EARNINGS TREND
CAA Result 2004
The Council of State set the profit target for the CAA for
2004 at 7.9 million euros. The actual profit for the CAA came
to 15.0 million euros (16.5 million euros in 2003). This far
better than budgeted profit resulted mainly from the increased
turnover generated by the unexpectedly strong revival in air
traffic, larger than expected earnings on other business operations
and lower than budgeted write-offs and financial items. The
profit was slightly lower than for 2003.
The CAA’s turnover amounted to 233.8 million euros
(219.0 million euros) and profits on business operations amounted
to 4.3 million euros (1.8 million euros). Profits on traffic
rose to 156.0 million euros, representing a rise of 10.5 million
euros over the previous year. Commercial profits also increased
by 4.3 million euros to a total of 72.3 million euros (68.0
million euros). The majority of the growth in turnover is
explained by the powerful growth in air traffic during 2004.
Operating expenses for the CAA in 2004 came to 181.0 million
euros which represented an increase of 19.5 million euros
over 2003. Operating expenses rose by 8.5 million euros over
those budgeted. Operating expenses were swelled by higher
than expected growth in traffic, which increased the cost
of providing services right down the line. The after effects
of a special economy drive of 2003 added to the cost of repairs
and maintenance, which showed as increased growth in expenditure.
Operating costs also include a total obligatory provision
of 5.7 million euros which alone increased operating costs
over budget and over those of 2003.
The obligatory provision of 5.7 million euros includes an
already existing pension liability of 3.8 million euros which
the Eurocontrol organisation will levy from member countries;
clean-up costs of 0.9 million euros for various land areas
as required by environmental authorities; and a provision
of 1.0 million euros to cover the extra costs in 2005 related
to the separation of the CAA’s official functions as
laid down in the government budget for the current year.
The Eurocontrol organisation’s pension scheme is to
be developed with the foundation of its own pension fund from
January 1st, 2005. Until now, pensions have been financed
out of the annual fees which the member states pay towards
the organisation’s operations. Existing pensioners will
continue to be paid out of these membership fees but it has
been decided to transfer the pension liabilities for current
and future personnel to the new fund. At the same time, certain
other changes will be made to pension conditions. The CAA
has paid the costs due to Eurocontrol from Finland. In order
to set up the pension fund, the assets of the fund must be
built up to be able to meet its pension liabilities. The Finnish
share of pension liability already arising for its existing
active personnel is 3.8 million euros. In accordance with
the organisation’s decision, the CAA will have to pay
both this and all future pension liabilities into the pension
fund. Because of the above, the CAA has made a 3.8 million
euro obligatory provision for uncovered pension liabilities.
Operating costs include demolition and other one-time costs
relating to completed investment projects, amounting to 0.7
million euros.
The CAA’s Profit For 2004
Turnover for the CAA Group in 2004 amounted to 246.0 million
euros (229.4 million euros). Turnover grew by 7.2 %. Group
operating expenses in 2004 came to 184.3 million euros (163.9
million euros), an increase over the previous year of 20.4
million euros. Group profit for 2004 came to 13.9 million
euros, which was 4.1 million euros weaker than for 2003 (18.0
million euros). Changes in CAA Group profits were mainly caused
by CAA results.
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