Presentation on theme: "BUSINESS PLAN January - December 2007"— Presentation transcript:
1BUSINESS PLAN January - December 2007 PUBLIC ENTERPRISE FOR AIRPORT SERVICES “MACEDONIA” - SKOPJEBUSINESS PLANJanuary - December 2007
2Contents Introduction notes Planed global activities Regulative Planed business activities in basic operative frames - air traffic at the AirportsPlanned business in commercial activities at Airport “Alexander the Great” and Airport “St. Paul the Apostle” and General Directorate
3ContentsPlanned business activities of other Departments at Airport “Alexander the Great” - Skopje and Airport “St. Paul the Apostle - OhridPlanned business activities at PEAS “Macedonia”Finance planRevenuesExpensesExpected results
5Objectives and purpose Air traffic is the one of the most important resources of the worldwide economy. Developing as industry, technology and service is one of the greatest contributions of the modern society.Airports are the main component of the air traffic industry that is uniting development of the business and tourism.Thereupon with their development, airports are increasing economy of the country and they have key part in development of the air traffic and economy in the region.
6Objectives and purpose Existing of the two international airports in Macedonia at level of technical and operative function are suffice of the current state needs and it is a right basic for defining a new phase of development and building up of these two airports byLong term Project Task andFollowing instructions and recommendations by the Government of the Republic of Macedonia, meaning Ministry of Transport and Communications, as well as recommendations of technical support for transport and management by the Air Euro Safe
7Defining Development Concept Model of public enterprise according to the new regulation and it’s transformation in join stock company,Concept of developing the runway up to III category,Multiply of traffic operative surfaces,Building up and modernization of the terminal up to “C” category (IATA standards),
8Defining Development Concept Facilities for airline companies, rent-a-car, etc,Cargo center with container transport,Floor garage,Hotel,Building up the trade zones etc.
9Accomplishment of purposes Studies for economy warrant of the investmentsMaster planInvestment programStudy recommending best model for development of Airport “Alexander the Great” and Airport “St. Paul the Apostle”
11Mission StatementPrimary mission of PEAS “Macedonia” in year 2007 will be:Providing higher level of quality services at the Airports,Fast and dynamic development,Increasing of security, safety and concurrency in the region.
12Key to successPlaned working activities of PEAS “Macedonia” in 2007 are based onrealized traffic and results from the past 2 (two) yearsthe real air traffic forecasts and commercial activities for year 2007 and takeover of runways from CAA are taken in to consideration.
13Planned PostulatesIncreasing the traffic at Airport “Alexander the Great” and Airport “St. Paul the Apostle”::number of operations up to 3,3%,number of passengers up to 4,5% andtonnage of cargo shipments up to 8,9%Increasing the revenues from made activities (aeronautical revenues, commercial revenues, and other revenues) up to 11,07%
14Planned PostulatesTransformation of PEAS “Macedonia” in to join stock company under government authority;new statute will be preparedterritorial issue will be regulated andpercentage value of Public Enterprise’s capital will be entered in the PEAS “Macedonia” register books.Public enterprise actively participates in International tender of creating a consultant team for preparing Study with model for development of Airports.
15Planned PostulatesProgram that includes all necessary investments in Airport “Alexander the Great” and Airport “St. Paul the Apostle” forEquipping both airports with new specialized vehicles for winter service, handling, rescue and fire fighting, security, sanitary services;Improving the electrical systems, set power units, heating and cooling, telephony, protection from birds, purify and water supply, X-Ray as well as improving the personnel working and self-protection uniforms.Progressions in IT check-in passengers, announcing the flights and advancement in advertising billboards and lighting system.
16Planned PostulatesBuilding up passenger terminal at Airport “Alexander the Great”- Skopje in first two phases (five in total)With international tender that will put up the handling services in terminal at level “C”, which will be increased up to 1,5 million passengersIn addition, existing terminal and outbuilding of Administrative - technical building, police, companies and customs are includedFinancial construction will be supplied 40% from own resources, and rest of the funds will be supplied from bank credits. Construction will be in phases with dynamic plan for several years.
17Planned PostulatesDuring year 2007 announcement of international tender for project and realization of Airport Terminal (I phase, refresh of existing building) is planned.Enterprise’s basic activities (non aeronautical services)will be appointed to increase marketing level of present and development of the new effect following the example of modern airports in the region and abroad.
18Planned PostulatesImproving the general efficiency, as a measure of total success in the enterprise’s economy.Will be separate program index towards to rational usage of disposable resources and peak of usage effects.Outsourcing politics in part of catering, parking, VIP and CIP, Free Shop, security, exchange office and sanitary.Improving operating and organization efficiency using the experience of already approved projects in this area.
20OwnershipCurrently with Airport “Alexander the Great” and Airport “St. Paul the Apostle” is managing Public Enterprise for Airport Services “Macedonia”-Skopje.PEAS “Macedonia”- Skopje is an enterprise established by Government of Republic of Macedonia with 100% government ownership.
21ActivitiesBasic activity of this Public enterprise (PE) is handling aircrafts, passengers, baggage, goods and mail; operating on both airports “Alexander the Great” and “St. Paul the Apostle”.Besides basic activities, Public enterprise is performing additional commercial activities that are usually performing at the airports:managing free shops, catering restaurants, leasing business and advertising premises, parking areas, VIP and CIP salons, exchange offices etc.
22ManagementBoard of Directors are managing Enterprise, authorized by the Government of the Republic of Macedonia, under leadership of Director elected by the same Board of Directors, according to made changes in the Law on Public Enterprises.In the process is transformation of the Public enterprise in Join Stock Company with government ownership, and when this procedure is finished enterprise will be functioning according to Company Law.
24Domestic LegislativeAviation Law; Law on Public Enterprise; Law on Public Procurement; Customs Law, Collective agreement and Law on labor relations and Company Law.Regulations and Rulebooks:Regulations on safety and security of the airport,Rulebooks on airports and other regulations.
25International Legislation International rules and recommendation in the area of air traffic that address civil aviation administration:ICAOIATA andRequired Standard agreements on loan services (SGHA).
26International Legislation Following implications will proceed in the Assembly with ratification of Common European Aviation Area Agreement:Liberalization process, increasing flight frequency of the regular airline carrier and opportunity of attracting new airline carriers.Corrections will be in the part of Agreement’s clause between Government of Republic of Macedonia and MAT- Macedonian Airlines. When regulation come into force, above-mentioned Agreement must be discontinued or must be put in order with law and regulation of the Europe Union, according to Protocol. Influence of law cost carrierAim of PEAS “Macedonia” in 2007 year will be attracting law cost carriers, which will help increase revenues from the primary operations
28Aeronautical Services PEAS “Macedonia” is planningoperations during 2007 yearwhich is growth of 3,3% comparing to year 2006;passengers will be transportedwhich is growth of 4,5% comparing to passenger traffic from previous year2.570 tonnes cargo and mail will be also transportedthat will be growth of 8,9% comparing to year 2006.
30Forecast FactorsTraffic statistics data of Airport “Alexander the Great”;Growth of traffic in percent compared with 2004/2005 and first 10 month of 2006;General information of traffic growth - in the world, Europe and in the region (from ACI reports)Methodology forecast of development feasibility study for “Alexander the Great” from Scot Wilson,
31Forecast FactorsAccording to real economy growth of domestic Market, traveling requests with air traffic transportation are increased.Progress in carriers services, increasing number of carriers, or expending present frequencies.Variable growth of traveling requests due to liberalization of administrative regulations (alleviation during visa procedures, “open sky”, etc.)
32Traffic Departement – “Alexander The Great”- Skopje
33Traffic Departement – “Alexander The Great”- Skopje Handling of aircrafts in commercial aviation.Handling of 990 aircrafts in noncommercial aviation (general and military aviation).Handling of incoming passengers.Handling of outgoing passengers.Handling of transit passengers.Handling of transfer passengers.Handling and processing of tonnes baggage in arrival and departure.
34Operative DepartmentSummer schedule flights S`07 and winter schedule flights W`07/08, as well as weekly schedule flights are preparing in annual working plan.Operative pursuing and recording of traffic will be weekly done.Annual report for realized traffic in year 2007 will be prepared until end of January 2007 and it will be print like almanac.
35Operative DepartmentMonthly reports of realized traffic at Airport “Alexander the Great” and PEAS “Macedonia” will be prepared till middle of next month and it will be proceed toMinistry of Transport and Communications, Institution Statistics of Republic of Macedonia, ACI (Airport Council International), ICAO (International Civil Aviation Organization) and others.
36Protocol ServiceWorking flow in Protocol service usually depends on magnitude of international politics and economy activity in our country.Due to new resolutions for foreign economic investments in our country, meaning more domestic and foreign business travels in year 2007, are expected.
37Protocol ServiceImproving and developing of working procedures, as well as interior and technological equipping of VIP and CIP salons is planning during 2007.According to international experiences and needed trends of CIP passengers, these salons technologically will be equipped and following procurement will be done:new VIP vehiclenew furnishing in CIP (Audio system, TV, internet, Free shop)CIP change of PP pricelist, CIP club card, etc.
38Training CenterAccording to CAA, ICAO and IATA program, annual plan for year 2007 includes education of personnel, meaning professional training of employees in Traffic Department at Airport “Alexander the Great”.Own Training Centre that will expand activities in the other departments and services is planned to be opened.
39Cargo Center at Airport “Alexander The Great” - Skopje Reconstruction and modernization of Cargo center facilities:Providing separate warehouse for handling and processing of special cargo (provide handling and processing conditions for special cargo and storage in appropriate facilities. Radioactive materials with low radiation, dangerous goods, live animals, valuable and frozen cargo etc. according to IATA standards).
40Cargo Center at Airport “Alexander The Great” - Skopje Reconstruction and modernization of Cargo center facilities:Providing separate room for storage of domestic goods,Connecting Cargo center warehouses.Dislocating of existing facilities of Cargo center, while renovating, and temporary locating of new modules.
41Cargo Center at Airport “Alexander The Great” - Skopje Reconstruction and modernization of Cargo center facilities:Building up new working premises in Cargo center for Cargo Department purposes, Customs purposes, shipping representatives, delivery express etc.Reparation of present import and export hangarsPreparation for handling and processing of ULD containers.
42Cargo Center at Airport “Alexander The Great” - Skopje Modernization of facilities in the Cargo center:Providing new software solution for running of Cargo Center and installation of scan system for shipments and AWB (bar code);Supplying new computer equipment;Computer register of accepted and storage shipments and pursuing of delivered shipments provided by PEAS “Macedonia” web site
43Cargo Center at Airport “Alexander The Great” - Skopje Presentation and affirmation abroad of Cargo center services:Presentation of new Cargo center servicesPresentation of new price politicsPreparing strategy for attracting new domestic and foreign shipping and transport firmsParticipation of Cargo center in the affirmation part, providing services and branding of delivery expressProviding special conditions for possible cooperation with Free economy zone
44Cargo Center at Airport “Alexander The Great” - Skopje Activities in Cargo center related to human recourses:Professional edification of Cargo center employees withproviding professional literature and forming small library regarding to cargo traffic, as well asprofessional training of employees with course attendance, helping them to get an appropriate certification and opportunities for knowledge refreshment
45Cargo Center at Airport “Alexander The Great” - Skopje Activities in Cargo center related to human recourses:Organizing attendance of seminars and getting advices helping them to bring closer EU and IATA standardsVisiting International airports and their cargo centers so further cooperation will be more successful, getting new experiences and opportunity for implementing them in practice
46Cargo Center at Airport “Alexander The Great” - Skopje Activities in Cargo center related to human recourses:Define and increase employee’s responsibility, motivation and stimulation, or appropriate sanctioning is necessary in Cargo center through implementing procedures related to Traffic department, meaning handling service, so cooperation between them will be successful.Implementation of new, simplified procedures provided with new Customs Law of Republic of Macedonia, Europe Union and IATASupplying new Personnel Protective Equipment
47Cargo Center at Airport “Alexander The Great” - Skopje Activities related to Veterinary Directorate cooperation, regarding to Phytosanitary and Veterinary Border ControlBuilding of phytosanitary and veterinary station financed by EU.One part of the activities will be in year 2008, according to realization of Investment program.With realization of the planned activities Cargo center is expecting to be closer to EU regulations, international conventions and IATA.
48Traffic Department “St. Paul the Apostle” - Ohrid
49Traffic Department at Airport “St. Paul the Apostle” - Ohrid Handling and processing of 480 aircraft in the commercial aviation;Handling and processing of 70 aircraft in the general aviation;incoming passengers in terminal;outgoing passengers in terminal;Handling of transit passengers;Handling of tonnes baggage;Handling of 20 tonnes of Cargo & Mail.
50Cargo Center - OhridIncreasing commercial revenues according to services & taken activities:Aims of taken measures that will increase revenues should be group of small and medium stage companies that gravitate towards Airport “St. Paul the Apostle”.Acquisition and presentation of transport conditions for export and import goods;Marketing contact with potential clients via , TV reports, flyers;Maximum utilization of present infrastructure - storage facilities, transport vehicle.
51Planned Business Activities From Commercial & Other Services
52Non Aeronautical Services Non Aeronautical Services will be direct towards promoting of present and developing of new contents following the example of modern airports in the region and abroad.In the Scot Wilson (2004 year) Study it is point out that revenues from the non aeronautical services, nominal and per passenger, are not appropriate developed.
53Non Aeronautical Services However, increasing level of 20% at free shops, store, advertising and parking is planning with expanding of traffic capacity and infrastructure.Changes of these revenues can be making in outsourcing catering, parking, free shop and other, so stimulating part will be successful fee.
54Commercial and marketing department in PEAS “Macedonia” Enlarging list of client using advertising facilities so present capacity of business premises will be maximum utilized;At the same time Airports will be supplied with all necessary materials, spare parts, inventory and goods for further selling, on time, in the most economical and quality way. Furthermore, this sector will be realizing resolutions from the Committee on Public Procurement, related to procurement, prices, agreed goods quantity and quality.
55Commercial and marketing department in PEAS “Macedonia” Attracting airline companies which are not operating at Airport “Alexander the Great” in Skopje and Airport “St. Paul the Apostle” in Ohrid;Opportunities of usage shipping advantages, capability of catering service, specific accommodations (VIP, CIP and business salon) at Airport “Alexander the Great” in Skopje will be promote in public.
56Commercial and marketing department in PEAS “Macedonia” Catering Service - Airport “Alexander the Great” - Skopje:Improving will be according to HASAP standardslarger offer of airline companies and other subjects,outsourcing and other.Catering Service - Airport “St. Paul the Apostle” - Ohrid:Larger revenues from catering meals and beverages and other catering services, after constructing a buffet out of airport building, buffet in the exiting terminal & business salon.
57Safety and Security Department Safety and Security department withFire Fighting and Rescue,Anti diversion Protection,Security Protection andMedical services have to provide fire fighting and rescue security of air traffic devices and installations at Airport “Alexander the Great” in Skopje, as well as operative - technical security, anti diversion protection and medical support.
58Safety and Security Department In Anti diversion Protection part, whole certification according to Basic and Refreshment training is planning.Equipping and modernization of anti diversion protection devices are also included in the plan.In the Training center, better education and training in all security segments is taking into consideration, so for that purpose special personnel will be create and will be train.Attention will be at quality of security services, cooperation with authorities according to their warranties in aviation security.
59Maintaining Department In 2007, Airport “Alexander the Great” within electrical, machine-constructing maintaining, parking, winter service, sanitary and horticulture services will prevent current and investment maintaining the existing facilities and equipment.During 2007 in department’s frame, activities for regular and secure traffic operations in winter conditions will be taking. In addition, radio links and telephone network at the airport constantly will be maintaining.
60Maintaining Department Planned activities:Renovation of parking fleet through operative leasing,construction of new wastewater treatment plant,resolving sanitary problem with water,procurement of necessary airport equipment, and other.
61PEAS “Macedonia” Directorate Planned Business Activities
62Finance DepartmentDuring 2007, finance department will finish begun processes with implementation of international accounting standards.After Grant Thorthon estate is estimate, Finance department will proceed according to decision & conclusions from the ongoing audit.Issue of special engage will be rationalization of the constant cost structure. Costs according to places and organs will be review and compared to experiences of the similar regional and other airports.
63Finance DepartmentAlthough general finance situation will be determinate from the realized aeronautical and other services, finance politic will be creating according to finance principle and rules of financing. From the business aspect enterprise and it`s positive financial status, based on keeping the term structure of resources and liquidation sources, improving the capital structure and financing the development from own finance potential strategy, tactic of finance managing will be developed.
64Finance DepartmentProfessional analyzes of financial state and structure, according to international standards and rules conception of financial strategy and financial politics, is in process, and it will be present in front of the managing structures of the enterprise.Financial department will be working on methodology of rewarding the employees, according to invested labor, so flat or variable part will be pay off and that will be a way to stimulate each employee.
65Finance DepartmentSeparately will be treated and deliberated basic economical principles:Productivity issue as a measure for progress (showed qualitatively and quantitatively) related to put effort in the given time period;Economical issue as a measure of put effort related to complete investments in given period;Profitability issue as a measure for maximizing the long term profit compared to engaged capital.
66Department for Legal, Personnel and Mutual work Participation in Public enterprise transformation into join stock company with government ownership;According to regulation modifications and other general acts, new statute is preparing;Business procedures with adequate working strategy for human recourses;Analyze of current company running; define of methods and procedures that should be example for developing of overall organizational and operative enterprise managing.
67Department for Legal, Personnel and Mutual work Manager contract for the managing teams will be prepared withal transformation in Joint Stock CompanyNew Rulebook for organization & systema-tization of the Public Enterprise will passBesides authorization given by General Manager of PEAS for representing the enterprise at courts, department will take over and resolve all legal actions and will cooperate with lawyer’s offices.
68IT, Planning & Supervision Department Necessary personnel equippingProcessing WEB sites of the enterprise, presentation of information, interaction with customer users related to services, provided by the enterprise.Forming local program team, obligate to reply to all variety applicative solutionsHardware upgrading of the information system and computer network, as well as improving mobile and wireless connection.Professional training of IT personnel through attendance of seminars and courses
69IT, Planning & Supervision Department Improving IT knowledge of personnel, through organizing courses together with enterprise’s training centerApplicable solutions in financial managementApplicable solutions as air traffic application together with passenger’s system information or cargo center application, will be processed by programmer team
70IT, Planning & Supervision Department According to point out needs will focus on five main tasks:Building and reconstruction phase of Airport “Alexander the Great”Building and reconstruction phase of Cargo center at “Alexander the Great” in SkopjeParticipate in Investments at Airport “Alexander the Great” and Airport “St. Apostle Paul”Taking part in solving and proving the estate owner of terrain and facilitiesProviding construction and other license related to designing and constructing of facilities
72Revenues Revenues 2006 2007 Plan Percentage Air Traffic Revenues 6,85%Commercial Revenues29,77%OPERATIVE REVENUES11,07%
73Structure of Planned Operating Revenues Aeronautical revenuesNon-aeronautical revenuesRunway maintenance revenueFrom this revenues, participation of Airports is: Airport “Alexander the Great” with 93,04%, Airport “St. Paul the Apostle” with 6,96%.
74Expences Expences 2006 2007 Plan Percentage Employee Expenses -0,65%Material Expenses15,98%Non Material Expenses72,00%Depreciation9,93%Financial Expenses15,47%Total Operating Expenses10,22%
75Structure of Planned Operating Expences Employee expencesDepreciationFinancial expencesMaterial expencesNon-Material expences
76Expected ResultsAccording to all forecast plans in year 2007 PEAS “Macedonia” is expecting to achieve positive financial result of 101,29 million denars or 1,65 million euros.Profit will be reinvesting for Investment program purposes, using the tax changes that will positively influence on PEAS “Macedonia” reinvestment benefit.