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Airport Business News - Europe.

Mar 17, 2008

Airlines say they oppose a move by the U.K.'s Civil Aviation Authority yesterday that will allow airport operator BAA to charge passengers higher-than-expected price caps to use London's Heathrow and Gatwick airports. Carriers note that they are already struggling with weaker demand and high oil prices. Mar 12, 2008

European Parliament yesterday adopted a new regulation that lays down common rules and standards for aviation security throughout the EU. The vote follows the agreement reached two months ago in conciliation between European Parliament and Council representatives. The regulation will enter into force on the 20th day after publication in the Official Journal and will be applied not later than 24 months later. Mar 12, 2008

Aeroports de Paris

French airports operator Aeroports de Paris reported a 19.2 percent rise in 2007 recurring net profit and raised its mid-term outlook on Thursday Mar. 13. The operator of Charles de Gaulle and Orly airports posted net profit before non-recurring items of EUR239 million euros (USD$367.2 million), up from EUR200.6 million in 2006. Reported net income more than doubled to EUR321.8 million in 2007. Earnings before interest and tax, or operating profit, rose 13 percent to EUR442.1 million, slightly above market forecasts. EBITDA rose 13.5 percent to EUR754.4 million. Non-recurring items included the costs of ADP's partial privatization in 2006, proceeds from the sale of shares in Beijing Capital International Airport Company (BCIA) and reorganization provisions for the ground-handling unit. Ground handling lost EUR11.9 million, though the loss narrowed by 32 percent from 2006. Finance Director Laurent Galzy told reporters that ADP expected a "substantial reduction" in the ground-handling losses this year before a return to break-even in 2009. ADP said it expected revenue and EBITDA to grow substantially faster than passenger traffic in 2008. Mar 13, 2008

Aeroports de Paris

French airports operator Aeroports de Paris said passenger traffic at its two main airports should grow at close to the 3.75 percent forecasts built into ADP's economic agreements with the French state. Airport fees are set to rise by an average of 3.8 percent on April 1. Passenger traffic grew 4.7 percent in 2007 to a record 86.4 million passengers due in part to the Rugby World Cup, but ADP said strikes had clipped 0.25 percentage points off growth. Mar 13, 2008

Aeroports de Paris

French airports operator Aeroports de Paris core revenues from airport fees rose 9.7 percent to EUR731.7 million. Retail and real estate revenues grew 9.1 percent and 10.5 respectively in 2007. The company is slated for further privatization but the timing is unclear. The French government owns 68.4 percent of ADP. Concessions and construction firm Vinci took a 3.3 percent stake in January and said last month it would not raise the stake until the government made a decision on ADP's future. ADP shares have risen 20 percent this year and closed on Wednesday at 83.99 euros, valuing the company at EUR8.3 billion. Mar 13, 2008

BAA

British airport operator BAA said on Wednesday that the number of passengers using its airports fell by an adjusted 0.5 percent in February. The figure is adjusted for the leap year's extra day in February 2008. Without the adjustment, traffic reached 10.2 million passengers, a rise of 3.5 percent over February 2007. Scheduled European flights make up about two fifths of traffic at BAA, which is owned by Spanish construction and services group Ferrovial. Mar 13, 2008

BAA, World Duty Free Europe

BAA announced an agreement to sell World Duty Free Europe to Italy's Autogrill for [pounds sterling]546.6 million ($1.1 billion) "as part of its ongoing noncore asset disposal program." WDFE will enter into a 12-year concession agreement to operate duty free shops at BAA's seven airports. Autogrill operates more than 5,200 shops in more than 1,100 locations and had sales of [pounds sterling]4.8 billion last year. Mar 11, 2008

BAA, World Duty Free Europe

BAA has sold World Duty Free Europe (WDF) to Italian company Autogrill for [pounds sterling]546.6m ($1,102m). The deal gives Autogrill a 12-year concession agreement for the operation of the stores at BAA[sup.1]s seven UK airports, subject to regulatory approval. The airports operator said last week - when it announced a new CEO will take over from April - that it was looking for a buyer for its chain of 58 duty free shops as part of efforts to raise cash to help pay off huge debts. It is well documented that BAA is also looking to sell parts of the Airport Property Partnership, which includes various commercial properties at its airports, but whether it will be enough to prevent the need to offload core assets is not known - BAA[sup.1]s Spanish owner Ferrovial is trying to refinance [pounds sterling]9bn of debt which it took on to buy the operator in 2007, and on which it has an annual interest bill of around [pounds sterling]800m. Autogrill - owned by the Benetton family - acquired catering operator Alpha Airports last year and today bought the remaining 49.95% of Spanish company Aldeasa, which also operates airport shops. This has made the group the world[sup.1]s leading provider of food, beverage and retail services for travellers, it says, with the value of today[sup.1]s two transactions at [euro]1,070m. Mar 11, 2008

Barco

Barco said UK NATS selected its OSYRIS arrival management software for London Heathrow, Gatwick, Luton, Stansted and City airports. Contract includes software integration with the existing ATC system. Mar 11, 2008

Barco, London Airports

Barco said UK NATS selected its OSYRIS arrival management software for London Heathrow, Gatwick, Luton, Stansted and City airports. Contract includes software integration with the existing ATC system. Mar 12, 2008

Eurocontrol

Eurocontrol will serve as Fellow for Aviation Safety in Europe, responsible for coordinating the promotion and implementation of FSF safety initiatives and products on the continent. FSF will promote Eurocontrol's safety initiatives and products globally. Particular emphasis will be given to supporting the development of a Just Culture and transparency in safety-related issues. Mar 13, 2008

Flight Safety Foundation, Eurocontrol

Flight Safety Foundation announced a partnership with Eurocontrol aimed at strengthening cooperation between the two organizations in order to reduce safety risks. The accord follows a similar agreement between FSF and Aviation Safety Foundation-Australasia announced last week and will focus on mitigating risks posed by the combination of traffic growth and a shortage of controllers and pilots, the creation of a Just Culture in aviation and the promotion of SKYbary, an online repository for safety-related information. Mar 13, 2008

London Heathrow Airport

London's crowded Heathrow Airport will be allowed to raise airline charges by a bigger-than-expected 23.5 percent, giving a boost to the airport's indebted owner but sparking fury among its users. Shares in Spanish construction group Ferrovial, which bought Heathrow owner BAA in a GBP10 billion pound (USD$20 billion) deal in 2006, rose 8.8 percent after BAA said on Tuesday the new charges should help it to complete a much-delayed refinancing of its debts by the end of June. But Heathrow users such as British Airways reacted angrily to the price controls from regulator the UK Civil Aviation Authority (CAA), which were more generous to Ferrovial than its previous proposals in November. As well as struggling to refinance its debt amid the global credit market turmoil, Ferrovial has come under fire for service levels at Heathrow, where delays and lost baggage have become commonplace. Mar 11, 2008

London Heathrow, Gatwick

IATA this week condemned UK CAA's decision to allow significant charge increases at London Heathrow and Gatwick, saying that "failure is the only word to describe the CAA's decision." IATA claimed that BAA generated an operating profit of 35% at LHR, producing a net return on invested capital of 15.3% that was twice the level of the cost of capital set by CAA. IATA DG and CEO Giovanni Bisignani argued that regulation should "not reward excessive monopoly profits and embarrassingly low service levels." Mar 14, 2008

World Duty Free Europe

BAA announced an agreement to sell World Duty Free Europe to Italy's Autogrill for [pounds sterling]546.6 million ($1.1 billion) "as part of its ongoing noncore asset disposal program." WDFE will enter into a 12-year concession agreement to operate duty free shops at BAA's seven airports. Autogrill operates more than 5,200 shops in more than 1,100 locations and had sales of [pounds sterling]4.8 billion last year. Mar 12, 2008

ZZ

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Publication:AirGuide Business
Geographic Code:4EUUK
Date:Mar 17, 2008
Words:1491
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