In 2019, the non-aviation revenue of Lithuanian Airports grew by as much as 24% and amounted to 18 million EUR. It was EUR 14.5 million in 2018.
Non-aviation activities at Lithuanian airports include leasing of commercial premises, buildings and land, parking, commercial advertising, business lounge, fast track, event organization and other services for passengers and business. Last year income from these services accounted for almost 37 percent of revenue generated by all airports, in 2018 they made up 33 percent.
In 2019, rental income from commercial premises operated by businesses providing various services at the airport - cafes, shops, car rental providers, banks and other providers of passenger services - increased significantly (by 45%). Currently, the total area of leased premises at airports is about 16 thousand sq. m. Rental income from commercial premises is about 62 percent of total non-aviation revenue.
“The strategic decision made several years ago to attract even more experienced suppliers, catering operators, car rental, parking and other service providers, managing well-known brands, to Lithuanian airports has been very positive. Passengers recognize brands and knowledgeable suppliers and are more inclined to the services because they know what to expect, know the standards and quality of the services. Higher partner sales also lead to higher rent for our company and dividends to the state budget”, says Justinas Stepšys, Director of the Commercial Department of Lithuanian Airports.
Mr. Stepšys adds that the rule that a strong brand attracts another strong brand has proved its worth, which is why Lithuanian airports are receiving increasing interest from well-known local and international brands and their market leaders. Successful cooperation with non-aviation partners has a direct positive impact on airport profitability and creates direct value for the state through paid dividends.
Completed investment projects contributed significantly to the good results. Commercial and catering premises development project was completed at Vilnius Airport, business lounge was renovated and expanded, new video advertising facilities were installed, multifunctional parking lot was completed, another parking lot was set up at Kaunas Airport.
A VIP terminal with a conference centre is currently under construction at Vilnius Airport, and the project is expected to open in the first half of this year. First bookings for events have already been made.
It is very important for Lithuanian airports that passengers have access to a wide range of services that meet today’s needs, therefore, much attention is paid to passenger needs research, consultations with other airports, analysis of shopping centre trends, lessons are learned from already implemented projects, and international experts with airport expertise.
“In the near future, by 2023, we are planning to expand our terminals at Vilnius and Kaunas airports, which will allow us to double our commercial space, offer even more services and better experience for our passengers. The structure and operating model of non-aviation services at Lithuanian airports is similar to that of shopping centres. It is an interesting fact that we are approaching the level of income generated by the major Lithuanian supermarkets, and we are already overtaking some of them”, comments J. Stepšys.
The volume of non-aviation activities at Lithuanian airports has been growing steadily since 2014, when all three airports were merged into the Lithuanian Airports network and in turn, the company's annual non-aviation revenue more than doubled. The long-term strategic goal is to have half of all revenue generated from non-aviation activities.
About Lithuanian Airports
The Lithuanian airport network includes three air gates in Vilnius, Kaunas and Palanga. During 2019 they served 6.5 million passengers and 62 thousand flights. This winter season, 15 airlines operate direct flights from Lithuanian airports to 76 scheduled destinations in 51 cities in 26 countries.