Finavia spins off ATM into new Air Navigation Services Finland

Finavia’s air navigation service is to be incorporated into a new company called Air Navigation Services Oy (ANS Finland) that will start operating on 1 April.

Finavia said the basis for this move was changes in the operational environment of air navigation services and the goal of efficient service provision. “The goal is to ensure that the cost structure of the Finnish air traffic will continue to be competitive also in the future,” it said.

The 400 employees of Finavia’s air navigation service will become employees of ANS Finland as existing employees. A Finavia shareholders’ meeting approved this arrangement on 17 March.

“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,” said Finavia chief executive Kari Savolainen.

From April 2017, ANS Finland will provide the en-route services as well as aerodrome and air traffic control services for airport approaches. 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 interruption for airlines, passengers, state aviation and other stakeholders. The air navigation education sections of the Avia College will also form part of ANS Finland.

“Incorporating air navigation services means that in the future, airports will be able to tender the aerodrome 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, the European Union is promoting the 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,” said Savolainen.

The incorporation of air navigation services in to ANS Finland will be carried out as a financial transaction, the value of which is approximately €15.5 million, of which €8,3 million is based on the dividends Finavia pays to the state for shares in the air navigation service company.

The current director for air navigation services Raine Luojus will take over as chief executive 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 are still operated together with the airport business,” said Luojus.

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 will be transferred to the Ownership Steering Department of the Prime Minister’s Office.

 Read: Finland’s ATC spin-off could well generate business opportunities

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