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HSE_CASE_NR: 104-038 | status: active
Authors: Nissilä, Petteri
Gasiorowska, Anna (supervisor)
Material: 19 pages
Publication year: 2004  Language: eng
Keywords: civil aviation industry; competition; passenger/customer service; restructuring of government organization into a business unit; safety; security; self-financing; value added
Abstract: In the beginning of the 1990’s the National Board of Civil Aviation was pure government office financed from the government budget by taxpayers’ money. After it was turned into a self financing government enterprise the development towards business entity has been quite rapid. Enormous investment projects have been carried out by the CAA in until today. The airport facilities of the CAA’s all over the country and especially in the international Helsinki-Vantaa airport area have been improved so that the Helsinki airport has been voted a number one airport by international passengers all over the world. Finnish air navigation service systems and infrastructure represent the latest technology in the world. All this has been done by the money generated from the CAA’s business activities and would not have been possible without proper business management. It also required careful planning and implementation process.

CAA has to take care of the sensitive balance of the shareholder and the stakeholder value. Until today the top management of the CAA and the owner (the government) has taken responsibility of the well functioning air traffic infrastructure of the whole country. Therefore CAA has maintained many unprofitable functions like many regional airports.

In the beginning of the 2006, when the official functions of the CAA will be separated, the CAA will accelerate its transformation towards pure service providing business organization. It means that the CAA may have to revise its strategy. Several questions will arise when the decisions on the strategic key issues have to be made by the government and the management of the CAA.