The number of passengers passing through Tallinn Airport had already reached three million prior to the COVID-19 crisis. Under European Union regulations, this milestone means that ground services can no longer be exclusively provided by the airport itself; instead, the market must be opened to competition.

As a result, the government organized a tender, awarding the contract to the winner, who will now also be responsible for checking in passengers, handling their baggage and loading it onto planes. The 75-year-old company Aviapartner, which operates in seven European countries across 53 airports, won the contract.

"A contract has already been signed with them, and we are likely to see Aviapartner employees operating on Tallinn Airport's premises as early as next year," said Riivo Tuvike, CEO of Tallinn Airport. "Currently, when a passenger comes to check in their baggage, they are assisted by a staff member from Tallinn Airport GH at the counter. In the future, however, that person might be from Aviapartner. Similarly, during boarding, it could be an employee from the new company handling the process, as well as unloading baggage from the plane."

Ground service operations are based on contracts with airlines, meaning that Tallinn Airport will now need to put in significant effort to renew existing agreements. The exact financial impact is currently difficult to predict.

"This 'pie,' which is currently 100 percent handled by our subsidiary, will undoubtedly shrink. There will also be pressure on margins. We expect the impact to be significant, but it's hard to give a precise figure," Tuvike noted.

"We estimate it may cost around one million euros per year. Some contracts will expire in 2025. It's crucial for us to ensure that all airlines flying to Tallinn sign a cooperation agreement with our subsidiary."

Meanwhile, Tallinn Airport is preparing to expand its terminal. The cost of this reconstruction is estimated to be around €55 million, with no state funding expected.

According to Tuvike, the primary bottleneck at the terminal is baggage handling.

"The area where baggage is placed on the conveyor belt is quite cramped. This is one of the core areas we need to upgrade. Additionally, we're considering expanding retail space on the first and second floors and enlarging the border control area," he explained. The company is currently in the design phase, expected to be completed by early next spring, with the hope of launching the construction tender soon after. "We may be able to start some initial work by the end of next year. The entire program will likely extend until 2028-29, with major construction work taking place in 2026-27," Tuvike added.

Tallinn Airport aims to increase its annual passenger volume to five million by 2030.

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