Vaisala Secures Major Airport Modernization Project in Indonesia
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Vaisala to Modernize 14 Airports
Vaisala has been selected for a significant project worth EUR 25 million aimed at strengthening airport safety and weather resilience in Indonesia. As an archipelagic nation consisting of over 17,000 islands, air travel plays an essential role in the movement of people and goods. In 2022, Indonesia recorded more than 52 million domestic and seven million international passengers.
Contract Signing and Project Overview
Vaisala, a renowned leader in measurement technology, has announced the signing of a contract with the Indonesian Agency for Meteorology, Climatology and Geophysics (BMKG). This contract involves the provision of cutting-edge airport weather systems and equipment to modernize 14 airports across Indonesia. The contract represents the largest aviation weather project ever undertaken by Vaisala. The project will be reflected in Vaisala’s orders once the financing agreement is finalized.
Commitment to Flight Safety
Jarkko Sairanen, Executive Vice President, Weather and Environment at Vaisala, emphasized the importance of flight safety, stating, "Flight safety should not be a privilege. No matter where you live, you should be able to trust that your air travel is protected by modern automatic weather observation systems." He highlighted that the tropical climate in Indonesia presents unique challenges, including thunderstorms that can significantly impact the safety of passengers and ground personnel.
Growth of Aviation Market in Indonesia
Indonesia is recognized as the second-fastest growing aviation market globally after China, thanks to its aircraft purchases and trade value. The need for investment in airport infrastructure is critical to support the rapid growth of the aviation sector. Modernizing these airports will not only enhance safety but also bolster the aviation industry's capability to handle increasing passenger traffic.
Advanced Technology Implementation
This new contract marks a substantial milestone in Vaisala's ongoing growth within the Indonesian market. The project will introduce advanced aviation weather technology, including the AviMet Automated Weather Observing System (AWOS) at eight airports. Additionally, a wind shear alert system, which integrates X-band weather radars and wind lidars, will be deployed at four airports. Together, these technologies will significantly improve the meteorological support for safe air travel.
Volcanic Activity Considerations
Considering Indonesia's geographic location along the Pacific Ring of Fire, which is home to approximately 80 active volcanoes, the inclusion of the SILAM model from the Finnish Meteorological Institute is particularly crucial. This model will help estimate the movements of ash clouds from potential volcanic eruptions, thus enhancing the safety measures for aviation operations in the region.
Funding and Project Timeline
The project will be financed through the Finnish Public Sector Investment Facility (PIF). This funding mechanism is governed by the Finnish Ministry for Foreign Affairs and is applicable for projects that align with the United Nations’ Sustainable Development Goals in developing countries. The project is anticipated to commence in 2025 and will run for three years, contingent on the completion of the PIF loan agreement and subsequent approval from the Finnish Ministry of Foreign Affairs.
About Vaisala
Vaisala is a global leader in measurement instruments and technologies focused on climate action. The company equips clients with innovative devices and data that enhance resource efficiency, facilitate the energy transition, and prioritize the safety and health of communities worldwide. With nearly nine decades of expertise, Vaisala employs over 2,300 professionals dedicated to environmental concerns and advancements. The company’s series A shares are traded on the Nasdaq Helsinki stock exchange under the ticker Helsinki:VAIAS.
Frequently Asked Questions
What is the value of Vaisala's contract for the airport project?
The project is valued at approximately EUR 25 million.
How many airports will Vaisala modernize?
Vaisala will modernize a total of 14 airports in Indonesia.
What technology will Vaisala implement in these airports?
Vaisala will implement advanced technologies such as the AviMet Automated Weather Observing System and wind shear alert systems.
Why is modernizing airports significant for Indonesia?
Modernization is crucial for improving aviation safety and catering to the growing number of passengers in Indonesia's rapidly expanding aviation market.
When is the project expected to start?
The project is anticipated to begin in 2025, following the completion of financing agreements.
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