Investor spotlight
However, after eight years, that expertise now lies with the personnel in MAp and internalisation, with the cost benefits that has brought, was clearly beneficial for our investors. Both operational and security price performance since internalisation are evidence of this.
Why do you specialise in airports rather than having a more varied investment portfolio? Airports are who we are. Since our inception in 2002, our mandate has been to focus on airports.
Airports provide high growth potential, are resilient, lend themselves to our active management model and deliver consistently high returns for our investors.
Do you ever consider real estate and the development of ‘airport city’ projects? We take the view that our airports are vital pieces of infrastructure that contribute to the communities in which they operate by generating jobs and supporting the economy. At the same time, we ensure our airports deliver high returns for investors. Given that, we look at ways for our airports to drive non-aeronautical revenue through commercial activities including shops, restaurants, specialty retail, hotels, currency exchanges and office space.
Our airports all have large and valuable land banks. Approximately 2.4 million sqm of land across our airports has been identified as surplus to aviation requirements and suitable for commercial development. The long-term nature of MAp’s airport investments permits a measured
44 Issue 1, Volume 5
approach to property development. While there’s no current imperative to develop sites substantially ahead of demand, we continue to assess projects on an individual basis and pursue a mix of site leases, joint ventures and self-development. We continue to actively develop the range of retail, and food and beverage options available to passengers. Retail, and food and beverage revenues represent around 20% of our combined total proportionate revenue.
Do you see low-cost carriers as an important driver of growth in the future? Low-cost carriers continue to drive capacity growth. They’ve changed the face of air travel and given travellers access to cheap flights to a variety of destinations. Low-cost carrier seat growth within Europe was 44% last year, up on 17% in 2004.
Given their importance in driving growth, we continue to look at opportunities to accommodate low-cost carriers.
As an example, last year, Copenhagen Airports opened its new €30.8 million low-cost carrier facility – CPH Go – with easyJet the first airline to operate from the new facility.
It provides airlines with a discount on passenger charges – the first time any European airport has introduced a differentiated pricing option into an integrated terminal. CPH Go will serve an estimated one million passengers in its first year and has the capacity for approximately six million. This facility has opened at an important point in Copenhagen’s development, with
low-cost carrier growth of 34% in 2010, and market share growing to 18%.
Do you operate a one size fits all approach to your airports? MAp has a proven formula for owning and operating airports. We have a consistent model and approach that we adapt for our airports. We oversee the implementation of our airports’ strategies through collaborative engagement with airport management.
Given each of our airports operates in a different country, governed by different laws, we have the flexibility to adapt our framework to suit individual requirements. Our approach allows us to draw upon the extensive skills and experience of the global team.
What are your future plans for Brussels, Sydney and Copenhagen? We want to continue to deliver revenue, earnings and operating profit above traffic growth, to deliver high returns for investors. At the same time, we will continue to work with our airports to improve facilities and services for airlines and passengers.
All our airports enter 2011 in a very strong position with a sustainable platform for growth in aeronautical and commercial business, supported by increasing traffic across all three airports and a substantial pipeline of new airline routes and services. The leading indicators for each airport, including slot filings, seat growth and load factors, all point to a very strong year ahead. On top of that, our airports are well positioned to benefit from the structural changes I mentioned earlier.
GLOBAL AIRPORT CITIES
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