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picture News November, 23 2017
image: A Challenging Industry A Challenging Industry

Both Erik Sakkov - Member of Tallinn Airport’s Board, and Tero Taskila – CEO at Estonian Air, could report passenger growth as members of the Swedish and German-Baltic Chambers of Commerce met them for a Business Seminar, Tuesday September 25th. However, both of them also pointed out the challenges facing their businesses.

- 2012 will be our best year ever in terms of number of passengers at Tallinn Airport. We expect 2,1 million passengers this year and by 2016 we expect to serve more than 3,5 million passengers, said Erik Sakkov.

- This year Estonian Air has increased their share of market at the airport from last year’s 31% to 40%, and other airlines having increased their market shares include Flybe, Lufthansa and UTair. This autumn we will welcome Aeroflot starting traffic between Moscow and Tallinn, and next spring Turkish Airlines will start to fly between Istanbul and Tallinn.

- We are working towards creating Tallinn airport as a hub and we are constantly in talks with some 20-30 airlines. There are however no lack of challenges in the airport business. We can see the classical sources of income for us, like landing and passenger fees, go down while our non-aeronautical revenues, like rent, concession, advertising and parking fees are going up, said Erik Sakkov.

- Estonian Air launched a new business model in April this year. It includes differentiating our product with more frequencies and delivering a touch of Estonia onboard, to enlarge our small home market using Tallinn as a hub, and right sizing the fleet with the latest generation fuel efficient and passenger pleasing aircraft, said Tero Taskila.

- As a result we have seen our number of passengers increase and in April this year we could also see that foreign sales became bigger than our local sales in Estonia. However, our costs have also increased. Right sizing the fleet and launching our new business model costs, and as for fuel prices they have skyrocketed. Estonian Air is at present not a profitable airline, told Tero Taskila.

On behalf of the SCCE Council, I would like to thank Erik Sakkov and Tero Taskila for their presentations on a truly challenging industry. My thanks also go to the German-Baltic Chamber of Commerce for a good cooperation in arranging our joint Business Seminar and to Heinz Weisl and his team at Meriton Grand Conference and Spa Hotel for a great set up and a delicious buffet.

Sincerely,

Kristiina Sikk

SCCE Ombudsman



read more:
· Challenging Industry


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