Page 11 - Annual_Report_2016
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aia.gr Annual Report 2016
as a tourism destination. This year’s event focused on growth for a metropolitan airport, given also the
evaluating the current cruise market out of Athens and macroeconomic situation of the country. For 2017, we
setting out necessary synergies amongst stakeholders expect a moderate growth with a number of factors
involved in order to accelerate the development of supporting this expectation:
this particular segment in the foreseeable future. The
symposium was attended by more than 100 top executives o Announced plans of home carriers rationalising
from the air transport, cruise and tourism industries, as well their capacity, mainly in the domestic front. These
as from the financial sector. developments on the supply side, coupled with
healthy demand, are expected to result to a moderate
Regarding other major corporate developments, after growth.
having reached in July 2016 the passenger terminal
facilities “trigger point” (i.e. 18.9 million passengers which o The Greek economy is expected to witness a modest
corresponds to 90% of the relevant capacity of 21 Million growth; however, the overall environment continues to
Annual Passengers), AIA requested IATA - in line with be fragile questioning the sustainability of the Greek
the provisions of the Law 2338/1995 - to perform a residents’ ability to travel.
passenger demand forecast for the next two years and
to determine whether, after allowing for any increase in o On the other hand, the geopolitical situation favours
the design capacity of any buildings or equipment, due Greek tourism, therefore international demand for
to technological, organisational or other improvements, leisure markets could prove to be strong.
the relevant 90% threshold would still have been reached.
IATA’s independent review confirmed that following a • The Airport Company is expected to maintain its
timely implementation of specific capacity improvement profitable path with revenues growing in line with
projects, airport’s passenger terminal facilities will be traffic. Cost efficiency continues to be one of the
able to handle at least a volume of 26 Million Annual best among European airports while AIA maintains
Passengers, while maintaining at a minimum the IATA its value-for-money level of services and business
Level of Service “Optimum” at all terminal sub-systems functions. Further to the airport’s traffic growth and
within the Main Terminal Building and Satellite Building. the establishment of the increased terminal facilities’
The results of the IATA study were subsequently capacity, the Airport Company continues to undertake
communicated to the Greek State and the revised investments which will maintain and improve its value
annual capacity of the passenger terminal facilities was proposition to passengers and users. For 2017, the
established accordingly. most important investments refer to operational and
commercial upgrades at the terminal facilities as part
On the issue of the extension of the Airport Company’s of a multiyear terminal improvement investment plan.
concession from currently 2026 to 2046, on December Within 2017 the upgrade of the Main Terminal’s Intra-
7th, 2015 the Hellenic Republic Asset Development Fund Schengen area will be completed and the upgrade
(HRADF) invited AIA to enter into discussions for the of the Satellite Terminal areas will be initiated. At the
concession extension as prescribed in Article 4.2 of the same time, the company’s investment plan provides
Airport Development Agreement (ADA). At its meeting for spending on many areas of the airport’s airside,
of March 2016, AIA’s BoD approved the initiation of terminal and landside facilities, with investments
discussions and the exchange of data between technical ranging from user experience improvements to
teams. necessary safety, compliance and other regulatory
needs to actions designed to cater for the immediate
Indeed, AIA and its technical, legal and financial advisors needs of the airport users, as well as actions necessary
exchanged necessary information with the respective for the airport’s long-term needs.
teams of HRADF and entered into corresponding
discussions for the extension of the Airport Company’s During 2017, significant developments are expected
concession period. Discussions have progressed to take place that will affect both the Greek aviation
considerably and there has been convergence on the basic industry and the Airport Company, i.e. the privatisation
terms, necessary approvals have been granted and other of 14 Greek regional airports that marks a new era in the
milestones towards the effectiveness of the concession Greek aviation and more importantly the extension of
extension have been reached. Nevertheless, the process the concession agreement for AIA. Specifically, the latter
is still underway and completion and effectiveness are is expected to be an important and highly significant
expected to take place within 2017, subject of course to milestone for the Airport Company as far as its long-term
the final agreements and consent from all involved parties. development and planning are concerned. It is considered
that the extension of the concession agreement will
2017 Outlook have a beneficial impact on all airport stakeholders and
Following a successful 2016, prospects for year 2017 are will provide the necessary time horizon for the airport’s
promising, however not without a number of challenges: business and investment planning.
• During the period 2014-16 passenger traffic grew at Dr. Dimitrios Dimitriou Dr. Ioannis N. Paraschis
a cumulative 60% which is considered an astounding Chairman CEO
11
as a tourism destination. This year’s event focused on growth for a metropolitan airport, given also the
evaluating the current cruise market out of Athens and macroeconomic situation of the country. For 2017, we
setting out necessary synergies amongst stakeholders expect a moderate growth with a number of factors
involved in order to accelerate the development of supporting this expectation:
this particular segment in the foreseeable future. The
symposium was attended by more than 100 top executives o Announced plans of home carriers rationalising
from the air transport, cruise and tourism industries, as well their capacity, mainly in the domestic front. These
as from the financial sector. developments on the supply side, coupled with
healthy demand, are expected to result to a moderate
Regarding other major corporate developments, after growth.
having reached in July 2016 the passenger terminal
facilities “trigger point” (i.e. 18.9 million passengers which o The Greek economy is expected to witness a modest
corresponds to 90% of the relevant capacity of 21 Million growth; however, the overall environment continues to
Annual Passengers), AIA requested IATA - in line with be fragile questioning the sustainability of the Greek
the provisions of the Law 2338/1995 - to perform a residents’ ability to travel.
passenger demand forecast for the next two years and
to determine whether, after allowing for any increase in o On the other hand, the geopolitical situation favours
the design capacity of any buildings or equipment, due Greek tourism, therefore international demand for
to technological, organisational or other improvements, leisure markets could prove to be strong.
the relevant 90% threshold would still have been reached.
IATA’s independent review confirmed that following a • The Airport Company is expected to maintain its
timely implementation of specific capacity improvement profitable path with revenues growing in line with
projects, airport’s passenger terminal facilities will be traffic. Cost efficiency continues to be one of the
able to handle at least a volume of 26 Million Annual best among European airports while AIA maintains
Passengers, while maintaining at a minimum the IATA its value-for-money level of services and business
Level of Service “Optimum” at all terminal sub-systems functions. Further to the airport’s traffic growth and
within the Main Terminal Building and Satellite Building. the establishment of the increased terminal facilities’
The results of the IATA study were subsequently capacity, the Airport Company continues to undertake
communicated to the Greek State and the revised investments which will maintain and improve its value
annual capacity of the passenger terminal facilities was proposition to passengers and users. For 2017, the
established accordingly. most important investments refer to operational and
commercial upgrades at the terminal facilities as part
On the issue of the extension of the Airport Company’s of a multiyear terminal improvement investment plan.
concession from currently 2026 to 2046, on December Within 2017 the upgrade of the Main Terminal’s Intra-
7th, 2015 the Hellenic Republic Asset Development Fund Schengen area will be completed and the upgrade
(HRADF) invited AIA to enter into discussions for the of the Satellite Terminal areas will be initiated. At the
concession extension as prescribed in Article 4.2 of the same time, the company’s investment plan provides
Airport Development Agreement (ADA). At its meeting for spending on many areas of the airport’s airside,
of March 2016, AIA’s BoD approved the initiation of terminal and landside facilities, with investments
discussions and the exchange of data between technical ranging from user experience improvements to
teams. necessary safety, compliance and other regulatory
needs to actions designed to cater for the immediate
Indeed, AIA and its technical, legal and financial advisors needs of the airport users, as well as actions necessary
exchanged necessary information with the respective for the airport’s long-term needs.
teams of HRADF and entered into corresponding
discussions for the extension of the Airport Company’s During 2017, significant developments are expected
concession period. Discussions have progressed to take place that will affect both the Greek aviation
considerably and there has been convergence on the basic industry and the Airport Company, i.e. the privatisation
terms, necessary approvals have been granted and other of 14 Greek regional airports that marks a new era in the
milestones towards the effectiveness of the concession Greek aviation and more importantly the extension of
extension have been reached. Nevertheless, the process the concession agreement for AIA. Specifically, the latter
is still underway and completion and effectiveness are is expected to be an important and highly significant
expected to take place within 2017, subject of course to milestone for the Airport Company as far as its long-term
the final agreements and consent from all involved parties. development and planning are concerned. It is considered
that the extension of the concession agreement will
2017 Outlook have a beneficial impact on all airport stakeholders and
Following a successful 2016, prospects for year 2017 are will provide the necessary time horizon for the airport’s
promising, however not without a number of challenges: business and investment planning.
• During the period 2014-16 passenger traffic grew at Dr. Dimitrios Dimitriou Dr. Ioannis N. Paraschis
a cumulative 60% which is considered an astounding Chairman CEO
11
