Aviation news analysis
50 SKY SHADES - World aviation news

Lithuania's Parliament gives green light to airports' concession project

Download: Printable PDF Date: 04 Jun 2016 02:50 category:
Publisher:
Lithuania's Parliament gives green light to airports' concession project - Airports / Routes publisher
Krista Kuznecova
Country: Lithuania Aircraft: Airplanes

On 2 June, Lithuania's Parliament, the Seimas, approved the draft Law on Concession of the three airports managed by the State Enterprise Lithuanian Airports. The draft law entrusting the management of the air gateways to an operator with a great deal of international experience was submitted by the Ministry of Transport and Communications.

According to the Minister of Transport and Communications Rimantas Sinkevičius, the concession project will not only help Lithuania develop the airports but also achieve significant results on the Baltic market. “The value of the aviation sector for the country's economy is tremendous. I believe that this project will become another success story and enable successful competition with other Baltic states which have not yet taken this step,” says Minister Rimantas Sinkevičius.

The implementation of the concession project will add to the country's connectivity in each of Lithuania's airports: growth in passenger traffic, flights and routes; possibilities of attracting new airlines thanks to the concessionaire's network. While the project is in progress, the country's investment climate will be fostered and connections with export markets will be improved. It also aims to achieve a substantial increase in the payback of the state capital from the state assets used by Lithuanian airports.

The assets created for investments of the concessionaire will remain the state property; however they will be maintained and improved from private funds. It is a way to modern airport management, passenger-centred service, better use of commercial areas and higher quality of the services provided.

Gediminas Almantas, CEO of Lithuanian Airports, is happy about this political step in the development of air transport in the country. “It is indeed a remarkable achievement for all of us. The model of concession is the best option for our market in order to develop the business activities of the Lithuanian airports from a strategic perspective. By virtue of the best-practice model, we will expand the development of the Lithuanian air transport sector and turn it towards a long-term strategy. I believe that in partnership with an experienced operator, we will become the leaders in the Baltic region,” says Mr. Almantas.

At the end of April the Ministry of Transport and Communications and Lithuanian Airports selected a concession adviser - InterVISTAS Consulting Group. With a great deal of experience in airport concession projects, the company will assist in drafting the terms and conditions for the concession tender, define the concession aims and objectives and negotiate with participants in the concession tender. One of the key tasks for the consultants is to represent the interests of the state in the project: to achieve the maximum benefit for the state (by increasing the country's connectivity, ensuring investments in the airports' infrastructure and generating the concession fee for the state of Lithuania) as well as ensure the interests of Lithuania's national security.



Loading comments for Lithuania's Parliament gives green light to airports' concession project...


Recommended

IATA Launches Platform Enabling Airlines to Share Turbulence Data

The International Air Transport Association (IATA) launched its Turbulence Aware data resource to help airlines avoid turbulence when planning routes tactically in flight. Turbulence Aware augments an...

airBaltic Carries 18% More Passengers During Eleven Months of 2018

Latvian airline airBaltic has carried 3 842 952 or 18% more passengers during the first eleven months of 2018 than in the same period last year to its network spanning Europe, Scand...

Prague Airport Breaks Another Record By Reaching 16 Million Handled Passengers A Year

The third historical record in a row has been broken at Václav Havel Airport Prague when the number of serviced passengers per year reached 16 million milestone on Wednesday December 12. This c...

TAT Group enters into exclusive negotiations with Sagard, BPI France and Towerbrook funds for the acquisition of Sabena technics’ capital

TAT Group entered into exclusive negotiations with the investment companies Sagard, Bpifrance and TowerBrook in order to sell them its majority interest in its subsidiary Sabena technics, one of the E...