Vilnius flourishes, while Riga turns in substantially reduced profits (362 words)

Published: 5/11/2001

The airports of the Baltic states have recently published results for 2000, showing a mixed picture of prosperity in the region. Riga International Airport, in Latvia, finished 2000 with a reduced profit of Lat 222,948 ($354,000), compared to 1999, when the company earned Lat 0.795 m ($1.3 m). The airport attributes the decrease in profit to expected higher airport operating costs and investments in the airport's infrastructure. The second stage of the $17m redevelopment of Riga International Airport started on 29th June 2000, and is being undertaken by two Latvian construction companies, PBLC and АСВ. According to the Latvian Ministry of Transportation, the improvement of the airport's infrastructure is a priority of the national programme on transport development for 2000-2006 and is being financed through a loan of €10 m from the European Investment Bank. The terms of repayment of the loan are determined by traffic growth at the airport, according to the ministry, as the loan will be repaid from the levy of $12 on each passenger passing through the airport. Riga International Airport provided services to 574,000 passengers in 2000, up 2% over 1999, and served 18,000 flights, down 7% from 1999. In the period January-March 2001, the airport serviced 123,434 passengers, or 6% more than in the respective period of 2000. Vilnius International Airport in Lithuania has reported that it earned Lit 2.68 m ($0.67 m) of net profit in 2000 - its best result in recent years - doubling the result for 1999 (Lit 1.32 m ($0.33 m). Lina Usaviciene, Finance and Economics Director, said that the company revenues exceeded Lit 37.9 m ($9.47 m) in 2000: 4% higher than in 1999. Usaviciene cited the stability of the airport's expenses as being a key factor in the airport's improvement in profitability, when combined with a significant boost in revenues. Two thirds of revenues come from aircraft handling and passenger fees, with another third derived from services -- fuel sales, transportation, car parking lots, hotel and catering. In 2000, Vilnius International Airport provided services to 521,500 passengers: up 8.5% over 1999, and served 17,200 flights.

Article ID: 2526