Limak Kosovo Airport - Company of the Year
Company: Limak Kosovo Airport, Pristina, Kosovo
Company Description: Limak Kosovo Airport - LKIA - has taken its place one of the most successful, fastest-growing airports in the world.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Transportation - Medium-size
Nomination Title: Limak Kosovo Airport
Tell the story about what this nominated organization has achieved since 1 January 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
‘Coming of Age’
Just a few short years ago, while privatization was an “old story,” a fresh approach was used by the Limak Kosovo International Airport (LKIA) in Pristina, Kosovo.
The gamble paid off: LIKIA has taken its place one of the most successful, fastest-growing airports in the world.
Unlike the privatizations of the 1990s in the former Soviet Union republics, the acquisition of LKIA by Turkey’s Limak Holding and France’s Lyons Airport in 2013 was a smart move. In reality, the transaction was more of a “public-private partnership” with a 20 year contract consisting of a 100% investment ($140 million) from the Turkish holding company and the French airport. Yet the Kosovan government retained a 30% share. For all partners, this was a new business model.
Quality-orientated, the partners and management committed themselves to a major ‘big project:’ the completion of the construction of the new terminal of the Pristina International Airport by being the chief development officer of enterprises at LKIA and the author of the master plan of the new terminal. One of the benefits of being a late starter, projects can have the most current “smart” technologies, environmentally sustainable infrastructures, special airport power supplies and ground lighting, passenger handling logistics and more (see attachment for details).
A key component of the transformation, nearly 700 employees have made the leap from state workers to savvy professionals who can multi task and make decisions.
2016 OBSTACLES OVERCOME
Since the LKIA privatization, 2016 was marked by:
FIERCE COMPETITION from the neighboring Macedonia government that was offering untenable discounts and concessions to airlines. This was overcome by:
-massive recruiting of airlines
-opening of new routes and destinations never before offered from the region (far more valuable than discounts & concessions)
HIGH TAXATION: despite a hefty increase of government taxation to 30.9% of revenue taken, LKIA achieved profitability by adding new destinations and routes which increased passenger volume and services…resulting in a 12% increase in revenue.
-Revenues from sub concessions, such as the duty free shops and cargo services created a 37% increase in incremental revenue
-Expense control was high and approved only for enabling normal operating activity of the airport
Emerging from its cocoon of privatization, LKIA has ‘come of age’ in a big way. For the first time in its history, LKIA reached 1,744,202 passengers, an increase of 13% whereas the number of Air Traffic Volume soared to 13,693 or 8.1% more.
LKIA has excelled in all areas of its business:?
Fast Growth: forged agreements with international carriers to use the airport, 13% growth in just one year
Financial Performance: achieved gross profit margin of 34% and 7% net profitability
Marketing Performance: put a “face” on the airport and created first ever targeted marketing program?
Customer Service: trained 663 staff from all areas of the airport to multi task, put the customer first and make decisions
Process Improvement: enabled employees to multi task, apply lean principles to operations?
Overall Innovation: became the first “smart” airport in Europe ?
Technical Innovation: first to use “smart” technologies for infrastructure and operations
Sustainability: Reduced electricity consumption by 20% per passenger; reduced water consumption by 10.71%; decreased carbon emissions by 12% in relative emissions
Corporate Social Responsibility: established a business and engineering training institute, helping to reduce rampant unemployment
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this organization since the beginning of 2016 (up to 150 words).
2016 marked the year of LKIA’s “Coming of Age,” propelled by an eye-popping increase of traffic, growth and profitability. Unlike our immediate competitors – and most airports around the world, LKIA:
-Restored profitability, reversing 2015 loss
-Achieved 13% increase in passengers
-Increased seat capacity by 7%
-Reduced fees applied for airport ground handling services by 50% for airlines who offer new destinations additional flights to destinations already served
-Added 6 new destinations and increased frequency to several existing destinations
-Increased service quality in new terminal
-Privatized security, cleaning, etc. services for the airport
-Improved on time performance by 38%
-Increased customer satisfaction to 98% passenger satisfied with airport services (according to a survey of Airports Council International)
-Championed sponsorships in accordance with our “big heart” values: Pristina Basketball Club, American Councils for International Education-Kosovo, FVS Streetball Kosovo
Of the following measures of success, which ONE do you want the judges to most appreciate about your organization's story of achievement since the beginning of 2016?