Taotlus

NARVA-OLGINA BUSINESS PARK &

AERODROME

A feasibility study for a sustainable and

competitive business ecosystem

NARVA-OLGINA BUSINESS PARK &

AERODROME

2

Foreword

This feasibility study is a main part of the project ER201 «Preparations for establishing an industrial and logistics complex "Olgina Industrial Park/Airfield" in order to start regular flights between the border regions of North-East Estonia and South-East Finland, as well as to increase the investment and tourist attractiveness of the border region Narva, Narva-Jõesuu, Sillamäe» which is implemented under the European Neighborhood Instrument and co- financed by the European Union.

The geopolitical environment of Estonia has changed drastically during recent years. At the same time there is an urgent need to renew the industrial sector to align with EU emission reduction goals. In a difficult situation, there are many possibilities to create new business opportunities regarding green technology and advanced digital solutions. In the new operational environment, Ida-Viru requires new connectivity to western countries to boost the regional industry and form new business connections. To serve this need, the development of Narva-Olgina Business park & Aerodrome is suggested.

This study is done to improve the knowledge of the impact and opportunities of the planned Narva-Olgina Business park & Aerodrome to business and tourism in Narva and the Ida-Viru area. The whole country of Estonia will benefit of it.

The feasibility study is made by Redstone AERO in collaboration with Destia Ltd. Redstone AERO is an aerodrome developer and operator in Finland. Destia is the biggest infrastructure company in Finland planning, building and maintaining transport and energy infrastructure.

3

KEY HIGHLIGHTS

Aviation is changing

for the better Zero emission and dynamic aviation services are

coming – this opportunity should be used and

made the most of. The change will first happen in

smaller aerodromes.

Ida-Viru’s operational

environment is changing Whether it is economical or geopolitical, there is a

new possibility to renew industry and create better

connectivity with modern technology. The start of

hydrogen production and the production of

sustainable aviation fuel in Narva could

significantly increase the competitiveness and

attractiveness of the entire region for new

investments.

Narva-Olgina business park and

aerodrome Creating state of the art facilities to a greenfield

destination is an advantage as there are limited barriers

for development. An optimal future aerodrome can be

created from the ground up. The central pillar of

technical infrastructure must be the availability of

renewable source of energy (solar or wind)

Narva-Olgina business park and

aerodrome vision in three phases 1. Business park with 23 separate plots and 24/7

aerodrome for unscheduled aviation.

2. Regional zero carbon aerodrome with

development accelerating economic environment

in the business park

3. State of the art future aerodrome integrated with

business park

A unique business model that benefits

the whole region A combination of public and private co-operation

enables the efficient aerodrome and sustainable

flight operations

The development includes business

park development, aerodrome facilities

and aviation services These three functions create an ecosystem with

other industrial parks that improves the region’s

attractiveness and competitiveness.

1 2 3

4 5 6

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SUGGESTED OPERATIONAL MODEL AND IMPACTS OF NARVA-OLGINA BUSINESS PARK & AERODROME

Industrial transformation

Critical raw materials and

electrification

Sustainable energy

Technological development

Estonia as a forerunner in

digitalization

KEY DRIVERS SOLUTION

Geopolitical changes

Developing a business park

and aerodrome to boost the

economic situation of Eastern

Estonia.

Corner stones of

development

• Sustainable development

from the beginning

• High efficiency with

newest technology

• Goal to create user

friendly and agile services

that benefit the regional

and national economy

OPERATIONS MODEL IMPACTS

An operations model built

around public infrastructure

and private operations

• IVIA will own the

infrastructure that will be

funded by public

authorities

• Business park will be

formed by companies that

have synergy with the

aerodrome and aviation

services

• Aerodrome will be

operated by a private

operator that will focus on

profitable operations and

marketing the aerodrome

Better international

connectivity with sustainable

aviation

Leads to:

• Increased business

activity

• Increased tourism

attraction

• Increased population and

labour force

Investments resulting from

the development of the

business park & aerodrome

can cover all the costs of

running the aerodrome. It is

important to understand the

wider economic impacts.

SUMMARY

5

REPORT STRUCTURE The feasibility study is separated in four chapters

CHAPTER 1

- BACKGROUND

The future of aviation

• Background

• New low emission technology

• Technology development

Operational environment of

Ida-Viru

• Geographical context

• Operational environment analysis

• Ida-Viru business region

• Industrial and business parks

• Identified needs of different

stakeholders: residents, industry,

tourism, other actors

• Narva aerodrome current situation

• Catchment area

• Operational range of next gen aircraft

Benchmark of Finland

• Airports and aerodromes in Finland

• Finnish airports outside Finavia

network

• Case Lappeenranta airport

• Case Helsinki-East aerodrome

CHAPTER 2

- VISION AND PREREQUISITES

Background

• Vision for Estonian aviation

• Key drivers for development of the

Narva-Olgina business park and

aerodrome

• Examples of future aircraft

Aerodrome vision

• Aerodrome vision phases

• Vision for the energy system

Phase 1 next steps

• Phase one illustration

• Five-year plan for business park and

aerodrome development

CHAPTER 3

– OPERATIONS MODEL

Introduction

• General information on aerodrome

development

• The synergic functions of the

aerodrome

Benefits and impacts of the

aerodrome

• Understanding the benefits

• Beneficaries of the business park &

aerodrome development

Operational model

• Principles and guidelines

• Roles of different stakeholders

• Recommended operating

model and financing solution

• Role of the aerodrome operator

• Business model

• Marketing suggestions and funding

opportunities

• Legal framework

CHAPTER 4

– CONCLUSIONS

Feasibility summary for phase one

Opportunities and risks

Checkpoints for success

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CHAPTER 1 BACKGROUND • What is happening in aviation? • How has the operational environment changed in Ida-Virumaa? • What is the starting situation for developing the Narva

aerodrome? • What is going on in Finnish aerodrome and airport discussions?

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THE FUTURE OF AVIATION

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GET RID OF THE OLD IMAGE OF AVIATION AND AIRPORTS Black and white mentality is typical

OLD WORLD

• Large, crowded airports

• Pollution

• Large airplanes

• Fixed routes

• Slow processes and lead times

NEW ERA

• Small and agile aerodromes and airports

• Carbon neutral operations

• Varied size of aircraft

• Dynamic matching of demand and supply

• Short lead times and added value

Development of

aircraft

Flexible and diverse aircraft pool for different

use cases

”Route aircraft”

”Recreational aviation”

”Large airports & hub and spoke”

”Aerodromes”

Digital aerodromes and airports

H

V D

Remote tower operations

Highly automated operations

Wider aerodrome network

Development of

aerodromes and

airports

• We are stuck in old mental images (black icons)

• Development is happening in the middle ground (green icons)

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AVIATION EMISSIONS CAN BE REDUCED A LOT Most of aviation emissions originate from long haul flights – technology is developing in all segments

9

2025 2030 2035 2040 2045 2050

Regional aviation

< 1 500 km

74 % of flights departing from EU

airports

25 % of CO2-emissions

Short haul flights

1 500 – 4 000 km

20 % of flights departing from EU

airports

23 % CO2-emissions

Long haul flights

> 4 000 km

6 % of flights departing from EU

airports

52 % CO2-emissions

SAF

SAF= sustainable aviation fuel

SAF

SAF

Hydrogen

Electric

SAF

Hydrogen

Electric

Hydrogen

SAF

Electric

Hydrogen

Electric

SAF

SAF SAF SAF SAF

Hydrogen

SAF

Hydrogen

Hydrogen

SAF

SAF SAF SAF SAF SAF

Hydrogen

SAF

Hydrogen

Data based on Eurocontrol. Estimates of the different energy solutions future by the work group and based on Clean Sky reports.

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COMPARISON OF CLIMATE IMPACT AND SCALABILITY Sustainable aviation fuels, hydrogen and battery electric are all options for aviation but use cases will vary

Reduction in climate impact Scalability in the

whole aviation

sector

Key challenges Example companies that are

developing suitable aircraft Direct

CO2 NOx

Water vapour

& contrails

Battery electric Weight of batteries must be carried and requires

regular battery replacements. Charging infrastructure

and in some cases grid investments are required. Wright Electric

Hybrid-electric

with SAF

Weight of batteries must be carried, requires regular

battery replacements and two technologies makes the

system more complex. Heart-Aerospace

Bio-SAF Bio feedstock sustainability and adequacy. Airbus, Boeing

Synthetic SAF Production costs and lack of carbon capture

technology. Airbus, Boeing

Hydrogen electric

(fuel cell)

Weight of the powertrain (for ex. fuel cells) and higher

volume fuel tanks are required. Treatability of liquid

hydrogen and new infrastructure requirements. ZeroAvia

Hydrogen

combustion

Treatability of gaseous or liquid hydrogen and new

infrastructure requirements. Higher volume fuel tanks

required. Airbus

?

Significant Moderate Limited Based on Clean Sky –report and ZeroAvia estimates

?

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TECHNOLOGY IS DEVELOPING RAPIDLY VIA AMBITIOUS GOALS The future of aviation consists of liquid sustainable fuels, hydrogen and electrification

ReFuelEU Aviation – Council adopts new law to decarbonise

the aviation sector

The main objective of the RefuelEU aviation initiative is to

increase both demand for and supply of sustainable aviation fuels

(SAF), which have lower CO2 emissions than fossil fuel

kerosene. The obligation for aviation fuel suppliers to ensure that

all fuel made available to aircraft operators at EU airports

contains a minimum share of SAF from 2025and, from 2030, a

minimum share of synthetic fuels, with both shares increasing

progressively until 2050. Fuel suppliers will have to incorporate

2% SAF in 2025, 6% in 2030 and 70% in 2050. From 2030, 1,2%

of fuels must also be synthetic fuels, rising to 35% in 2050.

Source: EU Commission and SKYNRG

SUSTAINABLE AVIATION FUELS

POSSIBILITY FOR ESTONIA

It is estimated that to meet the goals of the new law, over

100 new factories producing sustainable aviation fuels are

needed in the EU alone.

Wright Electric Targets 1 000 Wh/Kg Batteries for Electric Aircraft

The company is working with partners such as easyJet, NASA, Y Combinator, the Department of Energy’s ARPA-E program, and the Defense Department. The goal is to produce an electric airplane that can carry 100 paying passengers on short flights of an hour.

The company is looking into new battery technology called molten battery technology. Wright’s proprietary batteries would be four times more energy dense than the lithium-ion batteries that power today’s electric vehicles. Such batteries would enable the electrification of hard to decarbonize transportation and mining sectors and make electric aircraft that can carry 100 passengers possible. High temperature batteries will likely be used first to help decarbonize the mining industry but could eventually be incorporated into aircraft.

Source: Clean Technica

BATTERY ELECTRIC

POSSIBILITY FOR ESTONIA

Electrification will happen first in short

flights and smaller aircraft that have the

possibility to transform accessibility of

smaller regions.

HYDROGEN

ZeroAvia Successfully Completes Initial Dornier 228 Flight Test Campaign

UK-based testing campaign sees ten successful flight tests of retrofitted aircraft. Installed prototype ZA600 hydrogen-electric engine meets highest anticipated performance threshold, paving way for successful certification work.

ZeroAvia’s Dornier 228 flight testing programme is part of the HyFlyer II Project, which is part funded by the UK Government via the Aerospace Technology Institute, in conjunction with Innovate UK and the Department for Business and Trade.

Hydrogen-electric engines use hydrogen in fuel cells to generate electricity, which is then used to power electric motors to turn the aircraft’s propellers. The only emission is low temperature water, with studies finding above 90 per cent total climate effect reduction.

Source: ZeroAvia

POSSIBILITY FOR ESTONIA

Possibility to be a nation that

enables the use of new hydrogen

electric aviation.

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OTHER TECHNOLOGY TRENDS IN AVIATION Besides alternative fuels development, a lot is happening in the aviation industry that can be linked with Estonian know-how

Drone and air taxi development

• The drone market is developing rapidly

• The size of the eVTOL aircraft market is

currently over 1 billion and is growing

• The aircraft will use U-space in most

operations

3D printing

• 3D printing technology can be used to

produce spare parts and components for

aircraft or industry in general, reducing the

time and cost of maintenance.

• This technology can also be used to create

prototypes and models, allowing designers

to test new ideas and improve aircraft

performance.

Information systems

• The cost of creating information systems

significantly reduced, which enables new

types and more cost-effective sales

channels, e.g. for airlines and operations

efficient enterprise resource planning

systems to airports.

• Information system development

intensified and continues to improve the

operation of airports.

AI

• Optimization of functions, e.g. scheduling

and through that cost savings

• Identifying faults before they occur, which

saves costs Improving customer service

information through personalization

AR/VR

• Personalized customer service and real-

time information about the flight and airport

services.

• Training opportunities increase, which save

costs.

Modified from source: Aeologic technologies 2023

U-Space development

• U-space is a set of new services relying on a

high level of digitalisation and automation of

functions and specific procedures designed to

support safe, efficient and secure access to

airspace for large numbers of drones

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OPERATIONAL ENVIRONMENT OF

IDA-VIRUMAA

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GEOGRAPHICAL CONTEXT Narva and the planned Narva-Olgina business park & aerdrome are located in Eastern Estonia

Estonia

Ida-Virumaa

Narva-Jõesuu / Narva

Planned Narva-Olgina Business park and Aerodrome

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OPERATIONAL ENVIRONMENT OF IDA-VIRUMAA Drastic changes open a window of opportunity to do things differently

Political

• Location of Ida-Virumaa in Russian border has been a significant source of

business relations and tourism – from 2022 the border interaction halted

because of Russian war in Ukraine.

• Political decisions in Estonia are supporting the freedom of business life and

the development of technology and digitalization

Economical

• The Russian business has collapsed, and it has a significant influence on Narva area

economy – a great need to seek new business relations from western countries

• The new projects of green industries create demand and opportunities for investments into

the hydrogen and SAF production projects, the payback of which is based on the needs of

green industry and allows to create additional conditions for using Narva aerodrome as a

testbed for refueling aircraft with SAF and hydrogen in the future.

• Services is the most diverse and dynamic industry for Ida-Viru County, which in 2019 formed

51 % of the county's GRP (Gross Regional Product). The service sector employs about 77%

of the county's population (including education and healthcare).

• Industry in Ida-Virumaa in 2019 formed 47 % of the GRP of the county. Industry employs

about 20% of the county's population.

Social

• Ida-Viru County had a population of 130 000 people. The average age of the population was

44,9 years, which is higher than the Estonian average (43,8 years).

• The socio-demographic structure of the population of Ida-Virumaa is characterized by low

levels of education, employment and income, as well as a high proportion of Russian-

speaking population.

Technological

• The main industries in Ida-Virumaa are energy, chemistry, metal processing,

mechanical engineering and woodworking. Most industrial enterprises are

located in the cities of Narva, Kohtla-Järve and Sillamäe.

• Estonia is a forerunner in digitalization of services. In the aviation sector, a

Remote Tower center is located in Tallinn, and since April 2023, air traffic

control services of Tartu Airport have been provided from the Remote Tower

Ecological

• The industry of Ida-Virumaa is based on the use of oil shale which produces

large amounts of greenhouse gas emissions, air, water and soil pollution, and

waste that covers large areas.

• As part of the European Union’s (EU) Green Deal, Estonia has committed to

reducing net greenhouse gas emissions by 70% by 2030, compared to 1990

levels, and achieving carbon neutrality by 2050.

• Work is currently underway to modernize and diversify the industry, as well as

to develop alternative and renewable energy sources.

Legal

• Extensive regulation stemming from the safety of the aviation industry can

prolong the certification of new aircraft. But on the other hand, there is also

pressure to speed up processes to achieve climate goals

• Tightening of environmental requirements and control in all sectors.

Aviation emissions are increasingly controlled by law, not just incentives.

For example, ReFuelEU Aviation will introduce a mandate for the usage of

sustainable aviation fuels on European airports.

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IDA-VIRUMAA AS BUSINESS REGION Versatile business spread across the county forms the basic potential for aviation services

THERE ARE OVER

6 600 COMPANIES LOCATED IN THE IDA-

VIRUMAA COUNTY

68 COMPANIES WITH 50+ EMPLOYEES

Economic activity Companies

Economic activities total 6686

Agriculture, forestry and fishing 415

Mining and quarrying 6

Manufacturing 611

Electricity, gas, steam and air conditioning supply 28

Water supply; sewerage, waste management and remediation activities 34

Construction 785

Wholesale and retail trade; repair of motor vehicles and motorcycles 1401

Transportation and storage 732

Accommodation and food service activities 227

Information and communication 211

Financial and insurance activities 57

Real estate activities 332

Professional, scientific and technical activities 487

Administrative and support service activities 274

Education 120

Human health and social work activities 140

Arts, entertainment and recreation 110

Other service activities 716

Table: Ida-Virumaa enterprises in the statistical profile by economic activity (Statistics Estonia 2023)

TURNOVER IN 2021 3 200 million €

EXPORTS IN 2022 943 million €

% OF ESTONIAN EXPORTS IN 2022 4,4 %

Ida-Virumaa

companies:

classification is based on the location of the company’s headquarters Source: Statistics Estonia

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CURRENT AND PLANNED BUSINESS AND INDUSTRIAL PARKS Key industrial development will happen in these business areas

Kiviõli business park

Jõhvi business park

Kohtla-Järve industrial park

Narva- Olgina Business park & Aerodrome

Kadastiku industrial park

Kulgu industrial park

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INDUSTRY EXAMPLES FROM THE BUSINESS AREAS Key industrial development will happen in these business areas

Kiviõli business park • Trading and business

service companies • Similar profile as Jõhvi

Jõhvi business park • Trading and business

service companies • In the center of

Ida-Virumaa

Kohtla-Järve industrial park • Focus on chemical and metal industry • Example companies:

• Viru Keemia Grupp: shale oil production • Freen Industries: subcontractor services in the fields of

mechanical engineering and metalworking. Produces own wind generators and solar panels

Kulgu industrial park Extension of Kadastiku industrial park. Focus on cluster around advanced electro magnetics and services around it Example companies • Neo Performance Materials: investing in

new production plant • MAST Europe: supplier of high-quality

metallurgical products

Kadastiku industrial park Focus on metal industry and high technology Example companies • Aquaphor: water filtration system

producer • Febest: automotive parts

distributor • Fortaco: strategic partner to the

heavy off-highway equipment and marine industries offering technology, vehicle cabins, steel fabrications and assemblies

• Hanza: manufacturing solutions in heavy mechanics

• Primatek: developer and manufacturer of wide selection of powder coatings for industry

Narva-Olgina Business park & Aerodrome • Spatial planning has initiated and

preliminary detail plan has elaborated

• This feasibility study provides content for the business area and aerodrome

19

EXAMPLE OF CUTTING-EDGE TECHNOLOGY COMPANIES INVESTING IN THE REGION – Neo Performance Materials

In the first stage, a €100 million magnet factory will be built in Narva (building

now)

In the second stage, a €150 million extensions will be built (building starting in

2026)

Neo Performance Materials (NPM) which owns Estonia-based rare earth metals maker Silmet will

construct a magnet factory and R&D center in Narva.

Neo Magnequench, a division of Neo Performance Materials Inc. (“Neo” or the “Company”) (TSX:

NEO), recently broke ground on construction of the first rare earth magnet manufacturing facility in

Europe designed to produce specialized rare earth permanent magnets for use in electric vehicles,

wind turbines, and other clean energy technologies.

Based in Narva, Estonia, the plant expects to begin production of permanent rare earth magnets in

2025 sufficient to support the manufacturing of approximately 1.5 million electric cars. Neo’s expected

Phase 2 production of 5,000 tonnes/year can support the manufacturing of 4.5 million electric cars.

Neo’s nearby rare earth separations plant in Sillamäe, Estonia will provide rare earth feedstock to the

Narva plant from the U.S. and other sources. These high-purity magnetic rare earth oxides will be

transformed into sintered neodymium-iron-boron magnets. Neo officials are excited to foster a more

integrated supply chain for sintered rare earth permanent magnets developed from recycled end-of-life

magnets and manufacturing swarf. This process will be the first of its kind in Europe.

Sintered rare earth permanent magnets are used in a wide variety of technologies that increase energy

efficiency, reduce carbon dioxide emissions, and help enable the European Union’s efforts to achieve

carbon neutrality. These magnets are especially integral to the drivetrains of the majority of electric

vehicles manufactured today, where they increase the power and efficiency of the motors. Other rare

earth magnets made by Neo are used in electric motors in battery electric, hybrid electric, and

conventional vehicles, as well as in electronics, water circulation pumps, high-efficiency home

appliances, and many high-efficiency industrial applications.

Source: Neo Performance materials

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INDUSTRY INSIGHTS – EXPORT INDUSTRY IS HIGHLIGHTED Narva companies aim for international business and increasing export – better connectivity is needed.

STRONG EXPORT INDUSTRY

WITH A GROWTH MINDSET

• The interviewed companies highlight the focus on

export which is nearly 100 % for all the companies.

• There are strong plans to increase export, for ex. 20-

30 % per year for one the companies.

Interviewed companies: Neo Performance Materials, Fortaco Group, Aquaphor International, MAST Europe, Viru Keemia Grupp (VKG), HANZA Mechanics Narva AS

EUROPE IS THE MAIN MARKET FOR THE

COMPANIES

Preferred destinations:

• Germany (Dusseldorf, Hamburg, Frankfurt and

Munich)

• Finland (Helsinki)

• Sweden (Stockholm)

• Poland (Warsaw)

• Rumania (Bucharest)

• Israel (Tel Aviv)

• UK (London)

• Holland (Rotterdam):

• Norway, France, Spain, Switzerland generally

NEED FOR TRAVEL IS RELATED TO EXPANDING

MARKETS

Mentions of travel needs:

• Customer and auditor visits at factories

• Maintenance crew visits

• Business meetings

• Sales and marketing purposes

• Engineering meetings

• Top manager negotiations

CURRENT USAGE OF HUB AIRPORTS

• Tallinn, Riga, Frankfurt, Helsinki, Warsaw, Oslo, and

Stockholm

VIEWS ON AIR CARGO POTENTIAL

• Currently the potential is seen limited as air cargo is

not seen green – although this might change in the

future

Some identified use cases:

• Component deliveries

• Urgent deliveries of expensive and lightweight

components and spare parts

IMPORTANCE OF A FUNCTIONAL NEARBY

AERODROME FOR BUSINESS

• Answers vary based on the company

• Most of the companies see it as important as the travel to

the Tallinn airport takes half a day on average (very few

scheduled departures).

• It is seen that it would be more convenient to get to

Narva.

Potential and existing business partners would arrive

more often and new opportunities for investment and

partnership would appear. In general, a nearby airport is

seen to have positive impact on business.

• Some see it more of a convenience but not a must have.

Some Finnish customers like to arrive with their cars via

ship.

COMPANIES RECOGNIZE THE POTENTIAL OF

DIRECT FLIGHTS FROM NARVA

• The aerodrome should have sufficient connections to

a range of locations

• Price and time schedule should be optimized

• Morning and evening flights between Narva and

Tallinn are seen important

• Direct flights to hub airports or straight to the

destinations are seen promising

IMPROVING AIR CONNECTIONS AND NEW BUSINESS

INVESTMENTS

• If good enough connections, new investments are seen

possible

• Improved logistics is seen to always increase business

• Some see that other factors might be more important

such as competitive price of products, availability of

skilled people and financial support of the government

21

TOURISM IN IDA-VIRUMAA Recovery from COVID is happening – good connectivity would boost attractiveness of the region

General description

Ida-Viru region tourism sector is rapidly developing. The region holds great historical

value as well as natural potential, including many Estonian records, such as the

highest waterfall, the largest lake system or the longest sandy sea beach, which

allows the tourism potential to grow and develop.

The aftermath of the COVID19-pandemic

Because of the pandemic in recent years tourism throughout the world and in the Ida-

Viru region suffered serious setbacks. But now the tourism sector is gradually

recovering. New tourist services, restaurants and attractions are emerging, aimed at

both local and international tourists. Every year there are new objects and tourist

products appearing. In the last three years 10 new attractions have appeared.

During the period 2023-2027 more attractions are expected:

• Sillamäe theme park (2023)

• Kreenholm cultural quarter (2026)

• Narva Stockholm Square (2025)

• Opening of the Narva-Jõesuu lighthouse to visitors and opening of the Narva-

Jõesuu local history museum (2025)

• Development of Sinimäe Museum (2024)

• Vasknarva harbor development (renovation, observation tower, 2026)

• Development of Alajõe village center and beach area (2027)

• Rannapungerja pier and river quay (2027)

• Estonian motorcycle hill (2023)

• Aidu water sports and leisure centre (2023)

The effects of the war

In recent years, especially after the start of the war and the closure of borders, and as

a result of the disappearance of the flow of Russian tourists, the international tourism

marketing of the region is aimed primarily at Finnish tourists.

There are strong possibilities to attract Finnish tourists: nature, interesting history,

quality services and a relaxing holiday. The main problem is that even though the

direct distance to Finland is short, the actual route goes through the port of Tallinn.

The opening of direct flights would greatly simplify and shorten the path of Finnish

tourists to the region, which is ready and waiting for new guests.

Since the number of tourists from Russia, which was one of the main external target

markets for Narva, has practically decreased to a minimum level, and the recovery of

this market is not expected in the nearest future, the city of Narva and also the region

is trying to substitute the market, for example by attracting more tourists from

neighbouring countries. Finland has been chosen as one of the priority markets. For

travellers, it is extremely important to have a convenient and accessible way to get to

the target place. In this case, the plane is the most convenient and fastest way to get

to Narva, for example, from Finland. This could be also the way to travel from Latvia. A

convenient and fast way to get to the destination is often a key factor in choosing one.

If the tourist has to choose between a fast flight, almost a full day of driving or a trip

with several changes of transport modes, the choice will be obvious.

To develop tourism in the region, it is critical

to provide fast and convenient connections

for tourists.

22

IDA-VIRU TOURISM CLUSTER 2024-2027 Strong development plans are being implemented to attract new markets and customers

The cluster is moving in the direction of 1 million overnight stays as part of its long-term goals. The cluster's goals for this strategic period are to recover to the level of 2019 and to compensate for the lack of Russian tourists and seek now other markets and target groups.

Some highlights of recent events and future goals:

• The number of overnight stays by tourists from Russia decreased from 65,7 thousand in 2019 down to 14,7 thousand in 2022 (4,3 times).

• The Ida-Virumaa Tourism Cluster has prepared a program to attract Finnish and Latvian tourists to Ida-Viru. The total budget of the program for the period 2024-2027 is 689 000 €.

• As a result of the implementation of this program, the number of overnight stays by Finnish tourists in Ida-Viru is planned to increase up to 34 000 in 2027, compared to 11 058 in 2019 (3 times).

2024-2027 Investment per year

Estonia 120 000 €

Finland 76 000 €

Latvia 82 400 €

Service development 72 000 €

Team 312 000€

Total 689 000€

0

100 000

200 000

300 000

400 000

500 000

600 000

TOTAL Vacation trip Work trip Conferences and training

Other work trip Other trip including

health tourism

Purpose of trip to Ida-Viru 2019-2023/Aug, overnight stays

2019 2020 2021 2022 2023 jaan/aug

Focus areas and budget of the tourism cluster

0

50 000

100 000

150 000

200 000

250 000

300 000

2 0 1

9

2 0 2

0

2 0 2

1

2 0 2

2

2 0 1

9

2 0 2

0

2 0 2

1

2 0 2

2

2 0 1

9

2 0 2

0

2 0 2

1

2 0 2

2

2 0 1

9

2 0 2

0

2 0 2

1

2 0 2

2

2 0 1

9

2 0 2

0

2 0 2

1

2 0 2

2

All countries Estonia Latvia Finland Russia

The number of people accommodated in Ida-Viru by nationality

Source:

Statistikaamet Source: Statistikaamet

23

IDENTIFIED NEEDS OF DIFFERENT STAKEHOLDERS Current needs summarized

Residents of

the region

Large industrial

companies

Tourism

industry

Owners of

private planes

Skydivers and

sportsmen

RC

aeromodellers

Ordinary residents of the city

of Narva would like to have

the opportunity of direct

flights to Tallinn, Helsinki and

Riga.

In addition, they would like to

have the opportunity to

spend free time and get

impressions from

recreational flights over

Narva and Narva-Jõesuu

(15-20 minutes), glider

flights, parachute jumps.

These are the first reactions

of people to the news that

the local governments of

Narva, Narva-Jõesuu and

Sillamäe have plans to

develop the Narva-Olgina

airfield.

Large industrial companies,

including those with foreign

participation or companies

with large foreign clients.

They need the ability to use

the runway for arrivals and

departures year-round and in

any weather for business

flights. Potential passengers

are company owners, top

management, clients,

auditors from major large

clients.

All SPAs, large hotels and

the wider tourism sector

enterprises.

They would like that

airplanes will be able to fly to

the Narva-Olgina airfield all

year round and in any

weather and bring groups of

foreign tourists who would

then use tourism services on

weekends or for a longer

period.

Owners of private planes

who live in Ida-Virumaa and

other parts of Estonia.

They would like to be able to

store aircraft in hangars

during the fall and winter.

During the period when the

intensity of flights due to lack

of weather conditions is

significantly reduced. In

addition, they would be

interested in whether the

aerodrome offers services to

carry out the maintenance

and work necessary to obtain

or extend airworthiness;

Skydivers and sportsmen

and those who provide

tandem jumping services.

They would like to be able to

jump at the Narva-Olgina

airfield. At the moment they

are going to jump to Rapla

(EERA). According to the

information received from

them, the annual number of

jumps they perform in Rapla

is at least 400

RC aeromodellers.

There is an aeromodellers

club in Narva, in which at

least 50 novice aircraft

modelers study. In addition,

there are about 25 an

aeromodellers in the city who

produce aircraft models and

regularly participate in

competitions. At the airfield,

competitions in radio-

controlled models in class F3

according to the international

classification are held at least

3 times a year.

24

NARVA AERODROME CURRENT SITUATION Modest starting point is an advantage – state of the art development from the beginning

Aviation activities

For the last 3 years, the following flight activities have taken place at the

airfield in Narva

1. Private recreational flights, from May to September on average about 200

flights per season;

2. Parachute jumping on Saturdays and Sundays with an average of about

150 jumps per season;

3. Air taxi flights began in 2023. During the period from May to September,

23 flights took place on airplanes and helicopters. Air taxi flights from

Narva were to Tallinn, Tartu, Riga, Helsinki-East, Milan, Burgas;

Information

 The grass runway is 600 m long

 The land belongs to the Ministry of Regional Affairs and Agriculture

 There is currently no airfield operator

 Detail spatial planning has been initiated

 There is no controlled airspace above the airfield

X-GIS. Estonian Land Board. All rights reserved.

X-GIS. Estonian Land Board. All rights reserved.

25

NARVA AERODROME CATCHMENT AREA AND ACCESSIBILITY Accessibility to western countries is vital in the current operational environment

Roads

The aerodrome is located right next to the European route E20

• To Tallinn via road 2h 25 min

• To Riga via road 5h 50 min

Public transport

The aerodrome is located 3 km from the main public transport routes in Narva – there is a possibility to extend the network when the aerodrome development starts.

Catchment area

EU population:

- 1.95 million people within 200 km

- 6,81 million people within 400 km

- 13,5 million people within 600 km

- 19,8 million people within 800 km

- 39,2 million people within 1,000 km

of Narva aerodrome + population in non-EU countries

Around 140 major airports and 240 other airfields within 1,000 km of Narva aerodrome.

Source: Eurostat (2021 population census: preliminary results)

400 km

200 km

600 km

800 km

1 000 km

Catchment of Narva aerodrome

26

AN EXAMPLE OF OPERATIONAL RANGES OF AIRCRAFT Operational ranges of next gen aircraft are ideal for regional aviation

Two zero emission aircraft with serious commercial potential in the near future (certifications pending) Battery electric Eviation Alice • Max operational range of around 400 km • 9 passengers • MTOW 7475 kg • Max Cruise Speed 250 kts Retrofitted hydrogen fuel cell Britten Norman islander • Max operational range of 200 km • 9 passengers • MTOM (kg) 2994 • Payload (kg) 680 • Uses gaseous hydrogen Similar operative costs than with a 50-seater traditional turboprop aircraft.

Modified from source: Evia Aero

Aircraft operational range from Narva-Olgina Aerodrome

27

400 km

200 km

600 km

800 km

1 000 km

NEXT GEN AIRCRAFT AND NARVA-OLGINA AERODROME Many major hubs and regional airports would be accessible

With the fully electric Eviation Alice, 400 km operational range Potential destinations • Riga (Air Baltic hub) • Tampere-Pirkkala (Air Baltic hub) • Saaremaa • Joensuu

With the retrofitted hydrogen fuel cell Britten Norman islander, 200 km operational range Potential destinations • Tallinn • Tartu • Helsinki-East • Helsinki-Vantaa (Finnair hub) • Lappeenranta

In the 2030s the operational ranges will be extended which opens opportunities for new markets.

28

BENCHMARK OF FINLAND

29

BENCHMARK OF FINNISH AIRPORTS AND AERODROMES Main airport network owned by Finavia – network changes actively under discussion

Network structure and ownership

State-owned airport company Finavia owns 20 airports in

Finland. There are a few airports outside Finavia network

and dozens of smaller aerodromes all over Finland.

Lappeenranta and Enontekiö airports have been detached

from the Finavia airport network and are now municipality

owned. Seinäjoki airport has never been in the Finavia

network. Its owners are the city of Seinäjoki and the

municipality of Ilmajoki, the wellbeing services county of

Ostrobothnia and a few private businessmen. Mikkeli airport

is owned by the city of Mikkeli. Helsinki East Aerodrome is

located in Pyhtää municipality and is owned by the private

company Redstone Aero Ltd.

Finavia airports work as a network with a hub and spoke -

system. Helsinki-Vantaa airport is the biggest airport in the

network and in Finland. Its income is used to support smaller

airports which have not been profitable on their own.

Recent events

Recently there has been discussion on the position of certain

regional airports and the ownership base of them. They do

not have – and cannot have – large passenger volumes, but

their small business passenger volumes are important for the

airport regions and to the whole nation. Some actors focus

only on the direct income of the airport and do not regard

airports as profitable enough. However, the business

connections between the Finnish regions and other countries

are very important, and so is the accessibility from abroad to

the industrial municipalities in different parts of Finland.

The renewal of aviation is a current topic in Finland. Helsinki

East Aerodrome and its owner Redstone Aero are the

leading actors in developing and testing new aviation

technology and operation models of the airports and

aerodromes. There has also been a project in co-operation

between Finland and Sweden about electric aviation on both

sides of the Gulf of Bothnia.

Future

The vision of the future of aviation in Finland contains a wide

air connection network. The basis for this is a wide network

of cost-effective airports and aerodromes which are

equipped with the newest technology. All this enables

prosperous development of air transport services with a

variety of different size aircraft from small drones to middle

size business aircraft and bigger route traffic aircraft. This is

the vision also for air cargo.

Finnish Ministry of Transport and Communications is

currently preparing an Aviation strategy that would take into

account the recent events and the development of the

aviation sector.

Aerodrome

Airport

30

FINNISH AIRPORTS OUTSIDE FINAVIA NETWORK Airports that have separated from the Finavia network

ENONTEKIÖ Key focus: Winter tourism

INFRASTRUCTURE OWNER

ENF Infra Ltd

(Enontekiö Municipality)

AIRPORT OPERATOR

Enontekiö Airport Ltd

(Enontekiö Municipality)

LAPPEENRANTA Key focus: Developing Lake Saimaa

Region tourism and accessibility

INFRASTRUCTURE OWNER

Lappeenranta Airport Foundation

(City of Lappeenranta)

AIRPORT OPERATOR

Lappeenranta Airport Ltd

(Lappeenranta Airport Foundation)

SEINÄJOKI Key focus: logistics, general aviation

INFRASTRUCTURE OWNER

Rengonharju foundation

(owned by local municipalities)

AIRPORT OPERATOR

Seinäjoki Airport Ltd

City of Seinäjoki, municipality of Ilmajoki,

wellbeing services county of Ostrobothnia

and a few private businessmen

HELSINKI-EAST AERODROME Key focus: Future aviation,

Helsinki secondary airport

INFRASTRUCTURE OWNER

Redstone AERO OY

(privately owned)

AIRPORT OPERATOR

Redstone AERO OY

(privately owned)

SMALL AERODROMES Key focus: Recreational aviation

INFRASTRUCTURE OWNER

Local municipality

AIRPORT OPERATOR

Flight Clubs

31

STORY OF LAPPEENRANTA AIRPORT Oldest airport in Finland

 Lappeenranta airport is the oldest airport in Finland and started as a military airport in 1918.

The runway is 2500 m x 60 m. The regular route traffic started 1951 and in 2000 there was 14 daily

flights. Finnair ended its flights to Lappeenranta in 2002.

 The new railway connection from Helsinki to Lahti decreased the rail travel time to Lappeenranta

significantly. For this reason, the flight passenger volumes between Lappeenranta and Helsinki

collapsed.

 In 2009 new international routes to European destinations were opened. In 2001 the airport

reached its record in passenger volumes, 116.000. More than a half of passengers were from St.

Petersburg area.

 In 2016 the airport was bought by Saimaa Airport Foundation (owned by City of Lappeenranta and

Regional Council of South Karelia). This was a pilot case in Finland as first airport, which was

separated from Finavia airport network serving the interests of the region. The aim was and is to

secure easy accessibility to Lake Saimaa and southeast region of Finland focusing on developing

tourism industry and business travel needs for the region. Working actively with tourism authorities,

airports, airlines, owners and stakeholders in Finland, Russia and Central Europe, new

management team made Lappeenranta the main Ryanair destination in Finland providing direct

flights from Germany, Austria, Italy and Hungary. In 2020 the covid-19 pandemic collapsed the

passenger traffic and the Russian war in Ukraine decreased the Russian share of the passengers

remarkably. However, the model of active co-operation with different stakeholders proved to be

successful.

 Lappeenranta Airport has been in close co-operation with the tourism actors in Saimaa lake region.

It has been successful in marketing the airport to airlines and other actors. Co-operation has been

active also with European airports.

32

HELSINKI-EAST AERODROME Future aviation testbed

 Helsinki-East Aerodrome (ICAO: EFPR) is located in Southern Finland in Pyhtää municipality. It is

serving professional general aviation.

 Helsinki-East aerodrome has an asphalt paved runway of 2000 m long and 30 m wide for commercial

operations

 The owner and operator of Helsinki-East Aerodrome is Redstone AERO. The aerodrome will be developed

as a center for future electric and digital aviation. Many technology companies related to aviation and

aircrafts are located at the aerodrome. They are developing all kinds of aviation technology. Helsinki-East

Aerodrome and the area in Southern Coast of Finland offers excellent possibilities to testing flights for

various operators.

2017 2023

1. Technical feasibility

• Inspecting the surrounding areas for

limitations for an aerodrome

• Soil studies and land surveying to

estimate needed work, surface leveling

and bedrock blasting

2. Acquiring the land

• Acquiring the land and surrounding

areas

3. Environmental permit

• Applying for an

environmental permit

• Estimating and planning of

the desired operations

4. Aerodrome construction

permit

• Deciding basic specifications

for the aerodrome and

applying the aerodrome

construction permit

5. Clearing and leveling

of the area

• Clearing obstacles and

leveling the ground

• Blasting bedrock

• Groundwater control

6. Foundation for the

pavement

• Preparations and foundation

for the runway and apron

asphalt

• Fueling area preparations

7. Laying over the first

layer of asphalt

• Aerodrome is now

usable for small planes

9. Instrumental approach

procedures

• Design and publication

of instrumental approach proc

edures for operations in bad

weather

8. Aerodrome

holding permit

• Holding permit for

the existing

aerodrome

10. To be done in the future

• Runway lighting

• Fencing around the aerodrome

• Aerodrome manuals for commercial

airport operations

• Air traffic control

PHASES OF DEVELOPMENT OF THE AERODROME

33

CHAPTER 2 VISION FOR THE NARVA-OLGINA BUSINESS PARK & AERODROME

• What are the key drivers for the development of the business park and the aerodrome?

• What does the vision include? • What are the next steps for development?

34

VISION FOR ESTONIAN NEW ERA AVIATION The role of Narva aerodrome is to act as a forerunner for new era aircraft and operations models

FOCUS • Smaller emission

free aircraft • Sustainable

airport and aerodrome network that brings benefits for the whole country

• New operation and business models

35

KEY DRIVERS FOR DEVELOPMENT OF THE NARVA-OLGINA BUSINESS PARK AND AERODROME 6 drivers can be identified that argue for the development

Narva-Olgina

business park

and aerodrome

development

Good

connectivity, new

logistics facilities

and the sources

of renewable

energy are

required

Potential for air

cargo and air

cargo land

services

Logistics hubs

ideal for energy

production

Need for air

connections

”across the

seas”

New tech needs

to find business

cases and real-

world

applications

Development

platforms and

“beacons” for

new solutions

are needed

Industrial transformation • Need to diversify industry and

greening the industry

• Need to attract new business

that enable green transition –

new business potential

Critical raw materials and

electrification • Electrification of societies

• EU Critical raw materials act

– reducing dependence on non-

European countries

• Narva’s industry is critical, for ex.

rare earth magnet manufacturing

Sustainable energy • EU emission reduction targets

• Massive development of energy

production, storage and

distribution is required

Geopolitical changes • Pressure to find new markets from

western countries

• Need for face-to-face sales work

and networking

Technological development • Advanced tech and new era

aircraft are coming

• Small scale aviation will change

dramatically in smaller countries

such as Estonia and Finland

• A possibility to be forerunners in

tech development and usage

Estonia as a forerunner in

digitalization • Strong expertise available

• Application in aviation business

models and processes should be

sought

• Drone business is growing rapidly in

logistics and data acquisition

• Physical facilities are required

36

CORNERSTONES FOR NARVA-OLGINA BUSINESS PARK AND AERODROME DEVELOPMENT

The development of Narva aerodrome will have influence on Ida-Virumaa business life, regional

economy and the competitiveness of whole Estonia. The aerodrome is an instrument for development of

business and tourism and the attractiveness of Ida-Virumaa as an investment area.

The scale of benefits must be understood. The impact of one single industrial investment to Narva-

Olgina business park or other IVIA industrial parks can cover all investments in the aerodrome.

Quick accessibility is of great significance for companies. If the accessibility is not in a competitive level,

investments will go somewhere else, even outside Estonia.

Developing the state-of-the-art business park and aerodrome induce an industrial transformation that

will help meet the objectives of the European Union on many levels – carbon neutrality, self-sufficiency and

resilience.

Optimal sized aircrafts for small volumes and the aerodrome equipped with modern technology will

provide a cost-effective basis for air transport services.

37

EXAMPLES OF FUTURE AIRCRAFT Next gen aircraft are coming – it is up to the actors to start using them to boost the region’s economy

Eviation Wingcopter Joby Aviation ZeroAvia

Evektor EV-55 Heart Aerospace ES-30 Rolls-Royce Accel Dronamics

Elroy Air Vertical Aerospace VX4 Lilium Supernal

38

FEASIBILITY OF PASSENGER AIR TRAFFIC Between Narva-Olgina & Helsinki-East Aerodrome – flight route and operations

ANALYSIS:

Efficient operations with low-cost aircraft

• In the first phase Pilatus PC-12, Daher Kodiak, Cessna Caravan or similar

aircraft that can use sustainable aviation fuel blends

• In the second phase electric and hydrogen aircraft can be piloted between the

aerodromes – both can act as forerunners of using next gen aircraft in real-

world conditions

Service level and profitability

• Better utilization rate with smaller aircraft can be achieved and is a must for

cost-effective operations

• At first profitability can be sought with an on-call service that could include

many destinations from Narva-Olgina aerodrome in addition to Helsinki-East

• Regular flights need time and trust to build the customer base, and this is seen

as an opportunity in the long run – more on-demand based operations are

suitable in the early days of the aerodrome

• Profitability will be indirect (see next chapter) at first and direct after the route

has established continuity and customer base. This is typical for new air

connections.

Possibilities

• Brings Narva close to Helsinki and Southeastern Finland's economic region

and will create new possibilities in business and tourism that are presented on

the map on the right

• New regional route will expand the market area for industries in both countries

35 min Flight time with smaller aircraft – evading Russian airspace

NARVA-OLGINA

HELSINKI-EAST

30 min Flight time with smaller aircraft – using Russian airspace

HELSINKI-EAST NARVA-OLGINA

Business travel Tourism

Commuting

39

FEASIBILITY OF PASSENGER AIR TRAFFIC Between Narva-Olgina & Helsinki-East Aerodrome – passenger potential

The passenger potential consists of business travellers, investors, workforce and

tourists. The amount of business travel depends on the business relations formed

between the two nation’s companies. There is also a lot of workforce travelling

between Finland and Estonia that could benefit from a fast connection to Finland –

especially related to new construction projects that are happening in

Kymenlaakso.

Lappeenranta University and XAMK (university

of applied sciences in Kouvola and Kotka) Strong expertise in energy technology studies and

business.

 Potential for Estonia in the larger energy transition

scheme

 Benchmark visits, research cooperation and also

business potential

Kymenlaakso business potential • Strong industry: forest, chemical,

construction and technology industry

companies

• Gross domestic product (GDP) was

42 000 euros per resident and

Genuine Progress Indicator (GPI) 5

900 euros per resident (2020).

• Future: € 3,7 billion investments in

battery technologies and many other

investments for green tech such as

biocarbon, hydrogen, solar etc

 Potential for business relations

especially regarding new green tech

 Business relations meetings, sales,

customer visits

Finnish capital region • Close by Helsinki-East –

fast connection via road

• All the largest company

headquarters

 Many business

opportunities and fast

accessibility via Helsinki-

East

Ida-Viru • Strong chemical and metal industry

• Potential markets and business

relations with Finnish stakeholders

 Customer visits, cooperation during

sales processes

NARVA-OLGINA

HELSINKI-EAST

-

2 000

4 000

6 000

8 000

10 000

12 000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Number of accommodated Finnish tourists in Ida-Viru county

70 km radius

Finnish tourism potential

• One of the key markets for Ida-Viru

tourism cluster

• Tourism was growing before COVID,

and has started to recover

• Easy and fast flight connections can

be combined with tourism services

• Key potential lies within attracting

Finnish senior citizens that have time

and money (nearly 70 000 seniors

near Helsinki-East)

274 403

34 217

149 920

69 108

0 100 000 200 000 300 000

Population total

0-14 years old

15-64 years old

over 65 years old

70 km population catchment from Helsinki-East aerodrome

40

• Paved 1 200 m runway

• Maintenance hangar

• Storage hangars for general and private

aircraft

• A small café and a briefing room

 Remote control infrastructure

 Passenger terminal

 Charging for aircraft and road vehicles

 100 % sustainable aviation fuel tanks and

fuelling system

 Automated maintenance

 Verti- and droneports

 Advanced digital processes in passenger

and cargo flow management

• On-demand business flights serving local

export companies

• Recreational aviation

 Electric/hydrogen aviation test routes to

Tallinn and Helsinki-East

 Extended on-demand flights with digital

MaaS-service incl. last mile services

 Wide network of regional flights with zero

emission aircraft

 Digital on-demand service of aviation

services

 Drone logistics network

• Solar energy park and energy storage

• Service and maintenance companies

• Technical infrastructure (electricity, natural

gas, internet communication, water and

sewerage)

• 23 separate land plots with an area from

1607 m2 up to 5002 m2

 Sustainable aviation fuel production in

regions Industry parks – distribution at the

aerodrome. There is preliminary interest to

start production of SAF in Narva using a

grant from the Just Transition Fund

 E-commerce logistics with air cargo

 Office and meeting space

 High value component manufacturing

 Automation companies

 Wide road and air cargo facilities

 Small electric plane

manufacturing/assembling; + UAV, eVTOL

and Drones assembling and testing

AERODROME VISION PHASES The vision is separated in three distinct phases – the first the most concrete, the second an ambitious target and last one being a forerunner pathway

PHASE 1

24/7 aerodrome for

unscheduled aviation

FOLLOWER

1-5 years

INNOVATOR

5-10 years

FORERUNNER

> 10 years

PHASE 2

Regional zero carbon

aerodrome

PHASE 3

State of the art

future aerodrome

Aerodrome facilities

Business park

Aviation services

41

VISION FOR THE ENERGY SYSTEM OF THE BUSINESS PARK & AERODROME The goal is that the aerodrome and aviation services can be organized with zero emissions

Solar panel field

Additional energy from the grid

Short term battery storage

Hydrogen distribution

Electric aircraft charging

Aerodrome electricity needs

A solar power plant can be established in southern part of the business park.

The energy storage based on used batteries evens out load peaks and enables the storage of solar energy and electricity grid energy during low-cost hours.

Obtaining energy from the electricity grid when the production of solar panels in the area cannot meet the needs.

Primary use. Charging needs of eVTOL craft, Drones and fixed- wing hybrid or electric craft. Preliminary cost for a megawatt charger is 0,5 million euros + possible grid investments.

Megawatt charging system

High power charging and slow

charging

Charging needs of trucks in the area

A shared use area can make operations more efficient, and the chargers can be put to more use.

Overnight charging needs - the opportunity to use cheap energy.

Hydrogen storage and distribution to hydrogen aircraft

Hydrogen can also be used to produce electric fuels for aviation needs in the long term. A great potential for Ida- Virumaa that has a goal to move away from fossil fuels – alternative usage for existing factories.

Hydrogen production and long-

term storage

Waste heat can be used, for example, to heat buildings.

42

NARVA-OLGINA BUSINESS PARK AND AERODROME IN PHASE ONE In five years, the aerodrome will be up and running and will have necessary facilities to serve unscheduled air traffic

Possible location of solar panel park and

energy storage.

Terminal

Private hangars

Maintenance hangar

Service and maintenance companies

Production and warehouse

facilities

1 200 m paved runway

Aeronautical services

• On-demand unscheduled

flights

• Recreational aviation

Non-aeronautical services

• Meeting space for

businesses and

recreational purposes

• Café service

Meeting space & cafe

Business park

• Service and maintenance

companies

• High value production that

can benefit from air cargo

in the future

Technical infrastructure

• Electricity (3MW), natural gas (600m3/hour), water and

sewerage

• The business park land will be divided into separate plots: 2

plots with an area of 1837 m2, 5 plots with an area of 1607

m2, 4 plots with an area of 3034 m2, 12 plots with an area of

5002 m2;

43

AERODROME DEVELOPMENT IN PHASE 1 Next steps to complete phase one of the vision

DEVELOPING THE AERODROME IN PHASE 1

• The aerodrome development begins with land and location related

studies.

• The table below shows the steps and preconditions needed to

start the unscheduled operations at the aerodrome.

• The exact time this will take can’t be said as there are some public

decision making required that might take time.

• The costs are based on Finnish examples and may vary

depending on circumstances at Narva-Olgina aerodrome.

Aerodrome 1. Land and

location

2. Approvals 3. Preparation work 4. Pavement 5. Approach

procedures and

weather station

6. Buildings

Investments / tasks • Technical

feasibility

• Ownership and

control of land and

surrounding areas

• Soil studies

• Environmental

permit

• Aerodrome

construction permit

• Clearing

of obstacles and

land levelling

• Preparations of

runway strip and

apron

• Foundation for the

runway pavement

• Paving of the

runway and apron

asphalt

• Windsock and

other mandatory

equipment

• Design and

publication of

instrumental

approach

procedures for bad

weather

operations

• Weather station

• Runway lights for

night operations

• 1500 m2 hangar

for aeroplanes

• Briefing room and

café

• Fencing system

• Sewage and

freshwater system

Cost estimate 1 000 000 € 150 000 € 1 000 000 € 500 000 € 1 500 000 € 2 500 000 €

DEVELOPING THE BUSINESS PARK IN

PHASE 1

• Can be done in parallel with the aerodrome

development

• Requires the building of public infrastructure.

After this the plots can be sold to suitable

companies.

• In the early stages, also the solar panel park

can be built, and necessary grid investments

be made.

PRELIMINARY PHASE

• Before phase 1, the preliminary phase starts from current

situation and should be active until the beginning of

construction of aerodrome facilities.

• This phase should be financed by local authorities equally

by 2 000 EUR annually from each (Narva, Narva-Jõesuu,

Sillamäe).

• As a result, aircraft can start using the runway. The grass

runway at the airfield must be always well-trimmed and

there must be a minimum infrastructure for pilots (briefing

room with toilets).

44

Action Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Total cost

Feasibility study 60 000

Spatial (detail) planning with environmental impact

assessment 47 000

Preliminary project for technical infrastructure 20 000

Transfer land ownership to IVIA

Getting permission to build the technical infrastructure of a

business park and aerodrome

Tender for construction of the technical infrastructure of a

business park and aerodrome 3 000

Construction of the technical infrastructure of the business park

gas 800 000

water 200 000

sewerage 440 000

electricity 1 000 000

telecommunication 40 000

street lighting 330 000

roads 2 145 000

Construction of the aerodrome infrastructure

Clearing of obstacles and land leveling, preparations of

runway strip and apron, foundation for the runway

pavement 1 000 000 Paving of the runway and apron asphalt, windsock and

other mandatory equipment 500 000 1500 m2 hangar for aeroplanes storage and maintenance,

briefing room and café, small fencing system 2 000 000

Approach procedures, weather station and runway lights 1 500 000

IMPLEMENTATION SCHEDULE OF PHASE 1 Preliminary phase and phase 1

Phase 1 complete: Q1/26 Total and preliminary cost estimate: 9,6 million €

45

CHAPTER 3 OPERATIONS MODEL  Principles

 Understanding benefits

 Recommended operations model

 Marketing and funding

46

DEVELOPING THE BUSINESS PARK AND AERODROME Introduction to the operation model

Passenger

transport Air cargo

Development

from the outside

(Public-private

cooperation)

Business park and

aerodrome

development

Aerodrome

development

from the inside

(Aerodrome owner

and operator)

Air traffic connections serve as the

basis of the business area's

operations.

Aerodrome’s role is to provide quality

connectivity for the business region.

The aerodrome-based

business area is made

possible by a

development-friendly

airport operator and flight

connections that serve

customer needs.

The development of the business

area that benefits from the

aerodrome can also be helped

"from the outside". In cooperation

between the public and private

sectors, synergistic activities can

be found in connection with the

airport, which can benefit from

the airport immediately (=flights)

or indirectly (=the aerodrome

attracts other actors or activities

useful to the company).

47

THE SYNERGIC FUNCTIONS OF THE AERODROME Vision of the different functions at and around the aerodrome in long the run

Narva-Olgina Aerodrome

Narva-Olgina Business Park

Regional and national stakeholders benefitting

from the aerodrome

Operating the airport

ATC

Passenger flights

Air cargo

Recreational aviation

E-commerce warehousing

Air cargo facilities

Office/ meeting space

Service and maintenance companies

3D-printing

Spare part warehousing

Component manufacturers

Industry Tourism

Commerce

Cities

Municipalities

County

Public authorities

Direct effects: • The outer ring

stakeholders benefit from the inner ring activities

New business partners

 Improved competitiviness

Fast and sustainable logistics

Indirect effects: • The system

described creates an ecosystem that improves the regions vitality and traction

• This leads to more people, labour force and companies locating in the region

 Industrial diversity increases

The region’s and nation’s economy benefit

Energy production

Non-aeronautical activities

48

UNDERSTANDING THE BENEFITS The challenge is that the cost of running the aerodrome are visible, but the benefits are difficult to see beforehand

Aeronautical

revenue

Non-Aeronautical

revenue

Public funding

Aerodrome

operator

Aerodrome

infrastructure

Direct benefits from

the aerodrome

Indirect benefits for

regional economy

Indirect benefits for

national economy

Private funding

(optional)

Day-by-day operations

Wider economic impacts

Direct impacts

Examples of direct impacts • Better connectivity • New business opportunities • New jobs • Improved efficiency • Direct tax revenues

As the regional and national economy benefit from the

aerodrome directly (via better connectivity) and indirectly

(from increased economic activity), it is important that the

beneficiaries participate in funding of the aerodrome in

some way.

What are wider economic impacts? Air transport's most important social significance lies in its wider economic effects on the performance and growth of other industries. Aviation improves the efficiency of other industries across the spectrum of economic activity, and this is called a catalytic effect or "spin-off" benefits. For example, the direct impact of one euro of GDP from air transport generates 3 euros for other industries and one direct job from air transport creates 4.1 jobs for other industries. Source: ATAG

Airlines

Examples of wider economic impacts • National economy: GDP, jobs and tax

revenues • Business activity: trade, labor

availability, productivity, innovation, supply chains, investments and business location decisions

• Vitality of the region: image of the region, international tourism and competitiveness of remote areas

• Consumer welfare • Security of supply, operation of the

defense forces and crisis aid

49

BENEFICARIES OF THE BUSINESS PARK & AERODROME DEVELOPMENT Multiple actors can benefit from the induced effects of developing a new aerodrome

Industry

 Better connectivity to form business relations

 Improved logistics supply

 Faster business trips – the region is more attractive for investments

Tourism  Better accessibility of tourism destinations

 Developing sustainable tourism concurrently with sustainable aviation

Population

 New possibilities for recreational activities

 Possibility for recreational aviation

 Possibilities for travelling close from home

Flight operators  Enabling profitable flight operations

 Keeping aircraft utilization rate high

Ida-Virumaa county  Improved attractiveness of the county

 Improved regional economy

Municipalities

 Improved attractiveness of the nearby municipalities

 Potential for more working age population to improve municipal economy

 Public emergency and ambulance flights

IVIA  Easier to maintain and create new business relations

 Improved chances to find new companies for industry park plots

The government of

Estonia

 Improved national accessibility

 Boosting GDP and innovations

 Image as a forerunner country in new era aviation

Research and education  New possibilities for science studies

 Education possibilities regarding new aviation technology and operations

The development of Narva aerodrome will influence

on its environment in many ways. It is important to

use different kind of possibilities to gain all

beneficaries.

At the core of achieving the benefits from the

aerodrome are the companies and operators inside

the aerodrome area. Companies near the aerodrome

will benefit from the possibility of passenger flights

and the supply of air cargo services. Narva

aerodrome will provide better connectivity for

passengers and air cargo of the whole Ida-Virumaa

county.

There will be a significant influence from the services

of Narva aerodrome to the regional economy of Ida-

Virumaa and Estonia. Better connectivity by air

transport services will increase the competitiveness of

current companies and help attract new companies to

the area. The tourism attractions will be more

accessible. Because of more prosperous business

life, the city of Narva and Ida-Virumaa will be more

attractive for educated labour force. All of this will

improve the image of Ida-Virumaa.

50

OWNERSHIP AND OPERATIONS OF THE AERODROME Principles and guidelines

Principles based on experiences

in Finland

• Flexible and lean decision structure is a

must

• Local politics can slow down processes

• Important to engage and communicate

with local stakeholders

• The group of beneficiaries is wide, a

beneficiary pays principle should be

implemented

• Operator must have an interest to market

the aerodrome actively

• Sufficient private ownership makes dealing

with regulation easier

• Ownership of the infrastructure and

operations should be separated

• Public infrastructure is recommended as

infrastructure should not necessarily be

the focus of business – operating the

aerodrome should

• Ownership is critical for longevity of the aerodrome. Doing

business with infrastructure is not suggested (compare road

and rail network vs. aerodromes)

AERODROME

INFRASTRUCTURE

• Buildings can be owned by private entities BUILDINGS

• Development minded operator is required AIRPORT OPERATOR

• Operators need an aerodrome that is open when needed

• Costs should be reasonable FLIGHT OPERATIONS

• Important to improve visibility

• Stakeholders must see that they benefit from the aerodrome BRANDING, MARKETING AND

SALES

• Should enable the extension of the aerodrome and business

park if required LAND OWNERSHIP

FUNCTIONS PERSPECTIVES

51

ROLES OF DIFFERENT STAKEHOLDERS IVIA’s role is critical for the long-term success of the aerodrome. The company is the “glue” between the private operator and public funding.

The land area will be owned by IVIA

that will sell the plots for customers.

IVIA will use the sales revenue to cover

own financing for construction of

technical infrastructure of the business

park and aerodrome.

As a result of the sale at market prices

of all plots of land that will be formed in

the business park, IVIA will receive

revenue in the amount of 1,44 million

euros, which is about 15% of the

previously calculated investment into

the technical infrastructure of the

business park and aerodrome (9,6

million euros). IVIA uses this revenue

to cover own financing when attracting

funds from the various European

Structural and Investment Funds.

IVIA will own the critical

aerodrome infrastructure. IVIA

is funded by public

organisations. The money will be

used to maintain and improve

the aerodrome infrastructure.

Aerodrome operator should be a private company that

can focus purely on operating the airport. A contract with

more detailed obligations between the infra owner (IVIA)

and operator (private) shall be made. Development minded

operator is required. The operator will be chosen based on

a tender.

Business park property

will be owned and operated

by private entities.

Business park infrastructure will be

built by infrastructure companies. Funding

comes from IVIA and from various

European Structural and Investment

Funds.

Business park property and

infrastructure customers are mainly

industry. Recreational activities within the

area have ordinary people as customers.

Aerodrome operator’s customers are

airlines and other users at the

aerodrome. Main revenues come from

these entities. The more there is activity

at the aerodrome, the better the

profitability.

Aerodrome

infrastructure (runway, terminal,

technical

equipment)

Aerodrome

operator

Airlines Aeronautical

operations

Land area Business park

property

Business park

infrastructure (water, electricity etc.)

Industry, trade, tourism,

population, public

organizations

Industry

Industry

Other users Non-aeronautical

such as cafés etc.

52

RECOMMENDED OPERATING MODEL AND FINANCING SOLUTION Infrastructure ownership is public and funded via public funds – aerodrome operator is private and operates commercially. Thus, the aerodrome can be run efficiently and there is stability in ownership and operations.

Example of wider economic impacts • New business relations and better connectivity enabled by the

aerodrome and aviation services can lead to a new industrial investments.

• If the new investments employ 500 persons in total:

Calculation assumptions Local tax: (2 000 € - 500 €)* 11,89 % = 178,35 € (per person per month) State tax: (2 000 € - 500 €)* 8,11 % + 2 000 € * 33,8 % = 797,65 € (per person per month)

Aeronautical

operations

Aerodrome infrastructure

owner

Aerodrome operator

Non-

aeronautical

operations

Private operator • User fees • Efficient

operations • Private

funding if necessary

Basic infrastructure • Non-profit • IVIA owned • Public

funding

Region’s population, industry and tourism • Flight connections • Air cargo services  Better connectivity  New business

opportunities  New jobs  Improved efficiency  Direct tax revenues

Indirect benefits for regional economy

Indirect benefits for national economy

Vitality of the region: image of the region, international tourism

Consumer welfare

Health services

Direct impacts

• State tax revenue

• Local tax revenue

• Tourism income

Business activity:

• Trade

• Labor availability

• Productivity

• Innovation

• Supply chains

• Investments and

business location

decisions

Attracting new

population

• More population

• More consumption

• More taxes Security of supply,

ambulance flights

More activities

Wider economic impacts benefit the region and state

The public organizations (municipalities, county, and state) get the benefits,

so they help fund the aerodrome infrastructure owner (IVIA). This creates

longevity and helps keep the aerodrome up and running with enough

profitability

OPERATIONS

INFRASTRUCTURE

PUBLIC ORGANIZATIONS

National economy effect: Additional € 4,8 million tax

revenue annually

Regional economy effect: Additional € 1 million tax revenue annually

Money from different public funds (Estonia or

EU) can also be used to maintain and develop

the aerodrome.

53

TRADITIONAL RESPONSIBILITIES OF THE AERODROME OPERATOR General information

Aerodrome operator responsibilities

• Economic responsibility of operations

• Handling and applying the needed approvals

• Maintaining the safe condition of the aerodrome

• Air traffic controlling

• Ground handling of passengers and cargo

• Sales and communications

• Fuelling

Operator contract possibilities

• The operator can be outsourced to handle the operational functions. This is

recommended for the first phase to guarantee the service level of the aerodrome in

the first phases

• The aerodrome can be rented for the operator as a whole. This is only possible, if

the customer flow is sufficient

• Owner operated

There are three options for transferring the aerodrome infrastructure to the operator

1. Local governments and some of the state institutions pay to the operator

for maintaining the aerodrome infrastructure in operational condition

2. Operator gets to use the infrastructure for free

3. Operator rents the aerodrome commercially

AIRPORT

MANAGER

SAFETY

MANAGEMENT

OPERATIVE

ACTIVITY

GROUND HANDLING

PASSENGER SERVICES

FUEL SUPPLY

AIRCRAFT

MAINTENANCE

MAINTENANCE

SECURITY CHECKS

Option number 1 is suggested in the first phase

• Outsourced operator, who is paid to keep the aerodrome

operational and offer the desired services to the visitors and

users of the aerodrome

• Pricing can vary greatly depending on the desired service level

• Paying for the operator is mandatory at first to create the

demand and make the aerodrome profitable

54

BUSINESS MODEL FOR NARVA-OLGINA AERODROME Business model canvas for the aerodrome

• The key clients of the

aerodrome are regional

actors of Ida-Viru

• The clients of the business

park are the companies that

benefit from locating near

an active aerodrome with

international connections

• The aerodrome is run by the

private operator with close

cooperation with IVIA

VALUE

PROPOSITIONS

DISTRIBUTION

CHANNELS

CUSTOMER

RELATIONSHIPS CUSTOMER

SEGMENTS

REVENUE STREAMS COST STRUCTURE

KEY

RESOURCES

KEY

PARTNERS

KEY

ACTIVITIES

Private aviators

Hangar rentals

Maintenance companies

Private aerodrome operator

Beneficiaries:

Municipalities

Regional Organisations

Export Industries

Tourism Companies

Passengers

Service Providers:

Air Traffic Carriers

Tour Operators

Airport Operations as a Service

Digital Airport

Customised Proposition based on Local Requirements

Easy and fast Travel

Low traffic allows the airport to be used as a testbed

Close to the city center (4 km)

Source of renewable energy

For regions:

Accessibility

Vitality

Landing/Passenger Fees

Space Rental (Hangars, Office, Service Space, etc.)

Beneficiaries Yearly Fees

Beneficiaries: CEO Personal Relationship Service Providers: Sales Manager Personal Relationship Investments according to customer’s needs

Person-To-Person Key Partners Digital At airport: p2p & digital

Digital Airport incl Remote Tower

Airport Manager

Marketing and Sales org.

Dual Fiber Connection

Marketing

Sales

Airport Operations

Air Traffic Control

Customer service

Use in R&D projects, infrastructure & service development

Narva-Jõesuu Municipality

Narva Minicipality, Sillamäe Municipality

Union of Ida-Virumaa Municipalities

Estonian Aviation Academy

Tallinn University of Technology

Estonian Aviation Cluster

Tallinn Airport

One Time Cost: Set up Aerodrome Environment

Recurring Fixed Costs: Air Traffic Control, Management, ICT

Recurring Variable Cost: Passenger Service, Maintenance

55

MARKETING THE BUSINESS PARK AND AERODROME Integrating the development area to wider marketing schemes is strongly suggested

Marketing

The marketing strategy of the business park and

aerodrome should be integrated with the general

marketing of the region. Therefore, a separate marketing

budget is difficult to present. Main marketing stakeholders

are IVIA, the regions municipalities and also the industry

itself that can promote the region. For example, local

municipalities should always include the aerodrome in

their marketing material when accessibility is discussed.

Same goes for the tourism cluster. New sustainable

tourism concepts can be created around next gen aircraft

and zero emission operations.

The Narva-Olgina business park and aerodrome are an

integrated solution that should be marketed as such. Both

functions should be at the center of the marketing

strategy. Key topics of marketing that can be integrated:

• Business park: New opportunities for companies to

invest and locate next to an aerodrome and have

synergy advantages.

• Aerodrome: “region’s economic motor”, better

accessibility, state of the art aerodrome

development, sustainable actions.

Events

There are a lot of various opportunities to promote the

aerodrome business opportunities. Marketing events

should be selected based on the relevant stage of

aerodrome development and the targeted operations. It's

important to prepare the business presentation carefully

targeting the optimal partners and customers. These

events also offer excellent networking opportunities

and source for new ideas for business

development. Some of the feasibility study content can be

directly used to market the business park and aerodrome.

Recommended events:

For latest tech development and meeting industry

professionals:

• Tech Runway (Aug), Finland

• AIRTECH (Oct), Germany

• AERO Friedrichshafen

In the longer run (phase two or three), when airport is

ready for commercial passenger traffic:

• Routes Europe (May)

• Connect Conference (Feb)

National marketing • Invest in Estonia

Regional marketing • IVIA, municipalities

and cities

Tourism marketing • Ida-Viru tourism

cluster

Narva-Olgina business park and aerodrome stakeholder’s marketing • IVIA, aerodrome

operator & businesses

MARKETING FRAMEWORK

IVIA marketing budget for Narva-Olgina

business park and aerodrome

A yearly marketing budget of 5 000 € should be

reserved for event costs and social media

marketing in the preliminary and first phases. This

helps to increase the recognition of the business

park and aerodrome development. Events are

excellent opportunities for marketing and

networking.

56

PREREQUISITES FOR

FUNDING THE DEVELOPMENT

Development is in in line with EU taxonomy

The EU taxonomy is a cornerstone of the EU’s sustainable

finance framework and an important market transparency

tool. It helps direct investments to the economic activities

most needed for the transition, in line with the European

Green Deal objectives. The taxonomy is a classification

system that defines criteria for economic activities that are

aligned with a net zero trajectory by 2050 and the broader

environmental goals other than climate.

EU funding opportunities

• Horizon Europe (research and innovation)

• InvestEU (Green, resilient and digital investments,

private and public funds)

• Connecting Europe Facility (key energy, transport and

digital infrastructure cross Europe)

• Digital Europe Programme (accelerate the recovery and

drive the digital transformation of Europe.)

Estonia funding opportunities

• Just Transition Fund for Ida-Viru county

• Estonian Business and Innovation Agency

• Estonian State Shared Service Center

FUNDING OPPORTUNITIES Funding the development of business park aerodrome require strong focus on themes that are currently supported

MAIN THEMES/SUGGESTIONS THAT FUNDING APPLICATIONS SHOULD BE BUILT AROUND

The development is about connecting Eastern Estonia to western partners

• The development is based on highly sustainable methods and focuses on improving the accessibility of a region that has taken heavy hits due to geopolitical events.

• Improved regional accessibility increases the economic and social conditions of the municipalities

Sustainability is at the heart of development

• The goal is to create a zero-carbon aerodrome that supports the usage of next gen aircraft – this is in line with the European Green Deal goals

• Differentiation between old views of airports and future aerodromes

Don’t separate the business park and aerodrome development

• The development consists of both business park and aerodrome development (synergy)

The development supports industrial transformation of Estonia

• A piece of the puzzle – opportunity to boost green energy investments and make use of next gen aircraft

New technology development and real-world usage

• Act as a beacon of new technology development

• A platform for companies to test and use their latest technology

• “Usage of new tech, such as electric cargo drones, will happen somewhere. We want to make it happen here. “

57

LEGAL FRAMEWORK Legal aspects to consider when building an Aerodrome in Narva

The following laws and regulation should be considered in the preliminary phase:

• Environmental laws

• Desired environmental permit must be applied in the early phases of the project

• https://www.riigiteataja.ee/en/eli/517062022003/consolide

• Construction laws

• Aviation law & Land use and construction law regulate construction and buildings

• https://www.riigiteataja.ee/en/eli/513122013003/consolide

• Aviation laws

• Aviation law dictates the process on how to build an airfield and the basic formal

requirements for it

• https://www.riigiteataja.ee/en/eli/510072014015/consolide

• EASA ADR (European aerodrome/airport regulation)

• EASA ADR regulates the runway specifications, safety areas, runway lights etc.

• The goal is to build an airport. Therefore, it is recommended to follow EASA ADR

regulation from the beginning of the construction to avoid problems later

• https://www.easa.europa.eu/en/document-library/easy-access-rules/easy-access-

rules-aerodromes-regulation-eu-no-1392014

IFR operations near the Russian border

• The proximity to Russian border affects IFR

operations especially when approaching from east.

• The IFR approach procedure's design should be

done in collaboration with Estonian aviation authority

to accept the exceptions

• Modifying the runway position and direction for easier

approaches should be considered at the preliminary

phase

• If the relations with Russia get back to normal at

some point, it should be possible to make the

approach from the Russian side.

58

CHAPTER 4 CONCLUSIONS

59

FEASIBILITY SUMMARY FOR PHASE ONE Establishing the Narva-Olgina business park and aerodrome

Factor Positives Negatives

Technical

feasibility

• Land will be owned by IVIA which makes decision making easier and

helps with resources

• Detailed planning has started

• Technically no barriers for creating a new aerodrome and business

area

• Russian border – effects to flight rule planning and limits the maximum size of

the aircraft

Financial

feasibility

• Public funding is available, and IVIA is proactive in the development

• With the right operational model, invested money from public will

return to the regional economy with a multiplier

• Small aerodromes are seldomly profitable by themselves – larger catalytic

effects must be considered and understood

• Initial investment is larger than in the maintenance phase – might be politically

challenging

Market

feasibility

• Local industry is indicating that flights would be used – there are over

6 600 companies in the county

• Tourism is trying to be boosted and interesting markets are nearby

• Aerodrome operators available in nearby countries

• There is demand for sustainable technologies and expertise to

provide these in Estonia

• Russian markets are closed – significant share of markets is unusable

• Estonian aerodrome operator market undeveloped

• There might not be a culture of flying in the region – it might take time for the

companies to start using the services

• Demand potential is difficult to estimate due to change operational

environment

Operational

feasibility

• IVIA has enough resources to advance with the planning

• There is enough expertise to build the aerodrome and necessary

facilities

• The operations of the aerodrome require a professional operator with

experience

• The operating of future digital aerodromes is still in development so there are

always some problems

60

OPPORTUNITIES AND RISKS Identified opportunities and risks that should be mitigated with proper planning

Opportunities

• Better connectivity for

Ida-Virumaa’s companies, passengers and cargo

• With proper marketing and focus the aerodrome with its

catalytic effects can be profitable for whole region.

Invested money will return to the regional and state

economy.

• Support for growing industry and tourism of Ida-Virumaa

• Boosting the economy, labour force and prosperity of

Ida-Virumaa

• Expansion of Narva-Olgina business park

• Forerunner position in new era aviation in Estonia

• Creating a new ownership and operation model of an

aerodrome in Estonia

• The vision can be established in steps

Risks

• Lack of understanding/communication

of the benefits can lead to reduced funding

• Losing the funds for operating the aerodrome

• Political risk of longevity as public money is being used

to maintain the infrastructure

• The development of aerodrome is delayed for any

reason

• Less passengers and cargo than expected

• Competing activities in the area

• "Flight shaming" before more sustainable aviation

options

• Legislative issues or delays in aerodrome approval

processes or building rights

• Flight operational issues due to the location near

Russian border

• Problems with environmental approvals

61

CHECKPOINTS FOR SUCCESS Clear goals and understanding of success factors will set the development on the right path from the beginning

GOALS CRITICAL SUCCESS FACTORS KEY ACTIONS

Aerodrome is up and running in an

efficient and carbon neutral manner

Maximum usage of digital and automated solutions. High-

quality and effective processes defined and implemented.

• Take full advantage of Estonian competence in

digital solutions

• Involve private and public actors in the

development of the aerodrome

Operating the aerodrome must be

profitable to ensure longevity

The finances must be in order and the contracts must be

long-term

• Clear revenue model and separation of

infrastructure and operations

Efficient and professional operations Skilled personnel with the right attitude • Choose the aerodrome operator with care

The aerodrome and aviation services

increase the region’s accessibility and

attractiveness

The surrounding region, municipalities and other actors are

committed to the aerodrome’s success

• Analyse in more detail the wider economic

impacts

• Communicate the benefits clearly for key

stakeholders

Increased air traffic from the aerodrome

with zero emissions Active marketing and sales work

• Contact airlines that plan to use next gen

aircraft

• Seal deals with operations and plan the routes

with industry

Co-operation with educational institutions Cooperation with with Estonian Aviation Academy and other

institutions

• Active contacts with the Academy

• Participation in Academy events

62

NARVA-OLGINA BUSINESS PARK &

AERODROME

A feasibility study for a sustainable and

competitive business ecosystem

NARVA-OLGINA BUSINESS PARK &

AERODROME

1

Marit Pani

From: Teet Kuusmik <[email protected]> Sent: teisipäev, 5. november 2024 09:49 To: Regionaal- ja Põllumajandusministeerium Cc: Piret Hartman; Priidu Ristkok Subject: Taotlus Attachments: 1-633 IVIA_Regionaal ja Põllumajandusministeerium .asice

Categories: Yellow category

Tere Käesolevaga edastab SA Ida-Viru Investeeringute Agentuur Taotluse kinnistu (Narva-Jõesuu linn) mitterahaliseks sissemakseks SA Ida- Viru Investeeringute Agentuur sihtkapitali suurendamiseks Lugupidamisega Best Regards Teet Kuusmik SA Ida-Viru Investeeringute Agentuur juhatuse liige Ida-Viru Investment Agency, member of Board tel +372 5114 685 e-mail: [email protected] www.ivia.ee