Finavia’s air navigation service will be incorporated into its own company.
The name of this new company is Air Navigation Services Oy (ANS Finland) and it will start operating on 1 April 2017.
The base for this operation is to change the operational environment of air navigation services and the goal of producing air services in a more efficient way. The goal is to ensure that the cost structure of the Finnish air traffic will continue to be competitive also in the future.
The personnel involved in Finavia’s air navigation services, which have approximately 400 staff, will become employees of ANS Finland as existing employees.
Finavia’s shareholders’ meeting approved this arrangement on 17 March, 2017.
“The European air navigation services are changing in fundamental ways and Finland also has to react to these changes. Separating the airport company and the air navigation company clarifies the structures for producing air traffic services and is in line with what is happening elsewhere in Europe. Our aim is to improve the competitiveness and cost efficiency of Finnish air traffic services by developing air navigation into a profitable business in its own company, says Finavia CEO Kari Savolainen.
From the beginning of April 2017, ANS Finland will provide the en-route services as well as aerodrome control services and air traffic control services for approaches for airports. In addition to this, the new company will be responsible for providing air navigation technology services. En-route services include Finnish area control services, airspace control, air rescue and air traffic flow management.
The incorporation of air navigation services will be executed in a way that ensures that air traffic services continue without interruptions for airline companies, passengers, state aviation and other stakeholders.
The air navigation education sections of the Avia College will form part of ANS Finland.
“Incorporating the air navigation services means that in the future, airports will be able to tender the aerodrome control service and air traffic control services to find a provider for them. This has been done or is being done in Norway and Sweden, among others. In addition, EU promotes opening air navigation services for competition and increasing cooperation between service providers in different countries. The arrangement gives us even better possibilities of strengthening Finland’s strong position in the international development of air traffic”, Savolainen says.
The incorporating of air navigation services to ANS Finland will be done as a business deal, the value of which is approximately 15,5 million Euros, of which 8,3 million Euros is based on the dividends Finavia pays to the state for shares in the air navigation service company.
The current director of air navigation services, Raine Luojus, will take over as CEO of ANS Finland on 1 April, 2017.
“The En Route Charges collected by ANS Finland will pay for the systems and services that form the products being offered. The aim is that after the incorporation there will be an air navigation services market in Finland. This would mean that also the prices of the services would be determined based on the market. We are among the last countries in Europe where air navigation services have still operated together with the airport business” Raine Luojus says.
ANS Finland will operate independently and as a state-owned company, totally separate from Finavia, under the ownership steering of the Ministry of Traffic and Communications. On 1 April 2017, the responsibility for Finavia’s ownership steering will be transferred to the Ownership Steering Department of the Prime Minister’s Office.