Financial Result for 2003

Many felt that the CAA’s financial result for 2003 was surprisingly good. The figure of 16.5 million euros, which exceeded our goal, was at least adequate – at a difficult time requiring new, far-reaching measures, and considering the general state of the industry. There were three underlying reasons for the good result: the transfer of the increased security inspection costs entirely onto prices, as already described; the pre-emptive savings drive, and the growth in air traffic at the end of the year. Part of the improvement on the previous year’s 4 million euro profit came from a change in the equipment writeoff procedure, from spending residue writeoff to straight line depreciation, amounting to about 3 million euros.

Although the result for 2003 is fully encumbered by claims against the bankruptcy of a Finnish low cost airline for the sum of about 1.7 million euros for 2003, the effect of domestic budget flights on CAA profits over the year was neutral. The pursuit of claims against the airline in question will not be dropped and the CAA regards the operator, owner, and legal possessor of the aircraft as jointly liable.

While the airlines have worked – and still are – as hard as they can to cut costs, the CAA must demonstrate that it is doing the same, using its own means, not by skimping on services but by improving its operating procedures. We share the same industry as the airlines, and each part of the service chain must understand the production structures of the others, sharing the same joys and sorrows and developing together so-called win-win solutions that benefit the entire sector. Thus will falling prices and rising demand end up benefiting the whole service chain, and ultimately, the end-user, the passenger. The aim is to create a virtuous circle of improvement.

As an intrinsic monopoly the CAA has a very distinct responsibility because market forces do not test our existence in the same way as with the airlines. Though for the CAA too, there are comparisons with operators abroad. In this regard, we may still keep our head up and our eyes open. Nor will the situation definitely worsen next year. The CAA will retain the same charges next year. We believe productivity will arise from a gradual increase in traffic.