In the 2021 budget, the Finnish Parliament granted EUR 350 million to be used to ensure Finavia’s solvency, with the EUR 317.15 million that will now be invested in the company being part of this grant. The European Commission has approved this decision.
The capital investment will be recognised in its entirety in the company’s reserve for invested unrestricted equity. The Prime Minister’s Office will additionally make preparations for granting a capital loan of EUR 33 million to Finavia later during this year.
“The capital injection will strengthen our financial position and help us pull through the COVID-19 crisis. We expect air traffic to recover from the pandemic over the next few years. When traffic recovers, we will be ready to create value for Finnish society as a provider of connections, as an employer and through our tax and dividend payments,” says Finavia’s CEO Kimmo Mäki.
Finavia’s extensive development and extension work that started in 2013 at Helsinki Airport will be completed within two years. The capital injection ensures that the investment is finalised.
“Promoting the airport’s development programme is critical for maintaining the competitiveness of Finland and Helsinki Airport and is vital for the future. We have developed our airport services on a long-term basis, and Helsinki Airport has determinedly aimed to be the leader in the international competition between transfer airports. Passengers travelling via Helsinki Airport generate a substantial amount of income and a number of jobs. Transit traffic ensures that Finns have exceptionally good flight connections,” Mäki says.
The company has invested more than EUR 1.2 billion in the development of Helsinki Airport and tourism in Lapland.
Finavia’s cost-cutting programme launched in March 2020
In order to cope with the COVID-19 crisis, the company has implemented an extensive cost-cutting programme and various financing solutions to secure the future and competitiveness of its airports. Finavia’s cost-cutting programme, which is the most extensive in the company’s history, was launched in March 2020 and it is still continuing. The total cost-saving target is EUR 200 million.
“Layoffs have been the toughest thing during the COVID-19 crisis. We have had to let committed and professional employees go. We are doing our best to ensure the well-being of our current personnel during this difficult time.”
According to Mäki, in addition to adjustment measures and securing its finances, Finavia has concentrated on ensuring the health security of its personnel and passengers during the COVID-19 crisis.