NEWS/ANALYSIS: LITHUANIAN AIRPORTS


New commercial niches and activities will appear, says Lithuanian Airports


While making a conscious effort to maintain partnerships with existing operators during the Covid-19 pandemic, Lithuanian Airports is being innovative by launching its cinema project, as Andrew Pentol discovers.


A


s the aviation industry continues its recovery from the novel coronavirus


(Covid-19), airport operator Lithuanian Airports is doing its best to plan for the future. The state-owned enterprise,


which manages Vilnius, Kaunas and Palanga Airports, believes the gradual resumption of flights in various countries and increasing passenger numbers is setting a positive tone. On 13 May, passenger flights


resumed at Vilnius Airport with Lufthansa connecting the Lithuanian capital with Frankfurt in Germany. Several days later, airBaltic also re- established routes to the other Baltic capitals – Riga and Tallinn. Destinations in countries such


as The Netherlands, France, Norway, Ireland, Denmark, Spain, Cyprus, Italy and Finland have since been added. All potential new routes are


negotiated at state level and approved after analysing the Covid-19 epidemiological situation in each country. Speaking exclusively to TRBusiness,


Chief Commercial Officer at Lithuanian Airports Justinas Stepsys, who together with his colleagues created the infamous Aerocinema project, says: “As more countries ease travel restrictions, people will want to travel by air again. From a commercial standpoint, we will probably see a slow and gradual revival.”


Aerocinema creates buzz He continues: “I believe new niches and activities will appear which were not present before the Covid-19 pandemic, but currently, all our energy is focused on maintaining


JULY 2020


partnerships with existing operators and global business partners.” Gebr. Heinemann is the incumbent


duty free operator at Vilnius and Kaunas Airports. In early 2018, Heinemann


extended its contract at Vilnius Airport by six years and subsequently unveiled an 850sq m walkthrough in the Schengen Area in October that year. The previous year, the retailer


opened two Heinemann Duty Free and Travel Value outlets in the Schengen Terminal in Kaunas. “We understand that working


together is the only way we can prepare to restart with full energy when this intense period is over,” says Stepsys. A relief package was offered


to duty free shops, other shops, cafes and restaurants, ground handling and car rental companies, parking lot operators and other airport businesses. The purpose was to maintain ‘sustainable ties’ during the crisis and significantly ease operating conditions. He explains: “All business partners


affected by the sudden drop in passengers during the quarantine in Lithuania were not required to pay minimum annual guarantees.” Following the lifting of the


quarantine regime in the country on 17 June, business partners have the option to delay rental payments for the first two months by 90 days. While supporting its partners


during the pandemic, Lithuanian Airports has tried to be innovative. The aforementioned Aerocinema – The Journey Begins – project captured the imagination of people around the world and was covered by international media. Situated on the airside tarmac


at Vilnius Airport, visitors were able to watch films on a huge outdoor screen from their cars. The project ran until the end of May in an area that had only ever been used for parking, refuelling and aircraft boarding. Stepsys concludes: “The Aerocinema project would


probably never have taken place if it wasn’t for Covid-19. Since a large part of our apron was mainly not in use, we wanted to utilise our large space for other purposes. “My colleagues from the


commercial department are constantly searching for new opportunities, alternative non- aviation services and additional cash flow which is crucial during this period. We also want to show that an airport can be a venue for all sorts of events. «


“As more countries ease travel restrictions, people will want to travel by air again. From a commercial standpoint, we will probably see a slow and gradual revival.”


Justinas Stepsys, Chief Commercial Officer, Lithuanian Airports


TRBUSINESS 25


Above: Lithuanian Airports’ cinema project captured the imagination of people around the world.


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