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Annual report of the CAA

DOMESTIC TRAFFIC NEEDS A BOOST

The picture for Finnish domestic air traffic is somewhat different. It is true that domestic air travel did increase by 6 % in 2004 but the 2.8 million air journeys were still one tenth down on the record year of 2000. The situation is illustrated by the fact that domestic air traffic fell by 5 % again in the last quarter.

Long distance domestic traffic grew almost as much as international traffic, with Oulu traffic up by as much as 18 %, but demand for short trips and on low density routes either didn’t grow at all or even fell. And the reasons are obvious: a highly competitive and comprehensive road transport system, subsidised competing public transport, the lack of enthusiasm and competition that results from a small market and the lack of entrepreneurial spirit and interest by airlines and travel agencies in local markets. We probably won’t be able to do anything about any of these factors in future, either. We must assume that the supply of domestic air transport will decline in the next few years unless these very interests, i.e., the local enterprises, can be harnessed in one way or another.