In 2011, no other airport in Scandinavia can match Stockholm Arlanda Airport in passenger growth. In fact, the entire Swedish aviation market is one of the fastest expanding in Europe. The secret to this success is due in part to solid economic growth in the country, but also to a large extent to the increasing interest in Sweden shown by international travellers. Given that Sweden is the leading market in Scandinavia, this positive trend is expected to continue and a key stakeholder in this growth is Swedavia, the operator of eleven airports across Sweden.
Between January and September of this year, Stockholm Arlanda Airport witnessed an increase of 1.6 million passengers over the same period in 2010. Of these, over one million were international passengers. Sweden has thus strengthened its position as the leading market in Scandinavia for incoming passengers. The secret behind this success is a strong international brand and attractive destinations. Stockholm draws the most visitors, and the city is well known for leisure activities such as shopping and its vibrant nightlife as well as business development. In fact, Stockholm was recently identified in a survey as one of the European cities with the greatest potential in the coming years. However, air transport there is not as developed yet as in comparable cities and Swedavia, which operates eleven airports in Sweden, intends to change that.
“Increased international access is a priority for us,” Torborg Chetkovich, Chief Executive Officer, Swedavia exclusively told The HUB during a recent interview. “We are actively developing new competitive destinations as well as securing investments at our airports in order to make everyday life easier for travellers,”
And it seems like Swedavia is on the right track. Lately, new airlines have decided to expand traffic as well as add destinations. “The market is simply too good to miss out on. More and more people are finding their way to Scandinavia, and Sweden is the heart of the region,” added Brett Weihart, Director of Aviation Business, Swedavia.
This year at Routes Berlin, Swedavia, together with its partners, brought the message to airlines to avoid the suburbs. The idea is to showcase market potential by focusing on incoming traffic. The campaign is a continuation of the successful drive to position Stockholm as the capital of Scandinavia. Yet talking to the new Chief Commercial and Marketing Officer at Swedavia, Michael Persson Gripkow, one understands that much more thought is being put into this campaign.
“Our customers already know a great deal, for instance, about the high concentration of corporate headquarters and the favourable location of our airports. This is our way of putting an emphasis on the growing interest in Sweden as a destination and on expanding business relations between Sweden and the rest of the world.”
But, who chooses to visit Stockholm? Surveys show that the increase in passenger numbers is largely attributable to visitors from Britain, the US, Germany and China. The same survey also shows that these visitors tend to spend more money in Stockholm than in other major cities in the region. Stockholm provides the unique combination of a modern city located on the water with high-quality nature experiences and an opportunity to take part in Scandinavian history, international trend-setting music and design, and a welcoming atmosphere. In fact, with its location in the centre of Scandinavia, Stockholm has always been the heart of Scandinavia, and for those who want to explore more of the region, Stockholm is seemingly the main starting point.
There are a variety of secrets not yet discovered by mainstream tourists. To enhance the competitive strength of these secrets, Swedavia recently took the initiative to form a special company, together with other partners, to promote these often small destinations. The aim is to develop twenty new destinations that can attract new visitors as well as convince people who have already been to Sweden that it is time for another visit.
“There is tremendous potential in the market, not just for Stockholm but for many of the destinations where we operate airports. Gothenburg, for instance, has attracted a variety a new airline connections. The time is really now. Travellers are waiting for expanded direct connections,” explained Brett Weihart.
Despite the fact that the final destination for most passengers is Stockholm, today most intercontinental flights are routed to Copenhagen. Among the intercontinental destinations showing the largest increase in passengers, Stockholm Arlanda Airport only has direct connections with New York, Chicago and Beijing.
“Of course we see a variety of opportunities,” observed Torborg Chetkovich. “Sweden and the US have a strong historical relationship that we have seen develop over the past few years. More and more Americans are visiting Stockholm, and vice versa. We are also seeing increased business partnerships, especially as reflected in the high concentration of international headquarters in Stockholm.”
As Ms Chetkovich notes, the highest concentration of international headquarters in Scandinavia is in the Stockholm region. Many of the industries located here, such as life sciences, research & development and high-tech, are particularly dependent on a well-educated recruitment base as well as suitable air travel connections.
Stockholm Arlanda Airport is the main gateway to Sweden, and almost all international passengers travel via the airport. As a result, it is considered Sweden’s main port, which reflects how Sweden wants to be depicted. Not surprisingly, Stockholm Arlanda Airport has focused on the environment and how aviation can reduce its environmental impact. The airport was the first to achieve the highest level of ACI’s environmental accreditation.
Today, representatives from many international airports still visit Stockholm Arlanda to obtain knowledge about energy efficiency, renewable fuels for ground transport and much more. The airport also attracts attention for ensuring effective operations under challenging circumstances such as during the winter months. Last year, when many airports in northern Europe closed due to heavy snowfall, Stockholm Arlanda managed to maintain access to and from Sweden.
“It is not only the effectiveness of the airport that stands out. For instance, our general incentive programme, to promote new or expanded destinations as well as joint partnerships with other stakeholders such as the Stockholm Visitors Board, has a generous offer for airlines. It also shows that the whole region stands behind our efforts to attract more airlines to Sweden,” said Brett Weihart.
Lately, the general economic situation in Europe has been turbulent. However, Sweden is clearly a shining star in its handling of the economic crisis. While the economic outlook for the country was revised slightly on account of the current international climate, growth of 2 per cent is still expected in 2012. Government finances are also in excellent condition, with a balanced budget, even if the situation were to grow worse than forecast. Over the past few years, Swedish households in general have also experienced greater economic well-being and now pay substantially lower income taxes than previously.
Sweden’s solid economic base and sustained international competiveness are apparent, as indicated in particular by the dramatic increase in domestic air passengers, which has exceeded all forecasts. So far in 2011, the number of domestic passengers has risen by 19 per cent - in contrast, overall domestic growth in Europe has been nine per cent.
“Of course, Swedavia has benefited from the general economic situation, but at the same time a large part of our growth is due to the increase in international passengers to Sweden. The general image of our country is positive in many aspects. Swedes are highly appreciated, reliable business partners, particularly in growth economies like China and Brazil, and we have many examples of companies, like H&M, IKEA, Volvo and so on, that further enhance people’s knowledge and impressions of our region. I think that Sweden’s global footprint, if you will, generates curiosity among a variety of people, young and old, which encourages them to visit,” explained Ms Chetkovich.
But, Swedavia offers not just Stockholm Arlanda Airport; it plays a crucial role in delivering the access that all of Sweden needs. The company operates a total of eleven airports scattered across the whole country, from Kiruna in the north to Malmo in the south. As a result of its company structure, Swedavia can deliver a close relationship, focusing on making everyday life easier for passengers as well as promoting top-class commercial development across Sweden.
“Our main focus for the next few years is to increase customer satisfaction at all our airports. We deliver by making hands-down investments and by working together with partners. At the same time, we need to continue our international leadership in the field of environmentally friendly solutions and improve our commercial development,” noted Ms Chetkovich.
Swedavia is working to provide a very competitive product against international rivals, particularly through its pricing structure and its performance this year suggests the future holds great potential both for Sweden and the company. Showing the rest of the world that Sweden is the heart of Scandinavia is the first step in highlighting these remarkable advantages.
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