Aeroports de Paris

 

Background

  • Airport charges at ADP rose 26.5% during the last five years
  • French Government announced charges increase of 5% per year for the next five years
  • Initial Public Offering for ADP was announced 31 May 2006
    • ADP valued at EUR 4.5 billion
    • French State will sell around 30% of its 100% share
  • Paris - Charles de Gaulle (CDG) is the 2nd most expensive airport in Europe, the 7th most expensive in the world
  • ADP costs per passenger increased 44%, while AF-KLM reduced non-fuel costs 7.3%
  • IATA called for charges to be reduced by 3% per annum for the next five years

IATA view

  • Government increased charges to make ADP an attractive prospect for privatisation
  • Although capacity is needed
    • Pre-financing through charges places unacceptable financial burden on airlines
    • Airlines should not have to pay today for a service in the future
    • Airlines have already paid a high price to create ADP
  • Raising funds through the market for cost effective investment is sensible
    • But NOT for providing revenue to the French State. 
    •  Any “value” should be retained within the aviation industry through new investment or lower charges
  • Charges at ADP should be reduced by 3% per annum over the next five years
    • Not increased by 5% per annum.

IATA’s actions

  • IATA has urged the European Commission to introduce independent economic regulation of airports that is robust, effective, independent and national. Both airports and airline users will benefit
  • IATA has filed suit against the French State relating to the economic regulation contract (between the French State and ADP) under the French Civil Aviation Act. This filing was made in support of the filings made by
    • FNAM (representing the French airlines),
    • SCARA (representing non-French airlines)
    • BAR (Board of Airline Representatives).
  • IATA has also filed against the increase to airport charges for 2006.