Covid-19 crisis to spark ‘new commercial niches’

By Andrew Pentol |

Lithuania cinema project smallAirport operator Lithuanian Airports is predicting a ‘slow and gradual revival’ from a commercial standpoint in the second half of 2020.

The state-owned enterprise, which manages Vilnius, Kaunas and Palanga Airports, believes the gradual resumption of flights in various countries and increasing number of passengers is setting a positive tone.

From a Lithuanian Airports perspective, 13 May 2020 was a significant milestone for the country’s aviation industry. The first passenger flights resumed at Vilnius Airport, when Lufthansa connected the Lithuanian capital with Frankfurt in Germany.

This significant development was a catalyst for the resumption of further flights and a few days later, with airBaltic re-establishing routes to Riga and Tallinn.

Since then, Palanga Airport has reopened for regular passenger flights and this week, Wizz Air resumed flights connecting Palanga and Dortmund in Germany. Kaunas Airport is also up and running again, with Wizz Air resuming services to Alesund, Bergen and Eindhoven. Flights to Stavanger in Norway also restarted yesterday (4 June).

NEW ROUTE NEGOTIATIONS

All potential new routes are being negotiated at state level and are only approved following analysis of the coronavirus (Covid-19) epidemiological situation in each country.

heinemann-walk-through Vilnius

Travel retailer Gebr. Heinemann opened a new walkthrough store in the Schengen area at Vilnius International Airport in 2018.

With this in mind, flights resumed yesterday (4 June) between Lithuania and France, Denmark and Finland, following approval from the government.

On the retail front, 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 a new 850sq m walkthrough in the Schengen Area in October that year.

The year before that, the retailer opened two Heinemann Duty Free and Travel Value outlets in the Schengen Terminal zone at Kaunas Airport.

Speaking exclusively to TRBusiness, Justinas Stepsys, Chief Commercial Officer, Lithuanian Airports says some tenants have reopened stores at Vilnius Airport. “We are definitely not operating at full capacity, but with more and more flights resuming, we are planning to reopen most of our duty-free zones, shops, cafes and other services.”

He added: “We are in constant contact with our business partners and understand their challenges and needs. This enables us to react quickly together and solve issues which arise. We share a common interest.”

Stepsys admits planning for the future is difficult, but remains positive. “As more countries ease travel restrictions, more people will want to travel by air again.

“Commercially, I believe new niches and activities will appear which were not present before the Covid-19 pandemic, but firstly, all our energy is focused on maintaining partnerships with existing operators and global business partners.”

Kaunas opening BIC PIC

A Gebr. Heinemann Travel Value outlet at Kaunas International Airport.

As the Covid-19 situation has intensified worldwide, partnerships have become even more significant. Supporting business partners has been one of the main priorities for Lithuanian Airports. “We perfectly understand that working together is the only we can prepare to restart with full energy when this intense period is over.”

Lithuanian Airports, therefore, offered a relief package to businesses in order to maintain ‘sustainable ties.’ He explained: “Throughout the quarantine in Lithuania, all business partners affected by the sudden drop in passengers, are not required to pay minimum monthly guarantees.

“Once the quarantine is lifted, business partners have the option to delay rental payments for the first two months by 90 days.

“This relief package has been offered to duty free shops, other shops, cafes and restaurants, ground handling companies, car rental companies, parking lot operators and other businesses operating at our airports.”

Lithuania Airports Heinemann sunglasses offer

Those who feel confident enough to start travelling again when restrictions are lifted will surely seek promotions and opportunities to save.

Since 1 June, citizens of 24 European countries (Austria, Bulgaria, Croatia, Cyprus, Denmark, Finland and France among others) have been able to enter the country for non-essential purposes without having quarantine for 14 days. This is the because the Covid-19 situation in these countries is relatively under control.

Regarding Lithuania as a whole, the government is planning to end the Covid-19 quarantine on 17 June and replace this with a milder legal regime to manage the virus.

NEW PASSENGER EXPERIENCE?

Asked by TRBusiness how the overall airport passenger experience might chance across its airports in the post Covid-19 world, Stepsys remarked: “I have no doubt that passengers will pay much more attention to safety. For us at airports, the topic of safety has always been important. In aviation, safety has always been, is and always will be the top priority.

“Whether we’re talking about processes directly related to aviation, or the operation of an airport restaurant, everyone must adhere to strict rules and regulations.”

In these challenging times, maintaining passenger safety and implementing necessary measures has also been a priority. “This is important for our passengers, colleagues and businesses present at our airports,” he emphasised.

Justinas Stepsys Lithuania Airports

Justinas Stepsys, Chief Commercial Officer, Lithuanian Airports says partners affected by the sudden drop in passengers are not required to pay minimum monthly guarantees.

Several changes have been made across it three airport. Some relate to processes, but the majority are clearly visible. He explained: “The main health safety measures at all Lithuanian Airports — in Vilnius, Kaunas and Palanga — relate to passengers maintaining social distancing, managing passenger flows and reducing the probability of human contact.

“Passengers are reminded that adhering to these measures is their responsibility.”

All passengers must pass a thermal inspection before being able to enter terminal buildings. They must also present a valid flight ticket. Personal protective equipment, which can be purchased at the airport has to be worn at all times.

“Hand disinfection stations are placed in commonly used areas and all surfaces are regularly cleaned and disinfected. Information on recommended safety measures is revealed through airports’ audio system and is shown on information screens,” Stepsys stated.

Lithuania Airports Seating

Seats will be limited in terminal buildings to maintain social distancing and only every second seat will be used.

Currently, a limited number of registration desks are operational and are further secured using glass walls. All passengers queuing to register for flights are required to maintain a safe distance from each other.

Stepsys said: “Protective glass walls are also being erected at aviation security screening checkpoints. There, hand disinfectants will be available for passengers and all surfaces will be regularly cleaned and disinfected.

“Baggage trolleys and all other equipment used by passengers will be regularly cleaned and disinfected. Boxes used as part of the aviation security screening process will be disinfected after each use.”

Lithuania Airports glass registration desks

A limited number of registration desks are operational at Vilnius, Kaunas and Palanga Airports and are further secured using glass walls.

Seats will be limited in terminal buildings to maintain social distancing and only every second seat will be in use. Stepsys added: “Ground handling providers will be required to disinfect their busses after every flight, while passenger numbers will be controlled during bus journeys to planes.”

IMAGINATIVE CINEMA PROJECT

While pulling out all the stops to support partners and ensure the safety of employees and passengers now and in the future, Lithuanian Airports has tried to remain innovative.

The launch of the company’s Aerocinema — The journey Begins — project at Vilnius Airport certainly captured the imagination of people globally.

Situated on the airside tarmac at Vilnius Airport, visitors were able to watch movies on a huge outdoor screen from their cars. The project ran until the end of May in an area which had only ever been used for parking, refuelling and aircraft boarding.

“The Aerocinema project at Vilnius Airport 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,” Stepsys recalled.

Lithuania Cinema screen shot

Visitors were able to watch movies on a huge outdoor screen from their cars as part of Lithuania Airports’ innovative cinema project which attracted attention around the world.

During the pandemic, the commercial team has been constantly seeking new opportunities, alternative non-aviation services and additional cash, which is extremely important during this period. “We also want to clearly show that an airport can be a venue for all sorts of events.”

Further reflecting on the cinema project, which had generated more than 10,000 visitors at the half-way mark, Stepsys said: “We are happy that the organisers of the Vilnius International film festival (Kino Pavasaris), offered us a solution which suited us very well.

“There were multiple organisational challenges, but everything was arranged very fast. Visitors enjoyed quality and well-known movies right beside airplanes. This gave them the feeling of aviation.”

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