BUSINESS OVERVIEW 06
DESCRIPTION OF ACTIVITIES BY SEGMENT
Strategic motivations For aviation activities, the goal of the Hublink alliance is to:
Schiphol, Incheon and Groupe ADP: pitch of start-ups or innovative companies selected by each of the three thematic airports & workshops around common issues such as safety, robotics or mixed realities, with attendance by representatives of the business divisions; ◆ in the area of purchasing, three joint consultations are currently underway, aimed at (i) the purchase of snowplow brushes, (ii) the renewal of the ramp sign contracts and (iii) the purchase of high and very high pressure vehicles (sweepers, degreasers and runway rubber removers); ◆ furthermore, the coordination of the purchasing strategies of the two groups together with operations in order to identify new joint purchasing opportunities for the future continued and was part of regular exchanges between the teams; ◆ as a reminder, in the area of human resources, an employee exchange system between Groupe ADP and Schiphol was developed in 2011 to promote the sharing of specific skills and know-how in each of the two companies and strengthen cooperation between the teams. In 2017, two short missions (3-6 months) were organised (one Schiphol employee in Groupe ADP and one Groupe ADP employee in Schiphol). Workshops and exchanges of know-how between Groupe ADP management and their peers were held on a regular basis to activate or strengthen synergies. Among the teams involved were operations, legal, programmes and security. Six priority areas of cooperation already identified to be the greatest value creators for HubLink were retained for 2018: the challenges of the digital airport, international, operations, purchasing, innovation and human resources. Furthermore, in July 2017, Aéroports de Paris and Schiphol Group renewed a four year cooperation agreement with Incheon International Airport Corporation, the operator of Seoul’s main airport, for a second time. This partnership, which does not include the acquisition of holdings, consists essentially of the exchange of information and fosters the exchange of best practices. SDA Retail (Zagreb) On 1 December 2014, Aéroports de Paris and Lagardère Duty Free, through their joint venture, Société de Distribution Aéroportuaire, acquired 100% of the share capital and voting rights of MZLZ – Trgovina d.o.o. (the subsidiary managing the retail spaces at Zagreb airport in Croatia), renamed SDA Retail. SDA Retail’s purpose is to operate shops at Zagreb airport for 15 years, and to exclusively market the main product categories listed below: ◆ the operation of two shops in the current terminal since 1 December 2014: a 600 sq.m. main airside Duty Free shop and a 47 sq.m. landside souvenir shop; then ◆ the operation, as of 2017, of the retail spaces in the new terminal, with a total capacity of 5 million passengers (versus 2 million passengers currently). For Aéroports de Paris, also a shareholder in the company ZAIC-A, having won the concession for Zagreb airport and the operating and maintenance contract for the airport (through its subsidiary ADP International and TAV Airports), this acquisition marked a major step in exporting all of the Group’s know-how abroad. alcohol, perfumes/cosmetics, tobacco and gourmet food. The operation of the retail space takes place in two phases:
◆ improve the competitiveness of the two groups through the consolidation of a dual hub which is a requirement to handle the competition from other hubs, notably in the Middle East; ◆ enhance the attractiveness of both groups through greater harmonisation of the layout and signalling at their terminals, and by the coordinated improvement of their passenger processes (check-in, information, and security); ◆ reinforce the relationship of the two groups with their largest customers, including the Air France-KLM Group; ◆ optimise their operational efficiency and reduce purchasing expenditure notably through volume pooling of some purchasing. For non-aviation activities, the objective is to step up growth in retail, innovation and the digital airport thanks to the exchange of know-how (experiments, projects under way and recently completed projects to find synergies). With respect to international development, Groupe ADP and Schiphol Group are continuing to share information on future international development opportunities and have adopted a coordinated approach for their future growth. The two groups also intend to become front-runners in sustainable development, by combining their efforts to improve energy efficiency, developing the use of renewable energy, and reducing greenhouse gas emissions. Representation in the corporate bodies of the two companies Edward Arkwright, the Chief Executive Director of Groupe ADP in charge of Development, Engineering and Transformation is one of the eight members of the Schiphol Group’s Supervisory Board. Jos Nijhuis and Jabine van der Meijs, respectively, Chief Executive Officer and Chief Financial Officer of Royal Schiphol Group, have been appointed members of the Board of Directors of Aéroports de Paris 1 . Specific bodies of the alliance The industrial cooperation agreement currently uses a simplified governance structure that is focused on efficiency: a number of priority areas of cooperation are defined annually by the ICC – Industrial Cooperation Committee, which is the monitoring body for projects carried out as part of the alliance. Achievements The alliance between Aéroports de Paris and Royal Schiphol Group provides many benefits to both groups, in very diverse areas. Their respective teams work together on a regular basis on initiatives and joint projects and to discuss operational issues. The cooperation programme, led by the PMO (Program Management Office) of each group, aims to encourage exchanges and strengthen synergies between the two groups. For instance, the handling of flights between Paris and Amsterdam has been improved by the introduction of dedicated waiting lines at the security check, and by broadcasting information in both languages at the gate. 2017 saw the continuation of projects that had already been launched (including joint training, some of which Incheon and TAV were also involved in) and the development of joint initiatives, with: ◆ in the field of innovation, the organisation of Joint Innovation Days at Groupe ADP’s head office, bringing together the innovation teams from
1 See Chapter 14 “Administration and executive management bodies”.
AÉROPORTS DE PARIS REGISTRATION DOCUMENT 2017
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