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WWW.ACI-EUROPE.ORG

YOU

THANK

THE BUSINESS OF STAYING IN BUSINESS - the (European) airport perspective

Olivier Jankovec, Director General

ICAO Air Transport Symposium

Montreal, 20 April 2012

GROW INTERNATIONALLY

& ALLIANCES

DEVELOP NEW REVENUE STREAMS

Commercial Revenues

now account

for 47% of total

airport revenues

YESTERDAY

  • Mere infrastructure providers
  • Focused on national carriers
  • Dependent on public financing

= Economic sustainability NOT in our DNA

the way we were

KEY DRIVERS OF

THE BUSINESS EVOLUTION

Aviation

Liberalisation

New Airline

Business Models

Airport

Competition

Public Financing

Squeeze

Shareholders'

Evolving Expectations

BUSINESSES

- IN OUR OWN RIGHT

TODAY

  • Diversification
  • Serving ALL customers
  • Corporatisation (privatisation)
  • Self-financing & Fiscal discipline
  • No airline cross-subsidisation at the expense of airport shareholders

= Economic sustainability

at the forefront

airports are businesses

- Sovereign Debt Crises & GDP forecast

- Fuel Price: US$123!

- National Aviation Taxes

- EU ETS

- Airline Behaviour

Traffic Determinants

Passengers: +3.9%

Freight: +3.0%

Forecast for Europe's Top 20

EUROCONTROL predicts

-1.3% flights

STRATEGIC

DIRECTIONS

CONTRIBUTION

AVIATION SECTOR

1st employment site in Germany

90,000 direct jobs, 270,000 indirect jobs

29,000 direct jobs

2.14% Greek GDP

130 companies established

+3% of city's workforce/ -60% unemployment

User pays principle, but not full costs

Frankfurt Airport

Paris-CDG

Moscow Domededevo

Athens Airport

Birmingham

Charleroi

SOCIETY

BEYOND

AIRPORTS

5

REDUCE

DEPENDANCE FROM DOMINANT AIRLINE

2.

Capacity

+23%

Revenues under pressure & external costs rising

Capital costs:

Regulatory driven costs

Trading Conditions

(2010 v. 2009)

Governance

&

Political Interference

Business-based decisions

No abusive dividend policy

CHALLENGES

Policy & Regulatory Framework

Basic Principles

i) Provide LEGAL CERTAINTY - airports expansion & charges

ii) Reduce OPERATING COSTS - security, safety, environment

iii) Provide NEW BUSINESS OPPORTUNITIES - Liberalisation

Reflect & support

business transformation

& economic sustainability

= key for effective airline competition

BOOST

COMPETITIVE

POSITION

Diversify facilities & services & pricing

Active network development

Brand equity

1.

Competitive Airport Charges

  • Airlines related charges = 16% of

airport revenues

  • 2010 decrease: -7% / -€353 million

  • €4 billion cost UNDER-recovery

= Users not paying full infrastructure cost

Boost Operational Efficiency

  • A-CDM & A-CDO
  • Airports = Ground Coordinators

& Total Airport Management

= Lower airline operating costs

3.

= key to economic sustainability

DEVELOP

NEW REVENUES

& COST DISCIPLINE

48%

Expanding beyond the Terminal...

Commercial revenues

= of airport revenues

...Airport City

Capex 2012-2016:

Redefine the airport experience

Technology & Social Media

4.

€43.3 billion

GROW

INTERNATIONALLY

& ALLIANCES

5.

PROVIDE

CAPACITY

& QUALITY

Europe's Top 20

PROFITABILITY

Regional Airports

BUSINESS MODELS

48% of Europe's airports

= loss making (2010)

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