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Financial Statements
5. 2013 Outlook
Within the first months of 2013, there are certain developments on major corporate issues.
• On 27 February 2013 a final award was issued by the London Court of International Arbitration (LCIA), whereby the
Tribunal declared that the Acts of Determination, by which Tax Authorities imposed VAT and penalties thereon, on
the acquisition of fixed assets and operating expenses related to VAT exempt activities, for the financial periods
1998- 2009, have been issued in breach of law; therefore the Tribunal ordered that the Hellenic Republic shall pay, or
otherwise declares that the Airport Company is entitled to set off all amounts awarded in its favour by this Award of
Tribunal (as analytically referred to notes 5.29 and 5.31 of the Notes to the Financial Statements).
• Following the termination of Home Base Contract by the Olympic Engineering S.A. (OE), on 24 December 2012, as
aforementioned, such termination to come into force as from 1 May 2013, OE, notified AIA on 22 February 2013 its
assessment about the commercial value of Home Base’s landed property amounting to €43.5 million. That assessment,
as per OE, is based on the results of a respective estimation study, which was conducted by an independent international
organization. The Airport Company notified OE on 7th March 2013, that it does not accept said assessment about the
commercial value of Home Base’s landed property, and is already proceeding to its own assessment in accordance
with the rules and principles of the economic science. It is noted that in case of any dispute that may arise between
AIA and OE, regarding the determination of the commercial value of the Home Base’s landed property, such dispute
shall be referred to LCIA for final resolution, as provided in the Contract.
• After a remarkably difficult and challenging year, 2013 comes with diverse prospects. On the one side it is definitely
another year of economic recession, with reduced disposable income for the Greek travellers but also with the financial
crisis affecting countries within and outside the Eurozone. These phenomena will directly impact our airport business
on numerous aspects, such as the traffic demand and supply, the propensity to spend on commercial activities, the
property market, etc. thus testing the endurance of the airport business community.
• On the other side, although negative trends continue in 2013, macroeconomic indicators point towards a gradual
stabilization. Nevertheless, the fragility of the situation compels us to remain conservative and to demonstrate
prudence for our next steps.
• While our country is struggling to emerge out of the financial crisis, the aviation market shows uneven signs of
development. The traditional markets of Western Europe and North America are stagnant or in decline, while the
markets of the Middle East and the Asia Pacific show double-digit growth rates. The continuation of this imbalance
is likely to lead to a new world in our industry over the next decade, with the European aviation –both airports and
airlines– being challenged.
• In the midst of this ever-changing and always challenging world, the country’s aviation map is also likely to change.
The final outcome of the intended acquisition of Olympic Air by Aegean, which is currently under scrutiny by the
European Commission, the tenders for the privatisation of Greek regional airports, the restructuring of the Hellenic
Civil Aviation Authority are –among others– developments that are going to affect the current status of the domestic
aviation market. AIA is closely monitoring these developments.
• As the shareholders have announced their intentions for a concession extension and sale of shares, the Airport
Company is fully prepared to support these endeavours. In the meantime, all market and economic challenges are
being addressed; targeted measures and incentives to support airline traffic, commercial concessions and property
contracts, together with cost containment efforts while safeguarding critical operations, Airport’s safety and security
and maintaining the high quality of services provided. These are some of our instruments for sustaining the value of
our business towards all stakeholders.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 11 of 54
5. 2013 Outlook
Within the first months of 2013, there are certain developments on major corporate issues.
• On 27 February 2013 a final award was issued by the London Court of International Arbitration (LCIA), whereby the
Tribunal declared that the Acts of Determination, by which Tax Authorities imposed VAT and penalties thereon, on
the acquisition of fixed assets and operating expenses related to VAT exempt activities, for the financial periods
1998- 2009, have been issued in breach of law; therefore the Tribunal ordered that the Hellenic Republic shall pay, or
otherwise declares that the Airport Company is entitled to set off all amounts awarded in its favour by this Award of
Tribunal (as analytically referred to notes 5.29 and 5.31 of the Notes to the Financial Statements).
• Following the termination of Home Base Contract by the Olympic Engineering S.A. (OE), on 24 December 2012, as
aforementioned, such termination to come into force as from 1 May 2013, OE, notified AIA on 22 February 2013 its
assessment about the commercial value of Home Base’s landed property amounting to €43.5 million. That assessment,
as per OE, is based on the results of a respective estimation study, which was conducted by an independent international
organization. The Airport Company notified OE on 7th March 2013, that it does not accept said assessment about the
commercial value of Home Base’s landed property, and is already proceeding to its own assessment in accordance
with the rules and principles of the economic science. It is noted that in case of any dispute that may arise between
AIA and OE, regarding the determination of the commercial value of the Home Base’s landed property, such dispute
shall be referred to LCIA for final resolution, as provided in the Contract.
• After a remarkably difficult and challenging year, 2013 comes with diverse prospects. On the one side it is definitely
another year of economic recession, with reduced disposable income for the Greek travellers but also with the financial
crisis affecting countries within and outside the Eurozone. These phenomena will directly impact our airport business
on numerous aspects, such as the traffic demand and supply, the propensity to spend on commercial activities, the
property market, etc. thus testing the endurance of the airport business community.
• On the other side, although negative trends continue in 2013, macroeconomic indicators point towards a gradual
stabilization. Nevertheless, the fragility of the situation compels us to remain conservative and to demonstrate
prudence for our next steps.
• While our country is struggling to emerge out of the financial crisis, the aviation market shows uneven signs of
development. The traditional markets of Western Europe and North America are stagnant or in decline, while the
markets of the Middle East and the Asia Pacific show double-digit growth rates. The continuation of this imbalance
is likely to lead to a new world in our industry over the next decade, with the European aviation –both airports and
airlines– being challenged.
• In the midst of this ever-changing and always challenging world, the country’s aviation map is also likely to change.
The final outcome of the intended acquisition of Olympic Air by Aegean, which is currently under scrutiny by the
European Commission, the tenders for the privatisation of Greek regional airports, the restructuring of the Hellenic
Civil Aviation Authority are –among others– developments that are going to affect the current status of the domestic
aviation market. AIA is closely monitoring these developments.
• As the shareholders have announced their intentions for a concession extension and sale of shares, the Airport
Company is fully prepared to support these endeavours. In the meantime, all market and economic challenges are
being addressed; targeted measures and incentives to support airline traffic, commercial concessions and property
contracts, together with cost containment efforts while safeguarding critical operations, Airport’s safety and security
and maintaining the high quality of services provided. These are some of our instruments for sustaining the value of
our business towards all stakeholders.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 11 of 54
