Laila Odina’s Journey in the Aviation Industry
Having made the move from airlines to airports, Laila Odina has fully embraced her role as CEO at Riga Airport in Latvia. As the airport gears up to celebrate its 50th anniversary in 2024, she tells Chloë Greenbank about her bold plans to transform the regional hub into a multimodal airport city.
As soon as she left school, Laila Odina, Riga Airport’s CEO, was determined to pursue a career in aviation. She started out as a flight attendant (for Aeroflot), a role she wouldn’t hesitate to recommend to any young person now.
“Working as cabin crew is a great foundation for any career,” she says. “There are so many skills you learn, from team building and customer service to managing expectations, punctuality and professionalism.”
It wasn’t long before Odina was promoted to Cabin Operations Manager, rising through the ranks of Latvian national airline Latavio and then Baltic International Airlines, which became airBaltic in 1995.
“About five years after joining airBaltic [which is headquartered at Riga Airport], I was promoted to Human Resources (HR) Director, before being made Chief Operations Officer (COO). As COO I was involved in ground handling, technical operations, flight schedules, security and safety. It was also a time when the airline was upgrading its fleet and expanding, so it was an exciting time to be responsible for day-to-day operations.”
After 16 years with airBaltic, Odina says it was time for a change. Several opportunities beckoned, including an offer to work with another European airline and a small business jet firm in the US. But it was an offer from Riga Airport that piqued her interest.
“Despite moving away from a dynamic airline operator, I didn’t want to slow down – I was ready for another big challenge,” she says. “I joined Riga Airport initially as a supervisory board member, stepping in as interim CEO when the person previously in the role resigned at the beginning of the COVID-19 pandemic.”
In 2021, Odina was officially made Chairperson of Riga Airport’s Supervisory Board and CEO for an initial five-year contract.
Passenger Traffic and Trends
With Riga Airport celebrating its 50th anniversary in 2024, there are numerous developments under way at the Latvian hub to complement the anticipated passenger growth.
In 2022, the airport welcomed 5.4 million passengers – 69% of pre-pandemic 2019 figures, when it accommodated close to 8 million passengers – but already in 2023, passenger traffic continues to show steady volumes of growth.
In the first four months of the year, the total number of passengers reached 1.8 million – a 50% increase on the same period in 2022.
The area where recovery is weakest is with transit passengers due to geopolitical tensions. “We have lost a lot of our transit traffic for passengers travelling to and from destinations across Russia, Ukraine and Belarus,” says Odina. “This isn’t going to change any time soon, but for our intra-European network and particularly in terms of point-to-point traffic, the outlook is promising.”
In line with forecast growth, the airport implemented its Runway 2027 strategy in 2022 to develop existing aviation services, including route development, and integrate other business activities to support Riga’s position as a leading regional hub for the Baltic states.
“Out of 100 destinations, we are proud to serve more than 40 unique routes,” says Odina. “These aren’t served by any other airport in the Baltic region and we’re constantly exploring new links.” She suggests that with plenty of interest in flights to New York, this is just one opportunity the airport is currently investigating.
As is being seen at most regional hubs across Europe, leisure and low-fare traffic is leading Riga’s recovery. It currently has 15 airline customers, with airBaltic and Ryanair dominating the market share (55% and 30% respectively) of routes served.
Given her background working with airlines, Odina is no stranger to understanding how carriers operate when it comes to establishing new links. “Cooperating and incentivising airlines can be difficult when it comes to airport charges. Airlines want these charges reduced, but as an airport we have high fixed costs, a terminal that desperately needs upgrading and demand for salary increases amid rising inflation. It’s a constant juggle.”
Challenges and Infrastructure at Riga Airport
Built some 50 years ago, the airport infrastructure is a remnant of the Soviet era.
“The terminal was originally built to handle 2.5 million passengers per annum,” says Odina. “With passenger numbers forecast to return to 2019 figures in the next couple of years, the need to expand the terminal and enhance the passenger experience is fundamental to the airport’s growth.” The big challenge, she admits, is financing this work.
“The airport is state-owned, so the work will be funded through private bank loans, which isn’t ideal given the current economic climate.”
It’s not just the building that needs upgrading either. All the passenger processing systems, baggage handling and security areas will benefit from being upgraded too, for which new and existing partners including SITA will have to submit tenders.
As a strategic hub for the region, Odina underlines that surface access to the airport also needs to be improved.
Currently, the majority of passengers travel to the airport by car. “The public transport system in Latvia is not in the greatest shape, with limited bus services between the airport and the central station and limited connectivity between the Baltic countries and Europe.” Although this is set to change with the development of Rail Baltica – a high-speed railway that will link the Baltic capitals with the railway networks in Finland, Poland and Germany and which will serve Riga Airport.
While the rail network is still in its infancy, Riga admits that it “offers an excellent opportunity for Riga Airport to become a new generation Northern European hub for traffic, business and tourism”.
She is optimistic there will be a railway station at the airport within the next five years.
The Vision for RIX Airport City
Aligned with the development of the airport as a multimodal transport hub are Riga’s plans to develop RIX Airport City.
The €300 million airport city concept, which will be funded through private investment, will be developed on 24 hectares of land owned by the airport and will offer a state-of-the-art, sustainable space for business and leisure opportunities.
“This is an exciting long-term investment project, which we plan to develop in phases,” says Odina.
“It will offer a hotel, conferencing facilities, commercial, retail and office space on site and the opportunity for recreational activities with parks and public open spaces.
“Latvia has a population of less than two million and especially with the situation in Ukraine and Russia, we need to diversify revenue streams. The development of RIX Airport City will help us move away from relying solely on passenger traffic.”
Sustainability Initiatives at Riga Airport
Sustainability is of course also integral to the airport’s future. It recently developed its sustainability strategy as a roadmap to achieving net zero emissions by 2050.
“I know plenty of airports are working towards net zero by 2030, but it is important to be realistic about what we can achieve and when given the infrastructure at Riga is so old,” says Odina.
“Under our sustainability strategy we have set at least 200 different activities to reach net zero, including the installation of solar panels, but we also need modern substations to be connected to that energy supply and that’s no easy task with a 50-year-old building.
“Similarly, we plan to transition to an electric fleet of ground vehicles, but first we need to ensure there is adequate charging infrastructure to do so.
“That infrastructure simply isn’t in place currently, so we are working on rolling that out within a realistic timeframe.
“We are also replacing all the runway and apron lights with more efficient LED lights, as well as exploring greener solutions and more eco-friendly agents that can be used during the snow clearing and de-icing process.
“We are also participating in several R&D projects exploring alternative fuels including hydrogen and the infrastructure required to support these sustainable fuels.”
Riga: A Destination to Explore
In the meantime, it’s full steam ahead with developing the airport as a multimodal hub that offers a destination for more than just airlines and their passengers.
“Our goal is to create a people-oriented airport city, which is itself a destination with value that people come to for work or recreational purposes as well as to fly. I would like to see this vision being delivered within the next five to six years.”
With a new air traffic control tower, new cargo terminal and MRO facility also all in the pipeline, Odina says that “ensuring safe, reliable operations for passengers and customers during all this development is just another challenge to add to the mix”.
As for why Riga is the one to watch for inbound visitors? Odina responds in a heartbeat.
“There is something for everyone,” she says. “Riga is a beautiful city filled with attractions. From the old town in the heart of the city to its cosmopolitan cultural scene there is something for all ages. And it’s a gateway to the rest of Latvia. Within two to three hours’ driving, you can be in the far east or west of the country and exploring its tapestry of beautiful, unspoilt landscapes and charming towns. It’s the perfect destination for a long weekend. Come and see for yourself!”
This article was initially published in the June 2023 edition of the magazine.
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