Latvian airspace company upgrades Riga Airport landing systems

Published: 11/1/1999

Latvijas Gaisa Satiksme (LGS), the company that controls the airspace over Latvia, has recently completed a $1m tender for the purchase of two landing systems for Riga Airport. It also plans to replace its ultra short wave communication equipment. In 1998, LGS invested $3.5m in training, equipment and buildings refurbishment. During the last financial year the company generated a net profit of Ls 1,008,867 ($587,867). According to its President, Alexander Okladnikov, the company aims to generate gross profit margins of between 8% and 12%. However, it expects a revenue decline of some Ls 400,000 for 1999, owing to lower air traffic volumes, changes in the type of aircraft used and therefore affecting the weight based tariffs: the airport reports that the average weigh of aircraft through Riga is 30.4 tons. The growth element of the airport's business is also in short haul flights, which are obviously flown with lighter aircraft. The majority of LGS's revenues come from outside markets: 80% from transit flights, as opposed to 20% from flights landing at Riga. Its major clients are Aeroflot, Air Baltic, Lufthansa, KLM and SAS.

Article ID: 1027