of passenger kilometres travelled by air in Europe decreased by 5 per cent in a year. In 2009, Finavia s air navigation operations handled 310,760 flights, including 135,328 domestic flights, 135,344 international flights and 40,088 overflights. The tonnage of cargo flights totalled 133,735 tonnes, representing a decrease of 16 per cent on the previous year. Significant decrease in domestic passenger numbers The number of air passengers in Finland decreased by 7.7 percent. In 2009, a total of 16,193,529 passengers passed through Finavia s airports, 30 per cent of which were domestic passengers. The number of domestic passengers showed the sharpest decline, totalling 4,756,571, a decrease of 12.2 per cent compared to The demand decreased especially on routes with high proportions of business travellers; air traffic to Oulu, for example, decreased by 14 per cent. In addition to reducing demand, the recession increased competition for passengers between air, land and rail traffic, especially for destinations that could be reached by car in under three hours. Companies focused on cutting costs, which in many cases translated into increased teleconferences and reduced travel. At the same time, companies have considered themselves to be reducing emissions. The public discussion on emissions has not, however, had an impact on leisure travel. Passenger numbers at airports decreased consistently, with Kemi-Tornio being the only airport reaching the previous year s level with 96,000 passengers. In terms of passenger numbers, the busiest airports were Helsinki Airport with 12,609,000 (-6 per cent), Oulu with 688,600 (-14 per cent), Tampere-Pirkkala with 627,700 (-11 per cent), Rovaniemi with 309,400 (-23 per cent), Vaasa with 294,400 (-14 per cent) and Turku with 278,000 passengers (-12 per cent). The market shares in domestic air traffic were 57 per cent for Finnair, 23 per cent for Finncomm Airlines, 17 per cent for Blue1, and 2 per cent for others. Reduced volumes in charter air traffic to Lapland The number of passengers in domestic air traffic to Lapland decreased by 8.8 per cent compared to Total air traffic to Lapland decreased by 12.8 per cent, with a clear decrease in the number of passengers in international air traffic to Lapland. Of the total amount of passengers in year-round traffic travelling to Lapland, 70 per cent were domestic passengers 18 J O U R N E Y S A N D L A N D S C A P E S

19 H e l s i n k i T o k Y o 9 hrs 45 mins, 7 flights a week The fastest route to Tokyo from Northern Europe is from Helsinki. Passengers can get to 60 destinations in Europe from Helsinki Airport, so there are excellent connecting flights to the route between Helsinki and Tokyo. istockphoto.com/bbossom F I N AV I A. a n n u a l r e p o r t 19

20 Helsinki Airport is the leading transit Finavia Group Consolidated key figures (EUR million) change, % Turnover Operating profit operating profit as % of turnover Profit profit as % of turnover Return on capital invested (%) Return on total capital (%) Equity ratio (%) Capital investments Capital investments as a % of turnover Man-years More key figures on page 55. Finavia Group Other key figures change, % Total surface area of airports, ha Number of carriers operating scheduled air services (average) Helsinki Airport Number of destinations for scheduled air services (average) Helsinki Airport Total passenger numbers, commercial aviation Total number of flights Number of baggage items handled, Helsinki Airport Amount of freight, tonnes Amount of mail transported, tonnes Aircraft parking bays Total sales premises available for lease at Helsinki Airport, m Total number of car parking spaces, Helsinki Airport Number of beds in the Aviapolis area More key figures on page 55. approx approx and 30 per cent were foreign passengers. Charter traffic to northern Finland decreased from 500 flights in 2008 to 388 flights, a decrease of 22.4 per cent. This is largely explained by the considerable reduction in the flight market in Great Britain, which traditionally accounts for approximately 80 per cent of charter flights in December. Helsinki Airport outperformed its Nordic competitors The number of passengers in international air traffic at Finavia s airports totalled 11,436,958 in 2009, a decrease of 5.7 per cent compared to At Helsinki Airport, Finland s primary international airport, a total of 30 air carriers operated scheduled air services to 90 destinations around the world. A total of 12,608,962 passengers (-6.2 per cent) passed through Helsinki Airport in The number of passengers in international air traffic totalled 10,236,447 (-4.7 per cent). The most popular destinations were Germany with 1,465,300 passengers (-1.1 per cent), Sweden with 1,105,600 passengers (-12.2 per cent) and Great Britain with 936,200 passengers (-1.9 per cent). The number of passengers to Portugal increased by 21.5 per cent and the number of passengers to Latvia by 19.4 per cent as a result of the significant increase in flight offerings. Via Helsinki maintains the network of airports and routes The decrease in total passenger numbers at Helsinki Airport was smaller than in other major Nordic airports. A total of 2 million (-5.0 per cent) international transfer passengers passed through Helsinki Airport in 2009, representing approximately 20 per cent of the total number of international passengers. Helsinki Airport, the leading transfer airport in traffic between Europe and Asia, offers the most comprehensive direct air connections to Asia in northern Europe. The most popular destinations in Asia were Thailand, with 348,900 passengers; Japan, with 321,500 passengers; and China, with 287,100 passengers. The number of passengers to Hong Kong increased by 8 per cent, whereas air traffic to India decreased by 39 per cent because of the discontinued route to Mumbai. Moreover, air traffic to China decreased by 20 per cent after the Guangzhou route was discontinued. The number of passengers to the United States increased by 10 per cent as a result of new flight offerings. Helsinki Airport is an air traffic hub that greatly benefits from its geographical location. The most direct route from Asia 20 J O U R N E Y S A N D L A N D S C A P E S

21 airport for traffic between and Asia. to Europe and, for example, Delhi to New York passes over Finland. As the Via Helsinki service concept suggests, Helsinki Airport offers fast transfer connections for passengers arriving from Asia. The Via Helsinki concept is crucial to maintaining Finland s airport and route network. Most of the 113 European destinations serve as feeding and connecting flights for passengers from Asia and are dependent on this traffic. More marketing to increase awareness of Helsinki Airport and airports in Lapland Finavia s marketing department has strongly invested in promoting Helsinki Airport, highlighting its position as a hub for airline traffic. Helsinki Airport was given a brand identity, primarily for international marketing; the brand promise is crystallised by the motto For smooth travelling. Finavia also established a magazine, Via Helsinki, to strengthen the airport s profile and to enhance the image of Helsinki and Finland as places worth visiting. Finavia seeks to increase Lapland s international visibility through collaboration with local providers of tourism services. The Lapland Airports brand comprises six northern airports (Ivalo, Enontekiö, Kittilä, Rovaniemi, Kuusamo, Kemi-Tornio) under the slogan the North is near. Promotional efforts are targeted in particular towards Central Europe and Russia. The hope is that extending the winter season will create opportunities for attracting a higher number of tourists. In route development, Finavia participated in the spring in the Routes Europe event in Prague and the World Routes event in Beijing in the autumn. The events increased the visibility of Helsinki Airport and informed American, Asian and European air carriers of the opportunities offered by the airport. Low-cost carriers are diversifying route offerings and increasing their market share Decreasing passenger numbers present enormous challenges for the aviation sector, and many air carriers are struggling with profitability. In addition to the changes in traffic volumes, the ability of air carriers to make a profit is being hampered by price erosion; demand for more expensive seating in particular has dropped dramatically as both business and private travellers are increasingly favouring inexpensive seats. The recession is changing the structure of the sector, and a consolidation trend can be expected in relation to air carriers. The inevitable upturn in the economy and increase in passenger numbers will not automatically improve the situation. Increased consumption will cause fuel prices to rise, which will erode the profitability of air carriers. Increased price awareness among individual and corporate customers is accelerating the structural changes in air traffic, with low-cost carriers increasing their market shares. This growing popularity of low-cost flights was clearly apparent in Finland in The total number of passengers using low-cost carriers increased by 25 per cent and traffic increased by 30 per cent compared to Low-cost carriers accounted for 9 per cent of the total market in Finland. The low prices and addition destinations offered by budget airlines are attracting new customers as users of air traffic services. Mariehamn (-19%) (-9%) Vaasa (+3%) (-14%) Pori (+15%) (-7%) Turku (-8%) (-12%) Kemi-Tornio (+17%) (+0 %) Enontekiö 204 (+134%) (-17%) Kittilä (-3%) (-8%) Kruunupyy (-13%) (-6%) Kauhava (+17%) Jyväskylä (+1%) (-19%) Helsinki Airport (-7%) (-6%) Ivalo 872 (-7%) (-5 %) Rovaniemi (+6%) (-23%) Oulu (+7%) (-14%) Halli Kuorevesi (+31%) Tampere-Pirkkala (-15%) (-11%) Utti (-1%) Kuusamo 753 (-6%) (-9%) Varkaus 714 (+65%) (+54%) Helsinki-Malmi (-15%) Kajaani (-1%) (-13%) Kuopio (-4%) (-14%) Airport LANDINGS 2009 (CHANGE, %) PASSENGERS IN COMMERCIAL AVIATION 2009 (CHANGE, %) Lappeenranta (-22%) (-38%) Joensuu (-1%) (-8%) Savonlinna 895 (+32%) (+17%) F I N AV I A. a n n u a l r e p o r t 21

22 The most direct route from Asia to Finavia Group s operating result was EUR 25.4 million Finavia Group s overall result was a loss of EUR million due to the write-down in assets relating to the incorporation and the extraordinary cost concerning the financing of the ring rail line. The operating result was EUR 25.4 million. The result includes non-recurring items of almost EUR 7 million, so the result from ordinary operations was EUR 18.5 million (30.7), which was clearly down from the result of the previous year. Income from traffic decreased by 5.7 per cent. This was a result of the weakening in demand and the reduction in prices. Although the number of passengers passing through the airports dropped in 2009 by nearly 8 per cent, the turnover of Finavia s commercial operations remained at the level of the previous year, and income from commercial operations formed 22 per cent of Finavia s income. The good result given the economic situation was achieved through more efficient use of the premises and by developing the offering of shops to better meet customer demand. In addition, the new agreements concluded with cooperation partners improved the result. As a result of the considerable decline in income, an operational efficiency programme was launched with the aim of achieving EUR 20 million in savings at the annual level. Agreement was reached during the statutory labour negotiations held in the spring on exchanging holiday bonus pay for leave and on the temporary lay-off of staff. The person-months performed since September have decreased and the set savings objectives of EUR 5 million were achieved. Operations were made more effective, savings were sought and assets were realised Improving the profitability of the airport network emerged as key to making the operations more efficient. The introduction of the basic airport concept, which aims to achieve cost savings, was launched. According to the concept, the aim is to optimise the size of the workforce and employees are encouraged to multitask, so they work in several different positions. A staff optimisation programme has been launched at the larger airports. The shift planning project aimed at more effective use of human resources. Human resources were examined at the pilot airports within the framework of the programme and new shift plans were drawn up in cooperation with the employees. The proactive use of shift planning will continue in 2010 at the airports and within Group administration. Within core business operations, the realisation of unnecessary assets was examined and, as one concrete measure, the waterworks of Helsinki Airport was sold to the City of Vantaa. The most significant savings measures were implemented within airport operations. These were linked, for example, to security check services, purchases of substances and materials, as well as maintenance operations. Support operations were outsourced and new operating models and more efficient uses of new technology were sought with respect to communications solutions. Savings were also pursued through the re-organisation of acquisitions. Acquisitions are centralised in a single system that is used to manage orders and control costs even before the actual acquisition. The acquisition system is being piloted at Helsinki Airport. Its introduction will be expanded in The efforts to make the operations more effective and cut costs were reflected in Finavia s operations. The personnel demonstrated their willingness to develop both their own as well as all of Finavia s operations in the downturn affecting the entire sector. This formed the basis for the selection of Mariehamn as Airport of the Year The decision was based on a number of factors, including the airport s success in controlling costs during the difficult recession. Helsinki Airport s terminal expansion focuses on creating unforgettable experiences for passengers and efficiency The investment projects that were underway progressed in spite of the difficult economic situation. Finavia invested EUR 76.2 EUR mill Turnover, Group J O U R N E Y S A N D L A N D S C A P E S

23 Europe and from Delhi to New York passes over Finland. million in The investments were enabled by taking out a loan and by selling non-core assets. The expansion of Helsinki Airport s Terminal 2, which primarily serves long-haul traffic, was completed and opened for use. The total cost estimate of the expansion is EUR 143 million, of which over half has been invested in the new baggage handling centre. The renovation of the central terminal at Helsinki Airport also got underway. Finavia received EUR 10 million in stimulus aid for the renovation. This assistance was received in the form of the Ministry of Transport and Communications, as the owner, reducing Finavia s dividend for 2008 by EUR 10 million. The renovation work will continue in The extension to the P3 multi-storey car park was also opened at Helsinki Airport in February. Preparing for growth by expanding Kuusamo Airport The improved premises at Kuusamo Airport became operational on 2 November As a result of the expansion and renewed premises, the airport s capacity nearly tripled. The expanded area of the airport, almost 5,000 m² in size, includes the area for departing passengers, the passenger security check area, the baggage conveyor systems for departing and arriving baggage and the baggage reclaim area for arriving baggage. The costs of expanding and renovating the airport building were EUR 7.7 million. Finavia s share of this cost is about half. The Employment and Economic Development Centre for Northern Ostrobothnia and the European Regional Development Fund (ERDF) financed around 40 per cent of the cost of the project. The share of the City of Kuusamo and the surrounding municipalities is ten per cent. In addition, the plan to expand the terminal at Oulu, which was included in the Government s stimulus programme, made progress. The construction design was completed in 2009 as well as the connections for utilities; the actual construction will commence in The overall costs of the work are EUR 21 million, of which Finavia s share is EUR 9 million. The municipalities in the economic area will pay EUR 2 million, EUR 6 million will be granted to the project from the State budget and EUR 4 million will be received in European regional development funding. The planning of new investments continued in 2009 so that they can be launched rapidly, if necessary. Helsinki Airport s long-term plan, that is, its master plan, will be taken forward. The plan looks ahead nearly thirty years and the scenarios for traffic volumes consider growth of up to 40 million passengers. Continuous investment will ensure that the framework for operating air services will remain at a high level. The infrastructure for air traffic in Finland is world-class. The 2009 ROTI survey, which measures the state and development of the built environment based on the work of a range of experts, gave Finavia a score of 9.5, whereas the overall score for the transport network was 8 (road networks 7, street networks 7, rail transport network 7.5, water transport network 8). In the previous 2007 ROTI evaluation, Finavia also received a score of 9.5. operating profit, Group Investments, Group Investments by Finavia EUR mill EUR mill Building construction Machinery and equipment Airport construction Other investments F I N AV I A. a n n u a l r e p o r t 23

24 Personnel and Finavia as an employer A team of almost three thousand Finavia employees is responsible for the operations of Finland s 25 airports and similarly the functioning of the entire country s air traffic. The job title of air traffic controller is most common among the employees (304), and there is a total of 23 different professional groups. The number of employees in Finavia Group remained almost the same as in There were 2,719 (2,700) employees working in the Group at the end of the year. The number of employees in Finavia decreased, and the number stood at 1,870 (1,907) at the end of the year. Cost cutting as a result of the slump in air traffic and the more efficient use of human resources accounted for the change in the trend. The share of women of Finavia s employees is 31 per cent. The largest share of women are in the youngest age group: 43 per cent of the women are aged under 25. Although the number of Finavia employees fell, there is a need for recruitment within a major company as employees retire or move to other jobs. In 2009, 99 (215) employees were recruited by Finavia. The company received a total of around 5,700 applications during the year. Each recruitment decision went via the President and CEO as a result of the efficiency needs of the operations. The Group s staff costs were EUR million, which is an increase of 5.5 per cent on the previous year. Staff costs accounted for around 48 per cent of Finavia s costs. Finavia s first ever cooperation negotiations covering the entire staff As a result of the reduction in passenger numbers, Finavia conducted statutory labour negotiations covering the entire staff. They started on 12 March and the negotiations lasted until June. The negotiating committee agreed on the rules in a spirit of cooperation with employee organisations. The negotiations concluded with employees being able to choose various options in order to achieve savings of some EUR 5 million. Some 800 employees chose to exchange their holiday bonus pay for leave, which resulted in savings of EUR 1.86 million. The temporary lay-off of 400 employees resulted in around 6,000 lay-off days and savings of around EUR 0.9 million. The final amount of savings from temporary lay-offs will be determined in April Savings measures were undertaken with respect to 442 employees through part-time pension, childcare leave, study leave or similar arrangements. Six people were made redundant for production and financial reasons, and they were offered redundancy packages. The Group s management group participated in the savings measures by foregoing one month s salary. In connection with the savings measures, the employer established severance packages, which individual employees were able to apply for. The regional or operational directors were responsible for making the decision on granting severance packages to employees. These packages were granted 24 J O U R N E Y S A N D L A N D S C A P E S

25 M a n c h e s t e r H e l s i n k i B E I J I N G 3 hrs Manchester Helsinki 7 hrs 55 mins Helsinki Beijing 14 flights a week from Manchester to Helsinki 60 flights a week from Helsinki to Asia As a rapid transit airport, Helsinki Airport offers the most comprehensive direct flight connections to Asia from Northern Europe. Changing flights is quick and pleasant, unlike the experience at busy major airports. istockphoto.com/setimino F I N AV I A. a n n u a l r e p o r t 25

26 Finavia is an interesting and challenging place to 17 individuals. The employees also relinquished the money for recreational activities and less overtime was done compared to previous years. Counterpart working was initiated and multitasking was supported Savings were pursued in staff costs through a variety of means and efforts were made to improve the implementation of development projects across the entire airport network by initiating counterpart working, according to which, the individuals responsible for the same matters in the business operations and airports were placed in the same team. In January, a project to centralise the shift planning and optimise the use of staff was launched, in which the Western Finland region acted as the pilot area. In the project, the airports employees are trained to multitask. One result of this is that it has been possible to noticeably reduce the services acquired through subcontracting. For example, for Western Finland, the object is to reduce external acquisitions by around 30 person-work years. Some of the objectives were already achieved in Multitasking is closely connected to the basic airport concept developed for airports with low traffic volumes, whereby the operations are organised so that the airport serves a single route or charter flight at a time. By operating in this way, the contribution by Finavia s own staff can be exploited in full using as few outsourced services as possible, and during quieter periods there is no need to resort to overstaffing, which incurs costs. For example, maintenance, technical as well as office staff were trained to carry out security check tasks. Multitasking was supported in terms of pay. There are ten basic airports: Joensuu, Jyväskylä, Kajaani, Kemi-Tornio, Kruunupyy, Lappeenranta, Mariehamn, Pori, Savonlinna and Varkaus. Four tourist airports operate as basic airports outside the peak season (15 November 30 April): Kittilä, Ivalo, Enontekiö and Kuusamo. Responsibility of employees and supervisors for developing their skills is emphasised A centralised shift planning unit was set up at Helsinki Airport, which will in the future undertake the shift planning of the use of personnel in all of Finavia s units by using traffic and passenger analyses in assessing resources. The practice will be adopted gradually during 2009 and 2010 and it is estimated that it will achieve savings of 5 to 10 per cent in staff costs and outsourced services. Personnel working in maintenance, the apron area, property management and the fire brigade will be the first to come within the shift planning system. Skills assessments were performed to try and establish the nature of skills possessed within Finavia and the additional skills needed to obtain the objectives. Employees evaluate their own skills once a year prior to the personal development reviews with supervisors. An objective level has been specified for various levels in accordance with the employees roles. Supervisors benefit from the assessment in developing the skills of employees and the entire unit, and in the skills assessment employees can indicate their willingness to participate in training. The assessment establishes support and a systematic approach to developing skills and emphasises the responsibility of supervisors and employees for skills and their development. Under the new operating model, the quality of personal development reviews will improve as both the employee and the supervisor prepare well for the discussion. Every supervisor is trained to use the system. The skills assessment and personal development reviews are undertaken using a web-based system that is also used in recruitment. An eform system was introduced, which the supervisor uses to complete and forward electronic forms relating to the individual s employment relationship. The eform system is used to apply for identity cards and user identifiers and to make notifications on employment start and end dates. In addition, recruitment was transferred to a centralised electronic system. Greater focus was placed on training to improve the work of supervisors The most significant investment in training was multitask training for airport employees and the rehabilitation plan drawn up with occupational health care, in which the fire and rescue competence of maintenance staff was improved. The results of the assessment of supervisors, which was launched in 2008, were completed at the start of As part of the assessment, the supervisors drew up personal development plans. On the basis of the results, the supervisors consider it especially necessary to put greater effort into change management, giving feedback and time management. HR supports supervisors in their professional development through, for example, discussions on well-being at work. Furthermore, practices on broaching issues and addressing dif- 26 J O U R N E Y S A N D L A N D S C A P E S

27 to work. ficult situations have been specified in greater detail and the guidelines updated. Finavia s internal site for supervisors, AviaNet, is used in the activities. Training for the members of the management group and directors continued throughout the year. The training included a personal assessment and evaluation of each individual s management style. The results formed the basis for a personal development plan, which was carried out together with a trainer. Finavia actively focused on the well-being of staff in 2009 and the company is continuing the work to improve well-being at work. Key figures change, % Person-workday total Finavia Subsidiaries Lentoasemakiinteistöt Oyj Kiinteistö Oy Turun Lentorahti Airpro Oy Subsidiaries, total Group, total Preparations for incorporation undertaken in the various parts of the organisation On 1 January 2010, Finavia became Finavia Oyj, changing from being a state-owned enterprise into a limited liability company wholly owned by the State. A considerable amount of preparatory work was carried out in the Group during 2009 for this, especially within the HR, financial and legal functions. Employee organisations were informed about the progress of the incorporation and the changes resulting from the change to the company form. Good governance requirements required by the company form were assessed in relation to the change. In addition, the balance sheet assets and their valuation were examined. Incorporation involved major pension insurance decisions and open competitions for insurance against loss or damage and liability insurance. In addition to employee pension insurance taken out with a pension insurance company pursuant to the normal Employees Pensions Act, Finavia took out supplementary pension insurance with a life insurance company, because some of the employees had been covered by a higher level of pension insurance than required under the Employees Pensions Act. This resulted in a cost to Finavia of EUR 35 million. The share of men and women of Finavia s employees Men % Women % Finavia With a permanent employment contract Share of women, % Women in management positions Share of women in management positions, % Key figures change, % Number of employees at the end of the year Finavia Permanent Temporary Total Subsidiaries Lentoasemakiinteistöt Oyj Permanent 4 3 Temporary 0 2 Kiinteistö Oy Turun lentorahti Permanent 2 2 Temporary 0 0 AirPro Oy Permanent Temporary Subsidiaries, total Group, total The figures for 2008 differ from the annual report for 2008 due to changes In 2009, the number of women grew compared to the previous year. The share of women of Finavia s employees was 31 per cent. in the reporting system. This has affected the distribution into permanent and temporary employees, which can now be specified at a more precise level. F I N AV I A. a n n u a l r e p o r t 27

28 Airports, customers and the environment Finavia owns Finland s 25 airports, which serve both passengers and the entire region in which they are located. Finavia, together with many other actors, is responsible for the service offering of the airports and air traffic. The success of this work is measured in terms of the service experiences received by air passengers and companies using air cargo, for instance. The prerequisite for customer satisfaction is that everyone involved in producing the service chain manages their part well. In 2009, a total of 16,193,529 passengers passed through Finavia s airports, of which 70 per cent were international passengers and 30 per cent domestic passengers. The volume of air cargo transported was 133,735 tonnes (-16 %). Systematic data collection to establish customer needs Finavia aims to make its operations more customer oriented. Customer satisfaction surveys, which are important operational level indicators and pointers to areas for development, are used to help determine the direction of future development. Finavia collects passenger feedback systematically on domestic flights by Finnair and Finncomm Airlines. Passengers evaluate the entire travel chain on survey forms that are handed out and completed during the flight. A total of 4,737 passengers gave feedback in 2009, and 15 airports were evaluated on the forms. Passengers were asked about issues such as café services, the comfort and cleanliness of the toilet facilities at the departure airport, as well as the service attitude of the security officers and the efficiency of the security check. A new item on the survey in 2009 was the question concerning shopping opportunities. In their responses, passengers were asked to score the services on a scale of one to five, from very unsatisfactory to very good. In addition, passengers were also able to give free-form feedback. On the forms given out on Finnair flights, passengers were also asked to give an all-round score for the airport. According to the results, the airport s atmosphere, the comfort of the waiting and departure gate areas as well as the cleanliness of the terminal have the greatest impact on passenger satisfaction. Passengers experiences of the service quality varies Based on the results, the overall satisfaction of customers with the services offered by Finavia has risen over a period of two years. The overall score for the airports in 2009 was 3.35 (3.22) on a scale of 1 5. Customers were clearly more satisfied with parking arrangements, the efficiency of the security check and the cleanliness of toilet facilities. The areas receiving the lowest scores from passengers were café services and shopping opportunities. These were rated as weak. 28 J O U R N E Y S A N D L A N D S C A P E S

29 H e l s i n k i S t o c k h o l m 1 hr, 110 flights a week The Swedes have discovered Helsinki Airport and its comprehensive connecting flights to Asia, Europe and the United States. Before departing on a connecting flight, passengers at Helsinki Airport can prepare for the flight in a variety of ways, such as by relaxing at the unique Via Spa. istockphoto.com/poppycocks F I N AV I A. a n n u a l r e p o r t 29

30 Flying is a sensible form of public transport. Helsinki, Kuopio, Oulu, Turku, Tampere and Vaasa are classified as business travel airports in the survey. Tourist airports include Ivalo, Kuusamo, Kittilä, Rovaniemi and Kemi. Jyväskylä, Joensuu, Kokkola and Kajaani are classified as basic airports in the survey. A clear difference between tourist and business travel airports has been a typical feature of the airport feedback, and in 2009, too, business travel airports received lower scores from customers than the other airports. Business travel airports only received higher scores than tourist and basic airports in the comfort and shopping opportunities categories. Kajaani, Ivalo and Rovaniemi were rated as the best airports in In addition to these, Kuopio and Kokkola were rated at a good level. Compared with the previous year, seven airports improved their overall result, and none of the airports scores dropped considerably. The most satisfied customer groups are leisure travellers, infrequent travellers and travellers aged over 64. Customer needs determine the direction of development The service level at Helsinki Airport is also measured through the international Airport Service Quality (ASQ) survey. Over 2,000 answer forms, on which customers rated the cleanliness of the airport and café services for example, were collected in Over 130 airports around the world participate in the ASQ survey. The results of the survey are reported quarterly. The scores received by the airports are compared to each other at the global level, by continent and by size category. Helsinki Airport has done well in the international comparison. Its ranking in 2009 among European airports with annual passenger levels of 5 to 15 million passengers was third. In 2008, Helsinki Airport was ranked as the best airport in this size category. Helsinki Airport was ranked eleventh in 2009 (sixth in 2008) among all airports in Europe. According to a Skytrax questionnaire published in March 2010, Helsinki Airport is the best airport in northern Europe. More than 9.8 million passengers responded to Skytrax s latest questionnaire in 2009 and They evaluated the quality of airport services in terms of 39 different factors. Over 190 airports around the world were included in the survey. In addition to improving its own operations, Finavia uses the survey results and direct feedback from customers in developing the operations of the entire airport in cooperation with other actors. Finavia emphasises the needs of passengers when choosing cooperation partners and aims to ensure that the overall offering and quality of products and services at the airports meets market demand. In addition to the opinions of air passengers, Finavia is interested in how well its operations can respond to the customer needs of air carriers. In order to evaluate this, Finavia will be undertaking the Airlines on Airports survey in In the survey, air carrier customers are asked about various issues including their satisfaction with the services offered by Finavia and their pricing as well as the effectiveness of cooperation. Passengers, commercial aviation Flights Average grade for domestic airports Domestic traffic International traffic Domestic scheduled flights Domestic charter and taxi flights International scheduled flights International charter and taxi flights Overflights Other civil aviation Military aviation J O U R N E Y S A N D L A N D S C A P E S

31 The Hello Café chain was founded to fulfil customers wishes Customer feedback is important. One example of this is the criticism received by airports concerning café services, which Finavia has responded to by developing the Hello Café concept. The first café in the Hello Café chain, which operates as a franchise, was opened in February in Turku. The café, operated by Finavia, will act as the product development unit for the chain and will pilot the operating method and product range to be developed. The practice complies with the ethical rules of the Finnish Franchising Association, according to which every franchisor must itself operate at least a single outlet for a reasonable duration. Under the concept, the licensed outlets will serve café products. The first entrepreneur-managed Hello Café was opened in Kuusamo in October. The chain will be expanded in Monitoring customer feedback is important and only by responding to changing needs can Finavia s commercial operations reach the set profit objectives. This is significant in terms of Finland s entire airport network because the income from commercial operations is used to maintain airports with low traffic volumes and to support air navigation operations. Additional parking spaces for customers were created at Helsinki Airport and the changes made to the pricing of parking seemed to work. In addition, the service level of the airports was increased and at the same time additional sales were received by opening new shops at the airports in Helsinki and Mariehamn. For commercial operations, 2010 will be a year for continuing long-term development work. Customer knowledge will be harnessed so it can be used more effectively and the range of shops will be improved. A new POS system will be introduced, which will enable the use of purchase transactions as a means of enterprise resource planning. In addition, the concepts of commercial operations will be documented and implemented into practice. The quality and effectiveness of the concepts within the airport network will be verified through auditing and mystery shopping. Understanding of the environmental impact of air traffic is not based on facts Finavia monitors the general attitude of passengers towards issues relating to air travel. Over the last few years, the general increase in environmental awareness has been significant. As a result of considerable publicity, people have become aware F I N AV I A. a n n u a l r e p o r t 31

32 Air traffic accounts for 2 per cent of of the fact that climate change is one of the biggest challenges facing the entire world. Air traffic is often singled out in the debate on reducing carbon dioxide emissions. However, the debate is often based solely on impressions than on factual knowledge. Transport accounts for 13 per cent of anthropogenic greenhouse gas emissions. Air traffic accounts for 2 per cent of carbon dioxide emissions at the global level and 3 to 4 per cent of the climate impact of emissions. Nevertheless, in the discussion on how to reduce carbon dioxide emissions, the focus placed on aviation has been out of proportion to its actual impact. The fact that air traffic at its best is an energy efficient form of public transport that safely transports huge numbers of people has received less attention. The sector is keen to bear its responsibility for reducing greenhouse gases and is, in fact, a pioneer in this: air traffic is the only form of transport on which a decision has been made to manage its carbon dioxide emissions through international emissions trading. Aviation emissions trading starts for flights inside the European Union and flights between the EU and third countries from the start of Aircraft energy efficiency has improved It is easy to imagine air traffic as a mode of transport that destroys energy reserves, even though a full propeller or widebodied aircraft consumers between 2.5 and 3 litres of fuel per passenger. The average fuel consumption of new cars that run on petrol sold in 2009 is 6.7 litres/100 km. The average age of cars on the road in Finland is, however, over ten years old and the average fuel consumption of the entire stock of cars is considerably higher than for new cars. The infrastructure required by land transport has a significantly greater impact on the environment than air traffic. Air travel is also significantly safer than car travel according to statistics. Therefore, two people making a trip from Helsinki to Lapland by car and instead of by plane, for example, cannot be justified in a sustainable way on the basis of the environmental impact. The efforts by air carriers to reduce fuel consumption, which incurs major costs and which has led the aircraft industry to build more energy efficient aircraft that emit fewer emissions, has also cut the amount of emissions. For example, Finnair has introduced new Airbus A330 aircraft on its long-haul routes. These new aircraft are more fuel efficient and environmentally friendly than the old fleet. ATR aircraft, which are the most common type of aircraft in domestic traffic, are the new generation of turboprop aircraft. A major development has taken place as the consumption of fuel per passenger and per kilometre travelled is approximately 70 per cent more efficient than 40 years ago. Improving energy efficiency will be slower in the future, although the energy efficiency of air traffic will improve by about one per cent a year under current measures. The objective is a green public transport chain from departure to arrival Fuel consumption and likewise air traffic emissions can be reduced through new methods. In 2008, Finavia launched the development project on the method to continually reduce de- SHARE OF ANTHROPOGENIC GREENHOUSE GAS EMISSIONS OF DIFFERENT SECTORS AIRCRAFT NOISE AREA, HELSINKI AIRPORT L den 55 db Shares of global emissions of different greenhouse gases by sector in 2004 (as CO 2 equivalents). Air traffic accounts for 13 per cent of CO 2 emissions from the transport sector. Air traffic accounts for about 2 per cent of all anthropogenic CO 2 emissions. Source: IPCC Fourth Assessment Report, WGIII, 2007 and ICAO, Environmental Report, 2007 Year Area km 2 Residents Waste and wastewater Energy supply Transport Residential and commercial buildings Industry Agriculture Forestry Transmission of aircraft noise in Helsinki Airport s control zone from 2005 to 2009 (number of residents living within the aircraft noise area) Aircraft noise has reduced considerably: in 1990 the area of the noise area was 165 km 2 and the number of residents was 97, J O U R N E Y S A N D L A N D S C A P E S

33 carbon dioxide emissions at the global level. scent (CD, Continuous Descent) at Helsinki Airport, which aims to introduce more environmentally friendly flying practices. Using the continuous descent method, emissions during the approach phase can be reduced by 10 to 30 per cent. With large aircraft, this means a saving of as much as 640 carbon dioxide kilograms, or 200 kg in fuel per approach. The successful implementation of CD methods requires cooperation between airspace planning, air traffic control and pilots. The project has resulted in the implementation of practical measures. According to a survey by IATA and EUROCONTROL, the implementation and realisation of CD methods at Helsinki Airport are at a high European level and as many as 60 per cent of all landings are more environmentally friendly. Finavia aims to create a green public transport chain in Finland that allows passengers to undertake their entire journey by means of public transport. Achieving this aim will require good cooperation between actors, supporting air traffic with other public transport connections both at the departure and arrival airport. Work to achieve this has already got underway. For example, local bus traffic in Vaasa effectively supports the airport s operations. Helsinki Airport has good public transport connections by bus. In addition, Finavia is participating in financing the construction of the ring rail line, which will significantly improve the airport s ground transport connections, for a period of four years starting in Once completed, the ring rail line will connect the airport to the railway network, making it possible to get to the airport by train from the centre of Helsinki and the rest of Finland. Theoretical oxygen consumption and nitrogen loading caused by de-icing chemicals during the winter period in the years 2004 to 2009 Tonnes Total oxygen consumption Nitrogen loading Oxygen consumption and nitrogen loading caused by de-icing chemicals annually from 2001 to Since the end of the 1990s, oxygen consumption has dropped by around half and nitrogen loading by around a tenth as the use of urea has been abandoned. Since the turn of the millennium, loading has remained even despite an increase in the consumption of de-icing chemicals. The reason for this is the switch to the use of a more environmentally friendly liquid formate. Loading in 2009 dropped due to the reduced consumption. F I N AV I A. a n n u a l r e p o r t 33

34 A year of changes at Helsinki Airport In terms of its service level, Helsinki Airport is one of the best airports in Europe. Measured in terms of destinations, Helsinki Airport is the leading airport for long-haul travel in northern Europe; as a transfer airport it aims to be the fastest in the world. According to a Skytrax questionnaire published in March 2010, Helsinki Airport is the best airport in northern Europe. There are approximately 1,100 international flights and 700 domestic flights every week from Helsinki Airport to over 120 destinations around the world. The airport s maximum capacity is 80 operations an hour, and around 700 operations a day, and 184,000 a year. There are thirty air carriers operating scheduled air services at Helsinki Airport. There were 12.6 million passengers in 2009, of which 10.2 million were international passengers. Some 20 per cent of international passengers at Helsinki Airport were transit passengers, which in part made it possible to maintain the comprehensive route network. Helsinki Airport offers the most comprehensive direct flight connections in northern Europe to Asia, and is the leading transfer airport for traffic between Europe and Asia. There are ten destinations served by direct flights, mainly on a daily basis. There are over 100 flights a month to China alone. Its geographic location creates a competitive advantage for Helsinki Airport, because it is located on routes between Asia and Europe, and North America and India. However, geography and a hub position are not enough to tempt passenger streams. Efficient service concepts and a competitive fleet on the routes that are served are also needed. Helsinki Airport meets different customer needs Finavia s task is to ensure the competitiveness of Helsinki Airport in terms of the pricing, quality and reliability of services. Services have been developed in a systematic way on the basis of customer needs. The passenger experience differs markedly at Helsinki Airport in its favour, compared with Europe s busy and congested airports. The rapidness and pleasant environment have emerged as Helsinki Airport s strengths as a gateway airport: changing planes is quick and pleasant, while the distances between departure gates are short and the airport s service level is good. Transferring to connecting flights is exceptionally smooth for passengers at Helsinki Airport. For example, the connecting flight to Warsaw from New York takes 35 minutes at its fastest. Efficiency requires the seamless operation of the entire process and, for example, the correct loading of the aircraft at the departure airport so that passengers luggage makes it onto the connecting flight. Speed is not in itself sufficient as a success factor for the airport. Development work has also considered the needs of passengers who stay for a longer period at the airport. For these passengers, Helsinki Airport offers the opportunity for unforgettable moments amid a wide range of services. 34 J O U R N E Y S A N D L A N D S C A P E S

35 H e l s i n k i L a p l a n d ( L a p l a n d A i r p o r t s ) 1 hr 30 mins, several flights a day to various destinations The wilderness of Lapland awaits passengers after just over an hour s flight from Helsinki Airport. Passengers can also get from the airport to their hotels by snowmobile if they wish. F I N AV I A. a n n u a l r e p o r t 35

36 According to a survey by Skytrax, A year of change creates the capacity to serve increasing passenger numbers The year 2009 was a year of change for Helsinki Airport. On 5 August, the airport adopted international practices when the division into the domestic and international terminals was consigned to history. Under the new practice, departures and arrivals take place according to which terminal T1 or T2 the passenger s air carrier operates from. Finavia together with air carriers ensured the smooth introduction of the new practices by providing information to passengers on the change and by ensuring extra staff were available to give assistance in the departure halls and departure gate areas. The introduction of the new operating model went well and customer satisfaction, which was measured through a survey, increased. Terminal 1, which was previously the domestic terminal, now serves both domestic and international passengers in renovated premises. In the renovation, the terminal s check-in area was expanded and the capacity of the security check was boosted. The renovation of the old parts of Helsinki Airport s terminals will continue during The key event in 2009 was the opening ceremony of the terminal expansion, which was held on 10 December. The opening of the expanded section of Terminal 2, intended for use by long-haul passengers, increased the service offering at Helsinki Airport considerably. The top floor of the three-storey terminal expansion is used by passengers. The two lower floors are reserved for baggage handling, bus ports, and technical premises. The expansion contains a total of 39,000 square metres in additional space. The purpose of the expanded Terminal 2 is to prepare for the growth in the number of transit passengers between Asia and Europe. The terminal will be able to handle 15 to 16 million passengers annually and 13.5 million items of baggage. Once the extension is completed, Helsinki Airport will have eight jetways intended for wide-bodied aircraft. The terminal expansion created unique services for passengers The terminal expansion created some completely new types of services for passengers. For example, the Via Spa, the only one of its kind in the world, is intended as a relaxing oasis at the heart of the busy airport. Via Spa, which is 600 square metres in size, houses four different saunas: a Finnish sauna, a stone sauna, a steam sauna and an Alpine pine sauna. Passengers can also refresh themselves in the 250-seat Via Lounge, where passengers can wash away the strain of the trip in private shower rooms and savour the offerings of the snack bar and wine bar. A new restaurant concept was launched in connection with the opening: the 400-seat My Helsinki restaurant word offers not only a menu that takes into account the requirements of international passengers but also a display of Finnish design, as the interior design has been the work of Artek, Iittala and Marimekko. In addition, several new shops were opened in the new terminal area: Stockmann, M-Boxi, Aseman Kello as well as Luxbag and Mulberry. Distribution of retail space, Helsinki Airport EUR/ composite flight-hour Economic gate-to-gate cost-effectiveness KPI, Tax-free Retail trade services Restaurants and cafés Other services Belgocontrol Aena LVNL ROMATSA Skyguide ENAV NATS DFS ANS CR LPS MK CAA NAV Portugal ATSA Bulgaria Slovenia Control DSNA UkSATSE Austro Control Avinor MoldATSA NATA Atlantis HCAA SMATSA Oro Navigacija Croatia Control NAVIAIR IAA MATS Finavia DCAC Cyprus HungaroControl DHMI LVN/ANS Sweden PANSA LGS MUAC EANS Source: Eurocontrol, Performance Review Unit, ATM cost effectiveness 36 J O U R N E Y S A N D L A N D S C A P E S

37 Helsinki Airport is the best airport in northern Europe. A fast baggage handling system is a necessity for rapid connections The total cost estimate for the extension together with its additional work is EUR 153 million. Around half of the investment expenditure is allocated to the baggage handling centre s facilities and equipment. The starting point for developing the baggage handling system is good. Helsinki Airport s baggage handling was voted the best in the world in 2009 in Skytrax s World Airport Awards survey, in which passengers were asked to evaluate their experiences of services at airports. 8.6 million passengers responded to the survey and over 190 airports throughout the world participated in the comparison. According to Finavia s own statistics on baggage, passengers at Helsinki Airport got their luggage quickly, since 87 per cent of arriving flights were unloaded in under 30 minutes. Baggage handling, loading, unloading and transport are a service for air carriers. The baggage handling system is a major competitive factor at Helsinki Airport, because no other major airport can match this speed. At Helsinki Airport, passengers from three widebodied aircraft can receive their baggage in fifteen minutes. The speed means the capacity to handle 7,000 bags an hour. The baggage handling system uses the latest technology. The totes used in the system are fitted with radio frequency identifiers(rfid) and the baggage items have bar codes. The length of the conveyor network is 10 kilometres and there are several RFID and bar code reading stations along its length. The readers identify the baggage items and control their progress, so the system always knows where every passenger s bag is at any time. Even during exceptional circumstances in baggage handling, Finavia s systems have worked at their normal service level. In addition to the competitive framework and systems created by Finavia, an efficient travel chain requires that the processes of all the actors operating at the airport work efficiently. A new system guides aircraft parking and speeds up transfer traffic An assessment report on the ICT needs of the business operations was undertaken in Finavia in On the basis of the report, guidelines were drawn up, according to which efforts will be made to better exploit the data produced by ICT, such as the traffic data collected, in supporting the management and development of the business operations. A user-friendly traffic F I N AV I A. a n n u a l r e p o r t 37

38 Fuel consumption on flights has de database containing the key information on the airport s operational activities was set up for this purpose. The planning and coordination system for aircraft parking was introduced at Helsinki Airport at the end of March as part of the project aimed at updating the invoicing system and traffic database, which had been ongoing for four years. The system is used to direct aircraft parking so that it flows as effectively as possible in terms of traffic and the airport s operations. The system, which is central to the airport s operational activities, has numerous interfaces with other systems. For example, it communicates with the devices directing aircraft parking by reporting the type of aircraft and ensuring the right parking place for each type of aircraft. The planning and coordination system for aircraft parking plays a key role in the work to improve the operations of Helsinki Airport, which serves as a rapid transfer airport. In the future, it will be possible, for example, to use the data it provides to optimise parking on the basis of passengers flight connections. Renewed hotel resulted in additional accommodation services, significant increase in parking facilities Accommodation services at Helsinki Airport were transformed when Palace Kämp Hotels Oy started to operate the hotel located in Terminal 2 under the terms of the agreement signed with Finavia. The hotel s central location in Terminal 2 makes it a natural accommodation choice for passengers waiting for connecting flights or for those with an early flight. The number of parking places for customers at Helsinki Airport increased by 2,400 to almost 12,000 when Finavia opened the extension to the P3 multi-storey car park in February. In addition, there are well over 1,000 parking spaces available for staff. Measured as the number of spaces, the parking at Helsinki Airport creates one of Finland s biggest parking areas. Developing parking services will be important in the future in spite of the improving ground transport connections, because over one-third of the airport s 12.6 million passengers currently arrive at the airport in their own car. As a result of the extension, more customers will be able to park nearer the terminals. The total gross area of the new seven-storey section is 66,132 m². The overall costs of the project were EUR 27 million. Finavia improved parking services through other means as well. In February, the airport launched the Valet Parking service, a service familiar at many international airports, where the service s staff park customers cars on their behalf. A new service centre was opened next to the P3 multistorey car park in early International awareness of Helsinki Airport was increased through marketing Helsinki Airport s advantages as a gateway airport and its wide range of services were highlighted in its marketing. A brand identity was created for the airport, Helsinki Airport, the aim of which is to increase awareness of the airport and its distinctness in international markets. A clear and consistent Cargo and postal traffic at Helsinki Airport Helsinki Airport s international competitiveness total air traffic charges aircraft type A320 EUR Tonnes Domestic traffic International traffic 0 Keflavik Tallinn Dublin Riga Helsinki Rome Stockholm - Arlanda Madrid Oslo St. Petersburg Vilnius Warsaw Vienna Lisbon Athens Copenhagen Prague Brussels Frankfurt London - Heathrow Zurich Amsterdam Paris - Charles de Gaulle 38 J O U R N E Y S A N D L A N D S C A P E S

39 creased by 70 per cent per seat in the last 40 years. visual image plays a key role in building the brand. The look will mainly be used in international marketing, and therefore the airport s logo will use the name Helsinki Airport. The expressions Helsinki-Vantaa Airport and Helsingfors-Vanda flygfältet will be kept in Finnish and Swedish texts, respectively. The logo will be gradually introduced during The brand promise is expressed in the phrase for smooth travelling, which describes Helsinki Airport as a dynamic, efficient, easily accessible and hospitable European airport that passengers want to come back to. The needs of air carriers are established through customer relationship management projects and the results obtained are used to improve operations. The objective is to make Finavia more customer oriented. This was also the objective of the survey on passengers needs carried out with Aalto University. The survey established the expectations of international passengers in particular and how Finavia can better respond to them by developing its own operations. Some of the development needs highlighted by the survey results have already been implemented into practice. Cooperation with educational institutions was also undertaken with the Laurea University of Applied Sciences. Its students built an interactive travel guide, located in Terminal 2. Environmental factors are taken into account in the airport s operations Environmental aspects are taken into consideration in all development activities at Helsinki Airport and efforts are made 15,000,000 12,000,000 9,000,000 6,000,000 3,000,000 0 Commercial aviation passengers at Helsinki Airport Passengers in international traffic International transit passengers Domestic passengers to minimise the negative effects on the environment caused by the operations. Empty bottles and cans at the airport s service points, such as cafés and restaurants, go for recycling. In addition, Finavia has made arrangements so that passengers at Helsinki Airport can leave bottles and cans they have with them for recycling. Air navigation has actively implemented the introduction of the continuous descent method for approaching aircraft, and 60 per cent of all landings at Helsinki Airport already use this more environmentally friendly method. The result, according to the International Air Transport Association (IATA) and the European Organisation for the Safety of Air Navigation, EURO- CONTROL, is definitely among the best in Europe. The achievement is significant in terms of the environmental impact because by using the continuous descent method it is possible to reduce emissions during the approach stage of aircraft by 10 to 30 per cent. The noise level can be reduced by 3 to 6 decibels. During 2009, a long-term strategy for treating surface water was drawn up for Helsinki Airport, within the framework of which a report was drawn up on how to minimise run-off from entering into the environment in the future through cost-effective means. An important part of the objective is to direct air carriers to perform aircraft anti-icing procedures at the remote de-icing area. The use of aircraft anti-freeze agents is regulated by international rules, and safety is the cornerstone of all operations. Propylene glycol, which is classified as being non-toxic but uses oxygen when breaking down, is used in anti-icing and the de-icing of aircraft. The first remote, centralised de-icing area, which is effective for collecting propylene glycol and from where run-off is piped to the sewage treatment plant, is in use at Helsinki Airport. Efforts are made to optimise the use of de-icing chemicals on runways by precise monitoring of the weather and proactive measures. The surface of the runways is kept free of ice using potassium and sodium formates, which are the least polluting of de-icing chemical products. They are not classified as toxic but they use oxygen when breaking down biologically. Run-off water in the airport area mainly flows into rainwater sewers. The effects of anti-icing and de-icing chemicals on surface and ground waters are regularly monitored in the areas surrounding the airport. The results are reported annually to the environmental authorities that monitor the airport s operations. F I N AV I A. a n n u a l r e p o r t 39

40 Board of Directors JUSSI JÄRVENTAUS born 1951 Chair of the Board of Directors, 1 January December 2009 Licentiate in Laws, Master of Laws trained on the bench Managing Director of the Federation of Finnish Enterprises 1996 Main work experience Minister of Justice Federation of Finnish Insurance Companies, Managing Director Central Union of Finnish Entrepreneurs, Deputy Managing Director Nova Life Insurance Company Ltd, Director of the legal department Ministry of Justice, Director, Legislative Affairs Federation of Finnish Insurance Companies, representative responsible for terms and conditions Supreme Administrative Court, Supplementary Referendary 1977 RITA LINNA born 1966 Deputy Chair and Member of the Board of Directors, 1 November 2007 Master of Laws, MBA Ministerial Adviser, Corporate Policy, Ministry of Transport and Communications, 2007 Main work experience Ministry of Transport and Communications, Traffic Policy Department, Senior Adviser and Senior Officer ; Ministry of Agriculture and Forestry, Department of Agriculture, Senior Auditor ERJA TAKALA born 1950 Member of the Board of Directors, 1 January 2009 Master of Science (Econ.) Main work experience Development, chain management and directorial positions (SOK and its subsidiaries , Arctia Oy , HYY-yhtiöt , SOK PAULI MANNINEN born 1950 Member of the Board of Directors, 1 January 2009 Master of Political Sciences Service Manager, Chief Shop Steward, Finavia Main work experience Research Assistant, Researcher, Journalist Elected positions Member of the Union Council, JHL The Trade Union for the Public and Welfare Sectors, 2006 Elected positions Chairman of the Supervisory Board, Kemijoki Oy 2008 Chairman of the Board of Directors, National Board of Patents and Registration of Finland 2004 EEVA NISKAVAARA born 1953 Member of the Board of Directors, 1 January 2003 Master of Science (Econ.) Business management consultant, entrepreneur Main work experience Business management consultant since 1986 Elected positions Chair of the Board of Directors, Finnish Motor Vehicle Inspection Ltd, 1 January 1996 Chair of the Board of Directors, Valkeakoski Cooperative Bank, 1 January 2003 Member of the Board of Directors, Valkeakosken Energia Oy, 11 May 2009 PIRKKO JUNTTI born 1945 Member of the Board of Directors, 1 November 2007 Master of Laws trained on the bench Main work experience HSH-Nordbank Corporate Finance Oy, Senior Advisor ; J.P. Morgan (London), Director, expert and managerial positions in international finance Elected positions Member of the Board of Directors, Rautaruukki Corporation, 2003 Member of the Board of Directors, AB Svensk Eksportkredit (Stockholm), Member of the Board, Financial Supervisory Authority 2009 HANNU SERISTÖ born 1962 Member of the Board of Directors, 1 January September 2009 Doctor of Economic Sciences Professor of International Business (2002 ) and Vice Rector of Helsinki School of Economics Main work experience Positions in international business, especially marketing (Finnair Oyj, McKinsey & Co., Polar Electro and Suunto Oy) Elected positions Member of the Board, Helsinki School of Economics Member of the Board of Directors, Instrumentarium Science Foundation J O U R N E Y S A N D L A N D S C A P E S

41 Management Group Samuli Haapasalo born 1952 President and CEO, Chair of the management group since 2005 LL.M., Master of Laws trained for the bench Employed by Finavia since 2005 Main work experience Ministry of Transport and Communications since 1986: Director-General at the Ministry of Transport and Communications , Senior Adviser and head of Corporate Policy and Ownership Policy units Elected positions Chairman of the Board of Directors: Foundation of the Helsinki Deaconess Institute 2006 Ari Haapanen born 1955 Deputy CEO as of 1 January 2008 M.Sc. (Econ. & Bus. Adm.) Employed by Finavia since 1990 Main work experience Civil Aviation Administration Finavia, Chief Financial Officer , Finance Manager Head of Credit, Finance and Investment at Kanta-Häme Regional Savings Bank Sampo Group Credit Manager Elected positions Member of the Board of Directors: Finnish State Pilotage Enterprise (to the end of 2009) Pekka HurtolA born 1959 Director, development and strategic tasks since 2006 LL.M. Employed by Finavia since 2006 Main work experience Ministry of Transport and Communications, Senior Adviser ; Senior Officer Finnish Meteorological Institute, Head of Office ; Secretary business management consultant 2007 Sonera Oyj, Group CFO Telecom Finland Oy, accounting and financial management positions Irmeli Paavola born 1943 Communications Director since 2006 M.A. Employed by Finavia since 1987 Main work experience Civil Aviation Administration Finavia, Information Manager ; Information Officer Tampere Professional Workers Theatre, TTT, Information Officer Juha-Pekka Pystynen born 1960 Director of Helsinki Airport since 2007 Flight Officer, General Staff Colonel Main work experience Air Force Chief of Operations Chief of Staff, Satakunta Air Command Representative of the Finnish military in the European Union s Single European Sky (SES) concept Finnish military member of Eurocontrol and member of NATO s Air Traffic Management Committee (natmc) Head of Planning for the Air Force Chief of 3rd Sector Operations Centre, (responsibility for area surveillance and airspace management) Flight Commander and Squadron Officer of Fighter Squadron 21, Elected positions Chairman: Air Transport Pool 2007 Member: National Emergency Supply Agency, Transport and Logistics Sector, 2007 Investigation body for military aviation accidents 2006 Member of Avia College s Board of Directors 2009 Mats Rosin born 1958 Director of Commercial Operations November 2009 B.Sc. Employed by Finavia since 2006 Main work experience Civil Aviation Administration Finavia, Regional Director for Western Finland Silja Oy Ab, Senior Vice President Seawind Line Oy Ab, Managing Director Silja Oyj Abp, Group Chief Controller Seawind Line, Operational and Administrative Manager , Administrative Manager SF Line (nowadays Viking Line), Head of Department Elected positions Council member, Turku Chamber of Commerce Board positions in several small companies Kimmo Ruotsalainen born 1963 Marketing Director since 2008 M.Sc. (Econ. & Bus. Adm.), major subject international business Employed by Finavia since February 2008 Main work experience Finavia, Marketing Director 2008 Nokia Corporation, Senior Manager Sonera, Sales and Marketing Director Blue1, Marketing Director UPS, Sales and Marketing Director Finpro Houston, Commercial Assistant 1995 Swissair, Sales Manager Sari Saari born 1967 Acting Director of Commercial Operations emba, B.Sc. (Hospitality Management) Employed by Finavia since 2007 Main work experience Finavia, Deputy Director 2007 Tallink Silja, Line Manager Oy Silja Line Ab, Service Director Reijo Tasanen born 1948 Director of Airport Operations since 2007 Engineer Employed by Finavia since 1991 Main work experience Civil Aviation Administration Finavia, Director of Airports ; Head of Airport Technical Services ; Project Manager ; Works Manager/Head of Department of the National Board of Aviation Elected positions Finnish representative of CEN/ TC227/Airfields group 1992 Member of the management group of the Infra sector, RAKLI 1999 In the photo from the left: Mats Rosin, Kimmo Ruotsalainen, Irmeli Paavola, Reijo Tasanen, Samuli Haapasalo, Anne Ilola, Sari Saari, Juha-Pekka Pystynen, Pekka Hurtola, Ari Haapanen and Kirsti Lehtovaara-Kolu. Anne Ilola born 1967 Director of Air Navigation Operations since 2007 Transport Engineer, M.Sc. (Econ. & Bus. Adm.), MBA Main work experience Finnish Maritime Administration, member of the management group with responsibility for strategic controls of the FMA and development work Elisa Corporation, Group Business Planning Finland Post Corporation, responsibility for various business operations and development, including Planning and Finance Manager, Sales Director and Development Manager Elected positions Chair of the Avia College s management group 2009 North European Air Navigation Service Providers (NEAP), Chair of the Strategy Committee Kirsti Lehtovaara-Kolu born 1957 CFO since 2008 M.Sc. (Econ. & Bus. Adm.) Employed by Finavia since 2007 Main work experience Hansel Oy, Managing Director ; F I N AV I A. a n n u a l r e p o r t 41