CZECH REPUBLIC
In the Heart of Europe
 

ING. MARTIN KACUR

ING. MARTIN KACUR
General Director of the Czech Airports Authority


CZECH AIRPORT AUTHORITY


Contacts:

Prague, the 26th of November 2002
Tel: +420 220 113 113
Fax: +420 224 933 551
http://www.ssz.cz


 
Could you present to our readers in a nutshell the main functions and the history of the Czech Airports Authority?

The Czech Airports Authority and especially the Prague Ruzyne Airport have a very long history. The name of the company operating the airport has been changed many times during these years, and also the position of the company within the different governmental bodies. I will speak about the last years, the recent period of the Czech Airports Authority. Until 1991, there was only one company - Czech Airlines, which was the official Czech carrier and at the same time it was airport operator. In 1991 there were changes in this structure and the company was divided into two separate parts, one for running the airline and the second for operating the airports, this is how the Czech Airports Authority was established. At the beginning we had a very special legal status - "allowance organization", but after a short period we were transformed into a state enterprise. That means we are owned by the state, however we are operating on our own budget. We do not receive any finance from the state budget if I do not consider some donations that were received by the company at the beginning of its operations, like for the land acquisition or certain environmental projects. Since the year 2000 we have not received any grants from the state. We do not only operate the Prague Ruzyne Airport, but also three other regional airports in Brno, Ostrava and Karlovy Vary. From July of year 2002 we implemented a pilot project at the Brno and airport is partially in private hands now. It is very similar to giving concessions of the airport operations. We discussed this issue in France with our colleagues, the way they are operating the airports, and what are the concession projects there. So it is very close to the French concessions model of operation of the regional airports. At the moment we are discussing the future of the regional airports with the Ministry of Transport, we are also discussing the position of the Czech Airports Authority, whether it will go into regional hands, or it will stay under the supervision of the state, or it will be privatized. It has not been decided yet, and there is no final stage on this matter. However, as for the Prague Airport, after the agreement with the Ministry of Transport we have one priority, the extension and the construction of the new terminal. Any transformation of the Czech Airports Authority from state enterprise into stock company will be done after the construction is finished.

What are the plans regarding the construction of the new terminal and how will it increase your capacities?

This construction will increase our capacity substantially. I remember, in 94/95 the old terminal had an operating capacity of 2.3 million passengers per year and there were 3.2 million passengers passing through this terminal, so we were 1 million over the projected capacity. When you look at the statistics, in 1991, there were only 1.5 million passengers going through this terminal. However in 1994/95 we were at the limits of the capacity, we had to start quickly with the construction of the new terminal. In 1997 we increased capacity of the terminal to 4.8 million passengers per year. We were lucky to have this terminal because the growth of passengers numbers was so high that we were not able to operate any longer within the old terminal. Shortly after, we had to add another "check-in" island within the existing terminal. In the 2002 we already extended Pier B to the full length (same as Pier A - 200m). Now we have a yearly capacity of 6.4 million of passengers but we are still looking for other improvements. At the airport, there is never one time/final investment. You always have to be flexible and adapt to the number of passengers or to the new operational conditions. Last year (2001) we had 6.1 million passengers and even though the floods affected the traffic at Prague Airport more than September-11, we expect to reach at least the same figures in 2002 year. The number of passengers is steadily increasing so we are very close to the limits of the terminal again. Not only the growing number of passengers, but also the approach of the EU, and the Schengen Agreement is forcing us to the construction of the new terminal and building new facilities for this type o traffic. Till the end of 2005 we expect to have finished construction of the new terminal that will allow us to divide the traffic, one especially for Schengen passengers and the rest for the non-Schengen. Once we finish the construction, we will have even free capacity for next years, however till this time we will have to run the airport over its projected capacity for the next two-three years. We expect the Schengen traffic to grow faster after joining the EU and that is why the new terminal will be built for those type of traffic. These are our plans for the near future, for the years 2003-2005.

What are the new services, such as cargo, or the rental of shops and office spaces for example, you are developing along with the new terminals?

As for cargo services we are not as well developed, as one would expect it. We have prepared and selected area for the cargo zone within master plan of the Prague Ruzyne Airport. Now, because of the construction of new terminal, the Czech Airlines cargo terminal has to move to this new area within two years. We believe that the cargo will grow more substantially. Everything depends on the situation after joining the EU, on the economical level of the Czech Republic. Prague airport is not a primary hub within Europe, we need to extend our long-haul services and this will bring with it the development of the cargo transport. Today, trucks within Europe transport most of the cargo and it is a strong competition for aviation in Europe. All this part of our revenues and when speaking about them at the Prague Airport, 60% of revenues come from aeronautical charges (landing fees, noise, passenger and parking charges). The rest comes from non-aeronautical activities such as rental of offices and shops, car-park fees, advertisement, etc.

Do you expect this ratio to change?

We are working on changing this ratio. If we compare it with the previous period, we had 70% of revenues from aeronautical activities, so it is improving.

The privatization of the Czech Airports Authority is one of the possibilities for your development. Could you tell us about your plans, your expectations and from your point of view, what are the advantages that it would give you?

This does not only depend on Czech Airports Authority. It will be decided together with the Ministry of Transport. The most important question is how ministry will cope with the operation of regional airports in the Czech Republic. To operate an airport, as the one in Prague, is easier because we have sufficient passenger traffic and movements of the aircrafts, however the regional airports have to face the problem of lack of passengers and they need support. After setting these decisions on running of regional airports, there is time to solve the future of Prague Ruzyne airport, the main gateway into the Czech Republic.

Since the CSA has joined the Sky Team. Could you tell us how it affected your work at the airport?

We are the hub of the Czech Airlines. We can mainly notice it on the number of the transfer passengers. with more than 20% growth comparing 2002 to 2001. We can see a much better utilization of the aircrafts and better seat occupancy. The partners within the Sky Team have the same experience here in Prague. When we compare for example Amsterdam airport's volume of passenger with the population surrounding Amsterdam, it is approximately the same ratio as in the Czech Republic. At the other hand, you cannot increase very much the number of passengers, from Prague to another destinations. From a certain level of airport traffic volumes it is essential to start to attract more transfer passengers and this is very much associated with the airline or the group of the air-carriers, that have their hub at the airport. So we have now reached the position of some other airports that they had a long time ago when they started building themselves as hubs.

Can you tell us about your cooperation with Air France, from the time when it was co-owner of CSA and how are your relations now with Air France or French companies?

Our cooperation has not changed significantly. We are trying to keep our best relations with all the airlines. Of course, the airlines always want the best services for the lowest price and of course, there are compromises all the time. We are in discussions with the airlines, regarding our investments and mainly with Czech Airlines, because they are the most affected by our investments.
Air France belongs to the group of the most important companies and they are very interested in the development of the airport. Our relations are at least as good as they were before CSA joined the Sky Team.

The latest challenge for the airport was the NATO Summit when you had to carry out a lot of special duties. How successfully was it carried out from your point of view and what were the lessons you were able to learn from it?

The Prague NATO Summit was success, not for the airport only but also for the whole Czech Republic. We were really afraid how we would be able to cope with it after the floods in August. But we were ready, the police was prepared very well, with appropriate measures at the boarders, the army was also prepared and the cooperation between these two the most important subjects and all other involved was well coordinated. Prague airport was prepared as well, we started to discuss arrangements for the Summit at the beginning of the year, especially arrangements in security and operational area. The only problem we had till short time before start of the Summit, we did not know what type of aircrafts would the delegations arrive with and we could not prepare for the parking of the aircraft in advance. At the end we received all relevant information a few days before the Summit and we made it on time. What we learned from this Summit was that we are able to do much more than we expected and we learned a lot about the cooperation with the police, army, Ministry of Foreign Affairs, etc.

Now, after having it accomplished would you do it again?

Yes, why not. I think it is a very good opportunity for Prague, the Czech Republic and the Airport to show that we know how to do things correctly. And it is a good promotion of the Czech Republic as well.

As you know our readers are business people and besides the business they also like to know about the people we interview, could you tell us about your professional background?

I studied in Prague at the Czech Technical University at the Faculty of Mechanical Engineering. I majored in Aviation, so I am working in area I studied. I finished my studies in 1994 and since then I am working for the Czech Airports Authority. I started at the operational department, airport operation control, after that I worked at the department responsible for corporate strategy, then shortly within the IT department and then I moved back to the operational department worked as a deputy general director of the airport operations. Since July 2002 I am at the position of general director of the Czech Airports Authority. I think it was quite a fast career, but a lot of things depend on people you have around and I have them.

Previous Read on Next