IP-KIINTEISTÖT - OWNER AND BUILDER
When the fixed assets of the defence forces at CAA airports were transferred to the CAA in 2003, the land areas remained in the ownership of the CAA but the buildings and other structures were handed over to a new subsidiary called IP-Kiinteistöt Oy for management. This way, the management of the special properties used by the defence forces remains separate from the CAA’s other commercial ventures, whilst the corporate form of administration ensures financial transparency.
“As proprietor, IP-Kiinteistöt is responsible for seeing that the infrastructure that the military needs at the airports is in good condition and available,” said the company’s managing director, Hannu Salomaa. However, his company does not undertake the actual maintenance, which is paid for directly by the defence forces to the company that carries it out.
The company is responsible for the property that was built for the defence forces. Half of the property owned by IP-Kiinteistöt consists of air traffic areas used by the Air Force and half is made up of buildings which the military needs for aviation.
“Constant renovation ensures that we can maintain the utility value of the buildings and traffic areas that we own. In 2005 we spent about 2.3 million euros on runway resurfacing and so on.”
“The Air Force is our primary client with its three Air Commands and other squadrons, plus the light infantry helicopter operations based at Utti. So we assist all the aviation activities of the defence forces,” said Mr Salomaa. “The synergy benefits of Finnish aviation are evident in the fact that our civilian and military aircraft have always used the same airports and air navigation services.”
“Long-term fixed contracts ensure us a steady cash flow for full property renovations. We finance new projects through loans which the tenant pays off over the period of the lease.”
During the review year the company began construction of a new base area for the Satakunta Air Command at Tampere-Pirkkala Airport. The area will be completed in summer 2006, while February will see the hand-over of a new apron area for use by new transport helicopters at Utti.
“For our construction projects we also buy services from the CAA whose expertise and resources in airport construction are a synergetic reserve that the defence forces’ outsourced property management firm can draw on. This is also beneficial for the CAA, which gets to handle a more diverse range of tasks as well as the opportunity to maintain and strengthen its own special expertise,” said a satisfied Mr Salomaa.
IP-Kiinteistöt Oy, which is wholly owned by the Civil Aviation Administration, is a self-sufficient organisation, which means that it does not intend to make a profit on properties used by the defence forces. The company’s balance sheet for 2005 stood at around 29 million euros.