SE Oro Navigacija

The world aviation crisis has also hit state enterprise Oro Navigacija: the income decreased by half

The income from the main activity of state enterprise Oro Navigacija decreased by 51.1 percent during the first half of this year, while the net result was negative and amounted to 4,915 thousand EUR of loss, whereas at the end of the first half of 2019 net profit of 1,799 thousand EUR was recorded. Such a significant decrease in the activity income was determined by a radical decrease in the number of flights, occurring due to the restrictions imposed in order to fight the pandemic, especially limited permeability of the borders. The decreased rates of terminal and route charges per unit also had a negative impact on the total income.

During the first half of 2020 other activity income (income for aeronautical information and from other aviation-related activity) comprised 3.9 percent in the overall structure of income.

“For air traffic the first half of 2020 was inconsistent. The outbreak of world pandemic COVID-19 had an influence on the transport sector all over the world. Political measures, such as limitations of border permeability, were introduced as of March 2020, which in turn determined a drastic decrease in the number of flights. During the first half of 2020 the total number of flights which were provided services within the airspace of the Republic of Lithuania in comparison to the first half of 2019 decreased by 48.5 percent and amounted to 65 thousand of flights”, - stated the acting chief executive officer of the enterprise Marius Beliūnas, who also added that despite the moderate growth in the flight flows recently, the situation is still not stable, since there is a lot of uncertainty regarding the duration of COVID-19 outbreak as well as the applicable restrictions. The risk pertaining to the renewal of the virus and the pandemic also remains. The applied restrictions have a direct influence on the scope of activity of the airlines and their liquidity.

During the first half of 2020, the number of aircraft executing overflights reached 49 thousand (74.9 percent of the total number of flights), which comprises 46 thousand flights or 48.7 percent less than during the same period in 2019. The number of terminal flights during the first half of this year was 47.6 percent smaller than during the first half of 2019.

During the first half of 2020, most of the income earned by state enterprise Oro Navigacija for route air navigation services came from the airlines registered in the Middle and North European countries, which operate the flights connecting the airports of Poland, Latvia, Finland, Russian Federation, and other European countries. The income from the rates for route services from ten main airlines reached more than 43.7 percent of total income for the route services. During the first half of 2020, the main customers (airlines) of route air navigation services of the enterprise were Aeroflot (Russian Federation) and Air Baltic (Latvia).

During the first half of 2020, the main customers of terminal air navigation services provided by Oro Navigacija were the airlines ascribed to low-cost category: Ryanair (Ireland), Wizz Air (Hungary), and Air Baltic (Latvia).

About the activity of the enterprise:

State enterprise Oro Navigacija is a certified European provider of air navigation services, which provides air traffic control also communication, navigation and surveillance as well as air navigation services within the whole airspace of the Republic of Lithuania, also above the territorial waters and within the airspace of the Baltic Sea, which is part of Vilnius flight information region. 

Approximately three-fourths of the flights operated within the airspace of the Republic of Lithuania are overflights, during which the aircraft fly within the airspace of the Republic of Lithuania, but take-off or land at the airports of other countries. Airlines pay route charges for the air navigation services provided to the airlines during such flights. When the aircraft take-off from one of the Lithuanian airports, a terminal charge is applied for the air navigation services provided to the airlines.

In accordance with the signed multilateral contract, Lithuania entrusts EUROCONTROL to calculate the air navigation charges and to collect them on its behalf. The expenses, related to calculation and collection of the charges, are reimbursed by the users of the airspace.

The provided air navigation services are recognised as service export since they are mostly used by foreign economic subjects (approximately 99 percent). The enterprise covers its expenses from its main activity entirely, thus, it is not maintained from the state budget.

More than 900 airlines include the airspace of the Republic of Lithuania into their routes. In order to make sure that the flights take place safely, efficiently and on time, the aircraft is delivered air navigation services from the moment it moves from the parking place to the moment it lands at the destination airport in every country. State enterprise Oro Navigacija is responsible for these services within the Lithuanian airspace and at Lithuanian airports.

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Contacts

SE „Oro navigacija“
Balio Karvelio Str. 25, LT-02184 Vilnius
Lithuania
Company code: 210060460
VAT code: LT100604610

        

             

                 

Tel.: +370 706 94 502,
Fax.: +370 706 94 522,
E-mail: info@ans.lt