Finland's airports and air navigation systems operator Finavia will commence preparations for incorporating its air navigation business into an independent company.

It the change happens, the new air navigation company will function as a fully state-owned company independent of the Finavia Group.

It will not only have to provide route services such as Finland’s area control service, but also offer approach control services for the airports operating under Finavia and Finland’s Lappeenranta Airport.

The evaluation started due to the disruption in the operating environment of air navigation as well as the effort to secure efficient and effective air traffic service production.

Finavia CEO Kari Savolainen said: “If the incorporation of Finavia’s air navigation came to pass, it would allow airports to keep their air navigation costs on a reasonable level in the changing operating environment. It would also allow them to open approach control services to competition, like our neighbouring countries have done.

“The long-term goal is to create an air navigation market in Finland. As an independent limited liability company the air navigation company can better respond to the challenges posed by the changing operating environment as well as to the new business opportunities it offers, such as the development of a remote air traffic control concept."

The aim of the corporatisation is to ensure that the cost structure of the air traffic across Finland continues to be competitive in the future.

Savolainen added: “Corporatisation would also improve operational capabilities as Europe’s air navigation markets open and provide opportunities for closer cooperation in air navigation.

“An additional goal is to support Finavia’s positive economic development and ensure that air traffic service providers maintain their position as attractive employers in the future.”

With the corporatisation, the new company will be able to operate as a special assignment company under the ownership steering of the Ministry of Transport and Communications.

"Corporatisation would also improve operational capabilities as Europe’s air navigation markets open and provide opportunities for closer cooperation in air navigation."

Apart from providing air navigation services, the company will also perform special functions, which include area control, air rescue services, airspace management and aeronautical services for state purposes.

The systems that are required to develop national route services, like the air traffic control system, radars and voice communications systems, would be transferred to the independent company.

However, air navigation facilities at airports, including air traffic control towers and their devices, would continue to be operated by Finavia.

Corporatisation of Finavia’s air navigation business will be decided upon by the company early next year.

Image: The independent company would offer approach control services for all Finavia airports. Photo: courtesy of Finavia.