null The Finnish Civil Aviation Administration, Finavia, to become a state-owned company from the beginning of 2010

The Finnish Civil Aviation Administration, Finavia, to become a state-owned company from the beginning of 2010

Press release 28.04.2009 14.54 fi sv en

The Cabinet Committee on Economic Policy supported in its meeting of 28 April 2009 the Ministry of Transport and Communications' proposal of incorporating the Finnish Civil Aviation Administration, Finavia, as of 1 January 2010. The business activities currently managed by the Civil Aviation Administration will be transferred to a new company limited by shares that will be wholly owned by the state. The new company will be responsible for the basic infrastructure of Finland's airports and the provision of air navigation services.

Provisions concerning the basic duties of the company will be laid down in aviation laws. A special act will be enacted on the national network of airports, taking into account the new requirements of the EU Directive on airport charges. A special act will also be enacted on pricing and special services in military aviation. Necessary legislative amendments are proposed to enter into force simultaneously with the incorporation process.

The next stage in the incorporation process is for the Ministry of Transport and Communications to draw up a government proposal for an act about the incorporation. The legislative proposal concerns the Government budget for 2010 that will be submitted in September 2009. The incorporating process will not have any direct impacts on central government finances. Measures related to the establishment of the new company will be completed by the end of 2009. Responsibility for corporate governance concerning the new company will rest with the Ministry of Transport and Communications.

Personnel employed by Finavia on 31 December 2009 will continue as employees of the new company under the old terms. Public service employment relationships of Finavia employees will be changed into contractual employment relationships in accordance with the Finavia incorporation act. The retirement plans of the personnel will remain at the same level as before and supplementary pension benefits will be funded through the new company's balance sheet. The process of incorporation will not affect the ongoing restructuring measures at Finavia.

The balance sheet of the new company will be based on Finavia's assets and liabilities of 31 December 2009. The new company will continue Finavia's investment programme as planned, including the construction of a railway station for the ring rail line in the area of the Helsinki-Vantaa airport (estimated cost 30 million euros). In order to improve transport connections to the airport the Finnish Rail Administration will also prepare for the construction of a railway station in Viinikkala.

The process of incorporating the unincorporated state enterprises is based on the European Commission decision of 2007 concerning the Finnish Road Enterprise, which criticised the compatibility of unincorporated state enterprises with the common market. In 2008 the Finnish Ministry of Finance appointed a working group to examine the organisation of unincorporated state enterprises and to find out alternatives for the present model. The working group will complete its work at the end of 2009.

Further information:

Mr Kari Jääskeläinen, Special Adviser to the Minister of Transport, tel. +358 440 581 030
Mr Mika Mäkilä, Director of Corporate Policy Unit, tel. +358 9 160 28475, +358 40 595 6068