Finland’s Finavia looks to spin off ATC

Finavia is examining whether to turn its air navigation business into an independent company responsible for Finland’s area and approach control services.

Finavia is preparing the matter in accordance with a decision made by the Government’s Ministerial Committee on Economic Policy on 20 December.

”European air navigation is experiencing major changes, which Finavia also needs to address. The current corporation model in which both airport and air navigation services are produced by the same company, i.e. Finavia, is exceptional in Europe,” said Kari Savolainen, CEO of Finavia Corporation.

The move would allow airports to keep their air navigation costs at a reasonable level and allow for competition.

“The long-term goal is to create an air navigation market in Finland. As an independent limited liability company the air navigation company can better respond to the challenges posed by the changing operating environment as well as to the new business opportunities it offers, such as the development of a remote air traffic control concept,” Savolainen added.

“Corporatisation would also improve operational capabilities as Europe’s air navigation markets open and provide opportunities for closer cooperation in air navigation,” said Savolainen.

The new company would function as a special assignment company under the ownership steering of the transport ministry and in addition to providing air navigation services, would lead airspace management, area control, air rescue services and aeronautical services.

Air traffic control, radars and voice communications systems, would be transferred to the new company while air navigation facilities at airports, such as air traffic control towers would remain with Finavia. Finavia said it planned to decide on the corporatisation early next year at the earliest.

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