{"id":183536,"date":"2025-04-14T03:38:16","date_gmt":"2025-04-14T03:38:16","guid":{"rendered":"https:\/\/peraltafinancing.com\/aerospace\/business-rivals-or-partners-in-growth\/"},"modified":"2025-04-14T03:38:16","modified_gmt":"2025-04-14T03:38:16","slug":"business-rivals-or-partners-in-growth","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=183536","title":{"rendered":"business rivals or partners in growth?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>In 2024, passenger traffic at European airports rose by 7.4%, surpassing pre-pandemic levels by 1.8%, according to newly released data from <a href=\"https:\/\/www.aci-europe.org\/press-release\/537-european-passenger-traffic-finally-exceeds-pre-covid-levels-in-2026.html\">Airports Council International Europe (ACI Europe)<\/a>.\u00a0<\/p>\n<p>While ACI data show that some smaller airports remain 34.5% below their pre-pandemic figures, three airports in North-East Europe, home to the Baltic states, have all overcome this challenge.\u00a0<\/p>\n<p>Three Baltic airports \u2013 Riga Airport (RIX), Vilnius Airport (VNO), and Tallinn Airport (TLL) \u2013 continue to play an essential role by connecting northern and eastern European markets to various global destinations, highlighting the significance that smaller regional airports can have within global aviation.\u00a0\u00a0<\/p>\n<aside class=\"article-leaderboard bn-1\"\/>\n<p>Each Baltic airport serves a distinct role: Riga (RIX), the busiest, is the home hub for the region\u2019s main carrier, airBaltic; Vilnius (VNO) is experiencing steady growth in passenger numbers, prompting long-term plans to upgrade its facilities. Meanwhile, Tallinn (TLL), the smallest of the three, is recognized for maintaining balanced airline operations.\u00a0<\/p>\n<p>Together, these airports simultaneously compete and collaborate in the North-East European aviation market. With travel demand bouncing back and competition heating up, critical questions arise: how do these airports truly compare? Are they keeping pace with regional growth, and could any of them be looking to compete with Europe\u2019s larger hubs?\u00a0<\/p>\n<p>To get a clearer picture of where these airports are headed, AeroTime spoke with the CEOs of Riga, Vilnius, and Tallinn airports.\u00a0\u00a0<\/p>\n<aside class=\"article-leaderboard bn-2\"\/>\n<h2 id=\"riga-airport\" class=\"wp-block-heading\"><strong>Riga Airport<\/strong><\/h2>\n<h3 id=\"the-baltics-main-gateway\" class=\"wp-block-heading\"><strong>\u200b\u200bThe Baltics\u2019 main gateway<\/strong><\/h3>\n<p>Riga Airport dates back to 1974 when it replaced Spilve Airport, Latvia\u2019s first international airport. By the 1960s and 1970s, Spilve had become outdated, leading to the need for a larger and more modern facility \u2013 that\u2019s when Riga Airport was established. Now the airport is the largest in the Baltic\u200b \u200bs\u200btates\u200b, serving more passengers than any other airport in the region.\u00a0\u00a0<\/p>\n<p>In an interview with AeroTime, Riga Airport CEO Laila Odina, said that growth for an airport is \u201cnever truly enough\u201d, emphasizing the importance of constant global forecasts analysis and planning\u200b for future developments. According to Odina, a steady annual increase of 6\u20139% is a solid result.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" title=\"RIX LailaOdina\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-1200x800.jpg\" alt=\"\" class=\"wp-image-119679\" srcset=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-1200x800.jpg 1200w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-300x200.jpg 300w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-768x512.jpg 768w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-1536x1024.jpg 1536w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-380x253.jpg 380w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-800x533.jpg 800w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-1160x773.jpg 1160w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-760x507.jpg 760w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-1600x1067.jpg 1600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina-600x400.jpg 600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/RIX_LailaOdina.jpg 1920w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\"\/><figcaption class=\"wp-element-caption\">Laila Odina \/ Riga Airport<\/figcaption><\/figure>\n<p>Currently, Riga Airport\u2019s demand remains largely dependent on the geopolitical situation. Odina said that in 2024, the total passenger count at RIX was 9% below 2019 levels compared to other regional hubs such as Stockholm Arlanda Airport (ARN) and Oslo Gardermoen Airport (OSL). Before the COVID-19 pandemic and geopolitical disruptions, around 16% of Riga Airport passengers came from markets that are currently closed.\u00a0<\/p>\n<aside class=\"article-leaderboard bn-3\"\/>\n<p>\u201cWhile we have returned to or even exceeded 2019 levels in terms of total passenger numbers, we have yet to fully recover transfer and transit traffic,\u201d Odina said. \u201cThe share of transfer passengers currently stands at around 20%. However, we have successfully compensated for this with growth in new markets \u2013 particularly in the Balkans, where airBaltic has played a key role in expanding connectivity.\u201d\u00a0<\/p>\n<p>According to Odina, leisure travel remains the primary driver of passenger traffic at Riga Airport and accounted for 50% of all trips in 2024. Business travel, on the other hand, has dropped to 22%, while the share of personal travel remains stable.\u00a0<\/p>\n<p>\u201cIn collaboration with airlines, we have developed a well-balanced destination map that reduces seasonal differences between winter and summer routes,\u201d she continued. \u201cThis strategy has helped mitigate the typical winter passenger decline.\u201d\u00a0<\/p>\n<h3 id=\"low-cost-carrier-dominance-benefit-or-constraint\" class=\"wp-block-heading\"><strong>Low-cost carrier dominance: benefit or constraint?<\/strong><\/h3>\n<p>For the upcoming summer season of 2025, Odina said the airport currently offers 100 direct destinations, making it the most extensive network in the Baltics, featuring 40 locations. The airport is also working to attract airlines to provide services to destinations that are currently not served.\u00a0\u00a0<\/p>\n<p>The Baltic region lacks direct long-haul flights as these types of flights depend on aircraft availability and demand. Odina stated that currently there is a global shortage of suitable aircraft for transatlantic or other long-haul routes. However, new-generation narrowbody aircraft are gradually entering service \u2013 only with select airlines.\u00a0<\/p>\n<p>For now, the airport offers international connectivity through airBaltic\u2019s codeshare agreement with Delta Air Lines, proposing long-haul travel options. However, Odina added that Latvia has received Federal Aviation Administration (FAA) Category 1 accreditation in civil aviation oversight, which means that Latvian air carriers will be able to operate flights to the United States and engage in codeshare agreements with US carriers.\u00a0<\/p>\n<p>Odina said that even before the pandemic, when Riga Airport handled nearly eight million passengers annually, the airport had reached the capacity limits of its terminal\u2019s public areas. That\u2019s when it became clear that a larger passenger terminal was necessary.\u00a0\u00a0<\/p>\n<p>\u201cThis year, we plan to begin construction on a terminal expansion \u2013 a sustainable, modern, and ergonomic building,\u201d Odina said. \u201cConstruction of the terminal should begin in the second half of 2025 and be completed by the end of 2028. The total construction area will be more than 45,000 square meters, whereas the investments are estimated at 200 million euros. The terminal\u2019s capacity will increase to accommodate 12 million passengers per year.\u201d\u00a0<\/p>\n<p>Odina stressed that the presence of low-cost airlines complements rather than hinders \u200b\u200bdevelopment\u200b of the airport\u200b. Low-cost carriers primarily cater to leisure travelers, including families for whom budget-friendly fares are a key factor. Full-service airlines, like Lufthansa or Finnair, are preferred by business travelers, meaning that the two segments largely serve different passenger needs rather than directly competing.\u00a0\u00a0<\/p>\n<p>By 2035, Riga Airport aims to handle 12 million passengers annually at its newly expanded terminal. The addition of direct long-haul flights to North America and Asia will further strengthen the airport as a transit hub. According to Odina, the airport\u2019s national carrier airBaltic has equally ambitious growth plans.\u00a0<\/p>\n<h2 id=\"vilnius-airport\" class=\"wp-block-heading\"><strong>Vilnius Airport<\/strong><\/h2>\n<h3 id=\"evolution-over-the-years\" class=\"wp-block-heading\"><strong>Evolution<\/strong> <strong>over the years<\/strong><\/h3>\n<p>Vilnius Airport was built in 1932, making it older than Riga Airport. It was designated an international airport only after Lithuania gained independence in 1990. In 2014, it became part of Lithuanian Airports, which manages the three main international airports in Lithuania, located in Vilnius, Kaunas and Palanga cities.\u00a0<\/p>\n<p>Simonas Bartkus, the CEO of Lithuanian Airports, told AeroTime that he believed Lithuania, as the most populous country in the Baltic States, has a promising long-term growth potential in the region.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" title=\"Simonas Bartkus LTOU\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-1200x800.jpg\" alt=\"\" class=\"wp-image-119663\" srcset=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-1200x800.jpg 1200w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-300x200.jpg 300w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-768x512.jpg 768w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-1536x1024.jpg 1536w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-380x253.jpg 380w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-800x533.jpg 800w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-1160x773.jpg 1160w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-760x507.jpg 760w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-1600x1067.jpg 1600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU-600x400.jpg 600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Simonas-Bartkus-LTOU.jpg 1920w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\"\/><figcaption class=\"wp-element-caption\">Simonas Bartkus \/ Lithuanian Airports<\/figcaption><\/figure>\n<p>Bartus \u200bsaid\u200b the main challenges in this development include ensuring a well-planned and smooth expansion, maintaining a quick work pace to complete projects on time, and making sure that ongoing construction work at the airport does not interfere with the airport\u2019s daily operations.\u00a0<\/p>\n<p>\u201cI have no doubt that successful management of these challenges will allow Vilnius Airport to further strengthen its position in the region,\u201d Bartkus said. \u201cAt the beginning of this year, we can see that Lithuanian Airports\u2019 market share of passenger traffic in the Baltic States has reached 40%. We have already achieved leading positions in cargo and MRO [maintenance, repair, and operations] activities, and I believe that we can continue to grow in passenger traffic.\u201d\u00a0<\/p>\n<p>Bartkus reported that in 2024, Lithuanian airports\u2019 entire network served a record 6.6 million passengers, marking an increase of nearly 10% compared to 2023. The highest passenger traffic was recorded at Vilnius Airport, which saw a 9% rise, reaching 4.8 million passengers in 2024. Bartkus also mentioned that Vilnius Airport aims to accommodate more than five million passengers in 2025.\u00a0<\/p>\n<p>\u201cThe 2024 results show that Lithuanian airports have flexibly adapted to changing circumstances and have delivered sustainable growth, even with significant changes in the overall geography of flights,\u201d he added. \u201cToday, all destinations are reoriented to the West, North and South, and passenger flows show that these decisions have paid off.\u201d\u00a0<\/p>\n<p>In February 2024, Vilnius Airport completed renovations and launched a new passenger departur<a href=\"https:\/\/www.aerotime.aero\/articles\/vilnius-airport-opens-new-departure-terminal\">e terminal<\/a>, enabling it to accommodate double the number of travelers. Bartkus mentioned that another in-progress project is the planning for a new arrivals\u2019 terminal, which is expected to be operational by the end of 2028.\u00a0<\/p>\n<h3 id=\"is-vilnius-ready-for-long-haul-flights\" class=\"wp-block-heading\"><strong>Is Vilnius ready for long-haul flights?<\/strong><\/h3>\n<p>Bartkus stated that\u200b \u200bairports in Lithuania are \u201ctechnically ready and equipped for long-haul flights.\u201d However, he also emphasized that a key factor influencing the introduction of new flights is \u201ceconomic logic\u201d. In other words, airlines will only launch flights if they anticipate a solid return on their investment.\u00a0<\/p>\n<p>This principle applies not just to long-haul routes but also to flights within Europe. Last year, two new airlines began operating at Vilnius Airport, with plans to introduce two more in 2025. Destinations like Prague, Catania, Tirana, and Bergen will be added to the Vilnius route network for the summer of 2025.\u00a0<\/p>\n<p>Much like Odina, the CEO of Riga Airport, Barkus noted that low-cost airlines play a crucial role in boosting passenger traffic at Vilnius Airport. However, he noted that \u201ctheir strong position on certain routes and aggressive competition may pose challenges in attracting larger traditional airlines\u201d to smaller airports like Vilnius.\u00a0<\/p>\n<p>\u201cWe see that the low-cost carrier segment is the fastest growing segment in Europe, but to grow we need to be attractive,\u201d he explained. \u201cAt Vilnius Airport, we are seeing a really significant increase in supply from traditional carriers. The news may not sound as big as the names of the newly launched routes, but growth such as four daily flights to Copenhagen or two daily flights to Amsterdam is a huge benefit to Lithuania.\u201d\u00a0<\/p>\n<p>Speaking about future expectations, Bartkus mentioned that Vilnius Airport is set to undergo significant infrastructure transformations over the next decade. The airport aims to expand its network of direct flights to major European economic centers. Furthermore, there will be initiatives to diversify its business model by bringing in new investors and boosting non-aviation income.\u00a0<\/p>\n<h2 id=\"tallinn-airport\" class=\"wp-block-heading\"><strong>Tallinn Airport<\/strong><\/h2>\n<h3 id=\"estonias-air-connectivity-revolution\" class=\"wp-block-heading\"><strong>Estonia\u2019s air connectivity revolution<\/strong><\/h3>\n<p>Tallinn Airport, officially named Lennart Meri Tallinn Airport, opened in 1936 and was initially known as Tallinn \u00dclemiste Airport. In March 2025, Airports Council International (ACI) named the airport \u201cEurope\u2019s Best Airport Serving 2-5 Million Passengers Per Year\u201d and the \u201cMost Enjoyable Airport in Europe.\u201d\u00a0<\/p>\n<p>According to Tallinn Airport CEO Riivo Tuvike, in 2024, the airport welcomed 3.5 million passengers, reflecting an 18% rise compared to 2023. The airport offered flights to over 50 destinations, with a focus on cities like Stockholm, Riga, Helsinki, and Frankfurt.\u00a0\u00a0\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" title=\"Riivo Tuvike 2022 Jarek J\u00f5epera 2 1\" decoding=\"async\" width=\"1200\" height=\"741\" src=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-1200x741.jpg\" alt=\"\" class=\"wp-image-119682\" srcset=\"https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-1200x741.jpg 1200w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-300x185.jpg 300w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-768x474.jpg 768w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-1536x948.jpg 1536w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-380x235.jpg 380w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-800x494.jpg 800w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-1160x716.jpg 1160w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-760x469.jpg 760w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-1600x988.jpg 1600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1-600x370.jpg 600w, https:\/\/www.aerotime.aero\/images\/2025\/04\/Riivo-Tuvike_2022-Jarek-Joepera-2-1.jpg 1920w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\"\/><figcaption class=\"wp-element-caption\">Riivo Tuvike \/ Tallinn Airport<\/figcaption><\/figure>\n<p>Almost half of the passengers use these hubs to reach their final destinations, with Estonians traveling to more than 1,000 locations in 2024. Referencing data from an ACI connectivity report, Tuvike noted that Estonia\u2019s connectivity saw the greatest improvement in Europe.\u00a0<\/p>\n<p>\u201cFactors driving passenger traffic include improved connectivity, increased tourism, and many airlines did add destinations and frequencies to their schedules and the demand followed the lead of supply,\u201d he added.\u00a0<\/p>\n<h3 id=\"not-looking-to-expand-internationally\" class=\"wp-block-heading\"><strong>Not looking to expand internationally<\/strong><\/h3>\n<p>Tuvike differs from his counterparts at Riga and Vilnius by stating that long-haul flights, aside from those to the Middle East, are not the focus for Tallinn Airport.\u00a0\u00a0<\/p>\n<p>Tuvike said the airport welcomed two new airlines in 2024, something he considers to be \u201ca big deal\u201d as it helps maintain a diverse airline portfolio to mitigate risks.\u00a0\u00a0\u00a0<\/p>\n<p>Starting from the summer of 2024, German low-cost carrier Eurowings offered direct flights from Tallinn to Prague, while at the same time Transavia France connected Tallinn to Paris. New destinations included Burgas, Billund, Malta, and Rome. Tuvike added that airBaltic plans to introduce new routes from Tallinn to Reykjavik, Tirana, Barcelona and Palma de Mallorca in 2025.\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>Regarding the presence of low-cost carriers in Tallinn, Tuvike emphasized the importance of maintaining a balanced airline portfolio to prevent any single airline from dominating the market.\u00a0\u00a0<\/p>\n<p>\u201cWhile low-cost carriers drive passenger traffic and offer affordable travel options, they may pose challenges in attracting full-service airlines due to competitive pricing and operational constraints, therefore we aim to keep the low-cost carriers and legacy carriers in good balance,\u201d he added.\u00a0<\/p>\n<p>In 2030, Tallinn Airport aims to accommodate up to five million passengers. Tuvike said that the airport\u2019s strategic goal is to improve self-service capabilities, aiming for an 80% usage rate by 2030.\u00a0\u201cAlso, our revenue mix should be wider where aviation revenues remain important but not crucial and real estate and other business lines make us more sustainable and resilient,\u201d \u200bhe added.\u200b\u200b \u00a0 \u00a0 \u200b<\/p>\n<h2 id=\"shared-goals-or-competition\" class=\"wp-block-heading\"><strong>Shared goals or competition?<\/strong><\/h2>\n<p>Concluding her thoughts, Riga Airport CEO Odina stated that the Baltic aviation market is evolving rapidly across all three Baltic states. She also mentioned that airBaltic is expected to expand its presence at the airport as well as at other airports in the region.\u00a0\u00a0\u00a0<\/p>\n<p>\u201cOne of the challenges for the Baltic airports is ensuring strong national and regional branding,\u201d Odina added. \u201cAirports alone can do a lot, but our resources are limited. State involvement in promoting the visibility and attractiveness of the Baltic region is essential.\u201d\u00a0<\/p>\n<p>Lithuanian Airports CEO Bartkus mentioned that there are many projects in collaboration with regional partners and other airports. He emphasized that Lithuanian Airports \u200bis competing on a European level, not just within the Baltic region.\u00a0<\/p>\n<p>\u201cAirlines can distribute their capacity and supply very quickly and very widely across the continent, so we need to think about how we can be seen as better than the others in a pan-European context,\u201d he explained.\u00a0\u00a0<\/p>\n<p>Bartkus continued: \u201cAll three countries and their airports will face challenges in terms of upgrading infrastructure and improving the passenger experience, but the growing demand for travel will provide opportunities for investment and the development of new routes.\u201d\u00a0<\/p>\n<p>Meanwhile, Tallinn Airport CEO Tuvike said the airport is navigating the balance between competition and collaboration by \u201cfocusing on enhancing connectivity\u201d.\u00a0\u00a0<\/p>\n<p>\u201cOf course, we look at each other and we talk on a regular basis,\u201d he said. \u201cBut I believe we are more like friendly neighbors than fierce competitors.\u201d\u00a0<\/p>\n<p>According to Tuvike, the Baltic aviation market is expected to continue to grow despite geopolitical challenges.\u00a0<\/p>\n<p>\u201cAviation is growing in the Baltics, although we may see temporary setbacks which makes it important that we work also with non-aviation revenues,\u201d he concluded.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>In 2024, passenger traffic at European airports rose by 7.4%, surpassing pre-pandemic levels by 1.8%, according to newly released data from Airports Council International Europe (ACI Europe).\u00a0 While ACI data show that some smaller airports remain 34.5% below their pre-pandemic figures, three airports in North-East Europe, home to the Baltic states, have all overcome this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":183537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12024],"tags":[907,3426,16506,17976],"dealstore":[],"offerexpiration":[],"class_list":["post-183536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerospace","tag-business","tag-growth","tag-partners","tag-rivals"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>business rivals or partners in growth? 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