Ilmailulaitos - Vuosikertomus 2005

Report by the Board 2005

Report by the Board

Trends in the CAA's business environment in 2005 CAA service goals for 2005 CAA Finland group organization Earnings trend Personnel Changes to the board The outlook for 2006 Profit and loss account Balance sheet Cash flow statement

Notes to the financial statements

1 Consolidated accounting principles 2 Turnover by business area 3 Salaries for the financial period 4 Personnel employed by the CAA Group 5 Financial income and expenses 6 Intangible and tangible assets and amortisation and depreciation 7 Shares and holdings and other investments 8 Group companies 9 Receivables from other Group
subsidiaries 10 Substantial receivables carried forward 11 Increase and decrease in own equity items 12 Provisions 13 Non-current liabilities 14 Deferred tax liability 15 Debt to other CAA Group subsidiaries 16 Relevant items of accrued expenses 17 Funding from the State budget 18 Personnel covered by State funding 19 Funding from local authorities 20 Funding from the EU 21 Guarantees, pledges and liabilities 22 The CAA in the proposed state budget 2005 23 Official activities and their finances 2005 / 2004 24 CAA electric power grid operations 25 Emission rights

Proposal for the use of profit Auditors' report

The Flight Safety Authority Airport Architecture

23 Official activities and their finances 2005 / 2004

A separate official body called the Flight Safety Authority is responsible for aviation safety affairs. In addition, the Air Transport Authority is responsible for making and managing international agreements, granting charter and route permits, the general management of air traffic safety measures and the development and supervision of matters outside the scope of the Flight Safety Authority.

The turnover for the Flight Safety Authority is derived from fees for the provision or renewal of various kinds of licenses, training license fees for training schools and operating charges for commercial flying and service companies. In addition, fees are charged for supervising that aircraft are airworthy and for inspecting air navigation equipment. Fees are also charged in relation to the maintenance of the aircraft registry.

From the beginning of 2006, there will be a new State Department bearing the name Civil Aviation Authority handling all official body responsibilities. A provision of EUR 993,000 was made in the 2004 financial statements for de-merger costs; it has now been used up in its entirety. The Civil Aviation Administration paid for the de-merger costs amounting to a total of EUR 1,487,000.

The average number of people employed by the Flight Safety Authority during the financial period was 99.6 (84) and the average number of people employed by the Air Transport Authority was 10.5 (10).

Profit and loss account 2005	Flight Safety Authority		Air Transport Authority		Official activities total

Turnover		992		0	992
Staff expenses		5 174		614	5 788
Other expenses		1 902		500	2 401
General expenses
office expenses	6		33
other general expenses 1)	430	436	33	67	502

Total operating costs		7 511		1 181	8 692

Operating margin/deficit		-6 519		-1 181	-7 700

Depreciations		61		0	61

Result for the financial period (deficit)		-6 581		-1 181	-7 761

Profit and loss account 2004	Flight Safety Authority		Air Transport Authority		Official activities total

Turnover		933		0	933

Staff expenses		4 151		531	4 683
Other expenses		2 292		625	2 917
General expenses
office expenses	57		36
other general expenses 1)	339	397	23	59	456

Total operating costs		6 840		1 215	8 055

Operating margin/deficit		-5 907		-1 215	-7 123

Depreciations		64		0	64

Result for the financial period (deficit)		-5 972		-1 215	-7 187

1) General expenses only include invoiced internal services, and it does not include a proportion of the expenses incurred by the headquarters. In 2004, rents paid for offices are included in other expenses.

This itemization does not include the official activities that are carried out in the CAA.