State enterprise Oro Navigacija becomes public limited liability company: 100 percent of shares shall be managed by the Ministry of Transport and Communications

On the week of January new articles of association of the enterprise will be registered at the Centre of Registers and the authorized capital will be formed, the amount of which will reach 46.06 million EUR, whereas the value of one share will be 1 EUR. After the reorganisation of state enterprise into public limited liability company, the entire shares of which will be state-owned, the Ministry of Transport and Communications will manage 100 percent of shares of public limited liability company Oro Navigacija.

Oro Navigacija has 302 employees and their everyday work shall not be affected by the upcoming changes. Members of the Board appointed by state enterprise Oro Navigacija shall continue to run their positions as members of the Board of public limited liability company Oro Navigacija, Audit Committee will be formed in the company. 

“State enterprise Oro Navigacija shall retain the status of a company significant for ensuring national safety. Moreover, the reorganisation of state enterprise into public limited liability company shall provide additional tools to adapt new forms of activity, partnerships and implement other solutions, that will enable to respond to situations in flexible and prompt manner, ensure the maximum efficiency and render the highest benefits for the state”, claimed Chief Executive Officer of state enterprise Oro Navigacija Saulius Batavičius. 

“During the recent years, aviation market has experienced one upheaval after another in recent years, nevertheless, due to purposeful and efficient management of the assets and activity, state enterprise Oro Navigacija ensured sustainability of working capital. We will continue to focus on optimizing the main activity and opportunities to increase the income from new additional activities, the share of which among all the provided services we would like to increase”, underlined S. Batavičius. 

In 2020 the aviation sector was shaken by COVID-19 pandemic and even though the first signs of revival of the flights were witnessed in 2021, the arising optimism was subdued by the war in Ukraine commenced in 2022, due to which the airlines registered in aggressor country Russian Federation were forbidden to use the airspace of the European Union, in response to which the Russian Federation also introduced equivalent sanctions. 

“Even though the beginning of 2022 promised a recovery of the aviation sector after the pandemic, the war in Ukraine fundamentally changed the situation. Due to the sanctions imposed upon the Russian airlines and the retaliatory sanctions of the Russian Federation imposed upon European airlines, the number of overflights decreased drastically – down to 60 percent. Since the services provided to overflights comprise up to 80 percent of the entire income, that had no significant negative influence upon the performance results and monetary flows of the enterprise”, claimed Chief Executive Officer of state enterprise Oro Navigacija. 

According to him, the impact of the sanctions upon the aviation sector shall remain significant.

In 2021 state enterprise Oro Navigacija provided services to 128.1 thousand overflights, which comprised 78 percent of the entire number of serviced flights. Despite the fact, that the number of aircraft landing and departing from national airports is increasing, it does not compensate the losses of the overflight services. 

Last year the income of state enterprise Oro Navigacija in comparison to 2020 increased by 64 percent up to 26.92 million EUR and the enterprise earned 4.89 million EUR of net profit. In 2020 the net loss of the enterprise amounted to 4.99 million EUR. 

 Last year one employee of state enterprise Oro Navigacija provided services to 705.4 flights. Whereas before the start of COVID-19 pandemic, in 2019, this number reached 1050.

Updated at: 2022-12-15 11:46:22

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