Kohesio: discover EU projects in your region

project info
Start date: 9 June 2014
End date: 31 December 2017
funding
Fund: European Regional Development Fund (ERDF)
Total budget: 976 655,00 €
EU contribution: 463 911,50 € (47,5%)
programme
Programming period: 2014-2021
Managing authority: työ- ja elinkeinoministeriö, yritys- ja alueosaston rakennerahastot ja koheesiopolitiikka -ryhmä
beneficiary

Development of air traffic in Eastern and Northern Finland

The aim of the project is to develop the international accessibility of Eastern and Northern Finland, especially from the point of view of business. This objective will be achieved through the following sets of measures: 1) analysis of the current situation, 2) creation of understanding and refinement of objectives, 3) assessment of the potential of air transport from the perspective of industry, tourism and airports, 4) creation of action plans for both the project area and airport from the point of view of regional businesses. In order to achieve these objectives, the project will look at the structural and transport system problems that hamper development and propose an alternative, sustainable air transport system for SMEs to address these problems. The model will be developed through network-based cooperation and new forms of collaboration.Eastern and Northern Finland face common challenges in terms of accessibility and the characteristics of the region: such as long distances, low population density, reduced air passenger numbers, a fragmented economic structure and, in particular, problems of international accessibility. Despite the challenges, the region currently has good growth prospects, thanks to e.g. mining, technology and energy industries, international tourism and Arctic development. All sectors that are growing are international and require international transport connections and strong cooperation. Compared to other modes of transport, air transport has a role to play in serving business and international accessibility. In particular, tourism and export companies depend on smooth air connections. According to a study carried out by the Central Chamber of Commerce, transport connections are the company’s second most important competitiveness factor and the importance of air transport and international air connections for companies has grown significantly over the past ten years. 70 % of companies indicate that they do not invest in an area without smooth air connections. At best, air transport is the engine of the regional economy: the impact of air transport on the Finnish economy as a whole is EUR 8 billion per year, and air transport also has significant catalytic effects through different industries. For example, it has been calculated that two weekly flights from London to Rovaniemi would generate EUR 5M tourist income and 200 new jobs per year. In addition to its catalytic characteristics, air transport is a cheap and efficient way of organising accessibility in sparsely populated areas. At present, Finland’s air transport system does not adequately serve the needs of the regions’ business, especially from the perspectives of new potential and internationalisation. Compared to developments in neighbouring countries, regional airports in Finland are lagging behind, especially in terms of direct, affordable and high-speed international air services. From the perspective of Arctic development, the air transport system that ends at Finland’s borders clearly makes it difficult to participate in investment projects and job offers in Northern Norway, for example. Current accessibility challenges and air ticket prices are particularly detrimental to small export companies and companies active in the international tourism sector. From the point of view of internationalising companies, air transport connections are a basic prerequisite: it is practically impossible to increase the export earnings of companies without smooth, sustainable air connections. In particular, international tourism and other service sectors that contribute to adapting to structural change are particularly dependent on international accessibility. The diversification of market areas and economic structure also requires smooth international air connections.Air transport has been a growth sector throughout its history: air transport has grown globally by almost 5 % a year and has had a strong link with GDP developments. The growth of Finnish air traffic has been based on international travel and the development of Helsinki Airport since the beginning of the 1990s. On the other hand, domestic passenger numbers have even been decreasing. The number of passengers at regional airports in Finland lags behind both the global average and the development of neighbouring provincial airports. From the point of view of the current airport network, Eastern and Northern Finland is a deadlock in air traffic: air traffic in the region has been built almost entirely through Helsinki and there are no international connections. Further connections via Helsinki have also proved to be problematic. Domestic flights were not compatible with the international waves of Helsinki Airport, domestic flights operating from the point of view of connecting connections are quickly sold out in the most popular routes, and the lack of competition has led to expensive ticket prices.

Flag of Finland  Lapland, Finland