Athens International Airport S.A. The new Athens Airport Presentation to Hochtief Analysts Dr Yiannis Paraschis Athens, 28/6/02
The Agenda The Airport Project The Business Approach Cost and Traffic
The Airport Project
A Greenfield Development 19 km North-East of Athens
A Pioneer Project The first development (worldwide) of a greenfield airport with the participation of the private sector (at international level) The largest-ever infrastructure project in Greece (Euro 2.189 bn) The recipient of the largest single loan (Euro 997 mn) ever granted by the EIB Developed with less than 7% state (aid) budget funding
The New Airport OWNER & OPERATOR: ATHENS INTERNATIONAL AIRPORT S.A. COMMENCEMENT: 13 June 1996 CONCESSION PERIOD: 30 years - (BOT) BUILD - OPERATE - TRANSFER CONSTRUCTION TIME: 51 months - 30 September 2000 TEST & TRIALS: 5 months - 27 March 2001 OPENING: 28 MARCH 2001 ANNUAL CAPACITY: 16 mn pax (Phase 1) - 60 mn pax (Phase 6) A/C MOVEMENTS: maximum 65/hour 600/day
Institutional Framework Airport Development Agreement Construction Contract GREEK STATE AIA S.A. 55% 45% Greek State FAG HOCHTIEF Airport GmbH ABB FASP Advisory Contract HOCHTIEF AG ABB TKT KRANTZ
Heavy Investment based on 60% Loans EUROPEAN INVESTMENT BANK LOAN EURO 997 million 45% COMMERCIAL BANK LOAN AIRPORT DEVELOPMENT FUND EUROPEAN UNION GRANTS GREEK STATE GRANTS SHARE CAPITAL EURO 312 million 14% EURO 300 million 14% EURO 250 million 11% EURO 150 million 7% EURO 133 million 6% SECONDARY DEBT EURO 44 million 2% INTERESTS, DEPOSITS EURO 26 million 1% PROJECT COST EURO 2,212 million 85% ADDITIONAL AIA INVESTMENTS EURO 17 OA HOMEBASE INVESTMENTS THIRD PARTIES INVESTMENTS EURO EURO 200 180 million million million TOTAL PROJECT COST EURO 2,609 million 100% 1% 8% 6%
MASTER PLAN - Phase T1
The Business Approach
According to the Company s Articles of Association (ADA), AIA is a commercial, profit oriented company of the private sector, run by a Board of Directors: (4) Private Shareholders, (4) Greek State, (1) Independent, and CEO proposed by the private shareholders, with an option to be listed in a stock exchange after opening, with a very wide corporate scope of commercial rights and services
The Challenges Construction of a Major Greenfield Facility Airport Transfer and Relocation of Homebase carriers Creation of an Effective Airport Company from scratch Operation under redefined roles in a privatised regime Airport competitiveness despite heavy financial burden
AIA s role definitions after a thorough evaluation of options Infrastructure Manager providing physical services through a network of third party experts + IT&T Provider for Infrastructure and services to optimise control and capitalise on future business opportunities Airport Marketing Ensuring competitiveness and accelerating growth
The network of Service Providers comprises 84 operators Service Providers Concessions Outsourcing Airline Services Ramp Handling (3) Pax Handling (9) IF-Catering (3) Cargo (3) Fuel (3) Terminal Commercial Retail (15) F&B (6) Services (23) Advertising (2) Real Estate Hotel (1) Office Blg (1) Gasoline St. (1) Security (3) Fire Service (1) Maintenance (3) Cleaning (1) Parking (1) IT&T (5) Total: 21 Total: 46 Total: 3 Total: 14
A lean operational organisation designed under the principles of Results accountability Customer Orientation Concentration of functional skill C E O 29 - Service Center HR &Admin. 61 316 - Business Unit Aviation Services Business Unit Business Development 442 833 4800 110 33 1200 Service Center Finance 51 - - Payroll: 693 Outsourced: 1182 Concessed: 6000 Total: 7874 9% 15% 76% 100%
AIA s Airport Marketing is our tool to identify and address customer needs in order to... stimulate and accelerate the airport s growth resulting in more aviation and non - aviation revenues Airport to Airline Airport to Business Airport to Consumer Expand current network Improve network connectivity Attract alternative traffic Market the ancillary services and facilities of AIA Promote business opportunities at AIA Attract new partners and customers Promote AIA s services and facilities Increase passenger penetration & encourage passenger spending Monitor and ensure passenger satisfaction Athens: Southeastern Europe s new World Hub
The Airport as a catalyst of business development 84 OPERATORS Total 28 International 3 Greek 70% International 30% New Branches 40% New Corporations 30% Business Transfer 30% Greek 11 Greek/ International 14 Companies by majority shareholding Old vs. New Corporations
A business venture rather than a construction project 4,610 Amounts in Million EURO Old Corporations 2,140 2,212 2,191 995 New Corporations 2,470 1,196 Initial Investment 1996-2000 Nominal Turnover of Contracts NPV of Contracts
The Airport as a Major Employment Engine Total 14.325 Seasonal Other Airlines OA-Airline State Authorities 2.000 900 2.520 1.030 Total 8.905 New 2.970 Concessionaires 6.000 Old 5.935 Contractors 1.182 AIA 693 Employees Jobs
The Figures
Aeronautical Revenue directly related to Capital Cost Annual Revenue Annual Expenditure 100% 100% 100% Commercial 20% 37% 34% Opex 80% 29% Financing Cost Aeronautical 63% 37% Depreciation & others Original Bid 2002 Budget 2002 Budget
Significant increase in Airport Charges which have been partly revised 3.500 Competitive Analysis of Landing and Parking Charges AIRBUS A340-300 3.000 2.500 2.000 1.500 1.000 500 0 Athens Hellenikon Frankfurt Cairo Dusseldorf Italy -all airports- ATH January 2002 Istanbul ATH November 2001 Amsterdam Munich Hamburg Paris CDG Manchester ATH March 2001 Vienna in
Positive development on Intl - Impact on domestic traffic Passenger Traffic Development April - December 10.9-7.3% 10.1 +0.6% -18,8% 6.4 6.5 PAX (million) PAX (million) 4.4 3.6 Domestic International Total Traffic HELLENIKON AIA
4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 IATA-Global Monitor Overall satisfaction with airports (Jan-March 01) 2.49 SINGAPORE SYNDEY HELSINKI HONG KONG COPENHAGEN MINNEAPOLIS MANCHESTER VIENNA BIRMINGHAM VANCOUVER AMSTERDAM OSLO ZURICH TAIPEI SEATTLE GENEVA STOCHKOLM AVERAGE LONDON FRANKFURT DUSSELDORF MADRID ATHENS OLD
A measurable improvement 4,5 IATA-Global Monitor Overall satisfaction with airports (Jan- Mar 02) 4,25 4 3,75 3,5 3,25 3 2,75 2,5 DUBAI SINGAPORE COPENHAGEN ATHENS NEW KUALA LUMPUR HONG KONG SEOUL SYNDEY MINNEAPOLIS BERMUDA AMSTERDAM VANCOUVER OSLO HALIFAX VIENNA BUDAPEST TORONTO AVERAGE BIRMINGHAM ZURICH GENEVA DUSSELDORF STOCKHOLM MADRID BRUSSELS BOLOGNIA SEATTLE SAN DIEGO BEIJING FRANKFURT LONDON PARIS 3.92
Cooperation with Hochtief Group Hochtief Hellas Cleaning Services Maintenance Hochtief Airports Consulting Suppliers & Partners Hochtief Development Real Estate
Further Development Airport Company Organisational Restructuring Strengthen Commercial Development Further Privatisation through IPO 2007 - First Dividend to Shareholders