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Annual report of the CAA

LOW COST SUCCESS AT TAMPERE

The low cost terminal at Tampere-Pirkkala Airport continues to operate successfully. The cost-effective concept has been well received and the intention is to expand this activity at Tampere in future. Opened in April 2003, the low cost terminal is the first of its kind in Finland.

Supplementing the CAA’s traditional types of terminal, the cheaper fares embodied in the low cost concept are made possible by pruning the usual services, with passengers largely taking care of their own luggage, for example. Tampere-Pirkkala was chosen for the low cost operation because a redundant terminal became available which could be reconditioned and put at the disposal of the airlines. The CAA subsidiary Airpro Oy is responsible for running the terminal. The company operates at ten airports in Finland, offering ground services to airlines and passengers.

The main client of the Tampere-Pirkkala low cost terminal, i.e. Terminal 2, is the Irish budget airline Ryanair, which opened its Tampere–Frankfurt (Hahn) route in early 2004 and added daily flights to Riga in the autumn. Ryanair also flies to London (Stansted) from Tampere.

The low-cost operations, which have increased profitability, have also raised passenger volumes significantly at Tampere-Pirkkala. More than 230,000 passengers made use of the low-cost terminal in 2004, equal to almost half of all the passengers passing through Tampere-Pirkkala. A full two thirds of international passengers were low cost travellers. All told, Ryanair has flown well over 300,000 passengers from Tampere during its tenure there. On average, 20,000 passengers a month pass through Terminal 2.

More new passengers

“More than three quarters of low cost customers are travelling in their free time, although the number flying on business is also increasing slightly,” said Kaj Lagerström, research chief at Airpro Oy, who has made a study of passenger profiles. “About 30 per cent of passengers arriving at Tampere airport come from (the surrounding province of) Pirkanmaa, while 22 per cent come from Uusimaa, many of them from as far as Helsinki. Slightly more than half the customers are Finns,” he adds.

Students make up a large proportion of customers, along with the so-called backpackers. A particular favourite of women is the London route, where many of the passengers are also young, on average under 30.

“Our research shows that as many as a third of passengers would not be travelling at all without the opportunity provided by budget flights. So the low cost operation by no means cuts into traditional air passenger volumes, but brings in entirely new passengers instead,” comments Airpro’s managing director, Jarkko Varjo.

“We aim to continue to develop traffic and operations at the Tampere-Pirkkala low cost terminal in future. Sales operations and cafe services have already been improved. We also intend to market our services more widely to airlines around the world.”