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Aena will earn 40 million by eliminating incentives in 2017 Airlines,Airports,Charges,Regulations

Madrid airport Terminal 4 / shutterstock

Today El Confidencial  published that Aena has decided to eliminate the passenger growth incentives for those airports that exceed three million passengers per year. In spite of the change, a new incentive for long-haul routes has been introduced and in the meantime the valley days in the Canaries remain the same. The selective removal of incentives that were being implemented in previous years will compensate the reduction of Aena’s income resulting from a decrease of charges effective as of 1st March. Through this measure, Aena will earn around 40 million euros. This amount is even larger than the sum of expected…

The Tenerife council demands a new terminal from Aena in Tenerife Sur Airports

Tenerife Sur Airport Terminal/Flickr - MarinoCarlos

According to an article in Eldia.es, the association for the defense of infrastructure in Tenerife asked Aena to build a new terminal in the Tenerife Sur Airport taking into consideration that the passenger capacity is currently at 90%. Furthermore, they warned that if the issue of new infrastructure is not addressed, whose planning and development could take between 8 and 10 years, the Reina Sofía (Tenerife Sur) Airport will reach a situation of inadmissible collapse on an island whose economy depends on its airport infrastructure. This airport is especially important since 70% of the economic flow funnels through it. The…

Competition might force Aena to lower their airport charges Charges,Regulations

Aena offices in Madrid / Luis García - Wikimedia Commons

The National Competition Commission, which had already expressed their concern about the Aena’s privatisation, has now published a report on Aena’s dual till model.  In theory, the dual till is intended to separate the regulated costs from the ones which are a consequence of the commercial activities. However, Competition believes that the dual till implementation might lead to incremental costs which, in turn, would mean an increase in the airport charges. On Monday, ElConfidencial published a comprehensive article about the report issued by the National Competition Commission. According to this piece, Competition intends to adjust the costs which correspond to the commercial activities and the costs which correspond…

Happy days for Madrid airport Airports

Barajas Airport overview. Photo taken in 2005..

It was in February when we anticipated there were different signals which made us believe that Madrid airport and Iberia might be back. After bad times for both, it looks like things are improving significantly. On August 14 we shared the information that Iberia seemed to be already in good shape. Today, let’s go through the Adolfo Suárez Madrid – Barajas Airport current situation. Madrid airport is back to profitability As we had already informed, Aena managed to double the number of profitable airports in 2013. Together with Madrid, also Alicante, Fuerteventura, Girona, La Palma, Tenerife North and Valencia left losses to get…

Aena Privatisation: Competition disagrees, Ryanair interested Airports,Regulations

Ryanair and Iberia in competition

As soon as the Aena privatisation was definitely confirmed by the Minister many thoughts, interpretations and declarations have appeared in the Spanish media. Since this is something that we have been following very closely, we have extracted some pieces of news which may be relevant to the subject.The National Competition Commission disagreesFirst of all, ElMundo.es published a thorough article informing that the Spanish Competition Commission is not happy with the privatisation as it has been planned by the Government. In their view, it will not benefit the industry to keep the airport net monopoly. For Competition it would be better to separate Aena in…

Aena privatisation is confirmed Airports,Regulations

Lufthansa takeoff shot from Barcelona airport terminal / Kozumel

Ana Pastor – Minister of Development – managed to succeed with her plans and they will finally go ahead with the Aena privatisation. Aena will make an initial public offering (IPO) this autumn. However, they will put on sale only 49% of the company instead of 60% as their Consulting Council of Privatisation (CCP) had recommended.A smaller part through the same privatisation system.The council of ministers reached an agreement last Friday. Thus, they confirmed the Aena privatisation will be distributed in two phases: 28% through an IPO, and 21% for a stable nucleus with at least three main shareholders. This is…

The Government to create a regulatory framework for the Aena privatisation Airports,Charges,Regulations

Ana Pastor in Nov 2007 by Partido Popular de Cataluña / Wikimedia Commons

The minister of Fomento, Ana Pastor, announced they are working on a regulatory framework for the Aena privatisation which guarantees the public interest of the Spanish airport net before its privatisation. This regulatory framework should have been developed by the end of the current year.However she said that the privatisation will start “only when the Government is ready and the appropriate market conditions are detected”.Pastor explained that the new regulatory framework “will set the maximum quality and service levels, as well as schemes for revenues and investments”. Also, the maximum charges would be regulated, considering that a big concern of…

Profitable airports dropped to eight in 2012 Airports

Palma de Mallorca one of the profitable airports / shutterstock

Despite the efforts to reduce costs and increase revenues, in 2012 the number of profitable airports dropped from eleven to eight.Thus, the only profitable airports where Bilbao, Ibiza, Lanzarote, Valencia, Tenerife South, Seville, Barcelona and Palma de Mallorca. The latter two made a 73 million Euro profit each.Alicante, Valencia and Fuerteventura entered into losses in 2012, to join a list where Madrid, Málaga, Santiago de Compostela and La Palma are emphasised.Aena, chaired by José Manuel Vargas, expect an EBITDA of 1,600 million Euros at the end of this year. Traffic has dropped in the Spanish airports by 4.4% up to October, but the foreign passenger growth might help to improve figures at the end of the year. In the…

Aena would sacrifice the secondary airports to revive Madrid Airports,Regulations

Madrid airport Terminal 4 / shutterstock

The subsidies Aena is preparing with the aim of reducing the traffic loss at the main airports lead the Industry to conclude that there has been a change of strategies.Although in a different timeline, Brussels is working to strike down the practice of financing the loss making flights.This new system will penalise the secondary airports and boost the bigger ones, especially Madrid airport, as the airlines are supposed to concentrate more flights in fewer airports.This way Aena might be trying to balance a budget shortfall and the need to find a solution to the traffic loss from the main airports which are…

Airlines request consensus before the Aena privatisation Regulations

TUI aircraft in Lanzarote airport / Fotolia

On October 21 the Government’s Consulting Council of Privatisation—CCP—published a report which confirmed the fact that they are now open to privatise Aena by 60% as we had anticipated.ActualidadAerospacial.com informed that the Council of Ministers shall approve a Royal Decree to authorise the privatisation process of Aena Aeropuertos. Aena Aeropuertos to be split in three partsThe first part would be a stable nucleus with a group of leading shareholders made up of 3 to 5 investors, to purchase shares by between 20% and 30% of the Capital Stock. Each investor would have an individual share between 5% and 10%. Amongst other requirements, these investors would…