Finavia. annual report

Transcription

1 Finavia annual report o6

2 Contents FINAVIA ANNUAL REPORT 26 CEO s review Finavia in 26 Finavia in brief Social responsibility Subsidiaries Airpro Lentoasemakiinteistöt IP-kiinteistöt, Kiinteistö Oy Turun Lentorahti, Kiinteistö Oyj Lentäjäntie 1 and 3 Airports Fantastic pace of construction Airports 26 An eventual year of Kittilä Airport Airport of the year Air traffic Over 16 million air travel passengers Safe air traffic services New towers, new equipment Safety and security Controlled safety Personnel Training is motivational Environment Airports and environment Board of Directors report Income statement Balance sheet Cash flow statement Notes to the financial statements Auditors report Finavia Annual Report 26 Editor-in-Chief: Irmeli Paavola, Finavia Managing Editor: Pirjo Peltola, Mediafocus Oy Writer: Marja Hakola, Huckleberry Communication Graphic Design: Lasse Rantanen Layout: Jaska Poikonen, Mediafocus Oy Photographs: Marja Helander, Jyrki Komulainen, Ritva Tuomi and Finavia English translation: Translation Services Noodi Oy Printed by: Libris

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4 CEO s review >>> New dimensions Finavia keeps Finland flying Aviation has a great many dimensions. Since aviation connects Finland with the rest of the world, we are not alone on our island. When we reach our destination, we can use our intellectual resources and innovations. We can sell, market and create well-being. At the same time, we learn and take in new perspectives from the world at large. What could be more important from a cultural perspective than travelling and encountering different cultures? Aviation makes it possible for people to move about: we can go out into the world and similarly the world can come to us perhaps to experience exotic travel experiences in the north. The airports in Finland provide a connection to a worldwide network. These are important competitive factors for Finland. The international dimension brings the world closer together, creates cooperation and friendship and breaks down barriers. Statesmen can reach each other quickly and international corporations can operate flexibly. A world-famous pianist can fly into Helsinki from New York for a concert and continue on to Beijing. Finnish experts can be conferring one day in Singapore and in Paris the next. Aviation is the means to make all this happen. The prerequisites for aviation are created through cooperation; by networking. Finavia, as a provider of infrastructure services, aims to offer its customers services, capacity and quality based on demand. This includes some of the most favourable prices by European standards and Europe s fastest aircraft turnaround times. The success of our customers is important for all of Finavia s employees because it is also a question of the benefit for the whole of Finland. Finavia aims to be a customer-oriented, profitably growing service enterprise that has skilled and motivated employees. In fulfilling this vision, we will continue to lead the field in Europe. 4

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6 >>> CEO s review 6 When it comes to our vision, we cannot let down our guard for even a moment. We must identify customer needs and the future trends in aviation. We must aspire to greater agility and more cost effective operations than our competitors. The European markets are the most important ones to us. In Finland, we must seek competitive advantage with other actors so that our island becomes easy to reach and so that it is easy to reach places from our island. Competition is invigorating! As a result of the Asian gateway traffic, we are in a good position with respect to our neighbouring countries. The most important implication of the Far Eastern traffic is its impact on European traffic, i.e. the plentiful availability of services around 4 direct connections with frequent schedules which Helsinki-Vantaa Airport and our network make possible. The number of connections and frequency are only in second place, even though there are as many as 5 direct flights leaving Helsinki-Vantaa per week to around ten destinations in Asia. If we at Finavia keep to our goal in the pure sense and if our customers succeed, will we keep our current strong market position in the future. Ensuring the prerequisites for aviation is important to Finland in this sense as well. It should be borne in mind that all this takes place purely as business. The taxpayers purse is not raided, but dividends are deposited in it. Our results for 26 are good. We managed the almost 1 per cent growth in traffic for the most part with the same amount of resources as before. The percentage increase in prices for traffic in 27 is.. The level of profit, some EUR 23 million, provides us after dividends with the opportunity to finance our investments. We are also taking out a loan so that we can respond to capacity needs in line with demand. The service enterprise model gives us the opportunity to use resources clearly for the benefit of our customers. During the year under review, we started the extension work to the international terminal at Helsinki-Vantaa. The investment also includes the baggage systems for the entire terminal. This roughly EUR 14 million investment, the largest in Finavia s history, illustrates our strong commitment to the future. Finavia s subsidiary company, on the other hand, is investing in an airport hotel that is being constructed next to the international terminal. The hotel will serve gateway and business passengers in particular. Without the good runway capacity at Helsinki-Vantaa, we could not manage both the Asian gateway traffic and the European traffic created simultaneously from the domestic feeder traffic. Helsinki-Vantaa has a system that operates with three runways whereby the simultaneous parallel use of two runways enables an hourly capacity of over 8 operations (take-off or landing). Finavia s investments in the runway system play a central role in terms of Finnish competitiveness. It is important that this capacity can be used safely and cost efficiently in future and in creating the competitive foundation for Finland. During the past year we have focused in particular on security and quality processes. The climax to this work was Finavia s designation as the provider of air traffic services in Finland, in accordance with the new European regulations of the Single European Sky Initiative (SES). We were among the first countries in Europe to establish the structures demanded by the designation and the licence it required. Finavia s personnel deserve warm praise for their committed and skilled work. Associated with this praise is the personnel fund that we have developed as a bonus for successful operations. I consider the fund to be an important element in our business operations both now and in the future. Finavia produces public value for its owners, the entire Finnish society and its business structure. By analysing this value and identifying the elements that aviation and Finavia, as the key creator of the prerequisites for it, generate, we can prepare successfully for the future. Our work as the creator of the competitive foundation for Finnish society will continue this year too through cooperation and a big heart. Samuli Haapasalo President & CEO

7 Finavia in 26 Finavia s financial year In brief Turnover Operating expenses Depreciations Operating profit Profit for the financial year change 1 1 % % % % % % Capital investments, total Land Machinery and equipment Airport construction Building construction Other investments % 43 % 14 % -11 % 161 % -56 % Passengers (air journeys), total Domestic scheduled (departing+transfer) International scheduled (dep.+arriv.+transf.) International charter (dep.+arriv.+transf.) International scheduled and charter, total Other (incl. e.g. dom. charter and air taxi flights) % 4 % 12 % 2 % 1 % 8 % Flights, total Domestic scheduled flights Domestic charter and air taxi flights International scheduled flights International charter and air taxi flights International flights (sched., charter and air taxi) Overflights International traffic, total Other civilian aviation Military aviation % 1 % 37 % 3 % 6 % 3 % 6 % 4 % % -6 % Accumulated work years during the year Airports ANS centres Corporate headquarters units Internal service units Avia College Authority activities % % 1 % 5 % 6 % 3 % -1 % 7

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9 Finavia in brief A new role and a new name Finavia is here to serve its customers At the start of 26, in compliance with the requirements of the new Constitution of Finland and the new State Enterprise Act, the business operations and public authority tasks of aviation were separated from each other. The Civil Aviation Administration, under its new operational name Finavia, continues its operations as a state-owned enterprise. As a result of its clarified role, Finavia has the opportunity to focus better on its service operations and the needs of its customers. The public authority tasks of aviation are managed by the Finnish Civil Aviation Authority, which comes under the Ministry of Transport and Communications. Finavia offers internationally competitive airport and air navigation services. There are 25 airports in the airport network it maintains: 18 civilian airports, four joint military and civilian airports and three military airports. The network links all of Finland s key economic areas to the Helsinki region. Finavia is responsible for the air navigation systems covering the entire country. In 26, Finavia was designated as the air traffic services provider for the Finnish flight information region, in accordance with the new EU requirements. Finavia has a good and efficient infrastructure as well as safe, high-quality and cost effective air traffic services. These together help create the foundation for the competitiveness, mobility and international reach of the Finnish people and the entire Finnish society. Finavia is a customer-oriented, profitably growing and constantly innovating service enterprise. We have skilled, motivated and service-oriented employees. Our customers are air passengers, airlines, military aviation and trade and industry operating domestically and globally. At Finavia, we understand our customers needs and develop our operational methods to meet these needs. We use our balance sheet for investments that improve our overall service and increase customer satisfaction. Finavia exploits international business opportunities and develops partnerships. In this way we improve our service offering and expand our international network. Finavia s philosophy in a nutshell is safety, environmental responsibility and the desire to innovate. Air traffic safety is the guiding force to the development of Finavia s services, infrastructure and systems. Our aim, therefore, is safe, reliable and economic air transport that puts as little pressure on the environment as possible. Finavia employs around 1,8 professionals of various fields, who are united by the desire to cooperate, innovate and develop their skills. 9

10 Social responsibility Creating the foundation for success Aviation is important for Finland s competitiveness. The basic task of Finavia s operations maintaining regular and safe scheduled air services in Finland and establishing good flight connections between Finland and the rest of the world is therefore in itself taking care of social responsibility. By strengthening the aviation infrastructure, Finavia creates the prerequisites for Finns and Finnish business and trade to operate in globalizing world. Financial responsibility. By operating profitably in its business operations, Finavia is able to invest in areas it considers to be important: the safety of air traffic and passengers, raising the level of service at airports and reducing environmental harm. By developing our airports and their surrounding areas, we employ people from various sectors. At the same time, we create the necessary operating environment for companies that rely on air traffic, including transportation and tourism companies as well as other companies whose operations benefit by their proximity to the airport. Finavia operates cost effectively so that it can keep its price level low by European standards. As a result of its healthy financial management, Finavia is able to return some of its income to the State every year in line with the set profit requirement. 1 Social responsibility. Finavia is a good employer and we invest in the well-being and skills of our employees and their ability to cope at work. Development programmes pay attention to management practices, the professional skills of the staff and the creation of a good working environment. Skills assessments ensure that the knowledge and competence of staff meet the needs of Finavia. Additional training is organized

11 if required, which promotes the employees ability to cope in their jobs. We have developed the personnel fund and bonus scheme as a reward for profitable operations. The fund is the first of its kind in a public administration organization. Responsibility for the environment. Finavia s aim is for safe air traffic that operates reliably and economically, which has as little impact on the environment as possible. Finavia is naturally responsible for its own operations, but its role in maintaining airports means it is partially responsible for the environmental impacts of operations that are carried out at the airports. Managing aircraft noise, minimizing the number of people living in noise areas and reducing the environmental impacts caused by anti-skid treatment and ice protection of aircraft take centre stage in the environmental work of airports. Cultural responsibility. Finavia invests substantial amounts in planning and constructing airport passenger terminals and other airport buildings. In this way the organization for its part develops Finnish architecture and provides architectural offices the opportunity to design buildings for unique and demanding sites and requirements. The cooperation with Finnish designers has been fruitful and internationally recognized. Finavia gives financial support to orchestras and musical events in Finland, including Avanti! Chamber Orchestra, the Savonlinna Opera Festival, Vantaa Baroque, Backas Jazz and Särestö Chamber Concerts. Finavia also has a sizeable art collection and some of its works are on display in airport passenger terminals and in the staff premises. 11

12 Subsidiaries >>> Airpro is unique Thanks to our wide array of services, we are a unique company, says managing director Gun Näse, who has piloted Airpro Oy since summer 26. We are also a youthful company. The average age of our employees is 33. Finavia s subsidiary company invests in training its young and competent employees and in the quality of the services. A large number of the company s 6 employees are so-called multi-skilled staff who perform several different tasks that are necessary at an airport from security checks and checking-in to maintenance. Alongside the airports, Airpro s key customers are the airlines, for whom the company provides ground services: managing the checking-in of passengers and baggage, transporting passengers from the gates to the aircraft and vice versa, unloading and loading baggage and cargo and taking care of the aircraft s de-icing. If necessary, the company traces luggage items that has been left behind and delivers them to the passenger s home. At Helsinki-Vantaa Airport, Airpro is responsible for the security checks of passengers and baggage of passengers arriving from outside the EU who are changing planes. The company also manages the security checks of the business flight and VIP terminals at Helsinki-Vantaa and carries out checks at other domestic airports. Airpro, which was established around ten years ago, manages the operations of the second terminal at Tampere-Pirkkala Airport. The terminal s main customer, Ryanair, flies from Tampere to six European destinations. Airpro handled around four hundred charter flights during Christmas 26 at the airports in northern Finland. Versatility is also a challenge. In order to ensure profitable growth, Airpro intends to focus more vigorously on its core competences ground services, security services and subcontracting services. The strategy will make it easier to manage the company that has grown at a furious pace and at the same time increase its recognition, Mrs. Näse believes. 12

13 Airpro s services to air carriers and companies working at the airports are: Handling - ground services for air traffic Security - security inspection services Services - other subcontracting 13

14 Subsidiaries >>> On the ground and upwards Anyone who has been to Helsinki-Vantaa lately will know that building work is taking place at a fast pace at the airport - both on the ground and upwards. The international terminal is being expanded and in the immediate vicinity of the terminal a new car park and seven-storey hotel are rising up. The construction pace will continue as the construction of the twelve-storey World Trade Center will most likely start in 27. The party behind the hotel and WTC projects is the property investment company owned by Finavia, Lentoasemakiinteistöt Oyj (LAK). The company is the developer of the projects and owner of the buildings. Finavia manages the terminals, we offer premises and service to companies whose operations are closely tied in with the air traffic service chain, explains the subsidiary company s managing director Antti Ala- Heikkilä. At the same time, we create new businesses for the airports, which in turn benefits the parent company. The hotel is a major investment for us and signifies an important rise in the level of service for Finavia. The new hotel will serve the airport s gateway traffic and will secure Helsinki-Vantaa s position among the leading mid-sized airports in the world. The hotel will assist Finavia in supporting Finnair s Asia strategy. In addition to the hotel, the WTC project that is in 14

15 the planning stage has kept Mr. Ala-Heikkilä busy during the year under review. If the marketing and sales of the premises goes as smoothly as planned, the construction work can begin within a rapid time frame. Investing in property is in Mr. Ala-Heikkilä s opinion a long-term business, involving long lease agreements and close relationships with service providers. The majority of the operations in the company, which is managed by a team of three, have been outsourced. Our aim is for profitable growth, of course. If we can support Finavia s operations at the same time, we will have succeeded in our objectives, says Mr. Ala-Heikkilä who has managed the property company since Lentoasemakiinteistöt Oyj (LAK) develops and leases office and logistics properties and premises that can be used for keeping and repairing aircraft. 15

16 >>> Subsidiaries Lofty use of space Kiinteistö Oy Turun Lentorahti s first years passed quietly, according to managing director Heikki Koho, in running the operations of the cargo terminal. The subsidiary established by Finavia in 1996 leases cargo premises to airlines and shipping agents including e.g. Finnair, DHL and UPS. The company developed a second terminal at Turku Airport in 23, which was leased in its entirety by TNT Finland Oy. The new cargo terminal was part of a long-term project that aimed to improve Turku s logistical operating environment, explains Mr. Koho. The utilization rate of both of our terminals is almost one hundred per cent. It is not difficult to find new tenants because we can offer them modern premises and good connections to various parts of Finland. The operations of Turun Lentorahti Oy picked up again in 26 when it started construction of the new maintenance centre at Turku Airport. The building will be completed in the summer of 27 and will replace the old centre that has been in use for over 5 years. The new building will contain premises for on-call staff, a rescue centre, premises for maintaining and repairing machinery and storage facilities. Two office buildings are part of the silhouette of Helsinki-Vantaa Airport, in which a little over a thousand people work every day to advance the aviation sector. The blue-coloured buildings were developed by Finavia s subsidiary companies Koyj Lentäjäntie 1 and Lentäjäntie 3. Construction started in the 199s because both the Civil Aviation Administration and Finnair needed larger office buildings. Finnair in particular wanted a crew centre for its employees that fly, explains managing director Juha Schreck. The Civil Aviation Administration and Finnair set up the property companies together. Finavia is the major owner of the buildings, although the airline is the main user of them. Finavia s corporate headquarters are in Lentäjätie 3 and Helsinki-Vantaa Airport s approach control office, among others, is located in Lentäjäntie 1. We lease premises that may become available to companies closely tied in with air transport. As a result of the expansion to the hotel and international terminal, the central position of our properties at the airport will be further reinforced, Mr. Schreck believes. Heikki Koho 16

17 IP-Kiinteistöt Oy manages the property assets of the defence forces transferred to the company s ownership. The company s key customers are the air force and the Utti Jaeger Regiment which specializes in helicopter operations. Finavia s subsidiary company owns and develops the structures and buildings used for flight operations by the defence forces and all the structures used for air transportation at Kauhava, Halli and Utti airports - the runways, aprons and taxiways. We are responsible for ensuring that the infrastructure for flight operations by the defence forces is in order and available at all airports, says managing director Hannu Salomaa. Through constant renovation we can ensure that the use value of the buildings and traffic areas we own is maintained. In 26, two major construction projects were brought to conclusion: the emergency area was completed at Tampere-Pirkkala Airport for use by the Satakunta Wing and an apron area was completed at Utti, which is intended for new transport helicopters. In these projects we acquired services from our parent company Finavia whose expertise in airport construction benefits our customers. Similarly, Finavia has the opportunity to use and strengthen its specialist expertise. Hannu Salomaa Juha Schreck Kiinteistö Oy Turun Lentorahti leases premises in the cargo terminals at Turku Airport to air carriers and forwarding companies. Kiinteistö Oyj Lentäjäntie 1 and Lentäjäntie 3 administer the office buildings at Helsinki-Vantaa. IP-Kiinteistöt Oy is responsible for maintaining the buildings and constructions at airports 17 used by the defence forces.

18 Hki-Vantaa airport complex >>> Fantastic pace of construction Helsinki-Vantaa continues its growth 18 In February 26, the foundation stone of the new hotel was laid at Helsinki-Vantaa Airport. In March, the agreement on constructing the World Trade Center tower at the airport was made public. The construction work for the new car park got underway in the summer. The extension to the international terminal and construction of the new baggage handling centre started midway through September. In December 26, the number of passengers handled by Helsinki-Vantaa exceeded the 12 million mark for the first time. The airport has a genuine need to grow and evolve! Our historic EUR 143 million investment to expand the international terminal is above all a strategic decision, says the manager of Finavia s Airports Department, Mr. Reijo Tasanen. By investing in the airport s gateway traffic, we are aiming to achieve profitable growth, in line with Finavia s strategy. We are simultaneously strongly supporting Finnair s Far Eastern traffic, which is a clear demonstration of our customer-oriented thinking. Once the construction project is completed, Helsinki-Vantaa will have eight jetways intended for widebodied aircraft. These will help make it possible for the airport to accommodate large MD-11 and Airbus aircraft arriving quickly from the Far East and to flexibly transfer the majority of the passengers to flights departing for European destinations. From the perspective of passengers travelling from the Far East to Europe, Helsinki-Vantaa is a tempting alternative: in addition to a shorter route, it offers good connections to European cities together with services at an airport that is pleasant and uncrowded. Around 8 per cent of passengers from Finnair s Asia services change planes at Helsinki-Vantaa. The Far Eastern traffic, therefore, strengthens the route traffic and destination network in Europe as well. This also benefits Finnish air passengers, comments Mr. Tasanen. The investment decision to expand the international terminal was taken by Finavia in August 26, and excavation work started at the same time. The new building designed with three storeys will be completed in autumn 29. Around one half of the investment will go towards the construction of the new baggage handling centre. The centre will be located in the lower levels of the extension and will handle the majority of the airport s baggage for international departures. A 3-metre long tunnel will be constructed through the rock for the baggage conveyors, which will connect the centre to the existing terminals. On its completion, the extended international terminal at Helsinki-Vantaa has been designed to handle 15 million passengers per year and 13.5 million items of baggage per year.

19 Helsinki should finally get a proper airport; one that can serve traffic at night, too. The question of the location, as is well known, is still in dispute, but surely the fields of Viikin Latokartano or the estate at Tuomarinkylä may be the most suitable. Aero magazine no 1 /

20 Just as we in Finland have over the years invested incalculably large sums in sea ports and promoting seafaring, and for completely justifiable reasons, in order to develop our air traffic, we have to invest money in air harbours and to create a network of airfields. Mr. Kustaa Sihvo: The development of civil aviation, 1935 The construction of the new airport hotel rising up at Helsinki-Vantaa has progressed according to plan. The seven-storey Hotel Hilton Helsinki-Vantaa Airport had reached ridge height at the end of the year under review and will be completed in August 27. The developer and owner of the hotel is Finavia s subsidiary Lentoasemakiinteistöt Oyj (LAK) and Skanska is the main contractor. The total cost estimate of the project, including the investment by LAK and the hotel operator, is approximately EUR 4 million. The hotel, located in an excellent spot next to the international terminal, will become a new landmark for the airport. The hotel will include well over 2 rooms of the Hilton standard, several conference rooms, restaurants and a gym. The windows will have a view of the runway area. A covered passageway will lead travellers the short one hundred metres from the international terminal to the hotel door. The new hotel will expand the range of services offered to those travelling on business as well as for leisure. The hotel will provide new opportunities for developing gateway traffic and will support Finnair s Asia strategy too, says Mr. Antti Ala-Heikkilä, managing director of LAK. The growth in passenger numbers at Helsinki-Vantaa is increasing the need for new parking spaces at the airport. Finavia is responding to this need by expanding the P3 car park located opposite the domestic terminal. A new section is being built next to the old building and it will be connected to the old section via a bridge. The entrance and exit routes will not be changed. The blasting work was finished during the year under review and construction will begin at the start of 27. The seven-storey car park building will be completed in summer 28 according to the plans. We will increase the number of new car parking spaces by well over 2,4, enthuses Mr Henri Hansson, who is head of the unit from Finavia s airport technical services. After the extension, the P3 car park will have a total of 4,5 car parking spaces. The parking capacity for the whole airport will increase to 12,5 spaces, of which 1, will be customer spaces. The design of the new car park has also paid attention to ensuring that customers can easily find their way back to their car after a trip. Colours and different symbols will be used to refresh customers memories, says Mr. Hansson. The technical area of Helsinki-Vantaa Airport is also being redeveloped to meet the current challenges in aviation. A new maintenance building is being built at the airport, which will replace the previous building that has been in use for over 3 years. New larger aircraft, including the Airbus aircraft used by Finnair, require new investments in terms of upkeep, explains Mr. Henri Hansson. For example, a broader width of snow must be cleared from the runways. The friction of the surface of the runways must be better. A new, larger fleet of vehicles has been acquired for the upkeep of Helsinki-Vantaa, which in turn requires more space for storage, maintenance and repairs. The maintenance building currently under construction has an area of 6,5 square metres and it will be taken into use in spring 27. The maintenance buildings at other Finavia airports have also been modernized. The extensions to the maintenance premises at Kajaani and Kruunupyy were completed during the year under review and a completely new building was taken into use at Oulu Airport. The new maintenance centre at Turku Airport will be completed in autumn 27. 2

21 Finavia s most important task is to direct air traffic at the airport safely and efficiently. However, it has to simultaneously manage the terminals and ground traffic arrangements. Amidst the industrious construction work, public and private traffic arriving at and departing from the airport must flow smoothly, passengers must be able to park easily and above all the airport must maintain a pleasant environment. Three new, large buildings are rising up at Helsinki- Vantaa: the extension to the international terminal, a hotel and the new car park building. The construction of the World Trade Center might also start in 27. To ensure everyone has room in the rather tight area, we have to examine the airport s traffic plan, says manager Reijo Tasanen. Safety and the flow of traffic are the primary criteria for ground traffic arrangements too. The new buildings and growth in traffic has resulted in a large number of new employees and customers coming to the area every day. Everybody s needs must be taken into account. The airport cannot just be all tarmac and parking spaces. In addition to updating the traffic plan, we have started planning the landscaping of the airport, which will be completed in 27. The aim is to keep the growing Helsinki-Vantaa Airport green and pleasant. Helsinki-Vantaa attracts entrepreneurs. The Aviapolis business area growing up around the airport is the fastest growing business area in the Helsinki region. Its excellent logistical location is of interest to entrepreneurs and businesses that benefit from good flight connections. The most important areas that are being developed at Aviapolis are owned by the Finavia Group, and they are marketed by Finavia s subsidiary company Lentoasemakiinteistöt Oyj. Finavia also actively takes part in the marketing of the Aviapolis area together with the City of Vantaa and other parties involved in the project. Several office buildings, commercial premises, logistics centres and apartments were completed in the Aviapolis area in

22 Creating a network of airfields across the country together with all the equipment is not something that can be done in a flash or even a day. On the contrary, it will take years, perhaps decades, since it is a major task. 22 Mr. Kustaa Sihvo: The development of civil aviation, 1935

23 Airports Airports 26 Passengers Landings Domestic International Commercial General Military Others Helsinki-Vantaa Helsinki-Malmi Enontekiö 545 Halli Kuorevesi 14 Ivalo Joensuu Jyväskylä Kajaani Kauhava 26 Kemi-Tornio Kittilä Kruunupyy Kuopio Kuusamo Lappeenranta Maarianhamina Oulu Pori Rovaniemi Savonlinna Tampere-Pirkkala Turku Utti Vaasa Varkaus Total ANS Centres 26 IFR FLIGHTS Domestic flights International flights Overflights Total Southern Finland (Tampere) Northern Finland (Rovaniemi) Entire Finnish Area

24 Other airports >>> An eventual year at Kittilä airport From a fire to a record-breaking Christmas Everything seemed to be going well until a fire broke out in July, says Kittilä s airport manager Kari Tohmo of his reminiscences of the year s dramatic turn of events. The fire destroyed almost two-thirds of the older section of the airport: the area in the airport building that was renovated in Air traffic at Kittilä came to a standstill for three days. The area for departures that was damaged in the fire was quickly repaired and taken into use again at the end of September. The temporary premises built to replace the section that was destroyed were completed in November; the construction of the new permanent building will start in spring 27. The blessing in disguise was that the fire did not affect the extension work at the airport that had already started. Kittilä Airport has been built in stages to meet the needs of increasing passenger traffic, and the extension completed in November 26 was the seventh in the history of the airport. It added around 2, square metres of additional space for services at the airport. The airport s new section contains the concourse for arriving passengers, the baggage carousels and an area 24

25 for customs and for baggage handling. Passengers are also served by a cafeteria and car rental companies in the new building. A record number of international passengers passed through the extended airport in December: 68,8. The growth compared with the same period in the preceding year was 37 per cent. Airport Manager Kari Tohmo was able to heave a sigh of relief at the end of the year. The airport was able to serve the Christmas traffic even more efficiently than in the previous year and the tourist entrepreneurs in the area did not lose any customers. There was no time for hanging around though, because it was possible for as many as 8, passengers a day to pass through the airport. We managed to get through it thanks to the flexibility of the staff. Kittilä and Rovaniemi were once again the most popular airports for Christmas traffic in northern Finland. Most of the Christmas visitors at Kittilä were Brits, but Russians came for New Year. There was also a large number of charter flights from Switzerland and France. 25

26 >>> Other airports Airport of the year Trusting in snow and Father Christmas in Rovaniemi 26 Rovaniemi Airport has satisfied customers, service-minded and committed staff, and smoothly running security checks. The Airport s finances are also in good shape. These factors and others influenced Finavia s decision to choose Rovaniemi as the airport of the year for 26. All our employees have internalized how important the airport is to Lapland and tourism in Lapland, explains regional manager and airport manager Martti Oinas. Therefore we work with a good attitude and in the right spirit. The roughly 11, passengers from charter and scheduled air services at Christmas makes up a quarter of the entire passenger number for the year at Rovaniemi. The passenger figures for international traffic for Christmas 26 increased 18 per cent compared with the previous year and reached almost 76, passengers. The airport has coped with the peak periods through special arrangements, the planning of which involves the participation of the staff. Many Christmas travellers only stay in Rovaniemi for a day: from six to nine hours. Passengers need to get through the airport quickly, so we have to serve passengers efficiently. Maintenance must keep the runways clear of ice and snow, air navigation must operate safely and security checking must flow smoothly. International passengers arrive at Rovaniemi not only on charter flights. There are seven daily flights from Helsinki to the airport also bringing considerable numbers of foreign travellers. Rovaniemi is currently served by Finnair and Blue1. The airport is seeking growth through international traffic. Finnair s focus on services to the Far East brings passengers from Asia to Rovaniemi every day. I believe that the number of passengers will only increase as the word about Lapland s uniqueness spreads. At least we here at the airport firmly trust in the snow - and Father Christmas, reveals Mr. Oinas.

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29 Air traffic >>> Over 16 million air travel passengers The fantastic growth in traffic to Asia continues 26 was again characterised by a rapid growth in air traffic. The number of passengers at Finavia s airports grew by 8 per cent on 25. While the news on surpassing the 11 million passenger mark was reported with joy the previous year at Helsinki-Vantaa, this year there were more than 12 million passenger. There was strong growth in international traffic in particular: there were 1 per cent more passengers than in 25. Domestic traffic increased by just over 4 per cent on 25. The strike by Finnair in October showed up temporarily especially in the figures for domestic traffic, but after the strike traffic soon returned to normal. After Helsinki-Vantaa, the next busiest airports mea-sured by passenger numbers were Oulu, Tampere- Pirkkala, Rovaniemi, Turku and Kuopio. The number of passengers at Oulu Airport was around 85, and Tampere-Pirkkala Airport clearly broke the 6, barrier; similarly the number of passengers at Rovaniemi exceeded the 4, passenger boundary. The number of passengers at Vaasa exceeded the 3, mark. The highest proportional growth in the figures for passenger numbers was achieved at the airports in Mariehamn (35 %), Enontekiö (27 %) and Rovaniemi (12 %). Passenger numbers also grew at Savonlinna (11 %) and Kuusamo (1 %). The greatest reduction in passenger numbers occurred at the airports in Varkaus (-24 %), Domestic traffic destinations 26 International traffic destinations 26 International traffic destinations 26 Others (13) 16 % Helsinki-Vantaa 5 % Jyväskylä 2 % Joensuu 2 % Kittilä 3 % Vaasa 3 % Kuopio 5 % Rovaniemi 6 % Oulu 13 % Scandinavia 23 % Rest of Europe 61 % Others 1 % USA and Canada 2 % Baltic States 4 % Asia 9 % EU 8 % Others 2 % 29

30 Air traffic >>> Kajaani (-7 %) and Joensuu (-5 %), although traffic at Varkaus and Kajaani was totally suspended for part of the year due to either contractual reasons or runway repair work. Traffic from Finland to Asia increased in 26 by as much as 31 per cent (departing and transit passengers). Passengers to Asia numbered 465, in 26, whereas this figure was around 355, passengers in the previous year. The total traffic between Asia and Finland (departing, arriving and transit passengers) increased 31 per cent on 25 and exceeded the 92, passenger mark during the year. The role of Helsinki-Vantaa Airport as a transit airport was further strengthened. The number of gateway passengers to Asia increased in 26 by a record 34 per cent to 256, passengers. The total number of gateway passengers increased 21 per cent and almost reached the 7, passenger mark. The most popular destinations in Asia were China (+24 %), Thailand (+27 %) and Japan (+33 %). The most rapid growth in traffic to Asia was to Malaysia (+153 %), India (+16 %) and Hong Kong (+65 %). The most popular destinations in Europe were Sweden (+6 %), Germany (+11 %) and Great Britain (+19 %). The busiest scheduled air services were again to Sweden (+6 %), Germany (+11 %) and Denmark (-1 %). The most popular destinations for charter flights were the Canary Islands (+11 %), Greece (+ %) and Great Britain (+26 %). Christmas traffic in Northern Finland clearly revived after a quieter year in 25. There were 17 per cent more passengers in December than in December 25. The number of charter passengers arriving in Lapland in December 26 was 3 per cent higher than for the corresponding period in 25. Rovaniemi and Kittilä were again the busiest airports for Christmas traffic. The number of international passengers at Rovaniemi Airport was 18 per cent higher than in 25. The surge in passenger numbers at Kittilä almost brought the figure to the level of Rovaniemi. The growth in international traffic at Kittilä Airport was 37 per cent compared with December 25. The biggest growth in international traffic at Christmas was at Kuusamo Airport (58 %). Once again the greatest number of international passengers arriving in Northern Finland at Christmas came from Great Britain, and their number increased by 27 per cent on the previous year. After Britain, the greatest number of Christmas tourists came from Russia, Ireland and France. The number of visitors from Russia, in particular, increased significantly by around 6 per cent. A significant number of direct charter flights arrived in Lapland from such countries as France, Spain and Holland. The increase in the number of overflights that has taken place since the turn of the new millennium continued to grow. The number of overflights was 6 per cent higher than in the preceding year. SAS s market share of all overflights was clearly the greatest (17 %). Lufthansa s share remained at the 5 per cent level. Japan Airlines increased its share on the previous year and accounts for 6 per cent of overflights. The number of air traffic operations (take-offs and landings) remained at almost the same level as in 25. There were 1 per cent fewer landings than in 25. The amount of cargo traffic increased 8 per cent on the previous year. 3 If Finland were to build ground airfields in Helsinki, Turku and the Åland Islands and possibly an intermediate airfield somewhere between Helsinki and Turku, then it would be possible to organize a daily flight connection from Helsinki to Paris and London and back. The plane could leave Helsinki e.g. at 7 in the morning and the passenger would arrive in London or Paris at 8 in the evening. Aero magazine no 7 / 1932

31 3,5 Domestic traffic passengers, mill. (dep. + transf.) 14 Helsinki-Vantaa Airport passengers passengers, mill. (dep. + arriv. + transf.) 2 Overflights flights, 1 3, , , 1, , 4 6, , % 13% -3% 8% -2% -1% -2% 6% -2% 4% % 1% 2% 5% % -4% 1% 1% 4% 9% % 31% -21% 6% 7% 2% -3% 14% 9% 8% Passengers Airport passengers Flights air journeys (million) 9 8 5% passengers, 1 (dep. + arriv. + transf.) flights, % 12% 4% 8% 3% 7% -5% % 1% 2% 5% 1% -5% 2% 12% 5% 9% Domestic traffic (dep. + transf.) Intl. scheduled traffic (dep. + arriv. + transf.) Intl. charter traffic (dep. + arriv. + transf.) Oulu Tampere-Pirkkala Rovaniemi Turku Kuopio Vaasa Kittilä Joensuu % 8% -3% 2% 1% -4% % 6% % % Domestic traffic International traffic Others Military aviation Overflights (EFES) International traffic Airport passengers Cargo traffic passengers (million) % % passengers, 1 (dep. + arriv. + transf.) tonnes, % -7% % % 9% 5% 4% 2% -3% 4% 14% 7% 1% Intl. scheduled traffic (dep. + arriv. + transf.) Intl. charter traffic (dep. + arriv. + transf.) Ivalo Jyväskylä Kuusamo Kajaani Kruunupyy Kemi-Tornio Pori Lappeenranta -3% 7% % 35% 11% 27% -24% Maarianhamina Savonlinna Varkaus Enontekiö % -1% -5% 4% -13% -1% 27% 9% 2% 7% International traffic Domestic liikenne 31

32 Air traffic >>> Safe air traffic services Towards a common European airspace 32 I am definitely relieved, says deputy director Matts-Anders Nyberg of the Air Navigation Department. On 2 December, the Ministry of Transport and Communications designated Finavia as the provider of air traffic services in Finland. The application process preceding the designation kept the ten-member project group led by Mr. Nyberg busy all year. The designation means in practice that Finavia is responsible for air traffic control and other air navigation services within almost the entire Finnish flight information region. The exceptions are the small aerodromes in Sodankylä, Seinäjoki and Mikkeli, which take care of their own air navigation during their opening hours in the airspace that is their responsibility. A licence was the requirement for receiving the designation, which the Civil Aviation Authority granted Finavia on the same day. According to EU regulations, every organisation providing air navigation services must apply for a licence from their own national authorities, explains Mr Nyberg. Finavia naturally applied for the licence from the Civil Aviation Authority which started its operations at the beginning of 26. In fact, the creation of the new aviation authority was a basic requirement in terms of being able to apply for a licence. Before granting the licence, the Civil Aviation Authority had examined the application Finavia submitted in June together with its appendices and requested further clarifications and had audited the operations at Finavia relating to the application. The permit requirement stipulated by the EU concerned all the areas of the air navigation service: air traffic services (air traffic control), communication, air navigation and surveillance services, aeronautical information services and the meteorological service. One of the biggest challenges was the reform to the safety and quality management system and its introduction across the group as part of the licence process. The Civil Aviation Authority as the auditing authority and Finavia as the provider of the service considered the requirements set by the EU from their own perspectives. However, a common interpretation was agreed on for all the requirements. During the year under review, the practical operating methods and guidelines required by the permit were put into practical use in the different air navigation units. The whole issue concerning the air navigation service licence is a continual process, says Mr. Nyberg. Only by regularly developing and auditing our operations can we ensure that the validity of the licence will continue. Provisions on air traffic services are provided in the EU regulation on a Single European Sky. The aim of the regulation is to increase safety, reduce delays and reduce the costs incurred by air navigation services within Europe s airspace.

33 Air traffic (navigation aérienne) will be one of the most important, if not the most important, form of transport in the future. Not even the mountains, forests, swamps, seas and rivers can stand in its way. It is quick, pleasant and cheap. Squadron leader Kustaa Sihvo,

34 Air traffic >>> New towers, new equipment More efficient use of airspace 34 The new air traffic control towers that have risen up at the airports in Rovaniemi and Kuopio are a tangible reminder to passengers of the air navigation project, in conjunction with which Finavia s joint civilian and military airports are being improved. As air traffic increases, the aim is to maintain the level of air navigation services at these airports serving both civilian and military air traffic through the reforms. Nearly everything that can be seen will be renewed in the air traffic control premises, says systems manager Hannu Hervos, while explaining about the project. The air traffic control towers are being fitted out with new equipment, which will enable the introduction of the latest version of the Eurocat air traffic control system, for instance. Eurocat, which complies with common European requirements and is highly standardised, is already in use in the Southern Finland Air Navigation Centre, the approach control office at Helsinki-Vantaa Airport and the area and approach control at Rovaniemi. Common working environments and working methods are being designed for the aerodrome control towers. Radar screens will be installed in the towers which will enable aerodrome control to provide radar services in the future. The tower radar will enable Finavia to provide its customers with more cost effective air traffic control services and to guide approaching and landing planes directly to the correct route. The benefit will be experienced by passengers in the form of faster connections and by airlines in the efficiency of the air traffic control service and a reduction in fuel costs. The new integrated tower system collates information from several instrument systems onto one screen environment. As a result of the Eurocat system, coordination between the different air control units will improve: all the data on flight plans will be transmitted electronically from one air traffic con-

35 trol unit to another. The biggest change at joint operational airports is the changeover of the coordination between the tower and approach control office to an electronic procedure. Work on installing the new instrument systems has begun at the airports in Rovaniemi and Kuopio. The towers can be taken into operational use after testing and official authorization in summer 28. The new higher towers have a better view of the manoeuvering area and the aerodrome traffic circuit. This will increase air traffic safety and facilitate the work of air traffic controllers also with respect to guiding traffic on the ground, says Mr. Hervos. At the airports in Jyväskylä, Kauhava and Halli, new equipment and furniture will be installed in the premises that are to be renovated. A new building for the approach control service is being constructed at Tampere- Pirkkala Airport. The renovation taking place at these airports will be completed in autumn 28. The air traffic controller s primary place is an office with wide glass windows on every side that is surrounded by a platform with handrails. (---) The office has been equipped with several telephones, radiotelephones together with their loudspeakers, a switch for the warning siren, beacons, signal light pistols and cartridges. Everything must be within easy reach because the controller s scope for action must be adaptable. Aero magazine no 2,

36 Air traffic >>> Safety and security 36 Finavia s safety operations include air traffic safety and the security of passengers and baggage. Air traffic safety is taken care of by airport maintenance and the air navigation service. Finavia is responsible for passenger and baggage security checks in accordance with international security regulations. The security checks ensure that no objects or substances that could endanger a flight are carried onto an aircraft. The Civil Aviation Authority, which is responsible for air safety and public authority tasks for civilian aviation, monitors that the security programmes and regulations that have been set are complied with at Finavia s airports. The EU also audits security checks at airports in Finland. The security checks are carried out in line with the EU s security regulation that came into force four years ago, explains Finavia s head of security Tuomo Kivikari. A new EU regulation entered into force during the November of the year under review concerning the transportation of liquid products in the passenger cabin. The new regulation restricts the volume of liquids allowed to be carried onboard as hand luggage and aims at preventing the threat of liquid explosives

37 from being used for terrorist acts. So that the security checks flow flexibly and smoothly in spite of the increased requirements, we have set up new security check points and increased the number of personnel at Helsinki-Vantaa and Oulu airports, among others. At Helsinki-Vantaa, Finavia has invested in a system that helps the staff analysing images remain vigilant when working with the x-ray devices. Despite the increased security costs over the last few years, the cost for the security check paid by a passenger in Finland, around EUR 4.5 per ticket, is less than the European average, says Mr. Kivikari. Mr. Kivikari believes that the focus on the safety culture within Finavia has begun to bear fruit. Security matters are considered to be important and as part of the everyday operations. New security regulations, drawn up taking into account large airports with significant operations, can on the other hand sometimes seem frustrating at small regional airports. During 27, we intend to update the airports security programmes whereby each airport will determine the regulations to be complied with together with the Security unit. 37

38 >>> Air traffic Controlled safety Quality creates the foundation for safety 38 Quality assurance work started over ten years ago in the Civil Aviation Administration. The first measure undertaken was the design of the internal deviation and observation reporting system that provided information on the organisation s development needs, dis-crepancies and possible risk factors. Our message right from the beginning has been that our own reporting system is not used as a means of finding culprits, but for finding reasons, says manager Janne Enarvi from Finavia s safety and quality unit. Long-term work to improve the system has produced results. Mr. Enarvi believes this can be seen in the confidence staff have towards the reporting system and the increase in reporting. The unit, which operates under the Director General, is also responsible for ensuring that Finavia s safety management system complies with various official requirements. These are set by the EU, ICAO (International Civil Aviation Organization) and Eurocontrol (the European Organisation for the Safety of Air Navigation) as well as Finland s aviation authority, the Finnish Civil Aviation Authority. During 26, we have created an organisation and brought together the functions that had already been implemented for the most part by Finavia into a system that responds to all these requirements. The work has been challenging because the solution is not at all an ordinary one. Instead of several different systems, we want to create a common tool for all the personnel groups, which can be expanded flexibly to meet our needs just as we have common values for everyone, explains Mr. Enarvi. During the year, the critical safety functions have been described in the different units. The requirements for the safety management system have been fulfilled, and in 27 work will continue with the quality work. The aim of the safety management system is not only to be able to demonstrate the operational aspects to parties supervising Finavia but also to increase the ability to make forecasts in a methodical way and thus improve the safety of aviation to an even greater extent. We have traditionally had a high level of safety culture. We know how to take responsibility for safety. The biggest challenge for the safety management system is to maintain the aforementioned without creating the illusion on paper of the omnipotence of the system that has been created. The system should, instead, complement and support people s natural desire and ability to work safely. We must not rely solely on the system, says Mr. Enarvi philosophically.

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40 Personnel >>> Training is motivational The personnel fund established by Finavia in 24 is the first of its kind in the public sector. The fund was set up to reward staff for the work they have carried out towards the success of Finavia. Finavia pays a pre-agreed amount of profit bonuses into the fund that is owned and managed by the staff, which together with the return on investments are divided between the members each year. The members of the fund include all Finavia s staff except for management. In 26 about EUR 1,27 in bonuses was paid into the fund. Finavia s competence is being developed systematically and on the principle that competence furthers the achievement of the company s goals. The definition of the professional areas of competence of Finavia s field of operations continued in 26. Finavia s strategy and values form the starting point in this work. Finavia s common areas of competence include management, finance, business operations, safety management, services and communication and interaction skills. An electronic recruitment system was adopted at Finavia at the end of the year. The system saves time and effort in communicating with applicants, processing and storing applications, comparing applicants, and reporting on recruitment. 4 Finavia values good management skills, and the development of training and training programmes for supervisors continued in 26. The training programme in management behaviour and operational supervision is already in its second year, and JET training, that takes place as an apprenticeship, was provided to groups composed of Finavia supervisors and police officers from

41 The staff of Rovaniemi Airport, which was chosen as airport of the year, enjoying a well-earned day off. 41

42 >>> Personnel the Province of Southern Finland. At Finavia, all managers are expected to hold constructive development discussions with their subordinates, which are an essential part of the job. During the year under review, the evaluation of performance that is part of the development discussions was reformed, and a new model was tried on an experimental basis in the Helsinki area. A job satisfaction survey encompassing all of Finavia was carried out during the early part of the year. The survey examined such issues as how staff perceive the atmosphere at work and the performance of their supervisors. The top management are also undergoing training. Training for the members of Finavia s executive group was planned in the autumn, but the actual training events will start in 27. At Avia College, Finavia s professional special vocational school, training is provided in the various occupations within aviation, including air traffic controllers. Avia College also takes care of Finavia s other professional training for staff. Testing of professional competence in basic training for air traffic control was introduced officially in August 26. In the tests, students demonstrate how well they have attained the objectives of the vocational studies and the professional competence required in working life. Avia College offers an increasing amount of training through the Internet, and communications technology forms a part of a growing number of courses. Pedagogical procedures have been developed so that more on-the-job training instructors and test examiners have been trained for workplaces. Most of the staff of Avia College have acquired professional teaching qualifications. Internet-based training has been applied, for example, in continuing education for air navigation support staff whose tasks are critical to safety. Recurrent computer-aided training on dangerous goods (DGR) can be completed entirely over the Internet. Avia College has signed an agreement on the use of the DGR programme with Finnair and many other aviation companies. Computer-aided training programmes on radio traffic in air navigation were completed in 26. In addition to its own instruction on radio-telephone traffic, Avia College markets Internet-based training programmes to aviation schools, airlines and air forces. The reform of training for the new qualification system of technical staff in air navigation services continued in 26. Training for security checks is being reformed in step with the continually changing operating and legislative environment. Many new operating procedures were adopted in 26, including e.g. procedures concerning the transportation of liquids in the aircraft s cabin. The interpretation of images from luggage and cargo that pass through X-ray machines is now being studied more intensively than before through computer simulation. Staff performing security checks learn to recognize threats effectively and practise carrying out the correct measures. The image interpretation simulation environment is transportable so basic and recurrent training for security checks can be offered at any airport. 42 The premises has great pneumatic post which delivers a great quantity of messages between various departments and consequently the errand boys are no longer needed. An article in Ilmailu magazine on Helsinki Airport s new air navigation building in 1952

43 No. of people Age and Gender Distribution 26 under Male Female Group accumulated working years 26 Helsinki-Vantaa Airport 587 Subsidiary companies 475 Corporate headquarters 174 ANS Centres 119 Internal service units 127 Other airports 676 Avia College 3 Group accumulated working years 26 *) Finavia s corporate headquarters 174 Finavia s internal service units 127 Avia College 3 Helsinki-Vantaa Airport 587 Helsinki-Malmi Airport 2 Turku Airport 53 Pori Airport 26 Mariehamn Airport 2 Vaasa Airport 37 Kauhava Airport 18 Kruunupyy Airport 22 Tampere-Pirkkala Airport 6 Jyväskylä Airport 49 Halli Airport 6 Kuopio Airport 6 Joensuu Airport 22 Lappeenranta Airport 19 Utti Airport 1 Savonlinna Airport 15 Varkaus Airport 4 Oulu Airport 61 Kajaani Airport 2 Kemi-Tornio Airport 22 Rovaniemi Airport 72 Ivalo Airport 26 Kittilä Airport 17 Enontekiö Airport 3 Kuusamo Airport 14 Southern Finland ANS Centre 114 Northern Finland ANS Centre 5 Airpro Oy 47 Lentoasemakiinteistöt 4 Kiinteistö Oy Turun lentorahti 1 *) Also includes external employees and those that can be called up if required 43

44 Environment >>> Airports and environment Seeking for new solutions to reduce emissions The most important environmental issues in the management of airports are the prevention of skidding on runways by Finavia, ice protection and de-icing of aircraft performed by ground handling agents, and the flight operations of aircraft belonging to airlines, individuals and the defence forces. Substances that are less harmful to the environment are used in the prevention of skidding, but they cause loading in waterways. A non-toxic glycol solution is used for ice protection; it functions by consuming oxygen in the surface water and ground water. The movement of aircraft causes both noise and exhaust gas emissions. Due to the increased use of ice protection liquids, Finavia has studied methods of reducing the load on the water system at provincial airports. Ice protection treatments are carried out on aprons with large surface areas, so large quantities of rainwater and catchment water are collected. Tampere-Pirkkala Airport is the first provincial airport where the collection of glycol from the apron using a vehicle equipped with brushes and a suction device has been started as is done at Helsinki-Vantaa Airport. If the experiences with the collection, temporary storage and transportation of glycol runoff to a purification plant are positive, the procedure will be introduced at other large airports, starting with Oulu and Kuopio. The new environmental solutions also mean that the users of the substances will participate in paying the costs of reducing emissions. At Helsinki-Vantaa Airport, ground handling agents carry out almost four times as much ice protection as at all the other airports combined. In a planning project concerning the development of the activity, Finavia set as a goal that the airport s first centralized ice protection treatment site will be taken into use in the autumn of 27. Part of the departing jet plane traffic can be handled at the site. At the end of the year under review, new environmental permit processes in accordance with the legislation that came into force in 2 were under way at six airports. The Åland Islands environmental permit board reached a decision on Mariehamn Airport in accordance with the province s sectoral legislation. Finavia has requested changes to the details of the decision due to technicalities. The environmental permit application for Kuopio Airport was submitted as a new case. Answers were given on the statements concerning the permit applications of Oulu and Turku airports. There is a need for five new permits. During the year under review, the 44

45 Good airfields should have a flexible foundation. This is achieved with a grass covering... A good grass covering can also be achieved by grazing. However, it should not be forgotten that cattle that are grazing are an obstacle in the landing area. Aero magazine no 6 / 1924 Lapland Regional Environment Centre set a policy according to which airports that function within its area must apply for environmental permits by June 21 at the latest. An old landfill and fire drill site at Pori Airport was rehabilitated in the manner directed by the regional environment centre. At Kuopio Airport, the environmental risks of a fire drill area were surveyed in association with the Finnish Defence Forces. According to the survey, the contamination is under control but as the use of the area changes it must be rehabilitated. The fire drill site located near the Helsinki-Vantaa Airport is used extensively. Even though the site has an oil separator, a sufficient amount of practice fuel was released into nearby ditches that a drainage ditch located about 6 metres away in an area in between the runways was improved in the way directed by the authorities. In December, the European Commission published a draft directive that would gradually incorporate airports within emissions trading starting in 211. Emissions trading does not concern Finavia but will eventually affect the operations of its customers. Finavia has supported the Ministry of Transport and Communications in the preparations concerning the issue, and follows climate issues in general in order to forecast the development of the aviation sector as a whole. The Ministry and the key actors in the aviation sector in Finland prepared an information package about air traffic emissions and their effects on the climate, which is available at the Web site Finavia s 26 environmental review is published separately. 45

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47 Board of Directors report BOARD OF DIRECTORS REPORT Board of Directors 26 The development of Finavia s business environment Finavia s service objectives Finavia s environmental work Profit development Financial effects of the separation of the Flight Safety Authority Finavia Group profit 26 Finavia income distribution Capital investments 26 Financing 26 Personnel Changes in administration Operating risks and risk management Group structure and changes in the Group relationships Material events after the financial year and prospects for 27 Income statement Balance sheet Cash flow statement Notes to the financial statements Signatures of the financial statements and annual report Auditors report o6 47

48 Board of Directors 26 Teksti Nina Pinjola kuvat Marja Helander 48

49 From left: Jussi Järventaus, Leena Kostiander, Sinikka Mönkäre, Mona Björklund, Heikki Vaalgamaa, Eeva Niskavaara, Hannu Seristö. 49