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Report by the board 2004

TRENDS IN THE CAA BUSINESS ENVIRONMENT IN 2004

Revival In Air Traffic Demand

Air traffic revived from the its slump of 2001–2003 and showed clear growth in 2004. A total of 14.6 million passengers passed through CAA airports during 2004, which was 10.8 % more than in 2003. The number of passengers on domestic flights rose by 6 % and on international flights by 14.1 %. The biggest growth was in traffic to Asia and the related and expanding transit traffic via Finland.

Domestic air travel increased from the beginning of the year right through to September but then turned downwards during October-December. International traffic, however, developed positively throughout the year. International Christmas traffic to Lapland again reached a new record, with the number of international Christmas travellers rising by 17 %. More than 100,000 overseas tourists visited Lapland on charter flights during the year. Tourists also come to Lapland on scheduled flights.

The growth percentages for air travel were exceptionally good both because of an increase in the market and because of the weak comparative figures for the previous year. Air travel declined significantly in 2003 because of the SARS epidemic, which caused a temporary collapse in Asian traffic. The stiff competition among the airlines was evident in falling air ticket prices until the autumn, when they began to rise again.

Turmoil continued in the air traffic market in 2004, with three new foreign airlines entering the Finnish market and four companies ceasing operations as a result of bankruptcy. The low-cost air travel available at Tampere grew to a new record and two new routes were opened to the airport during the year.

Commercial aviation capacity, which is measured by the number of landings, grew by 5.1 % during 2004. Domestic landings increased by only 0.6 % because of the weak trend at the end of the year. However, landings by international traffic rose by 10.1 %.

Almost 245,000 flights were flown in Finnish airspace during 2004, which was 10.1 % more than during 2003. Overflights through Finnish airspace also increased by 10.2 % in 2004.