New tariffs as an excellent instrument for the next development phase

02/11/2009

As of 1st November a new tariff policy becomes effective at SJSC RIGA International Airport with amendments to Cabinet Regulation No 991 „The Procedure for Determination of Payments for the Services of Air Navigation and for Utilisation of the Services of the State Joint Stock Company Riga International Airport, and the Procedure for Distribution of Payments”, providing for a clearer content of services, decreased service costs, amendments in the system of quantity discounts and a more transparent settlement procedure.

Krišjānis Peters, Chairman of the Board of RIGA International Airport, said: „November 1 is a landmark in the development of RIGA International Airport concluding the previous 5-year period as the new airport tariffs enter into force. Looking back at the previous development phase, we can clearly see that the previous tariff policy has been an accurate and successful instrument for achievement of the goals: to boost the number of passengers significantly, to attract new airlines, and to become an air traffic hub in the Baltic region. These goals have been reached! In five years we have increased passenger traffic four times to four million in 2009.
In the new phase of development we intend to become one of the leading transfer airports in the Northern Europe. The new airport tariffs will be one of the most significant tools in achievement of this goal. It is important to note that even the simplest comparisons show that RIGA International Airport today in terms of tariffs is the most attractive choice among the airports of the European capitals. When the airlines compare their costs in the Baltic and the North European region, the difference of three to four times is definitely in favour of RIGA Airport. The airlines are already regarding the new tariffs with great interest.”

RIGA Airport commenced work on a new tariff policy already in the autumn of 2008 when the guidelines of the new EU Directive became known. According to this Directive the member states must agree the conditions of the local tariff policies. In May 2009 the amendments to the Cabinet Regulation were approved by the government.

In drafting of the new tariffs RIGA International Airport chose the following priority areas: growth of the number of airlines, flights and passengers, and a development-oriented competition at the time when the global aviation industry experiences a serious downturn.

Cabinet Regulation No 991 „The Procedure for Determination of Payments for the Services of Air Navigation and for Utilisation of the Services of the State Joint Stock Company Riga International Airport, and the Procedure for Distribution of Payments” envisages the following substantial changes:

  • Clearer content of civil aviation services provided by RIGA Airport;
  • An almost treble decrease of the basic civil aviation services (from the previous EUR 8.12 to EUR 2.05);
  • The rate of the passenger service of LVL2.18 lati per each departing passenger;
  • Giving up the quantity discounts that were introduced in 2004 and could reach the maximum level of 80 percent. The previous airport charge was EUR12.18 per each passenger;
  • Introduction of a new transit and transfer passenger charge of 0.70 lati per passenger.

The new tariff system will be valid from 1 November 2009 to 31 December 2010.

The new tariffs of RIGA International Airport create favourable conditions for business development both of the traditional and the low-budget airlines. They will enhance competition promoting the development of RIGA Airport in particular and the country’s economy in general and strengthening the airport’s position in the international air traffic market.

The new tariffs are to be maintained as long as the global aviation industry is in recession and they will be revised in the summer of 2010.

RIGA International Airport is the air traffic hub of the Baltic states. In the nine months of 2009 RIGA Airport has welcomed 3 066 326 passengers or 9.6 percent more than in the same period of 2008. RIGA International Airport offers flights to 69 direct destinations. In the winter season of 2009/2010 flights to 61 direct destinations are operated by 12 airlines.