Experts warn highest bidder not best as Lithuania seeks operator for airports
the Lithuania Tribune
Tuesday, January 26, 2016
Lithuania is seeking private companies to compete for a concession deal to run the country's three international airports but aviation experts warn that the highest bidder might not be the right choice.
The Lithuanian government has distributed €1 million among foreign airlines in order to add new routes and make the country more accessible by air. While state subsidies are a common measure of promoting incoming tourism, critics say additional flights will mostly serve Lithuanian migrant workers.
Direct air transport effect on Lithuania‘s economy in 2013 reached 86 million euro, or 0.25 percent of GDP. However, it is only the tip of the iceberg, since the total sum of direct, indirect, induced effects and the broader economic benefits from air transport effect in Lithuania would be 870 million euro, or 2.5 percent of GDP.