BUSINESS OVERVIEW 06 OVERVIEW OF THE MARKET
Groupe ADP 1 has set the following main objectives for 2020, based on an assumption for an average annual growth in passenger traffic in Paris of 2.5% between 2016 and 2020: ◆ return on capital employed in the regulated scope: return on capital employed in the regulated scope is in line with the Group’s average weighted cost of capital estimated at 5.4% in 2020e; ◆ quality of service: attainment of an overall ACI/ASQ score of 4; ◆ retail: expected sales of airside shops per departing passenger of €23 on a full year basis after delivery of the infrastructure projects planned for 2016-2020e;
◆ real estate: growth in external rent (excluding re-invoicing and indexing) from real estate activities of 10 to 15% between 2014 and 2020e; ◆ control over operating costs: limiting the increase in parent company operating costs to less than or equal to 2.2% per year on average between 2015 and 2020e; ◆ profitability: growth in consolidated EBITDA of between 30 and 40% from 2014 to 2020e, thanks to the combination of the above items.
OVERVIEW OF THE MARKET
Airport operations Groupe ADP is an airport operator
Airlines and their ground handling assistance services The airport operator’s responsibility toward passengers ends when the passenger is placed under the airline’s responsibility. In practice, this is from the beginning of the boarding procedure to the end of the passenger disembarkation procedure. Airlines are also responsible for all aircraft loading and unloading procedures. They also rely on service providers, who are known as ground handling companies. Airlines may cooperate with each other through different arrangements, such as interline agreements that enable the point-to-point handling of connecting passengers, or the sharing of codes that allow an airline to sell tickets for a flight operated by its partner. Although alliances (Skyteam, Star Alliance and oneworld 2 ) are the preferred framework for cooperation between intercontinental carriers, smaller scale forms of partnership are increasingly emerging. These airlines serve different customer segments with a differentiated service offering and a portfolio of destinations that are interconnected through their own network (their hubs) or those of other airlines. Although all carriers expect an excellent quality of ground service from the airport operator, if they are members of an alliance they usually also want access to facilities, products and services that make connections easier, to be brought together under one roof (in the same terminal) and to be able to share facilities. In the medium-haul point- to-point market, the model inspired by low-cost airlines is also starting to dominate, including within traditional airlines. The main focus is on reducing operating costs in order to offer customers the lowest prices. To achieve this goal, airlines expect the airport operator to simplify the ground handling process, reduce aircraft turnaround times and provide products and services tailored to their type of customer. Charter airlines are characterised by their non-regular service offering. They are chartered by Tour Operators to whom they offer a seat allocation. They generally expect the airport operator to provide themwith functional facilities and simple ground-handling procedures. Cargo and mail business There are several types of players in cargo and mail: ◆ the loaders, who are at the start of transport operations, have goods to be transported from one place to another. They sign a contract with a forwarding agent, who organises shipment from point to point on their behalf;
Present at each step of the flows of passengers and goods, the operator’s role is to optimise the various flows intersecting at the airport: aircraft flows in the aeronautical areas, passenger flows in the terminals and through the various security control systems, luggage flows, cargo flows and supply flows between the landside areas and the aircraft. It must also ensure the interface between the various parties to which it provides services and facilities. For this: ◆ it designs and organises the construction of airport infrastructure and access; ◆ it provides airlines and other professional service providers with infrastructure and facilities such as check-in counters, boarding areas, baggage carousels, aircraft parking areas, offices and lounges, which are allocated to users throughout the day. Groupe ADP also supplies airlines with services such as telecommunications, power, utilities and waste treatment; ◆ it determines the establishment of and rents out commercial spaces, especially shops, bars and restaurants; ◆ it welcomes and informs passengers, facilitates traffic and ensures that services are available to enhance their comfort such as car parks, hotels, telecom services, personalised reception; ◆ it carries out, under the control of government authorities, air transport security measures. Aéroports de Paris’ general operating conditions are detailed in its specifications, described in the paragraph in chapter 6 “Specifications”. While the assignment and allocation of take-off and landing slots fall under the authority of an independent organisation, Aéroports de Paris is responsible for assigning airlines to the various terminals within a single airport and, according to specific procedures, to the different airports.
1 Excluding the full consolidation of TAV Airports. 2 The members of the SkyTeam alliance in Paris are Aeroflot, AeroMexico, Air Europa, Air France, Alitalia, China Eastern, China Southern, Czech Airlines, Delta, Kenya Airways, KLM, Korean Air, MEA, Saudia, Tarom and Vietnam Airlines. The members of the Star Alliance present in Paris are Adria Airways, Aegean Airlines, Air Canada, Air China, Air India, ANA, Asiana Airlines, Austrian, Brussels Airlines, Croatia Airlines, Egyptair, Ethiopian, Eva Air, LOT Polish Airlines, Lufthansa, SAS Scandinavian Airlines, Singapore Airlines, Swiss, TAP Portugal, THAI, Turkish Airlines and United. The members of oneworld present in Paris are American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LATAM, Qatar Airways and Royal Jordanian.
AÉROPORTS DE PARIS REGISTRATION DOCUMENT 2017
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