Page 55 - Annual Report 2015 EN
P. 55
Annual Report 2015
year concession period. Investment in Associates consists of €3.25 million and represents the carrying
amount of AIA’s participation in the equity of Athens Airport Fuel Pipeline Company S.A.
The AIA’s Closing Cash position is €123.3 million, not including investments in held-to-maturity which
amounted to €213.1 million. The cash surplus is invested in short term time deposits and highly rated
supranational and corporate euro-securities with maturity up to two years.
AIA is exposed to financial risks such as price, credit and liquidity and to concentration risks. The nature
of the risks as well as the scope and the company policies for managing financial risks are presented in
Section 3 of the Notes to the Financial Statements. Other risks and uncertainties related to tax disputes
with the Greek State and municipal charges disputes with two of the surrounding municipalities are
analytically referred to in note 5.28 of the Notes to the Financial Statements.
Regarding events after the balance sheet date reference is made in note 5.31 of the Financial
Statements.
5. 2016 Outlook
In the aftermath of a year that was abundant with developments within our business environment, we
look upon 2016 and the challenges that lay ahead:
• In particular, 2016 is characterised by critical challenges, i.e. the exacerbation of the refugee crisis,
terrorism and the continuing geo-political issues in Middle East. Although these are mostly pan-
European and universal issues with the decision making and potential consequences far beyond our
control, we are monitoring the evolution of events for any potential decisions on new regulations or
developments that may affect the airport’s operation and of course its business performance. In this
respect we are in close cooperation with the involved authorities and ACI Europe.
• With regards to passenger traffic, the already announced developmental plans of the two home
carriers but also of other visiting carriers show an increase in seat capacity and additional flights.
Indeed, the demand on the one side for travelling to Athens and Greece in general continues to
be strong, while, on the other, the pricing and targeted incentive policy of AIA contributes to the
creation of competitive environment resulting in attractive air ticket prices from the air carriers. As
a very significant positive aspect on the traffic potential, we can hardly emphasise the importance of
the presence in Athens of two healthy and expanding home carriers.
• In line with our continuous efforts to provide value-for-money services to airlines, business partners
and passengers, we materialise an annual investment programme which includes a multitude of
expenditures in most areas of airport business and operations. In 2016 the most prominent of these
investments is the operational, aesthetic and commercial upgrade of the Intra-Schengen part of our
main terminal. The project includes the upgrade of the security screening concept in the area and a
series of significant operational improvements with the aim to improve passengers’ service level and
expand commercial space.
• The privatisation of the 14 Greek regional airports is a development of strategic significance for
the Greek aviation market. We understand that the relevant concession will commence towards
the end of 2016. We believe that healthy industry competition introduced through the operation of
the regional airports by a strategic investor, together with the required presence of the regulatory
authorities, will have a positive impact on the Greek aviation market and consequently at AIA.
• Following relevant invitation from the competent Greek authorities and in accordance with the
ADA, AIA has agreed to enter into a new round of discussions and negotiations with the Greek State
on the extension of AIA’s concession period.
In March 2016 AIA celebrates 15 years of airport operation. Over this period we have witnessed
spectacular developments in the aviation industry but also dramatic changes in our country. During
this time, however, AIA has managed to steadily perform as an operator of exemplary services, a centre
for healthy business development and competition, a responsible citizen and employer and a creator
of significant financial value for the Greek State and private shareholders. This has been the result of a
sound business strategy and a corporate model which proved prudent, far-sighted and resilient. We are
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
12 of 56
year concession period. Investment in Associates consists of €3.25 million and represents the carrying
amount of AIA’s participation in the equity of Athens Airport Fuel Pipeline Company S.A.
The AIA’s Closing Cash position is €123.3 million, not including investments in held-to-maturity which
amounted to €213.1 million. The cash surplus is invested in short term time deposits and highly rated
supranational and corporate euro-securities with maturity up to two years.
AIA is exposed to financial risks such as price, credit and liquidity and to concentration risks. The nature
of the risks as well as the scope and the company policies for managing financial risks are presented in
Section 3 of the Notes to the Financial Statements. Other risks and uncertainties related to tax disputes
with the Greek State and municipal charges disputes with two of the surrounding municipalities are
analytically referred to in note 5.28 of the Notes to the Financial Statements.
Regarding events after the balance sheet date reference is made in note 5.31 of the Financial
Statements.
5. 2016 Outlook
In the aftermath of a year that was abundant with developments within our business environment, we
look upon 2016 and the challenges that lay ahead:
• In particular, 2016 is characterised by critical challenges, i.e. the exacerbation of the refugee crisis,
terrorism and the continuing geo-political issues in Middle East. Although these are mostly pan-
European and universal issues with the decision making and potential consequences far beyond our
control, we are monitoring the evolution of events for any potential decisions on new regulations or
developments that may affect the airport’s operation and of course its business performance. In this
respect we are in close cooperation with the involved authorities and ACI Europe.
• With regards to passenger traffic, the already announced developmental plans of the two home
carriers but also of other visiting carriers show an increase in seat capacity and additional flights.
Indeed, the demand on the one side for travelling to Athens and Greece in general continues to
be strong, while, on the other, the pricing and targeted incentive policy of AIA contributes to the
creation of competitive environment resulting in attractive air ticket prices from the air carriers. As
a very significant positive aspect on the traffic potential, we can hardly emphasise the importance of
the presence in Athens of two healthy and expanding home carriers.
• In line with our continuous efforts to provide value-for-money services to airlines, business partners
and passengers, we materialise an annual investment programme which includes a multitude of
expenditures in most areas of airport business and operations. In 2016 the most prominent of these
investments is the operational, aesthetic and commercial upgrade of the Intra-Schengen part of our
main terminal. The project includes the upgrade of the security screening concept in the area and a
series of significant operational improvements with the aim to improve passengers’ service level and
expand commercial space.
• The privatisation of the 14 Greek regional airports is a development of strategic significance for
the Greek aviation market. We understand that the relevant concession will commence towards
the end of 2016. We believe that healthy industry competition introduced through the operation of
the regional airports by a strategic investor, together with the required presence of the regulatory
authorities, will have a positive impact on the Greek aviation market and consequently at AIA.
• Following relevant invitation from the competent Greek authorities and in accordance with the
ADA, AIA has agreed to enter into a new round of discussions and negotiations with the Greek State
on the extension of AIA’s concession period.
In March 2016 AIA celebrates 15 years of airport operation. Over this period we have witnessed
spectacular developments in the aviation industry but also dramatic changes in our country. During
this time, however, AIA has managed to steadily perform as an operator of exemplary services, a centre
for healthy business development and competition, a responsible citizen and employer and a creator
of significant financial value for the Greek State and private shareholders. This has been the result of a
sound business strategy and a corporate model which proved prudent, far-sighted and resilient. We are
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
12 of 56
