Avinor Kristiansand Airport, Norway Public, private or mixed model ? Thomas Langeland, Airport director.

Avinor Kristiansand Airport, Norway

Public, private or mixed model ?

Thomas Langeland, Airport director

Avinor in a nutshell

• Owns, operates and develops 46 airports in Norway, 14 in association with the armed forces

• Responsible for all air traffic control services in Norway

• Number of employees appox. 2800

• State owned limited company from January 1st 2003. Previously: State enterprise accountable to DoT

• Two thirds of revenue from aeronautical charges, one third from commercial activities

• Only three airports financially profitable

• Highest airport density on the European mainland

The Norwegian Network of airports

17 ”major” airports (blue); >1600m RWY

29 local airports (red); mainly 800m

Kristiansand Airport

Public, private or mixed modeldoes it really matter ?

Principal aspects of airport management

• Aviation safety

• Aviation security

• Development planning/masterplan

• Environmental protection

• Operational efficiency

• Financial efficiency

From public utility to airport enterprisepossible gains from privatization ?

• Improvements in operational efficiency

• Increased customer focus

• Increased airport revenues

• Increased quality of investment decisions

Management model at Kristiansand airport

Managed by the airport Managed by others

- Airside operations - Passenger check-in- Fire & rescue - Handling/ramp services- All airport infrastructure - Cargo including terminal and other buildings- Car park- Planning and development

Managed by Avinor Concessions/outsourced- ATC/ATM - Fuel- Met services - Duty free/retail outlets- Navigational aids - Car rental

- Advertisement

- Food & beverages

- Security- Catering

Financial results 2002-2006

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2002 2003 2004 2005 2006

Mill

ion

€

Traffic charges Commercial revenues Total revenues Driftskostnader EBITDA

Revenues and costs per passenger

0,00

0,50

1,00

1,50

2,00

2,50

2002 2003 2004 2005 2006

€ / p

ax

Total revenues per pax Total cost per pax

Does a mixed ownership model secure efficiency and revenue at a regional airport like Kristiansand

airport?

Positive

- strong and committed

ownership

- commercial focus

- utilizing a competitive

environment

- customer focus

- corporate financial

muscles

- public/regional

“ownership”

Negative

- no influence on aero-

nautical charges

- have to compete for

investments

- high fixed cost

structure

o Thank you for your attention

o Questions?