Economic Regulation Agreement
Public consultation document
2011-2015
aeroportsdeparis.fr
Economic Regulation Agreement
Public consultation document
2011-2015
In the space of a few years, Aéroports de Paris has seen changes that will mark
a milestone in the company’s history: change of status to a société anonyme in
2005, conclusion of the first Economic Regulation Agreement and selling of a
minority shareholding in 2006, completion of an unprecedented investment
programme yielding an increase in terminal capacity at Paris-Charles de Gaulle of
25 million passengers in a few years, and the conclusion of an innovative and ambitious industrial partnership with Schiphol Group, the Amsterdam airport operator.
These developments are motivated first and foremost by our intention to deliver first-rate infrastructures and services
to our customers, thereby both contributing to their competitiveness and enhancing the attractiveness of Paris-Charles
de Gaulle, Paris-Orly and Paris-Le Bourget airports.
Our intent to achieve continuous improvement, through the dedication and dynamism of the men and women who
make up Aéroports de Paris, is all the more crucial in the current economic doldrums, in view of the keen impact on
the air transport sector. Against this backdrop, Aéroports de Paris must remain intensely focussed on the programmes
initiated over the past few years to strengthen its performance, improve the quality of its services, and offer increasingly efficient facilities and services to its customers to ensure they remain competitive in a fiercely competitive market.
The method for the economic regulation of Aéroports de Paris, based on five-year agreements with the state, plays
a vital role in meeting this challenge, in that it offers fundamental economic visibility regarding the development of
airport facilities, service quality levels and fee levels to both the company and the airlines.
The first Economic Regulation Agreement, covering the period 2006-2010, will have acted as the spur for the company
to achieve its strategic objectives. In line with its commitments, this 2006-2010 period was marked by an unprecedented, large-scale investment programme and the opening of considerable terminal capacity at Paris-Charles de Gaulle,
delivering new facilities, judged by passengers to be on a par with the highest standards, and offering airlines the
conditions to strengthen their operating efficiency. The aircraft contact parking rates, a key factor for performance and
comfort, climbed almost 10 points since 2006 to 87% on average at Paris-Charles de Gaulle and Paris-Orly.
Whereas we witnessed a tangible improvement in the performance of Aéroports de Paris during this 2006-2010
period, I am convinced that the next Economic Regulation Agreement for 2011-2015 is set to drive renewed and
strengthened ambitions. Aéroports de Paris’ ambition is to become the leading airport group in Europe, a reference in
terms of customer satisfaction, sustainable development and economic performance.
This document presents the company’s proposals for the 2011-2015 Economic Regulation Agreement. I wanted these
proposals to be formulated after in-depth consultation with the company’s customers. This consultation phase lasted
MESSAGE FROM
THE CHAIRMAN AND CEO
for a number of months and generated abundant, fruitful dialogue revealing the new process of cooperation which
Aéroports de Paris wishes to strengthen with its customers.
Our proposals are based on three fundamental and closely related improvement priorities that constitute a virtuous
circle through which the company will be strongly committed to improving the performance of its facilities and services
in the long term to the benefit of its customers.
The first priority is to enhance the competitiveness and attractiveness of the Paris airports for their users. Accordingly,
Aéroports de Paris proposes to make quality of service the number 1 priority for the next Economic Regulation
Agreement: This ambition will be backed by maintaining the momentum of our strategic investment programmes,
such as the new S4 satellite at Paris-Charles de Gaulle, and resolutely pursuing the renovation of the oldest terminals
and optimisation of current facilities. At the same time, Aéroports de Paris proposes to moderate airport fee increases
to improve its competitive position. Fees were frozen in 2010. Changes proposed for the period 2011-2015 will be
designed to strengthen the positioning of the Paris airports compared to other large European airports. This policy of
moderation, made possible by the company’s own continued and intense efforts to improve its performance, is also the
fruit of the strategic decisions made over the past 10 years or more at Paris-Charles de Gaulle, with the result that the
leading French airport has the capacities required for its long-term development.
The second fundamental improvement priority for the company in the framework of the next Economic Regulation
Agreement is to achieve a more proactive approach to the changing needs of its customer base. In this regard,
Aéroports de Paris has organised surveys and consultation initiatives aimed at both passengers and airlines, and
intends to reinforce partnership at operating level between its operational teams and those of the airlines: this enhanced and practical spirit of cooperation will also guarantee improved customer satisfaction.
Lastly, this second Economic Regulation Agreement will reflect recent changes enacted by the regulations to adjust
the company’s regulated scope in 2011, with the withdrawal of commercial and real estate diversification activities.
For the 2011-2015 Economic Regulation Agreement and beyond, this development will be a key factor in encouraging
improved performance and the development of the company. I am convinced that in itself, it will initiate a virtuous
circle through which Aéroports de Paris will constantly create favourable conditions to increase the attractiveness and
competitiveness of its airports, the gateways to France.
The proposals tabled by Aéroports de Paris reflect this keen ambition. They are intended to benefit our customers and
the company and to inject new dynamism into the Ile-de-France region and the national economy.
Pierre GRAFF
Chairman and CEO of Aéroports de Paris
Foreword
The Aéroports de Paris economic regulatory framework has been defined by the provisions of the law of 20 April 2005
on airports and its implementing regulatory provisions. This new framework favours a long-term regulatory approach,
offering enhanced transparency and incentivisation, based on Economic Regulation Agreements (ERAs) of a maximum
of five years between the Government and Aéroports de Paris.
The first of these agreements was signed on 6 February 2006 covering the period 2006-2010. In particular, it took into
account the massive investment made by Aéroports de Paris to implement the new terminal capacity at Paris-Charles
de Gaulle airport in a few years’ time. Furthermore it fixed the service level targets, it also defined the maximum limits
for this period on increases in fees for the most significant services rendered, payable by the airlines or their ground
handling services and set out the company’s quality service aims.
In the autumn of 2009, in accordance with its commitments and regulatory obligations, Aéroports de Paris commenced
preparation for the next ERA, to cover the period from 2011 to 2015, with an in-depth consultation with its customers.
This consultation phase was held in particular within the economic consultative commission of the Paris-Charles de
Gaulle and Paris-Orly airports.
By virtue of the regulations, Aéroports de Paris is currently obliged to disclose a consultation document setting forth
the company’s detailed proposals with regard to the 2011-2015 ERA. This is the subject of this file, submitted for public consultation for a period of one month, which may be extended by fifteen additional days at the discretion of the
Government. Within this timeframe, interested parties are invited to direct their comments to the Ministers in charge of
civil aviation and the economy, who in turn will communicate them to Aéroports de Paris.
The Minister in charge of civil aviation will then refer the 2011-2015 ERA guidelines to the airport consultative commission, created by article L. 228-1 of the French Civil Aviation Code, for an opinion.
Finally, Aéroports de Paris intends to finalise the 2011-2015 ERA by no later than early autumn of 2010 for application
from the beginning of the pricing period starting 1 April 2011.
Regulatory framework for this file
This file meets the obligations detailed in article R. 224-4 of the French Civil Aviation Code:
” […] the operator shall publish a file, with respect to the scope of activities indicated in article R. 224-3-1, featuring
the following in particular:
- an implementation report for the long-term agreement currently underway [….];
- indication of the operator’s projections for the future agreement, in particular with respect to growth in traffic at the
aerodrome(s) it operates, growth in airport capacities, investment programmes and, if applicable, their pre-financing,
suitability of public services in relation to user demand, the quality of said services, changes in fees and, if applicable,
subsequent modulations of said fees;
- A
n evaluation of the economic and financial impact of these projections and, if applicable, the alternative projections
[…]".
The scope of activities mentioned in article R. 224-3-1 of the French Civil Aviation Code, also known as the “regulated
scope”, is defined in article 1 of the decree of 16 September 2005 pertaining to fees for services rendered at the aerodromes. This encompasses the range of activities used to assess the company’s profitability in order to determine the
amount to charge in fees for airport public services.
For the 2006-2010 ERA, the regulated scope has been defined as follows:
”For Aéroports de Paris, the scope of activities as per article R. 224-3-1 of the French Civil Aviation Code encompasses
all activities of Aéroports de Paris for the aerodromes mentioned in article D. 251 of the same code, with the following
exceptions:
- F or the aerodromes of Paris-Charles de Gaulle and Paris-Orly, ground handling activities other than those mentioned
in article R. 216-6 of the French Civil Aviation Code;
- W
ithout prejudice to section IV of this clause, activities performed by companies associated with Aéroports de Paris
in the sense of ordinance No. 2005-649 of 6 June 2005;
- Activities whose financing falls under article 1609 quatervicies of the French General Tax Code;
- Activities whose financing falls under article 1609 quatervicies A of the same code;
- P roperty and real estate activities other than those consisting in making available land, floor space, real estate or
premises for:
• the execution of all activities in the terminals,
• the execution of car-rental activities,
• the execution of ground handling activities,
• stocking and distribution of aircraft fuel,
• aircraft maintenance,
• the execution of activities associated with air freight,
• the execution of general and business aviation,
however, for the conclusion of the first agreement under application of section II of article L. 224-2 of the French Civil
Aviation Code, the aforementioned scope may include all property and real estate activities of Aéroports de Paris
[terms retained in the 2006-2010 ERA];
- If applicable, other activities with no relation to the aforementioned aerodrome activities.”
By virtue of the decree of 17 December 2009 amending the decree of 16 September 2005 pertaining to fees for services rendered at the aerodromes, the regulated scope will be modified effective starting from 1 January 2011. It is,
therefore, set out by the ERA 2011-2015 as follows:
”For Aéroports de Paris, the scope of activities as per article R. 224-3-1 of the French Civil Aviation Code encompasses
all activities of Aéroports de Paris for the aerodromes mentioned in article D. 251 of the same code, with the following
exceptions:
- F or the aerodromes of Paris-Charles de Gaulle and Paris-Orly, ground handling activities other than those mentioned
in article R. 216-6 of the French Civil Aviation Code;
- W
ithout prejudice to section IV of this clause, activities performed by companies associated with Aéroports de Paris
in the sense of ordinance No. 2005-649 of 6 June 2005;
- Activities whose financing falls under article 1609 quatervicies of the French General Tax Code;
- Activities whose financing falls under article 1609 quatervicies A of the same code;
- R etail activities and services, such as those for shops, restaurants and bars, banking and foreign exchange services,
hotels, car rental and advertising;
- P roperty and real estate activities, outside of terminals, other than those consisting in making available land, floor
space, real estate or premises for:
•
•
•
•
•
•
•
the execution of ground handling activities,
stocking and distribution of aircraft fuel,
aircraft maintenance,
the execution of activities associated with air freight,
the execution of general and business aviation,
public car parks and subscription car parks,
public transport,
- If applicable, other activities with no relation to the aforementioned aerodrome activities.”
Therefore, the regulated scope for Aéroports de Paris will change starting from 1 January 2011, this being the start date
for exclusion of the aforementioned diversification property and real estate activities (i.e. those outside of terminals
other than for ground handling services, stocking and distribution of aircraft fuel, aircraft maintenance, air freight, general and business aviation, public car parks and subscription car parks, and public transport) and the aforementioned
retail activities (Aéroports de Paris SA activities relating to shops, restaurants and bars, foreign exchange and banking
services, hotels, car rental and advertising).
Therefore, this file contains the following:
• w
ith respect to the report on the 2006-2010 ERA, a regulated scope including diversification real estate
and commercial activities,
• for preparation of 2011-2015 ERA, a regulated scope excluding these two activity categories.
To facilitate quick referencing of this document, the correlation table below indicates which section of the document
primarily satisfies the disclosure requirements stipulated in article R. 224-4 of the French Civil Aviation Code:
Contents
1. AÉROPORTS DE PARIS: ACTIVITY AND ENVIRONMENT 1.1 THE AÉROPORTS DE PARIS GROUP
1.1.1 Structures and activities of the Group
1.1.2 Group’s financial performance 1.1.3 Industrial and strategic partnership with Schiphol Group 1.1.4 Capital structure and shareholding 1.2 POSITIONING OF THE PLATFORMS IN THE PARIS AREA 1.2.1 Paris-Charles de Gaulle
1.2.2 Paris-Orly 1.2.3 Paris-Le Bourget
1.2.4 General aviation airfields 17
17
17
18
19
19
21
21
21
22
22
1.3 SERVICES PROVIDED BY AÉROPORTS DE PARIS SA IN TERMS OF OPERATING AIRPORTS 22
1.4 PARIS AIRPORTS: MAJOR ACTIVITY AND EMPLOYMENT CENTRES 23
1.5 ENVIRONMENT AND SOCIAL RESPONSIBILITY
25
1.6 TOWARDS GREATER PLATFORM ACCESSIBILITY
26
1.7 AN INTERMODAL TRANSPORT POLICY 27
1.8 A COMPANY RESPONSIVE TO ITS CLIENTS 28
1.8.1 Satisfaction surveys 1.8.1.1 Passenger observatory 1.8.1.2 The “ASQ” survey from the ACI 1.8.1.3 The companies’ satisfaction survey 1.8.2 Instances of cooperation 1.8.3 Cooperation and service level agreements concluded with airlines 28
28
28
29
29
30
2. THE AÉROPORTS DE PARIS ECONOMIC REGULATION 33
2.1 PRINCIPLES OF THE AÉROPORTS DE PARIS ECONOMIC REGULATION 33
2.2 REGULATED SCOPE AND ADJUSTMENT 34
2.3 WEIGHTED AVERAGE COST OF CAPITAL FOR AÉROPORTS DE PARIS 37
2.4 IMPACT OF DIRECTIVE 2009/12/EC OF 11 MARCH 2009 ON AIRPORT CHARGES 39
3. REPORT ON THE 2006-2010 ECONOMIC REGULATION AGREEMENT 43
3.1 MAIN PRIORITIES OF THE 2006-2010 ERA 43
3.2 DEVELOPMENTS IN AIRPORT TRAFFIC OVER THE PERIOD OF THE 2006-2010 ERA
43
3.3 CAPACITY GROWTH 46
3.4 INVESTMENT PROGRAMME 47
3.4.1 Strategic orientations and capital expenditures 3.4.2 Main operations completed 3.4.3 Comparison with the programme initially envisaged in the 2006-2010 ERA 3.5 SERVICE QUALITY AND CUSTOMER SATISFACTION 3.5.1 Measures to improve customer satisfaction over the period 2006-2010 3.5.2 2006-2010 ERA service quality indicators 47
51
56
57
58
72
3.6 CHANGES IN AIRPORT CHARGE PRICING
77
3.7 GROWTH IN ECONOMIC PERFORMANCE
80
3.7.1 Changes in the asset base and profitability 3.7.2 Trends in operational costs for the regulated scope 3.7.3 Trends in revenue of the regulated scope 4. TRAFFIC FORECASTS AND CAPACITY GROWTH
80
81
84
89
4.1 2010-2020 TRAFFIC FORECASTS 89
4.2 CAPACITY GROWTH 91
5. CUSTOMER SATISFACTION AT THE HEART OF THE COMPANY’S STRATEGY 97
5.1 THE AMBITION OF AÉROPORTS DE PARIS 97
5.2 THE “CUSTOMER SATISFACTION INITIATIVE”: A PRIORITY STRATEGY AIM 97
5.3 CONSULTATION INITIATIVES AND FUTURE PRIORITIES 98
5.3.1 Consultation initiatives 5.3.2 The expectations of passengers perceived through the Passenger Observatory 5.3.3 Assessment of satisfaction and expectations of passengers with regard to the ACI ASQ survey 5.3.4 Priority action in terms of improving passenger satisfaction 5.3.5 The expectations of the airline companies 5.4 PROGRESS DRIVERS 5.4.1 Projects aimed at monitoring cultural transformation and the company’s managerial processes 5.4.2 The development of dialogue and co-operation with airlines 5.4.3 The fundamental driver constituted by investment projects 5.4.4 Other projects oriented towards quality of service 5.4.5 The 2009-2011 action plan 98
99
100
101
102
103
104
104
105
106
110
5.5 PROPOSALS FOR INDICATORS AND OBJECTIVES FOR THE 2011-2015 ERA 5.5.1 Indicators with financial incentives 5.5.2 Objectives and mechanism for bonuses/penalties 5.5.3 Monitoring indicators 5.6 SETTING UP OF THE OPERATIONAL COMMITTEES FOR QUALITY OF SERVICE IN THE TERMINALS 6. INVESTMENT PROGRAMME
110
111
113
114
115
119
6.1 PRIORITIES OF INVESTMENT Programme 119
6.2 FOCUS ON CUSTOMER SATISFACTION DRIVERS 128
6.3 STRUCTURING AND CAPACITY INVESTMENTS 129
6.4 RESTRUCTURING INVESTMENTS
130
6.5 BUDGETS RESERVED FOR QUALITY OF SERVICE, RETAIL AND SUSTAINABLE DEVELOPMENT 131
6.6 REAL ESTATE INVESTMENTS 134
6.7 SECURITY AND SAFETY INVESTMENTS 135
6.8 CURRENT INVESTMENTS 136
6.9 PROPOSED INVESTMENT REALISATION INDICATORS 137
6.10 FINANCING OF INVESTMENTS 137
7. PRICING PROPOSALS 141
7.1 FEES SUBJECT TO THE 2011-2015 ERA PRICE CAP 141
7.2 PRICING PERIODS
142
7.3 PROPOSED AVERAGE INCREASE IN FEES SUBJECT TO THE PRICE CAP
142
7.4 PERSPECTIVE CONCERNING POSSIBLE CHANGES IN THE PRICING STRUCTURE
142
7.5 FEE MODULATIONS 143
7.6 PROPOSALS FOR PRICE CAP ADJUSTMENT MECHANISMS 143
7.6.1 Adjustment linked to traffic 7.6.2 Adjustment linked to service quality 7.6.3 Adjustment linked to investments 7.6.4 Other adjustments 8. GROWTH IN ECONOMIC PERFORMANCE 143
144
144
144
147
8.1 TRENDS IN OPERATING COSTS FOR THE ADJUSTED REGULATED SCOPE 148
8.2 TRENDS IN REVENUE OF THE ADJUSTED REGULATED SCOPE 150
8.3 REGULATED OPERATING PROFIT AND REGULATED ASSET BASE 153
8.4 SENSITIVITY ANALYSIS 154
9. CONCLUSION: A BALANCED PROPOSAL 157
Introduction
The first Economic Regulation Agreement covering the period 2006-2010 introduced a new system of economic regulation for the main French airports based on a multi-year approach and the concept of a fair return on
capital employed. It met the specific requirements imposed by the need to provide substantial new terminal
capacity at Paris-Charles de Gaulle within the space of a few years as well as the need to restore the company’s
performance in terms of service level, particularly as regards the proportion of flights handled at contact stands,
to significantly improve the company’s productivity and progressively restore a level of profitability consistent
with its cost of capital.
Having met the commitments of the first economic regulation agreement and invested heavily in new capacity
designed to the highest international standards, Aéroports de Paris considers that the key strategic focuses for
2011-2015 should be as follows:
- a dramatic improvement in customer satisfaction, mainly by further improving the quality of existing
facilities and developing new services, with priority for renovating the oldest terminals and optimising existing capacity;
- further productivity gains and continuous progress in operational performance, mainly by harnessing synergies through HubLink, the alliance between Aéroports de Paris and the Schiphol Group;
- a dditional performance gains in airport retailing, both by developing new retail space and improving
the quality of the offering;
- a cceleration and greater structuring of real estate development, with an allocation strategy segmented by product and airport;
- c ontinued efforts and commitments in sustainable development and corporate social responsibility.
On this basis, Aéroports de Paris proposes to focus the 2011-2015 economic regulation agreement on the need
to make its airports more competitive and more attractive to users, mainly through a tangible improvement in
customer satisfaction, to adopt a more proactive approach to their changing needs and achieve a fair distribution of the value created by the company’s efforts between Aéroports de Paris and the airlines:
- Make the Paris airports more competitive and more attractive to users by:
• a resolute commitment to noticeably improving the quality of service and customer satisfaction
via a policy combining structured investments, wider-ranging services and improved management
practices and corporate culture;
• m
oderate increases in airport fees which, coupled with substantial productivity gains and strict
cost control, will improve its price competitiveness compared with the other major European airports;
- Adopt a more proactive approach to changes in user needs through:
• a management approach focusing more on understanding the needs and expectations of users –
both airlines and passengers – mainly through dedicated satisfaction surveys and the reinforcing
of links with airline services;
• t he ability, in the next economic regulation agreement, to plan for potential additional investment
in case traffic growth is higher than initially forecast;
- A
chieve a fair distribution of the value created by the company’s efforts between Aéroports de Paris
and the airlines:
• t hanks to the adjustment of the regulated scope, from which commercial activities and diversification real estate will going out in 2011.
The adjustment of the regulated scope, consistent with the first two aims, is a fair step and a decisive factor in
encouraging the performance of the company and its development. And furthermore it will lead to a virtuous
circle so that Aéroports de Paris will be strongly encouraged to create attractive business conditions for both
airlines and the development of traffic. The company’s proposals for the 2011-2015 Economic Regulation
Agreement manifest this ambition.
1. Aéroports de Paris:
activity and environment
Economic Regulation Agreement 2011-2015
1 Aéroports de Paris: activity and environment
Aéroports de Paris :
activity and environment
Aéroports de Paris is Europe’s second-largest airport group in terms of passenger traffic1 and the largest in Europe for
cargo and mail. It owns and operates the three main airports in the Paris area: Paris-Charles de Gaulle, Paris-Orly and
Paris-Le Bourget, which handled 83 million passengers in 2009.
Benefitting from an exceptional geographic location and a capacity for development unique in Europe, Aéroports de
Paris is following a sustained policy of investment and continuous improvement to satisfy its customers, develop its
assets and heritage, and optimise its growth and results over the long term.
Aéroports de Paris’ ambition is to become the leading airport group in Europe through its levels of customer
satisfaction, its sustainable development and economic performance.
1.1 The Aéroports de Paris Group
1.1.1 Structures and activities of the Group
The Aéroports de Paris Group is made up of its parent company, Aéroports de Paris SA, and its subsidiaries. The majority
of the Group’s activity is carried out directly by Aéroports de Paris SA, which also holds the essential assets for the
Group’s activity in the Paris area. The simplified organisation chart of the Group on 31 December 2009 is as follows2:
Aéroports de Paris SA holds and operates the three principal airports in the Paris region (Paris-Charles de Gaulle,
Paris-Orly and Paris-Le Bourget) as well as the 10 general aviation platforms in the area. It also operates the Issyles-Moulineaux heliport. In terms of its specifications, it provides passengers, airlines and freight and mail operators
with high-performance facilities and offers them a range of services adapted to their needs. Aéroports de Paris had in
2009 almost 175 customer airlines (with more than 12 movements operated yearly), and more than 350 cities in 115
countries have been served with this minimal frequency from Paris-Charles de Gaulle and Paris-Orly airports. With 83.0
million passengers handled and 2.16 million tonnes of freight and mail processed in 2009, the company is Europe’s
second-largest airport group in terms of passenger traffic and largest in terms of cargo. Paris-Le Bourget airport, with
almost 58,000 movements in 2009, is in turn Europe’s largest airport for business aviation. Finally, with 6 686 hectares
freehold, the company owns the largest airport territory in Europe.
1
2
Sources : Airport groups
As a rounded off percentage of capital and voting rights
For information purpose only - French version to be authoritative
17
Hub télécom is a telecoms operator specialising in electronic network communications services on airport platforms
and sites often frequented by professionals as well as traceability and geo-localisation solutions for the transport and
logistic sectors.
ADP Ingénierie realises funds for designing works, project sponsorship and project management assistance in the fields
of architecture and engineering for airports and infrastructures presenting challenges for managing complex flows.
Alyzia Holding is the parent company of the Alyzia Group which provides ground handling to airlines present on the
platforms as well as safety services on behalf of Aéroports de Paris SA.
Aéroports de Paris Management is concerned with airport management and acquisition of stakes in airport companies.
Cœur d’Orly Investissement is the parent company of a company created in partnership with Altaréa and Foncière des
Régions which is involved in the retail scope of the property project in the business district known as Cœur d’Orly. Cœur
d’Orly bureaux is a joint company incorporated with Altaréa and Foncières des Régions to develop office buildings in
the framework of this project.
Roissy Continental Square is responsible for the management of a real estate asset known as Continental Square in
the Roissypôle district of Paris-Charles de Gaulle airport.
Voyages-aeroportsdeparis.com, internet travel agent, started activity in 2009.
Société de Distribution Aéroportuaire is responsible for the design, use and development of commercial spaces dedicated mainly to selling alcohol, tobacco, perfume, cosmetics and gastronomic products in Aéroports de Paris terminals.
Duty Free Paris is responsible for the design, use and development of commercial spaces dedicated mainly to selling
fashion items and accessories in Aéroports de Paris terminals.
1.1.2 Group’s financial performance
One of the main ambitions of the Aéroports de Paris Group during the period 2006-2010 was to significantly improve
its economic performance while the company was engaged in a period of historically raised investments.
Consequently, thanks to the development of the activity of the Paris platforms, the opening of new terminal facilities
at Paris-Charles de Gaulle, the great vitality of property and commercial activities and the successes of its subsidiaries,
the Aéroports de Paris Group, with €2,633 million in 2009, saw its turnover increase by 37% compared with 2005.
During the same time, EBITDA, at
€883 million in 2009, and the current
operating income of €518 million saw
appreciably more dynamic increases of
48% and 54% respectively, reflecting the
company’s efforts to control costs since
2005. In 2009, the net income Group
share reached €269 million.
In particular, this period has been marked
by the total reorganisation of the Group’s
ground handling activities, in order to
re-establish its economic balance.
Between 2008 and the first half of 2009,
Aéroports de Paris brought all its ground
handling activities together into a single
subsidiary, Alyzia.
For information purpose only - French version to be authoritative
18
Economic Regulation Agreement 2011-2015
1 Aéroports de Paris: activity and environment
1.1.3 Industrial and strategic partnership with Schiphol Group
Thinking ahead of future challenges in the air transport sector, Aéroports de Paris and NV Luchthaven Schiphol
(“Schiphol Group”) have signed a framework agreement for industrial cooperation for an initial period of 12 years
matching the acquisition of cross-holdings reaching 8% of the capital of each company. Effective from 1st December
2008, this industrial cooperation agreement forms a major strategic initiative which should produce significant mutual
benefits for the two companies in all their key areas of activity.
Regarding the two groups’ aeronautic activities, the objective is to improve competitiveness through consolidating a
double hub which will allow them to increase and diversify flight destinations and frequency by coordinated management of their activities and their interactions with airlines. With the aim of offering their customers a single ‘travel’ product, Aéroports de Paris and the Schiphol Group expect to harmonise the organisation and signage in their terminals
and to improve their passenger processes (check-in, information, security). The two groups also intend to strengthen
their relationships with their largest customers, including the Air France-KLM group, by optimising connectivity between
the two airports, but also through the standardisation of landside and airside processes and infrastructure processes
(for example, baggage sorting and tracking systems). Finally, through this cooperation, Aéroports de Paris and the
Schiphol Group aim to optimise their operational efficiency and realise cost savings, for example through standardising
their specifications and pooling certain of their acquisitions.
In terms of non-aeronautic activities, the objective is to accelerate the growth of commercial, property and telecoms
activity through sharing best practice, technologies and processes. Regarding international development, Aéroports de
Paris and Schiphol Group will adopt a joint approach to their future international growth, giving priority to strengthening the double hub at the heart of SkyTeam’s global network.
The industrial cooperation agreement rests on a dedicated governance structure. An industrial cooperation committee
supervises maters. It is composed of four representatives from each company and chaired in turn by the CEO of
Aéroports de Paris and the CEO of Schiphol Group. This Committee is the decision-making arm of the cooperation
within the limits of the expertise of the respective institutions of the two companies. At the same time, nine Steering
Committees, co-chaired by the two companies and comprising an equal number of representatives from each company,
are responsible for effecting cooperation in the nine areas of cooperation: developing the double hub and the attractiveness of the network, airport operations, commercial activities, international growth, property, telecommunications
and IT, sustainable development, acquisitions and security.
Finally, Pierre Graff, Chairman and CEO of Aéroports de Paris, was named as a member of the Schiphol Group’s supervisory board and as a member of the audit committee. Reciprocally, Jos Nijhuis and Pieter Verboom, CEO and CFO of
the Schiphol Group respectively, were named as members of the governing board of Aéroports de Paris. Jos Nijhuis is
a member of the strategy and investments committee.
1.1.4 Capital structure and shareholding
The partial privatisation of Aéroports de Paris took place on 16th June 2006 with the launching of 15,310,584 existing
shares onto the market, sold by the state, and of 13,599,102 new shares, at a nominal value of €3 each, issued by
Aéroports de Paris at the time of a seasoned equity offering.
The offer took the form of an open price offer reserved for individual investors in France, of an underwritten global
placement with institutional investors within and outside France, and of an offer reserved for employees. The seasoned
equity offering translated into an increase in equity capital of €583.5 million.
For information purpose only - French version to be authoritative
19
This seasoned equity offering, couple with the acceleration in cash flows from operating activities, enabled an ambitious investment programme, while bringing the Group’s capital structure under control. The accounting gearing ratio3
at 113% at the end of 2005, was established at 72% at the end of 2009.
Pursuant to article L. 251-1 of the civil aviation code, the Government is the principal shareholder of Aéroports de Paris
and must remain the owner of the majority of the company’s capital. At the date of printing of the current document,
the government held 52.4% of the company’s capital and voting rights and therefore of the control of the company.
The capital holding of the company is split as follows4:
3
4
Net debt / equity ratio
Based on the TPI (equity by identified shareholder) on 31 December 2009
For information purpose only - French version to be authoritative
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Economic Regulation Agreement 2011-2015
1 Aéroports de Paris: activity and environment
1.2 Positioning of the platforms in the Paris area
The three platforms, Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget, cover all categories of traffic (long- and
medium-haul flights, domestic, budget, leisure/charter and business). The Group’s airport portfolio in the Paris area
places it in second place in Europe for passenger traffic. It is in first place in Europe for postal and cargo traffic.
Since 2005, Aéroports de Paris has seen one of the most significant increases in passenger traffic amongst the main
European airports5:
1.2.1 Paris-Charles de Gaulle
Located 25 kilometres north of Paris, Paris-Charles de Gaulle airport is built on 3,257 hectares. It brings together
the largest part of the long-haul and intercontinental commercial links of the airport system, except for those to
the Overseas Departments and Territories and the Caribbean, which are operated from Paris-Orly. This positioning
greatly structures the activity and identity of the airport, which is the world’s gateway to France. It has three passenger
terminals with a capacity of 71.8 million passengers a year and six freight terminals. With 57.9 million passengers
handled in 2009, it is the sixth largest airport in the world, the second in Europe and the first in France. Cargo and
mail traffic rose to 2.05 million tonnes in 2009, which represents 95% of the volume handled in the Aéroports de Paris
platforms. More than 300 cities across the world were served from Paris-Charles de Gaulle in 2009 (with more than
12 movements yearly).
Point-to-point traffic represents more than two thirds of the platform’s traffic. Furthermore, it is ideally located to
attract connecting traffic which then feeds long-haul traffic, since Paris is less than two hours by air from all the major
cities of western Europe.
Paris-Charles de Gaulle is the site for around 90,000 jobs and 700 businesses. The airport’s main assets are the quality
of its infrastructures, whether the runways or the most recent terminals, the presence of leading global companies
including Air France-KLM, one of whose international hubs is situated at Paris-Charles de Gaulle, and FedEx, whose
European hub is also located on the platform, or finally its important land reserves. It intends to be one of the major
connection points in the forthcoming Carex network for freight transport in Europe.
1.2.2 Paris-Orly
Located 16 kilometres south of Paris, Paris-Orly airport is built on 1,540 hectares. It specialises in point-to-point traffic
to destinations in mainland France, Europe, North Africa and the Overseas Departments and Territories, and is equipped
with two passenger terminals with a capacity of 30 million passengers per year. With 25.1 million passengers handled
in 2009, Paris-Orly is the second largest airport in France and the 11th in Europe. Almost 160 cities were served in
2009 (with more than 12 movements yearly). The airport also offers important opportunities for property development,
mainly for diversification.
5
BAA : London-Heathrow, London-Gatwick and London-Stansted taken into account from 2005 to 2009 included
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Thus, the planned property development Cœur d’Orly is expected to create a business district on the platform which,
eventually, could include more than one million square metres. In March 2008, Aéroports de Paris chose the Altaréa
and Foncière de Régions pool as the financial partner and co-developer for the first stage of the project.
An economic hub of the south of Paris, Paris-Orly airport attracts close to 28,000 direct jobs and more than
300 companies.
1.2.3 Paris-Le Bourget
Located 7 kilometres north of Paris and therefore close to decision-making and business centres, Paris-Le Bourget
airport is built on 553 hectares. It is the largest business airport in Europe. A former international airport, it is wellequipped in terms of infrastructure and has three runways, allowing it to receive classic business aircraft as well as
heavier aircraft such as the Boeing 747 and, during the Air Shows, the Airbus A380. In 2009, the number of aeroplane
and helicopter movements reached almost 58,000.
Paris-Le Bourget also brings together around seventy companies and is a centre of excellence in aeronautical careers
linked to business aviation. With almost 3000 direct jobs and double that in indirect jobs, Paris-Le Bourget constitutes
a first-rate industrial and economic asset for the Paris region.
1.2.4 General aviation airfields
Aéroports de Paris owns and operates ten general civil aviation airfields situated in the Paris area (Meaux-Esbly,
Pointoise-Cormeilles-en-Vexin, Toussus-le-Noble, Chavenay-Villepreux, Chelles-le-Pin, Coulommiers-Voisins, EtampesMondesir, Lognes-Emerainville, Persan-Beaumont, Saint-Cyr-l’Ecole) and ensures the operation of the Issy-lesMoulineaux heliport.
In 2009, these 11 platforms recorded traffic of around 700,000 light aircraft movements, mostly consisting of leisure
aviation, flight schools and training flights.
1.3 Services provided by Aéroports de Paris SA in terms of operating
airports
Present at all stages of the journey of passengers and goods, the operator Aéroports de Paris SA aims to handle,
organise and optimise, in collaboration with airlines, their contractors and the competent national services, the different flows on the ground created by air transport activity: the flow of aeroplanes on the runways, passenger flow in
the terminals and through the different levels of control, baggage flow, cargo flow, the flow of food and drink between
the public area and the aeroplane, displacement of employees of different businesses present on the sites. It assures
the interface between the different stakeholders, to whom it provides services and facilities. In order to achieve this:
- it designs and organises the construction of airport infrastructure and access;
- it provides airlines and other professionals with the necessary infrastructures, facilities, spaces and equipment for
their activity, such as runways and their equipment, check-in desks, departure lounges, baggage handling systems,
operating offices and spaces, lounges etc,’ it also provides them with industrial services such as energy and fluids,
telecommunications, waste management;
- it allocates airlines to the terminals of an airport and, within certain limits, between platforms in the Paris area;
- it welcomes and informs passengers and the public, facilitates their journey and provides them with services designed to enhance their comfort, such as parking facilities, hotels, telecommunications services and entertainment,
personalised welcome, etc.;
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Economic Regulation Agreement 2011-2015
1 Aéroports de Paris: activity and environment
- it carries out, under the authority of the government, safety measures for air transport;
- it determines the establishment of and rents out commercial spaces, especially shops, bars and restaurants.
The general framework of the conditions of operation by Aéroports de Paris as well as its public service obligations
are laid down in the company’s terms of reference approved by the order of 20 July 2005 relating to the company
Aéroports de Paris.
1.4 Paris airports: major activity and employment centres
Air transport is the fourth most dynamic sector of the French economy6. Due to the strongly regional base of the airports, the major challenges for employment and wealth creation are therefore concentrated on the platforms.
The airport activity7 of the platforms Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget is estimated to represent
around 3% of the GDP of the Paris region, or more than 1% of the national GDP.
Therefore, nearly 1,100 businesses are established on these three airports, 700 at Paris-Charles de Gaulle, 325 at
Paris-Orly and 70 at Paris-Le Bourget. Furthermore, 85% of Aéroports de Paris’ purchases are made with 3,190 businesses from the Paris area.
In terms of employment, and uniquely in the Paris area, these three airports are the focus for more than 120,000 direct
jobs8, often highly qualified, to which are added 240,000 indirect or secondary jobs. They represent more than 6% of
regional employment. In a period of economic expansion, the rate of growth for these jobs is largely superior to both
the national and regional average. In particular, Paris-Charles de Gaulle is the largest job creation centre in the Paris
area: in a period of economic growth the number of jobs grows regularly at an average of around 6% per year, and the
airport saw the creation of more than 10,000 jobs between 2005 and 2008.
On average, an estimated 1 million passengers at Paris-Charles de Gaulle are the source of 1,500 direct jobs and 4,500
jobs in total. For Paris-Orly, these ratios are 1,000 direct jobs and 3,000 jobs in total for 1 million passengers.
Paris-Charles de Gaulle and Paris-Orly are major economic districts for the regional plan for the Paris area (SDRIF).
A pro-active policy for Aéroports de Paris:
Aware of the fact that no business can develop smoothly if it stays isolated in its surroundings, Aéroports de Paris
is fully assuming its fundamental role in the economic development of the Paris area through an ambitious policy of
economic and social cooperation which is based around three components: economic development, access to airport
employment for local residents and cooperation with land settlement institutions.
Integrated into its local environment, Aéroports de Paris plays a role as a creator of growth for adjacent areas and
businesses in the Paris area: since 2006, Aéroports de Paris has been pursuing around 100 economic and social cooperation partnerships which aim to support the development of its local area.
Amongst many initiatives designed to facilitate the creation and establishment of SMEs in the platforms’ local areas,
the development of an open space for outside investors (Datagora), a business incubator at the heart of Paris-Charles
de Gaulle (Aéropole) and a business centre located near to Paris-Orly (Orly International).
Support for employment also rests on contributions such as the engagement with the Plan Espoir Banlieues, participation in employment forums and fairs, employment assistance (training, orientation), finding accommodation for
employees, childcare places with flexible hours, a systematic oversight of the evolution of employment on the platforms
(the employment, career and training watchdogs), mobility assistance (Papa-Charlie, Allobus), etc.
6
7
8
Source: FNAM, white paper 2005
including consumption by businesses on-site
or 2.3% of jobs in the Paris region: 90,000 jobs at Paris-Charles de Gaulle, 27,600 at Paris-Orly and 2800 at Paris-Le Bourget
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Furthermore, Aéroports de Paris is heavily involved in regional and departmental actions, especially the employment
and economic development compacts: the first, regarding Orly, was signed at the start of 2009 and the compact regarding the Roissy area is currently at the planning stage.
Finally, created in 2003 under the aegis of the Fondation de France, the Aéroports de Paris Foundation aims to support
projects helping integration and local solidarity projects presented by the general interest structures and organisations
situated in the surroundings of the Aéroports de Paris platforms.
Division of workforce by activity sector at Paris-Orly:
Division of workforce by activity sector at Paris-Charles de Gaulle:
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1 Aéroports de Paris: activity and environment
1.5 Environment and social responsibility
Aéroports de Paris is engaged in an ambitious and pro-active sustainable development policy. This policy rests on three
principal bases: to excel in the environmental management of its own pollution, strengthen the realisation of its common interests with the surrounding local communities and work to make growth more responsible and more attractive
to the different parties concerned.
Through the whole of its actions, Aéroports de Paris aims to be the leading European airport in terms of sustainable
development and social responsibility and is working to carry out the Grenelle Environment Round Table.
A pro-active environmental policy and engagements under the Grenelle Environment Round Table:
As a major player in the growth and development of the Paris area, Aéroports de Paris wants to be exemplary and
ambitious with regard to protecting the environment. The certification to ISO 14 001 of its three main platforms is
the result of its concrete engagement with environmental responsibility. Furthermore, Paris-Charles de Gaulle airport
carried out an integrated management system (IMS), certified in 2008, integrating the environment, quality, security
and safety.
Carrying out this policy relies on the daily involvement of the business’s units and personnel in applying the four principles of the environmental policy: systematic integration of the environment in all of the Group’s activities, undertaking
to act as a responsible player, preventing shared pollution risks at the airports and promoting its own values and good
practices to its partners.
On 28th January 2008, under the Grenelle Environment Round Table, all air transport players promised the government
to appreciably reduce their environmental impacts. Aéroports de Paris has set itself seven objectives as part of this goal:
- reduce the aircraft time taxiing at Paris-Charles de Gaulle by 10% from 2004 to 2010;
- apply the HEQ (high environmental quality) and VHEQ (very high environmental quality) standards to its new
constructions;
- reduce internal energy consumption per passenger by 20% from 2004 to 2020 and by 40% before 2040;
- increase use of renewable energy;
- reduce the CO2/km emissions of the internal light vehicle fleet by 30% from 2006 to 2012;
- contribute to limiting the use of an auxiliary power unit (APU) by on parking stands aircraft;
- promote car-sharing.
Aéroports de Paris’ actions rely particularly on a policy of diffusing good practice to businesses on the airport sites:
Aéroports de Paris is integrating environmental and social clauses into its relationships with suppliers and making them
partners in its corporate social responsibility (CSR) policy. Its values are also promoted to businesses present on the
platforms by the Environment Partners Clubs.
Adopting and strengthening social responsibility
Since 2003, Aéroports de Paris SA has appointed an independent corporate responsibility ratings agency to evaluate
the growth of its sustainable development policy9. Six areas are subject to this evaluation: the environment, commercial
duties, civil society, human resources, acquisitions and subcontracting, corporate governance. In 2008, Aéroports de
Paris obtained the global A+ score10 as in 2007. The ratings agency emphasised marked progress in the three areas
audited that year:
- t he environment, focusing primarily on the climate; in applying its finalised Environment Plan in 2007, the business
concentrated on bringing its energy consumption and use of renewable energy under control, in order to limit its
greenhouse gas emissions; its practices of constantly limiting its environmental impacts on the ground have intensified;
9
BMJ Ratings
A+: high performance above standards in the sector
10
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- c ommercial duties, including boosting customer-focus culture: Aéroports de Paris undertook to strengthen its customer-focus culture at every level of the business, under the impetus of a new customer satisfaction department; the
business has also strengthened its partnerships with airlines and is equipped with an effective organisation for its
commercial activities;
- improved links with civil society: two points in particular were able to be identified, which were the new organisation
of relations with residents and local centres and an intensification of communication on the ground, responding
better to the needs of residents, and the dynamism of the Aéroports de Paris Foundation.
Strengthening corporate social responsibility has also manifested itself, since July 2008 and in the application of a
European regulation, by Aéroports de Paris taking responsibility for handling and assisting disabled and reduced
mobility persons (PRM) in its airports, based on higher quality norms. In December 2008, Ville & Transports (City and
Transport) magazine recognised the efforts realised by Aéroports de Paris by awarding the grand accessibility prize at
the Transport Awards it organises each year.
In addition, in terms of transparency and ethical responsibility, Aéroports de Paris chose to get involved, at the start of
2008, in the fight against corruption under the 10th principle of the Global Compact. The Global Compact, promoted
by the UN, establishes 10 principles relating to human rights, labour standards, environmental protection and the
fight against corruption. Every year, signatories must show proof that they are respecting their commitments and their
obligations extend into the field of social responsibility. Aéroports de Paris applies these principles by paying particular
attention to the dignity of each passenger, protecting the rights of its personnel, engaging in dialogue with its social
partners, through its environmental management system, by fighting corruption together with the NGO Transparency
International (France) and facilitating access to employment.
1.6 Towards greater platform accessibility
With the leading role it plays in the Ile-de-France region, the stakes involved in accessibility for Aéroports de Paris are
crucial. Accessibility is an economic and social priority, be it in terms of customer service, the attractiveness of airports
or access to employee areas.
Aéroports de Paris platforms lie at the heart of a dense road, motorway and regional rail network (two RER urban rail
stations at Paris-Charles de Gaulle, one RER station and the Orlyval monorail at Paris-Orly airport) rounding off the
services within the platforms. Recent times have drawn the particular benefit of the unveiling of the CDGVal automatic
shuttle at Paris-Charles de Gaulle. On top of this, Aéroports de Paris has also recently contributed to lifting in April 2009
the Local Traffic restrictions, with an improved internal bus service at Paris-Charles de Gaulle.
Going beyond these infrastructures and services, Aéroports de Paris is fully supporting projects currently underway,
particularly with regard to public transport, which are set to contribute to improving facilities at the platforms for
employees and air passengers alike: an improvement of the RER urban rail line B (the ”RER B Nord+” project) planned
for late 2012, CDG-Express project11, Barreau de Gonesse12 and Tangentielle Nord13, which will also contribute to the
accessibility Paris-Le Bourget.
As for Paris-Orly, Aéroports de Paris is strongly linked with the Villejuif – Athis-Mons tramway project. Services are planned to begin in 2013 and an agreement has just been signed between STIF, RATP and Aéroports de Paris. The company
also shares the measures in progress led by the STIF which aim to strengthen public transport accessibility to Orly and
also through public transport at the site itself. Aéroports de Paris is very much looking forward to the completion of
these projects, while overseeing their proper insertion into the airport platform.
11
12
13
Direct rail link to Paris by 2016
RER D-RER B link project
Rail link connecting RER A, C, D, B, E with a first phase at Epinay-sur-Seine (RER C) / Pierrefitte-Stains (RER D) / Le Bourget (RER B) entry into service in Autumn 2014.
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Beyond these schemes, Aéroports de Paris is paying close attention to the future of "Grand Paris”, especially to the
automatic metros shuttle which is set to provide a major boost to airport connections at Paris-Charles de Gaulle,
Paris-Orly and Paris-Le Bourget with other important areas in the Ile-de-France region and Paris city centre. The aim
is to be able to reach La Défense and central Paris in less than 30 minutes from Paris-Charles de Gaulle airport, while
Paris-Orly will have a 25-minute connection to the Gare de Lyon. There will be less than an hour between these two
international airports.
In terms of image and service quality for customers, this future automatic metro shuttle will enable better access to
the city’s two international airports by offering an alternative to driving (private cars, taxis, buses and shuttles), thereby
contributing to lower road traffic levels. This boost to accessibility at all three of the region’s airports is crucial to maintain the dynamic, competitive character of the economic region’s powerhouses and the jobs they create, the quality of
public transport connections being a priority in attracting companies.
1.7 An intermodal transport policy
Aéroports de Paris’ platforms are at the centre of a road, motorway and rail network (one TGV - high speed train - station and two RER - regional rail service - stations for Paris-Charles de Gaulle, RER and Orlyval for Paris-Orly) which are
major drivers of intermodal passenger transport. These services are a factor in the attractiveness for passenger traffic,
freight traffic and establishing businesses.
By targeting sustainable development, developing the attractiveness of the platforms and pursuing an efficient allocation of airport resources and capacity, Aéroports de Paris is thus fully integrating developing intermodal passenger
transport into its strategy, while seeking to exploit the potential complementarities between air transport and the TGV.
Thus, in terms of infrastructure, Aéroports de Paris integrated the rail dimension at Paris-Charles de Gaulle very early
on, betting on the complementing relationship between transport and high speed lines by creating a TGV station at
the heart of the airport. Created in 1994, this TGV station allowed 3.4 million passengers in 2008 to connect with the
densest high speed network in the world on one of around 53 direct trains per day going to 58 cities in France and
abroad. In June 2007, the commissioning of the East European TGV gave three new French stations direct access to the
airport from a TGV station: Strasbourg, Lorraine TGV and Champagne-Ardenne TGV. Strasbourg is no more than 2h25
by train from the airport, Metz and Nancy 1h30 and Reims 45 minutes.
In the future, the TGV station at Paris-Charles de Gaulle should be developed with the opening of rail competition,
the evolution of the high speed network, the possible project linking to Picardy which will shortly be opened to public
debate or the growth of cross-channel traffic.
Furthermore, in terms of freight, Aéroports de Paris is the impetuous for the Carex project for the TGV freight station,
closely connected to the freight handling buildings at Paris-Charles de Gaulle. The objective of such a platform is to
allow the possibility of express freight trains first between Paris-Charles de Gaulle, Amsterdam, Lyon, Lille, London,
Liege and Cologne, quickly to numerous airports and destinations in Europe, limiting the use of cargo or mail planes
at night or many lorries. This step is also inscribed in Aéroports de Paris’ sustainable development commitments, forms
part of the competitiveness of an activity occupying nearly 20,000 employees, and reinforces the attractiveness of the
second global hub for the company FedEx.
Finally, concerning services to Paris-Orly and under the Southern Interconnection High Speed Lines Project and a new
TGV station at Orly, a project steered by Réseau Ferré de France, Aéroports de Paris brings its assistance to surveys
that are in progress and supports locating this station at the heart of the Paris-Orly airport platform. To this end, the
property project in the Cœur d’Orly district has integrated, since its conception three years ago, the necessary technical
reservations and offers a veritable urban integration close to the terminals, but also for the future conference and
exhibition centre at Paris-Orly conducted by the Departmental Councils and the Region.
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1.8 A company responsive to its customers
While acting for sustainable development, Aéroports de Paris must also assure its customers of the quality and continuity of its services. The company expects to respond to this issue through the functionality of its facilities and the
quality of its services. It aims to increase the attractiveness of its platforms for passengers, airlines and the businesses
it houses.
Thus, service quality was one of the main objectives of the 2006-2010 Aéroports de Paris strategy, and its inclusion as
one of the highest priorities of the 2011-2015 Economic Regulation Agreement will enable Aéroports de Paris to reach
a decisive new stage in terms of customer satisfaction.
This ambition rests above all on responding to customer needs and on the measuring of their satisfaction: it is in this
spirit of continuous improvement that Aéroports de Paris carried out steps to respond and cooperate close to the
ground.
1.8.1 Satisfaction surveys
Today, Aéroports de Paris relies on different satisfaction surveys in order to discern the evolution of its customers’
satisfaction. The three key surveys at the heart of this responsiveness are as follows:
- T he Passenger observatory, a satisfaction survey conducted by Aéroports de Paris on Aéroports de Paris passengers
(departure and arrival);
- the ASQ survey from ACI, which enables classification of international airports which have subscribed according to
different passenger satisfaction criteria each quarter14;
- The airlines survey, an annual satisfaction survey conducted by Aéroports de Paris on airlines.
1.8.1.1 Passenger observatory
The Passenger observatory is the principal barometer of passenger satisfaction for Aéroports de Paris. These quarterly
satisfaction surveys have been carried out since 2002 for departure passengers and since 2006 for arrival passengers.
The survey is administered by the BVA institute.
This measure will particularly make it possible to:
- measure passenger satisfaction throughout their journey:
• o n departure: from entering the airport, or from arrival on a connecting flight, up to the departure lounge;
the questionnaire is given to the passenger in the departure lounge, once their journey is complete; the
sample provides a panel of 8,000 passengers per quarter, in all Aéroports de Paris terminals;
• o n arrival: from leaving the plane up to the moment the passengers leave the airport; the surveys (face to
face) take place at different access points to ground transport, such as car parks, taxi queues and close to
public transport stations, with a panel of 3,600 passengers per quarter;
- analyse the evolution of results with a view to discovering the impact of quality measures that have been implemented, identifying actions to carry out and correct them if necessary.
1.8.1.2 The “ASQ” survey from ACI
The ”ASQ” survey, conducted under the aegis of ACI and which Aéroports de Paris has been part of since 2007,
allows the comparison of results with other international airports (of which around ten are European airports of comparable size). This survey, which covers both departure and arrival in the same questionnaire, is given to a sample of
900 passengers at the start of the quarter according to the methodology set down by ACI.
14
This survey is the property of the ACI
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1 Aéroports de Paris: activity and environment
1.8.1.3 The airline satisfaction survey
Eager to improve the service delivered to its customers, in 2008 Aéroports de Paris launched a survey for the airlines
operating out of Paris-Charles de Gaulle and Paris-Orly. Designed to be carried out on an annual basis, it targets all
airlines which regularly operate out of one of the two passenger airports.
In 2009 Aéroports de Paris wanted to enhance this quantitative approach to the airlines’ perceptions with a more
qualitative and in-depth approach. In that way, around 30 interviews could be carried out in the second half of 2009
with 15 airlines, the objective being to enable a better analysis of the satisfaction survey and to target more precisely
the leverage they were expecting.
1.8.2 Instances of cooperation
Work on exchanging the results of the customer satisfaction indicators has been undertaken with several airlines. This
step aims to gradually build, with all willing companies, a shared performance chart for tracking and steering customer
satisfaction, in order to prioritise and coordinate the improvements to be undertaken by each party.
Furthermore, in addition to instances of operational cooperation and coordination (especially the AOCs – airport operators committees – at Paris-Charles de Gaulle and Paris-Orly), of those dedicated to the issues of ground handling (user
committees at Paris-Charles de Gaulle and Paris-Orly) and collaborative approach with certain companies or groups
(“Succeeding Together” with Air France-KLM, service level agreements with the Star Alliance and OneWorld groups),
consultation mechanisms carried out by Aéroports de Paris or by the government addressing airlines and ground handlers come in several forms:
- t he Economic Consultative Commission (CocoEco) joint between Paris-Charles de Gaulle and Paris-Orly; this
brings together Aéroports de Paris, the main airline customers of the two airports and the professional associations
for air transport and ground handling; chaired by a qualified independent person appointed by the government, its
meetings take place in the presence of representatives of the regulator (DGAC and DGCCRF); CocoEco is competent in all subjects relating to public service airport economy; in particular, it is consulted and puts out an annual
announcement on investment programmes as well as the evolution of licensing tariffs; during the preparation of
an economic regulation agreement (ERA), it is also invited to discuss, as was the case in October 2009 and January
2010, investment and service quality policies and for the period covered by the ERA, as well as on the financial
impacts for users;
- t he Airport Consultative Commission (CocoAéro): created by the law of April 2005 relating to airports, this
commission is exclusively composed of independent figures and has national competence; formed by the minister
in charge of civil aviation during the preparation phase of the ERA, it puts out a public announcement particularly
referring to the investment programmes, service quality objectives and the evolution of licensing; referral to the
commission on the 2011-2015 ERA is expected to take place in spring 2010;
- t he Airport Orientation Committee (AOC): a body created on the initiative of Aéroports de Paris in 2007, the
AOC brings together the directors of Aéroports de Paris and the representatives of the most important air transport
associations on a quarterly basis; it is called upon to discuss strategic themes such as those relating to the mediumand long-term development of infrastructure and airport services, sustainable development or safety.
These consultation processes are the result of an increase of cooperation between Aéroports de Paris and its customers,
compared to the situation before 2006 when the Economic Consultative Commission only met once a year. During
the last few years and on the initiative of Aéroports de Paris, the CocoEco met on a regular basis, five times per year,
to which were added meetings on specific consultations on certain pricing policies (implementation of licensing assistance to PRMs for example).
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Regarding the preparation of the 2011-2015 ERA, a first phase of in-depth consultation, carried out under the CocoEco
between October 2009 and January 2010, concerned the traffic scenarios, investment programmes, service quality
priorities, evolution of productivity and costs, development of the regulated scope and tariff evolution. At the same
time, three stages of cooperation were conducted at the heart of the AOC on the medium- and long-term development of the Paris-Orly and Paris-Charles de Gaulle infrastructures, as well as on the main economic orientations of the
2011-2015 ERA.
1.8.3 Cooperation and service level agreements concluded with airlines
The airlines are the main customers of Aéroports de Paris. They have common ground a desire to search for offering the
optimal service to passengers whose satisfaction often depends upon the level of services provided by the transport
providers and their assistants and Aéroports de Paris. The company has signed, will customers airlines, several agreements to draw profit from these synergies and look to reinforce the spirit of cooperation that stimulates established
relationships, not only with large companies and other main customers of the company, but also with the entire airport
community.
Two “Service Level Agreements”, with Star Alliance and One World respectively, who are responsible for almost half
of global air traffic, thus lay down measures for improving the service quality of operational facilities and practical
services to passengers. Beyond that, such agreements foster a prospective shared vision for enhancing the services and
perspectives offered by the platforms in terms of the development of the airlines.
Concerning the drivers for strategic, technical and operational cooperation between Aéroports de Paris and its main
customer Air France-KLM, these lend support to the ”Succeeding Together” partnership launched in 2006, which
bringstogether 250 collaborators from the two companies for joint projects.
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2. The Aéroports de Paris
economic regulation
Economic Regulation Agreement 2011-2015
2 The Aéroports de Paris economic regulation
The Aéroports de Paris
economic regulation
2.1 Principles of the Aéroports de Paris economic regulation
The law of 20 April 2005 on airports and its enforcement regulations created a new framework for the economic
regulation of Aéroports de Paris.
Economic regulation is required by the Government because of Aéroports de Paris dominant position with respect to
users of its airport services. It covers price setting, investment programmes and service levels.
Its main objectives are to:
- b e a visibility factor, for both Aéroports de Paris and its customers, with respect to changes in airport fees, the
investment programmes to be carried out and the required level of service quality;
- incentivise Aéroports de Paris to control costs, develop business, invest and improve service levels;
- ensure good visibility for the economic criteria taken into account in assessing the fair level for airport fees;
- strengthen Aéroports de Paris’s user consultation procedure.
More particularly, economic regulation is now based on five-year agreements (ERA) between Aéroports de
Paris and the Government15 after in-depth consultation with the airlines and other relevant parties. The first of these
agreements was signed on 6 February 2006 covering the period 2006-2010.
Separately from the Aéroports de Paris terms of reference fixed by the Government and defining the company’s public
service obligations, the purpose of these contracts is to:
- set out the company’s commitments with regard to investments;
- d efine the service level targets assigned to the company and the associated financial incentive system
(bonus/penalties);
- d efine, with respect to these elements and the delimitation of the so-called “regulated” scope, the cap for changes
in the rates for the main airport fees: landing fees, passenger fees, parking fees, de-icing fees, check in desk
fees, etc.
The assessment of the rate changes allowed by the ERA is based upon the criterion of fair return of the company
with respect to the weighted average cost of capital:
- t his fair return is assessed on the basis of a forward-looking business plan for the regulated scope of Aéroports de
Paris, which encompasses all activities for which fees are regulated plus some non-aeronautical activities for which
rates are set on a competitive basis (see § 2.2 below);
- it is measured on the basis of return on capital employed (ROCE), defined as the ratio between net operating profit16 after tax and the regulated asset base (RAB);
- it is assessed by comparing this ROCE to the company’s weighted average cost of capital (WACC),
which measures the cost of raising the capital used by the company, consisting of equity and debts (see section 2.3
below).
Note that the fair return is determined for the entire regulated scope, which implies setting an overall average for
all charges rather than each separate charge. This gives Aéroports de Paris some flexibility in setting its pricing
policy with regard to the structure and relative weight of each type of charge.
15
R epresented jointly by the Ministers in charge of airport economic regulation, i.e. the Minister in charge of civil aviation and the Minister of the Economy, respectively through the civil aviation
department (DGAC) and the competition, consumer protection and fraud repression department (DGCCRF).
16
Operating income defined by the decree of September 16th, 2005 concerning fees for services provided at the airports; it differs from the operating result measured in french GAAP company
accounting procedures by taking into account capital gains and losses on sales of assets, any investment grants and employees’ participation in the company’s results; the operating income after
tax is derived from the operating income by taking into account a normative tax applying the current corporation tax rate (34.43% in 2009)
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In conclusion, the ERA is a fundamental regulatory instrument designed to:
- provide essential medium-term visibility on the profitability of investments made;
- incentivise the company to control costs and develop its business as it will be rewarded (or penalised) for any outperformance (or underperformance) compared with the original business plan throughout the term of the agreement;
- define an investment programme and service level targets in association with the airlines and combined with financial incentives.
2.2 Regulated scope and adjustment
The regulated scope comprises the business activities taken into account for determining a fair return and hence the
average level of airport charges to be applied.
For the 2006-2010 ERA, this scope included (see diagram below):
- t he airport public service activities, which give rise to airport fees for services provided: some are ”standard”
services and are subject to charges set by Aéroports de Paris and approved by the Government (passengers, landing,
parking, de-icing, centralised baggage handling, 400Hz, etc.), most of which fall within the price cap mechanism set
out in the ERA. Others are services provided specifically for certain customers and fees are determined contractually
with the customers concerned (e.g. baggage sorting systems allocated to Air France);
- n
on-aviation activities whose prices are not fixed, the profit-earning nature of which contributes to reducing
the aforementioned airport fees: These activities include retailing (shops in restricted and public zones, bars and
restaurants, car rentals, banking and foreign exchange services, advertising, airport hotel activities, etc.), car parks,
industrial services, airport-related rental activities and diversification real estate activities.
This broad, so-called ”single till” system therefore implies ”cross subsidies”, where non-aviation activities subsidise
the airport fees. This system, which is not especially incentivising, is tantamount to depriving Aéroports de Paris of the
value created by its efforts and investment in non-aviation activities.
At present, the only activities not included in the regulated scope are those subject to separate special regulation (public interest missions financed by the airport taxe mainly relating to safety and runway security, the management of the
TNSA17 as well as those conducted in a competitive market (ground handling services, subsidiaries).
17
Air noise tax
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The diagram below shows the current segmentation of Aéroports de Paris’s activities for economic regulation purposes:
This single till principle was retained in the 2006-2010 ERA for pragmatic reasons, mainly because Aéroports de Paris
had reached a cyclical peak in its investment programme and because of the initial poor profitability conditions leading
to the need for significant price hikes.
At the other extreme is the ”dual till” mechanism whereby airport fees are determined on the basis of a fair return
assessed only on public airport services.
Both systems co-exist in the world today and the International Civil Aviation Organization (ICAO) recommends a caseby-case approach to the extent of non-aviation revenue to be included in the regulated scope. As regards the other
major European airports, London-Heathrow operates a single till and Amsterdam and Frankfurt a dual till.
The recent developments in regulations18 lead the regulated scope to be adjusted as of 2011 with the creation of an
”adjusted till”, which is the result of a pragmatic approach designed to:
- give both the company and its customers an equal and fair interest in opportunities for business growth and for
improving the quality of airport services provided;
- be compatible with the aim of keeping increases in airport fees moderate, thereby improving Aéroports de Paris’s
price competitiveness compared with its peers, and sustaining this moderate pricing policy and competitiveness over
the long term.
The adjusted till is the result of:
- excluding ”diversification” real estate activities from the regulated scope: as opposed to ”airport” real estate
(meeting the direct needs of air freight, ground handling services, aircraft maintenance and general and business
aviation), diversification real estate covers activities such as offices, retails and hotels outside the terminals, logistics
premises et warehouse,
- excluding commercial activities and services, such as those related to shops, restaurants and bars, in-terminal
hotels, car rentals, banking and foreign exchange services and advertising.
18
Decree of December 17, 2009 amending the decree of September 16, 2005 on airport fees.
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The diagram below shows the adjustment to the regulated scope to be introduced in 2011:
The new adjusted till is expected to be virtuous by giving an incentive to improve Aéroports de Paris’s competitiveness
for the benefit of its users, developing business, investment and employment, and leading to a fair distribution of the
value rewarding the efforts of the company and its employees:
- It will lead to a balanced distribution between Aéroports de Paris and the airlines of the value created by the company’s efforts and by business growth: The company and the airlines will therefore both capitalise on business growth,
the airport benefiting from the leverage it will have on the value of activities excluded from the regulated scope;
- It will give Aéroports de Paris an even stronger incentive to improve its competitiveness and attractiveness to users:
To the extent that traffic growth is a positive external driver of retail activities, Aéroports de Paris will have even more
of an incentive to create conditions that will encourage growth in the airlines’ business;
- It will be a key factor motivating the company and its employees to continue investing efforts in expanding and
improving the retail activities, for the growth of which Aéroports de Paris holds directly substantial drivers, as shown
by the 2006-2010 ERA;
- It will therefore be an important factor in enhancing passenger satisfaction and will also constitute a driver for developing employment at the Paris-Charles de Gaulle and Paris-Orly poles; in point of fact, the retail and restaurant
activities referred to, which have a high concentration of local labour, currently represent nearly 7,000 jobs on these
platforms; this number tends to evolve almost in line with the level of activity;
- D
ecreasing the level of cross-subsidy between non-aviation activities and aviation activities will enable airport fee
rates to be a price signal linked more directly to the cost of developing infrastructure and services, favouring sound
and responsible economic behaviour; for this reason, in 2008 the Cour des Comptes recommended an adjustment
of the single-till principle;
- Insofar as investments in developing and improving the airports would be associated firstly with a reasonable level
of profitability from aviation activities and secondly with a prospect of value creation for commercial activities,
Aéroports de Paris will have a greater incentive to invest; in 2002, this argument led a working group set up by Mr.
Claude Martinand, comprising a panel of economists and the departments of government concerned, to recommend
amending the single-till principle.
- A
llowing the company to capture some of the value created over the long-term will help strengthen its financial
robustness and hence its investment capacity.
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2.3 Weighted average cost of capital for Aéroports de Paris
The weighted average cost of capital measures the cost of the equity and debt used by the company in its operations.
For economic regulation purposes, it is used to assess the profitability of the regulated scope. In terms of asset valuation, it measures the minimum profitability threshold after which the company will create value.
The inset below shows the method of calculating weighted average cost of capital (WACC) using the capital asset
pricing model or CAPM, the most commonly used method.
WACC definition and calculation
The weighted average cost of capital (WACC), measured after corporation tax, is the weighted average between
the cost of the equity and the cost of the debt:
where:
•
•
•
•
•
kCP = cost of the equity
kD = cost of the debt before tax
VCP = market value of the equity
VD = value of the net debt
IS = current tax rate
The cost of the equity is calculated by applying the model commonly used in evaluating companies (the “CAPM”
model), as follows:
kCP = rf + βCP (rm – rf )
where:
• rf = rate of risk-free money
• βCP = equity beta, measuring the company’s risk compared to the average for the share market; it is
calculated from the sector beta (risk relating to a company such as Aéroports de Paris if it were totally
unlevered) and the company’s financial structure
• rm = expected profitability of the share market
• rm – rf = risk premium reflecting the variance in expected profitability between the share market and the
risk-free asset
The βCP factor is derived from the sector or economic asset beta (βe) through the following relationship:
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In light of current market parameters, the Aéroports de Paris Group’s WACC is currently 6.8% on a central case
basis (nominal value after tax):
This central value falls within a range of 6.4% to 7.2% depending on the parameters, with the spread in leverage
reflecting Aéroports de Paris’s financial structure over the period 2011-2015:
These assessments seem to be consistent with the consensus of analysts who follow Aéroports de Paris stock. According to the consensus, Aéroports de Paris’s WACC has increased significantly since the first ERA was signed. In 2007
and 2008, the increase was driven mainly by a rise in the risk-free rate whilst from the second half of 2008, the economic crisis led the market to revalue equity risk and therefore the associated risk premium.
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An analysis also leads to the conclusion that the WACC of the adjusted regulated scope is not lower than the Group’s
overall WACC, so that the WACC range referred to above is also a relevant factor for the regulated scope applicable
starting from 2011:
- N
on-regulated scope activities, apart from the fact that they are weighted on a very minority asset base compared
with the regulated scope, are associated with WACCs at or below the Group level: As regards activities with a significant asset base, diversification real estate activities and those relating to retail premises are associated, on the basis
of peer group comparisons, with WACCs at the low end of the above range, whilst public interest activities financed
by the airport tax (security, airside rescue and fire fight service) are currently remunerated at about 3% after tax;
- G
iven that the vast majority of activities are currently included in the regulated scope, it seems reasonable to
conclude that the current regulated scope’s WACC is close to that of the Group; it intrinsically reflects a mainly trafficrelated risk partially offset by the stabilising virtue of price regulation; as these two factors will be essentially of the
same nature for the adjusted regulated scope, there is no reason to believe that the regulated scope’s WACC will be
significantly affected by the adjustment;
- H
ence, analysts who assess separately the regulated scope, or even the aviation activities scope, generally use the
Group’s WACC in their calculations.
2.4 Impact of directive 2009/12/EC of 11 March 2009 on airport charges
Directive 2009/12/EC of the European Parliament and of the Council dated 11 March 2009 on airport charges seeks
to define common principles and procedures for setting airport charges. It applies to the Paris-Charles de Gaulle and
Paris-Orly airports and should enter into force via transposition by 15 March 2011 at the latest.
This directive is in line with the system of regulation in place for Aéroports de Paris, and therefore should not, in and of
itself, give rise to significant changes in this domain.
At base, these key requirements concern the obligation of non-discrimination for the airlines with respect to setting
fees, the option to adopt a common fee system for a group of airports, and the option to set different fees according
to level of service. On the other hand, the directive does not address issues such as the cost relation or the regulated
scope.
According to the procedure, the directive prescribes implementation of an independent regulatory system, which, if applicable as is currently the case in France, can be implemented by means of having the fees approved by Governmental
departments that are functionally independent of the departments handling management of its financial interests if
they hold any stake in the airport or in any airline companies. It also imposes an obligation of reciprocal transparency
between airport management and airline companies; the information to be disclosed by airport management within
this framework is similar to the information communicated by Aéroports de Paris to the economic consultative commission.
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3. Report on the 2006-2010
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3.1 Main priorities of the 2006-2010 ERA
Concluded a few months following the change in status of Aéroports de Paris, the 2006-2010 ERA was intended to
respond to a number of fundamental challenges facing the company and to improve services to its customers:
- it took into account the need for massive investment to make up for the shortfall in terminal capacity at ParisCharles de Gaulle, particularly as regards the aircraft contact stands available;
- it introduced service quality objectives resulting in very marked improvements in the services provided to
Aéroports de Paris customers: increase in aircraft contact rates, particular attention to signage and cleanliness
in terminals, improved equipment serviceability and higher levels of passenger satisfaction;
- t he ERA is underpinned by the company’s commitment to investing significant effort aimed at achieving productivity gains;
- it incorporated the goal of very significantly improving retail performance and undertaking the first phase in the
development of real estate activities;
- it provided for graduated increases in airport rates, with adjustments in line with actual trends in airport traffic
and based on compliance with service quality commitments, with the aim of providing a fair return on capital
invested within the regulated scope at the end of the ERA at the latest, whereas in 2005, the level of company
profitability was very markedly below the WACC.
For pragmatic reasons, it was based on a single till principle, mainly in view of the significant rate hikes made
necessary by initially low profitability and to implement a particularly ambitious investment programme.
3.2 Developments in airport traffic over the period of the 2006-2010 ERA
The 2006-2010 ERA was based on forecast passenger traffic growth of 3.75% a year. This reference forecast was
bracketed on either side by two other trend forecasts of 3.5% and 4% a year, respectively, which defined the interval
in which the price-cap mechanism specified in the agreement would not be adjusted in line with traffic.
The graph below compares these three traffic assumptions with actual traffic (excluding transit passenger traffic) in the
period 2005 to 2009, as well as the assumption retained for 2010:
The first period from 2005 to mid-2008 saw a far greater rise in traffic than initially forecast in the ERA assumptions.
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In the main, this growth was driven by intercontinental traffic and the boom in low-cost carriers (easyJet, Transavia
and Vueling in particular), which fuelled a significant upturn in European traffic, notably to and from southern EU
destinations. This strong momentum helped to offset the decline in domestic traffic, undermined by competition from
the TGV fast train, and the stagnation of business with the French overseas departments and territories. During this
period, growth at Paris-Charles de Gaulle, buoyed in particular by the development of the SkyTeam Alliance hub and
the opening of the easyJet base at the airport, far outstripped performance at Paris-Orly.
Traffic declined significantly from the second half of 2008 to the last quarter of 2009 as the global economic crisis took
hold, so much so that traffic at the end of 2008 stood at the lower limit of the central assumptions of the ERA while
2009 numbers dipped significantly below these levels.
Discussions in the economic consultative commission in autumn 2009 concluded that the decline in activity during
2009 could be followed by a slight upturn in 2010, with growth in passenger traffic estimated at 0.5%. According to
this hypothesis, passenger traffic should increase by an average of 1.25% per year for the period 20062010.
The tables below compare traffic trends (excl. transit) at Paris-Charles de Gaulle, Paris-Orly and overall trends for both
airports since 2005, as well as the assumption for 201019:
19
T he scope of the Schengen area has changed significantly since 1 April 2008 (with the entrance of nine new countries) and again on 1 April 2009 (with the entrance of Switzerland). Accordingly,
to ensure comparability, the information below takes the following scopes into account (including retroactively) for the entire period 2005-2010: Schengen area, non-Schengen area and ”other
international areas”, consistent with those at 1 April 2009. Connecting ratios are computed with regard to passenger traffic departures and arrivals
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Note also that since the start of the first Economic Regulation Agreement, Aéroports de Paris posted significant market
share gains relative to its peers, illustrating the competitiveness of its services and facilities and that of the companies
based at its airports, as well as the appeal of the catchment area of the Ile-de-France airports.
As regards airline market share, the SkyTeam Alliance accounts for more than 50% of passenger traffic, while low-cost
airlines have seen a steady increase in traffic for the past few years to reach more than 12% of total traffic in 2009.
Similarly, the first part of the 2006-2010 ERA also saw a very robust increase in cargo and mail traffic. Growth achieved
an average of 4.7% per year over the period 2005-2008 (traffic in tonnes of cargo and mail loaded and unloaded). The
economic downturn in mid-2008 had a particularly large impact on this activity, as it did for the other big European
airport groups, and volumes handled declined by almost 10% in 2009.
Activity at Paris-Le Bourget, by nature very vulnerable to the economic cycle, also grew very vigorously until mid-2008,
only to decline significantly up to the end of the third quarter of 2009 inclusive.
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3.3 Capacity growth
Paris-Charles de Gaulle airport:
Considering traffic growth forecasts and the lag in providing sufficient terminal capacity in 2005, one of the top
priorities of the 2006-2010 ERA was to open new terminal facilities at Paris-Charles de Gaulle.
In 2005, total capacity at all Paris-Charles de Gaulle terminals stood at 47.1 million passengers. Since the beginning
of the 2006-2010 ERA, available capacity has been increased by nearly 25 million passengers to a total
of 71.8 million passengers:
- In 2007, nominal capacity was revised upwards by 5.9 million passengers due to better aircraft stand yields and
improved terminal facilities;
- The opening of satellite S3 (La Galerie Parisienne) in the period June to December 2007 added capacity of 8.6 million
passengers;
- The reopening of the terminal 2E boarding pier in March 2008 resulted in a net capacity gain of 3.4 million
passengers after the temporary boarding lounge was dismantled;
- In September 2008, the opening of terminal 2G for the regional partners of the Air France-KLM group added
additional capacity of three million Schengen area passengers;
- The completion of the renovation work on the main building of terminal 1 in March 2009, restoring capacity for
2.7 million passengers;
- In March 2009, the reopening of the north-east dock of terminal 2E resulted in a capacity gain of 1.1 million
passengers.
Today, with the completion of this vast capacity development programme coupled with unfavourable traffic trends
since mid-2008, available airport terminal capacity largely meets demand:
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As regards runway capacity, Paris-Charles de Gaulle has an extremely efficient runway system with its two pairs of
parallel runways designed to be used independently. Each pair includes one runway designed for take-off and another
for landing, which notably reduces air noise disturbance. As a result of this system and the resources implemented by
the air navigation services provider, scheduling capacity was increased to 114 aircraft movements (arrivals and departures) per hour during the 2009 summer season. The entire runway system has been adapted to handle wide-bodied
aircraft (Airbus A380).
Moreover, as a result of the investment programme undertaken during the 2006-2010 ERA, there are more than 300
aircraft stands at Paris-Charles de Gaulle airport, 130 of which are contact stands. Of the 170 remote stands, 70 are
used for cargo.
The airport provides some 27,000 car parking spaces, 17,000 of which are located in nearby car parks (in direct contact
with the terminals).
Paris-Orly airport:
The 2006-2010 ERA saw no change to the terminal capacity of 30 million passengers per year at Paris-Orly, although
significant investment to improve flows and optimise service quality was undertaken (in particular, the restructuring of
hall 2 at Orly-West, the overhaul of the international concourse at Orly-South and the improvements made to baggage
handling for passengers departing from Orly-South).
There are three runways at Paris-Orly with a scheduling capacity of 76 aircraft movements per hour. Runway 3 has been
adapted to accommodate wide-bodied aircraft (Airbus A380) to make Paris-Orly airport capable of receiving diverted
aircraft of this type. The airport has 104 aircraft stands, 49 of which are contact stands.
In terms of car parking facilities, the airport has some 19,000 spaces, 11,000 of which are located in car parks close
to the terminals.
3.4 Investment programme
3.4.1 Strategic orientations and capital expenditures
In the 2006-2010 ERA, the investment cycle peaked in 2006-2007, with nearly €2.7 billion invested in the
regulated scope over the five-year period, compared to €2.3 billion (current euros) in the period 2001 to 2005.
Investment totalled €2.9 billion for the entire scope of Aéroports de Paris SA (current euros, excluding
financial investment).
The main strands of this investment programme met the following priority objectives:
- Make up for the shortcomings observed in 2005 in terminal capacity relative to traffic at Paris-Charles de Gaulle;
- C
ommission facilities offering a high proportion of flights handled at contact stands, which is a key competitiveness
factor, particularly for connecting flights, as well as major growth opportunities in terms of retail areas (S3 satellite,
terminal 2E boarding lounge, terminal 2G);
- Technical upgrade of the oldest terminals (terminal 1 at Paris-Charles de Gaulle);
- L aunch the first phase of development of the real estate portfolio, notably with the opening of two new cargo
terminals at Paris-Charles de Gaulle and Paris-Orly, the extension of the FedEx hub and the start-up of the land
preparation for the Cœur d’Orly business district.
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Some of these investments, particularly the newly commissioned terminal facilities, have played a decisive role in
improving service quality, especially in terms of passenger satisfaction.
The chart below shows Aéroports de Paris SA’s capital expenditures during the first ERA (excluding financial
investments, in current millions of euros):
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Investment programme - ADP SA - 2006-2010 (current € millions)
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Investment programme - Regulated scope - 2006-2010 (current € millions)
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3.4.2 Main operations completed
The following are the main operations completed during the period of the
2006-2010 ERA (c.f. Appendix 1 for a more detailed presentation of the largest
projects):
At Paris-Charles de Gaulle airport:
- S atellite S3 (“La Galerie Parisienne”), forming an addition to the 2E/2F
facility; designed to handle a large number of passengers with connecting
flights, this satellite is linked directly to terminal 2F by a walkway and to terminal 2E by the rapid transit line called LISA (with a capacity of 4500 passengers
per hour and per direction); at a cost of €560.5 million (excluding security and
LISA), plus €76 million for LISA (system and engineering), it delivers an annual
capacity of 8.6 million passengers and includes 3300m² of retail outlets in the
international area and 3900m² of lounges; it was opened in stages between
June and December 2007;
- T erminal 2E pier: in order to ensure the safety of the structure, Aéroports
de Paris decided to completely rebuild the roof of the terminal 2E departure
lounge; the programme was completed by optimising the retail outlets and
adapting the security control area to the new regulations, at a final cost of
€136.9 million; the new lounge was opened, as scheduled, in March 2008;
- E ast baggage-sorting system (TBE): at a cost of €194.7 million (excluding civil engineering), the east baggage sorting system was opened on 2
October 2007 with a peak target capacity of 8600 baggage items per hour;
fully automated, it incorporates 100% security screening of hold baggage; TBE is particularly suited for connecting
baggage; it is a single sorting system for handling all baggage from terminals 2E and 2F; volumes in excess of 40,000
bags/day are presently processed regularly in the TBE with performances in line with expectations;
- T erminal 2G: the regional terminal delivers capacity of 3 million passengers
for destinations in the Schengen area and can handle 26 ERJ 170/195-type
aircraft, including 20 at contact stands; it can also accommodate aircraft up
to the size of the Airbus A320; it is designed to completely separate departure
and arrival flows; there is a rapid connection with the rest of CDG2 by means
of a shuttle link; terminal 2G was opened on schedule in September 2008 at
a cost of €90.1 million (excluding security);
- R
efurbishment of the central structure of terminal 1, Paris-Charles de Gaulle: the initial renovation
project was divided into four phases, preceded by a preparatory phase, each lasting approximately one year; the chief
modifications concerned the configuration of the desks in the check-in area and the baggage handling system to
simplify check-in and incorporate hold baggage security inspection equipment; the terminal was reopened in four
phases from end-2005 to March 2009; an additional fifth phase covering the approaches is currently underway
(facades and renovation of esplanades), scheduled to be commissioned in July 2011; the total cost of the operation
is put at €248 million;
- R
enovation of the satellites in terminal 1, Paris-Charles de Gaulle (ongoing under the 2011-2015 ERA):
operational renovations have been made to five of the terminal’s seven satellites (1, 3, 4, 5 and 6) according to a
four-stage schedule, each timed to coincide with the successive closure of one quarter of the central structure; this
project is set to continue until 2014 with technical renovations to these satellites and technical and operational
renovations to the two remaining satellites; the project as a whole represents a cost of €35 million;
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- S atellite S4 (work to be completed under the 2011-2015 ERA) is a key element in improving the performance of the
Paris-Charles de Gaulle hub and, when opened, will constitute a major driver for improving the quality of service delivered to passengers; hence, service and retail space in S4 will be optimised and the extended LISA line will connect
the satellite to the 2E-S3 system; dedicated to international long-haul flights, it will have the capacity to handle
16 wide-bodied aircraft at contact stands, including 7 Airbus A380-900s, and provide terminal capacity of 7.8 million
passengers annually; it is scheduled to be inaugurated in Q3 2012 at an estimated cost of €561 million (excluding
security and including the extension of the LISA line);
- C
DGVal is the internal shuttle rail service that connects terminal 1 with the
RER urban rail system at Roissypôle and the TGV mainline railway station at
CDG2; it entered into service in April 2007 at a cost of €158 million; owing to
the knock-on effects on the bus shuttle system, CDGVal saves 2000 tonnes
of CO2 per year;
- T axiway E4 at Paris-Charles de Gaulle: optimising service to the existing or planned facilities at east side of the airport (long-haul aircraft parking
areas and terminal 2G), as well as meeting the requirements for access to the
runway 26 threshold, this third parallel taxiway has greatly reduced taxiing time; coming in at a total cost of €33.3
million, the project includes engineering structures above the east access road of the airport and was completed in
April 2008;
- H
andling Airbus A380 at Paris-Charles de Gaulle: in addition to the modifications to the aeronautical infra
structures completed to accommodate the Airbus A380, Boeing 777-300ER and Airbus A340-600, Aéroports de Paris
has also commenced work aimed at ensuring high quality servicing of Airbus A380 in its terminals:
• following an investment of €7 million, terminal 1 now has two Airbus A380 stands, of these only the stand
at satellite 3 is currently equipped with a third bridge serving the upper deck;
• servicing this plane was included in plans for satellite S3 from the outset (six stands with three bridges);
the pier in terminal 2E is also designed to accommodate the Airbus A380;
• in 2009, a stand in terminal 2C was equipped with a third bridge at a cost of in excess of €2 million;
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- U
ndertaking to improve ground access within the airport: in addition to the very positive development of
the opening of CDGVal in April 2007, Aéroports de Paris also initiated a number of actions, some of which are still
in progress or could be continued under the 2011-2015 ERA, aimed at improving flows and improving service quality
to passengers and professionals alike:
• in terms of managing flows of taxis and other modes of on-demand transport: a rear taxi base designed to
optimise the flow of taxis serving terminals 1, 3 and 2A/B/C/D was opened in April 2007 and is currently
being extended to taxis serving terminals 2E/F; in addition, in response to the increased diversity of ondemand modes of transport (moto-taxis, shuttles, etc.), Aéroports de Paris has created a service to suit
these new businesses, known as “Parking Pro”, designed to offer secure and signed parking close to the
terminals 2B/D; it is planned to extend the service to all terminals;
• Aéroports de Paris has also actively contributed to lifting the Local Traffic restrictions in April 2009 for
public transport by bus, with a resulting improved internal bus service at the airport;
• in terms of rail transport, the upper section (which is the property of Aéroports de Paris) of the RoissypôleCDG1 RER urban rail station was renovated in 2009, in collaboration with the SNCF; the refurbishment
was aimed at improving circulation, signage and the reopening of a number of areas;
• a number of road access projects have been completed or are scheduled: improved traffic flow at the
Route de l’épinette junction for access to the Air France headquarters, improved traffic flow at the access
to terminal 2 (exit from terminal 2D, facilities to the south of the Sheraton hotel), the new road section
of la Croix au Plâtre aimed at improving traffic flows to the cargo area at the south of the airport, modification of the road system insert on the main access road near terminal 1 aimed at reducing traffic slowdown at the western entrance to the airport, overhaul of road signage to make signs easier to read and
ensure compliance with regulations, gradual improvement of terminal landside roads.
At Paris-Orly:
- R
enovation of hall 2 at Orly-West created a single boarding lounge extending some 2600 m2 in area, equipped
with a baggage sorting system and a single bank of passenger security checkpoints; the reconfigured hall 2 was
reopened in April 2006 at a cost of €24.5 million;
- R
econfiguration of the international concourses at Orly-South: renovations in the customs area at Orly-South (international pier in the east and baggage reclaim hall) included major reworking of passenger flows,
expansion of the baggage reclaim halls and significant extension of the retail area, now located after the security
checkpoints; this operation was completed in 2008 at a cost of €25.5 million (excluding security);
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- H
andling wide-bodied aircraft at Paris-Orly: work to upgrade runway 4 at Orly airport to handle the Boeing
777-300ER in both directions was completed in June 2006 at a cost of €30 million; renovations totalling €7 million
were also completed at runway 3 taxiways in 2009 to accommodate the Boeing 777-300ER and diverted Airbus
A380s; the taxiway was widened in several areas, a service route diverted and three outlying stands created;
- Continuous improvement of ground access within the airport:
• m
anagement of taxi flows: the taxi ranks at Orly-West and Orly-South were entirely overhauled in 2007
and 2008 respectively with the creation of five taxi docks capable of handling five vehicles at the one time
and considerably reducing waiting times at peak periods;
• p ublic transport by bus: the Orly-West bus station was entirely refurbished in 2007 in close collaboration
with the Region and the Syndicat des Transports d’Île-de-France (STIF) and improvements to signage
completed in 2009; the Orly South bus station was partially refurbished in 2008-2009 (mainly regarding
signage work); in addition an automatic bus information system was tested, providing passengers with
information on waiting times and the location of shuttles;
- E lectricity supply upgrade: creation of a connection station to the 225kV electrical transmission grid to improve
the quality of electrical power supply and to reduce incidents originating in the national grid, replacement of the protection relays in the high-voltage distribution loops, replacement of the airport’s high-voltage cables, refurbishment
of the high-voltage electrical stations in the terminals.
At Paris-Le Bourget:
- A
eronautical: the opening of a business terminal in 2006, the development of a heliport and the refurbishment
of the taxiways in 2007, the opening of the Espace Jacqueline Auriol, the creation of a ramp between areas H1 and
W1, the expansion of parking areas G south and T north and the creation of a new service route for aircraft refuelers
in 2008, the creation of an access ramp to area F, the installation of oil separators for areas H and the upgrade of
WIG-WAG lights and signage panels on runways and taxiways in line with the security standards in 2009/2010;
- N
on-aeronautical: overhaul of road signage in 2007, commissioning of low-pressure heating, improved security of
the ICA electrical power supply and the new northern access by the Pont Yblon roundabout in 2009/2010.
Real estate:
Following the recent establishment of the property department in 2004 and the previous property crisis, the 20062010 ERA has first and foremost worked to ensure solid foundations for a new corporate property strategy. The desire
to rapidly impose itself as a benchmark operational business comes alongside work already undertaken for the preparation of future operations, with the support of top experts.
The period 2006-2010 was marked by a strong activity in land developing, with a total of 59 hectares. This
comes in addition to several doze hectares of land for later projects, mainly at Paris-Orly.
The development of this land has enabled the construction of 190,000m² of buildings by corporate partners, as well
as 90,000m² usable surface directly developed by Aéroports de Paris SA as an investor (extensions to FedEx, cargo
terminals, crèche etc).
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As regards the projects carried out by partners, in which Aéroports de Paris has acted as the land developer, the main
ones are:
- A
ir France group businesses: projects for the aircraft maintenance business, including the Hub Maintenance Centre,
the A380 hangar, engine buildings (amounting to 90,000m²), as well as offices to bring greater efficiency to the
hub like a crew staff base (33,000m²), Servair Acna catering (15,000m²) and an extension to the Air France cargo
facilities (4000m²);
- the inclusion of various businesses aside from Air France represented 41,000m², principally consisting of the La Poste
sorting office at Wissous (38,000m²) and social housing of 6000m².
In terms of investment and construction performed by Aéroports de Paris, the strategic choice, in contrast with the
previous policy, was from now on to create new cargo terminals using exclusively its own investment. During the
2006-2010 ERA period, Aéroports de Paris mainly concentrated on the delivery of approximately 70,000m² of new
cargo terminals and facilities (general cargo & express) fully financed by Aéroports de Paris, consolidating its position as
European leader in cargo at Paris-Charles de Gaulle. The significant development potential at Paris-Le Bourget should
also be noted, with 21,000m² of usable surface area built.
Bearing in mind the economic crisis since 2008, the initial objective of 315,000m² of usable surface area by the end
of 2010 cannot be achieved in terms of new buildings. The construction completed, excluding FedEx and Air France
multi-story parking garages, should however reach almost 285,000m².
The aircraft maintenance business was boosted
by the first A380 hangar for Air FranceKLM, amounting to 26,000m², opened in 2009
With a surface area of 22,600m², the opening of the
new cargo terminal at Paris-Charles de Gaulle
airport in July 2007 came in addition to an extension of
4000m² for Air France.
Aéroports de Paris performed an extension to the
hub facilities for FedEx.
With a surface area of 14,700m², the new cargo
terminal at Paris-Orly airport was opened in mid-2008
and was fully booked up for use a full year prior to
delivery. It was built to better suit the range of property
provided by Aéroports de Paris to developments in
the cargo industry and to enable cargo companies to
significantly increase their productivity.
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3.4.3 Comparison with the programme initially envisaged in the 2006-2010 ERA
When the 2006-2010 ERA was concluded, the investment programme for the regulated scope was valued at
€2,478 million (2006 euros).
The comparison of the programme outlined in §3.4.1 above with this initial forecast is given in 2006 euros, indexed
retroactively in line with the “INV” factor index included in the 2006-010 ERA (see below), namely according to variations in the consumer price index excluding tobacco (CPI 4018E) from July to July of the following year.
The detailed table of disparities is given in Appendix 2.
Capital expenditure for the current programme shows a surplus of €128 million (2006 euros) over the initial forecasts,
explained in the main by a discount of €95 million between the index retained in the ERA and the actual price indices
that applied during the period to works contracts. The remainder of this overall disparity is explained by the additional
investment in property development (in this case airport-related property businesses) and by the specific budgetary
allocation for improving customer satisfaction.
”INV” FACTOR:
Pursuant to the 2006-2010 ERA (§ III.2.3.4 of the ERA), an ”INV” adjustment factor applied to the 2010 rate period,
if appropriate.
This factor was designed to take into account a possible reduction in investment expenditure, excluding capacity expansion, refurbishment and real estate diversification works, posted at end-2008, compared to the initial programme.
Accordingly, in the event that investment expenditure at end-2008 amounted to less than 95% of the amount initially
planned in the programme, excluding these works, 70% of the resulting cost difference within the regulated scope
and over the term of the agreement would be subtracted from the price cap on changes to the principal airport charge
fees in 2010.
The benchmark amounts agreed at the conclusion of the ERA were as follows:
Pursuant to the ERA, a comparison between the actual investments undertaken and the reference investments is given
in euros as at 2006, indexed retroactively according to the annual variation in the consumer price index, excluding
tobacco (CPI 4018E) from July to July of the following year.
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The table below gives the actual investments undertaken in current euros and millions 2006 euros respectively, using
this de-indexation rule:
As mentioned above, the INV factor would only be triggered should the ratio between these actual investments and
the reference ERA investments be less than 95%. The ratio was 99.9%; therefore the INV factor provided in the
2006-2010 ERA was without effect.
3.5 Service quality and customer satisfaction
The teams at Aéroports de Paris have long sought to improve customer satisfaction. The first Economic Regulation
Agreement did much to reinforce the importance of customers’ perception of quality across the company, as the service
quality objectives enshrined in the ERA were major drivers in strengthening not only the perception of the importance
of service quality, but also the need to commit to precise and measurable objective across all sectors of the company.
Numerous projects initiated during the same period also played their part in mobilising teams, such as the cooperation
agreements organised with the main airline alliances and quality certification procedures.
During the period of this first regulation agreement, the chief challenge in terms of service quality acknowledged by
the ERA was the creation of the conditions, through the investment programme, for a marked improvement in the
aircraft contact rate at Paris-Charles de Gaulle, of particular benefit to the efficiency of the SkyTeam Alliance
hub. The passenger contact rate (so-called “TXC” indicator) at Paris-Charles de Gaulle increased from 70.7% during
Q3 2006 to 82.4% in Q3 2009.
This priority was reflected in the 2006-2010 ERA in an indicator (known as “RPC”) to measure compliance with the undertakings of Aéroports de Paris regarding the schedule for the commissioning of contact stands at Paris-Charles de Gaulle.
In addition to the issue of contact stands, the 2006-2010 ERA included nine service quality objectives
with financial incentives, measured by equipment serviceability indicators, compliance indicator and passenger
satisfaction indicators.
The teams at Aéroports de Paris worked hard to achieve and, in almost all cases, exceed these objectives.
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3.5.1 Measures to improve customer satisfaction over the period 2006-2010
The clear ambition to significantly improve the quality of services offered to airlines and passengers during the period
of the 2006-2010 ERA was based on two major priorities: on the one hand, the implementation of a large-scale
investment programme aimed at delivering increasingly high-performance infrastructure to customers meeting the
highest international standards, and, on the other, improving the ability of Aéroports de Paris to listen to its customers
and enhance the company’s responsiveness and efficiency in the delivery of operational and commercial services to
passengers and airlines.
The company’s efforts in recent years, combined with the opening of new facilities meeting the highest international
standards, have fuelled a steady, substantial improvement in the overall passenger satisfaction rate. The overall satisfaction rate of arriving and departing passengers rose from an average of 80.7% in 2006 to 85.6% in 2009.
This rise is partially due to significant efforts made in areas such as customer reception service and information counters, passenger orientation, cleanliness, seat comfort and car parks. Satisfaction rates rose hand-in-hand with a marked
improvement in the availability rates of equipment provided to customers at Aéroports de Paris, largely due to the
creation of structures and systems to monitor technical equipment and detect breakdowns and resulting in enhanced
company responsiveness.
These results are also in large measure due to the renovation work in the terminals and car parks and the opening of
new facilities. According to the ACI ASQ survey, terminal 2E (including satellite S3) at Paris-Charles de Gaulle ranked
amongst the terminals meeting the highest European standards.
Development of joint improvement procedures with airlines and other Aéroports de Paris partners:
Teams in many of the company’s departments mobilised around initiatives to strengthen cooperation with airlines,
in particular the three main alliances operating at Île de France airports (SkyTeam, Star Alliance and One World): the
Operations departments, first and foremost, but also Marketing, Security, Sustainable Development, Customer Satisfaction, etc. These ongoing cooperative initiatives have yielded many concrete results and several structuring projects are
currently underway in joint bodies. As testimony to this commitment, American Airlines recently granted their award
for the best stopover in their international network to the operating team in terminal 2A at Paris-Charles de Gaulle.
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Since 2008, relations between Aéroports de Paris and airlines have been further strengthened by the creation of a
new strategic dialogue body, the Airport Steering Committee, (c.f. §1.8.2). This committee provides a forum for the
discussion of issues of customer satisfaction, often dependent on the services provided by both Aéroports de Paris and
the airlines, as well as of joint improvement initiatives.
Another cross-sector joint project was initiated in 2008, under the auspices of the Direction Centrale de la Police aux
Frontières (DCPAF) of the Interior Ministry, Air France and Aéroports de Paris. By structuring and organising regular dialogue between the teams at the PAF (border police), Air France and Aéroports de Paris, this new project sets out to provide
concrete and swift solutions to “daily irritants” for the operating teams and to put forward proposals for resolving the
most structural difficulties encountered on the ground to their respective general managements and central departments. This new project reinforces a memorandum of understanding signed in 2007 at Paris-Charles de Gaulle between
several government companies and departments, on the initiative of Aéroports de Paris. In the framework of this memorandum of understanding, the “passenger service” strand resulted in more than 500 police officers attending an
initiation to passenger service run by Aéroports de Paris.
Amongst the other initiatives, a customer service charter was signed by some 20 partners Committee (Aéroports de
Paris, airline companies, service providers and retail concessions) in September 2007, as the result of the work of the
Paris-Orly Local Quality.
Improved contact rate:
The overall “passenger contact rate” for both airports increased by more than 8 percentage points to almost 87%,
bring the quality of service offered to passengers in this respect to a level comparable with other large European
airports.
This considerable improvement was driven in the main by Paris-Charles de Gaulle airport and its ambitious programme
for the development of terminal facilities. The contact rate at this airport increased by more than 10 points since 2006:
opening of satellite S3 in 2007 (19 contact stands, including 11 wide-bodied aircraft stands), reopening of terminal
2E pier (10 contact stands), opening of terminal 2G (20 stands) in 2008 and the reopening of the north-east dock in
terminal 2E in 2009 (4 stands).
The already very satisfactory contact rate at Orly also improved during the period. This rise, without new infrastructure,
follows on the introduction of new operating procedures in partnership with the airlines, designed to optimise the
number of flights at contact points.
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Certification procedures:
During the period 2006-2010, Aéroports de Paris continued and reinforced its commitment to obtaining international
certification. Accordingly, in 2008 Paris-Charles de Gaulle airport obtained Integrated Management System (IMS) certification, which streamlines a number of certification procedures into one strand, including ISO 9001 and ISO 14001.
The certificate was renewed in 2009, and constitutes a key driver for the operating teams to strengthen their organisations and implement corrective actions. This certification encompasses quality, airport security, health and safety at
work, quality assurance associated with the airport’s security and environment.
At Paris-Orly airport, a customised internal management system was created, based on in-depth and systematic analysis of customer surveys, assessment of compliance carried out by “mystery customers” and of customer complaints. As
a result, quality plans were drawn up, as well as a system of service quality control, with regular internal audits on the
ground incorporating systematic escalation of results to management.
Since 2003, the company has also commissioned an annual extra-financial rating by an approved independent body
(c.f. §1.5). The rating, which measures the company’s corporate social responsibility commitment, also leads to the
implementation of action plans in response to the auditing body’s recommendations, including some concerning the
company’s “commercial” activity. The results are reflected in a sustained improvement in the company’s rating, currently A+, which is considered to be high.
Improved signage:
Against a backdrop of growing international traffic and the need to manage increasingly dense flows of passengers
in 11 terminals, combined with the initial under-performance with respect to the quality indicator objectives in the
Economic Regulation Agreement, Aéroports de Paris undertook an ambitious signage action plan in 2007: rather than
simply corrective, this plan meant ”overhauling” signage, in line with the highest international standards in the area
and with the expectations and requirements of passengers.
This complete overhaul, developed in 2007 and rolled out the following year, was based on the following key points:
- C
reation of a new system of directional signs to
clarify and simplify signage through the introduction of a new structure for informational signage
for passengers;
- Use of three colours to distinguish between different types of information for passengers, namely:
for departing passengers, arriving passengers
and information on services and shops;
- Introduction of innovations such as large-type
for all alphanumeric information, provision of
route-planning information indicating the time
required to travel between terminals, etc.
- Design of the signage with the contribution of
in-house and external experts (signage, flows,
etc.) and passenger tests to optimise the system
before roll-out.
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The determination of Aéroports de Paris to quickly achieve significant results is reflected in the fact that the new signage has been installed in all 11 terminals in the space of only 15 months during 2007 and 2008. In all, more than
10,000 signs have been replaced at both airports (Paris-Charles de Gaulle and Paris-Orly).
The programme was carried out according to the following principles:
- T he introduction of new, suspended and highly visible signs, wherever
possible;
- P rioritisation of information signage and moving of advertising
materials;
- P rogramme to remove all redundant signage or signage obstructing
the passenger flows.
Aéroports de Paris is set to continue this ambitious programme in 2009
with the following phases:
- W
ork in collaboration with the SNCF on directional signage in stations
and consistency between the two systems;
- Overhaul of the CDGVal signage;
- Programme to overhaul the signage in the Roissypôle area;
- O
verhaul and gradual roll-out of the new directional maps for passengers and the public at all terminals.
Lastly, Aéroports de Paris intends to pursue this programme focusing on dealing with remaining points of importance
to passengers:
- Overhaul of all signage in car parks;
- Overhaul of information materials relating to so-called “temporary and mobile” signage in terminals;
- Gradual overhaul of road signage at Paris-Charles de Gaulle in the next few years.
These specific initiatives have been rewarded through the visible and measurable results achieved in passenger
satisfaction surveys.
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Optimising passenger flows inside terminals:
Optimising the flow of passengers and baggage in airports is an important issue both for the company and for airlines,
insofar as it brings about greater passenger satisfaction, better use of available terminal capacity, lower operating costs
and, potentially, improved flight punctuality.
This renovation policy usually requires the refurbishment and reorganisation of airport terminals. Several renovations
of this kind have been carried out over the period 2006-2010.
Accordingly, Orly-South terminal at Paris-Orly airport has undergone major construction work (see §3.4.1):
- A
structural renovation project for the international concourses at Orly-South was completed in July 2008 (bringing
forward and regrouping security checkpoints and border control into one single point for passengers; separating the
flow of departures and arrivals; renovating shopping areas and opening new shops; creating a new immigration area
for arrivals and extending the baggage reclaim area); additional work was finished over the course of 2009 (focusing
on improving the airport atmosphere), thus completing the overall renovation project. These major improvements
were welcomed by passengers, as shown by the changes noted in passenger satisfaction surveys;
- Improvements to baggage handling equipment in the departures area were also undertaken: the creation of new
check-in desks, automation of “manual” desks, installation of baggage security equipment, pooling of certain counter clusters, implementation of multiplexing to improve efficiency in security inspections, creation of new departure
baggage handling posts; this policy is aimed at continuing the pace of the process undertaken over recent years;
- In early-2010, a double bridge will be delivered in lounge A10 to speed up disembarkation from wide-bodied aircraft;
- In the east satellite (hall A) a project commenced in June 2009 to install a system of circular doors to divide and optimise management of passenger flows (arriving and departing passengers) in the international concourse; in this way,
a flight can be disembarked without interrupting boarding of another, in compliance with the rules for the separation
of passenger flows; the system provides a solution to the major challenge of achieving more fluid passenger flows
and improving the punctuality of departing flights.
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A number of projects have also been completed at Paris-Charles de Gaulle airport to facilitate passenger flows, in
particular:
- R enovation of the central structure of terminal 1 to entirely reconfigure the check-in areas, completed in March 2009:
the check-in areas, which were laid out perpendicular to the passenger route flows, are now parallel, improving
circulation throughout the public departures area; in more general terms, the renovation works have resulted in
improved legibility with the colour-coding of the check-in areas and the painted signage on the lift shafts making it
easier for users to identify areas;
- In terminals 2A and 2C, totems and vertical pillars (signage and advertising materials) have been systematically
removed, clearing the central area in the buildings and improving legibility to make it easier for users to negotiate
the space; the transit area in terminal 2A has been completely overhauled;
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- In satellite S3, projects were completed to upgrade connecting passenger routes and separate the arrivals and departures concourses; in addition a direct route for connecting passengers from satellite S3 to terminal 2F was opened
in the second half of 2008;
- In June 2008, improvements to the border control area for connecting passengers arriving in the International area
of terminal 2F in transit to the Schengen area of this terminal features a system of reversible police booths designed
to provide a rapid response to changes in flows and queues of passengers;
- The connecting passenger concourse between terminal 2C and terminal 2E was also simplified in the course of 2009;
- T erminal 2B was given a new check-in area, with 16 additional desks and the baggage circuit was relocated in line
with the check-in process;
- W
ith the commissioning of the CDGVal and LISA lines, airport users have a very reliable and frequent service (every
four minutes for CDGVal and every two minutes for LISA); these services have proved a tremendous success with
users.
In the area of security, an action plan aimed at turning around performance at the security checkpoints was implemented. During 2008, Aéroports de Paris reinforced its security checks to meet European and national standards. These
new measures have resulted firstly in a marked worsening in waiting time at security and, as a result, in customer
satisfaction. Aéroports de Paris has implemented a number of corrective actions to improve layout (lengthened search
counters before and after the check point, delivering faster flows), strengthened organisation before the security check
points (personnel directing and preparing passengers for security, facilitating passengers for boarding flights to jump
the queue to avoid missing their flights), enhanced training and managerial supervision. The situation improved considerably from Q2 2009.
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Lastly, Aéroports de Paris was a very active participant in preparing for the
implementation of the “PARAFES” system (fast-track system at external
Schengen borders), with the first 15 automated gates operational in the
last quarter of 2009, alongside three registration halls for relevant
passengers. Its deployment is being carried out quickly and will affect all
relevant Aéroports de Paris terminals by 2011.
Improved passenger information:
Passenger information and service were key customer satisfaction challenges
included in the first Economic Regulation Agreement.
Information for passengers starts from the moment they prepare their trip,
outside the geographical area of the airport. The Internet and mobile telephone applications are increasingly used as media for providing this information. Accordingly, Aéroports de Paris has committed considerable investment to enhancing these sources of information in the past few years:
- 2 007 saw parking charge simulators installed; visitors can now quickly and easily find out the parking charges by
entering the arrival and departure times;
- 2008 saw the installation of a system to facilitate the declaration of lost items and monitoring of files by the Lost and
Found office; the provision of practical information for visitors on some 100 destinations with advice for preparing
their trips; links on the site with information on new provisions and new services for persons with reduced mobility
(PRM); new, practical simulation system to map out routes between terminals; new on-line currency reservation
service;
- The web site underwent a major upgrade in 2009 and now features a more intuitive structure facilitating access to
information (in particular, the site highlights the most popular information, such as times and access, up-to-the-minute flash alert system providing almost immediate information on any events to be notified on the site).
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Site users have welcomed these
developments, as witnessed by
the continuous increase in users
and their satisfaction. Furthermore, the “My Airport” application is now available (since
2009) on mobile phones. With
this application, users can access
a growing number of web-based
services, such as flight times,
boarding halls and gates, baggage belts, etc. An additional
feature allows passengers to
access all the services offered by
the Aéroports de Paris helpline
(”3950”, interactive voice service set up in 2006 with information on flight times, airlines, car parks and access) by videophone and
to download films showing the terminal routes.
Aéroports de Paris also set out to improve the service provided to the public by information personnel in its airports.
Hand-in-hand with the development of automated services, customers are increasingly aware of the personal dimension of information services. To meet these challenges, Aéroports de Paris deployed the resources required to enhance
and consolidate passenger service positions, in particular, the key position of a reception officer.
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From 2006 to 2008, an initiative involving the large-scale involvement of both personnel and their management, expanded and supplemented the role of the commercial representative to incorporate changing passenger expectations:
the desire to be able to get help anywhere in the terminal, and not just by going to an Information Desk, facilities
for the persons with reduced mobility as part of the transfer of responsibility from airlines to airports in July 2008. To
back up this development, Aéroports de Paris has considerably strengthened its teams, implemented a plan to improve
professional standards and provided new working tools:
- R eception officers are no longer just “information officers” seated behind a counter, but are now responsible for
the following missions: services to the PRMs, ensuring a presence in the terminals to handle passengers’ queries,
facilitating flows and the organisation of queues and detecting problems that may have an impact on service quality;
they act as the “eyes of the customer” in their assigned area;
- A
t the same time, reception officers numbers were increased from 280 full time equivalents at 1st February 2007 to
360 at 1st July 2009;
- A
n improvement of professional standards plan was set up, with a cycle of continuous training for all reception staff
to maintain and develop their skills ; in this respect, all officers were offered a training day focusing on the disabled
and persons of reduced mobility (PRM), as well as a two-day specialist course in airport English; all reception officers
will be offered a three-day training course in customer relations starting in 2010;
- N
ew tools have been rolled out in line with these new missions: reception staff now have Tablet PCs to view all the
information available from any point in the terminal (flights, services available, etc.); in addition, almost all Information points have been refurbished to provide an optimum response to passenger needs: visibility, facilities for the
PRM.
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Furthermore, “Tourist Information Areas” have been created in all terminals, in partnership with the Ile-de-France Region.
Significant attention has also been paid to renewing passenger information equipment and materials throughout all
terminals:
- the old cathode ray tube displays are gradually being replaced by TFT flat-screen monitors;
- work was also completed on passenger address systems, referred to be customers as a discomfort factors in the
oldest terminals; therefore the technical systems at Paris-Orly were reviewed to broadcast messages in more targeted
and smaller areas; airline personnel received awareness training (short training course) in best practices for the use
of the existing systems;
- the format of the Aéroports de Paris Magazine, available free to passengers, was revised in its entirety in October
2009; available in the departure lounges and read by 30% of customers, the magazine scored higher than 90% in
customer satisfaction surveys;
- the Aéroports de Paris televised news channel is shown on more than 300 screens in almost all terminals and now
broadcasts the LCI News channel;
- improvements to passenger guides:
• schedules continue to be provided to meet high demand from some passengers and professionals; the
format of the 2009 edition has been revised;
• service guides for passengers were fully revamped in 2007 and now feature a two-part structure with
information for departing and arriving passengers.
For departing passengers
For arriving passengers
“Taking off”
“Welcome to Paris”
7 guides:
A guide for Paris-Orly and
for Paris-Charles de Gaulle:
Orly-South, Orly-West, CDG 1, CDG 2ABCD, CDG 2E,
CDG2F, CDG 3
Orly-Sud, Orly-Ouest, CDG 1, CDG 2ABCD,
CDG 2E, CDG2F, CDG 3
• location with a large map of the departure
areas in the terminal
• directions for leaving the airport
• services, car parks and boutiques highlights
(close-up on the retail area)
• tourist information organised around a large map of Paris
• Presentation of all commercial offerings in all terminals
• essential general information needed once
you arrive in the terminal
In 11 languages: French, English, Arabic, Spanish, Portuguese,
Italian, German, Russian, Chinese, Japanese and Korean
In two languages: French and English
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All of the services mentioned above have underpinned the sustained improvement in customer satisfaction with the
information provided to them:
Improved availability of baggage trolleys:
2005 saw Aéroports de Paris undertake a massive operation to renew the entire population of baggage trolleys (some
12,000 trolleys), resulting in a very high and sustained level of customer satisfaction with the service:
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Since this extensive operation, actions have mainly focused on:
- T he creation of new baggage trolley areas (in bus stations, close to CDGVal and RER urban rail arrivals, inside the
terminal buildings, etc.);
- Trolley point signage visible from a distance.
New services have also been set up in response to needs expressed by customers. At the beginning of 2007, Aéroports
de Paris examined the possibility of providing mini-trolleys for passengers in large boarding areas. This service was offered from the opening of the Galerie Parisienne (S3) and then extended to the new pier in terminal 2E and to Orly-South.
More efficient cleaning and improved perceived cleanliness:
Passenger perception of cleanliness has improved considerably since 2006.
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This improvement is in part linked to the renovation work in older terminals (gradual refurbishment of terminal 1, works
in terminals 2A and 2B), the opening of new facilities (Galerie Parisienne, terminal 2E pier and terminal 2G in 2008)
and the ensuing favourable impact in terms of the general atmosphere. The local renovation and decoration of toilet
blocks (creation of a Parisian ambience) and the widespread provision of waste bins are further contributing factors.
More efficient cleaning by Aéroports de Paris subcontractors, targeted first of all in certain terminal areas, also played
a part. Aéroports de Paris gradually raised the bar for service providers as regards their requirements and implemented
more stringent quality controls. In 2008, Aéroports de Paris launched its “Cleaning Project” which includes a two-prong
approach to the management of cleaning subcontractors, incorporating both quality and corporate social responsibility.
Development of passenger services:
Throughout the period covered by the first Economic Regulation Agreement,
and in line with its ambition to continuously improve customer satisfaction
and services offered, Aéroports de Paris created new services for passengers
at airports and on the Internet: business centres, Wifi, laptop and mobile
phone recharge points,
baby-feeding areas, play
areas, leisure areas, very
extensive renewal of passenger seating in terminals,
Premium Parking, holiday
parking, Aéroports de Paris
Internet services, etc.
All services related to
passenger facilities and
information, new services
designed to enhance the
comfort and, in general, the
experience of passengers
have been developed:
- dedicated play areas in boarding lounges: children’s play areas
developed in partnership with the television channel, Gulli, free
Sony-Playstation 3 play points for older children;
- development and fitting-out of child-care areas;
- s elf-service loan of buggies free of charge in
terminal 2E boarding lounges, with roll-out of this
service planned for the other terminals in 2010
and 2011;
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- n ew work stations, with PCs and Internet access, in all terminals since
2007;
- a t arrivals, service areas are undergoing trials in baggage delivery halls.
The company has also developed new
services, accessible on the Aéroports
de Paris website:
- t he ”Parking Premium” service: users
can reserve parking spaces near the
terminals on line;
- long-term parking (up to 30 days)
can also be reserved on line using
the “Holiday Parking” service available in some car parks at both airports;
- b usiness customers can reserve airport lounges at both airports on line (Salons Icare); since 2008, passengers not
invited to use the airport lounge by their airlines can thus
use one of the two lounges managed by Aéroports de
Paris (terminal 1 at Paris-Charles de Gaulle and the South
terminal at Paris-Orly) and enjoy executive-level services;
- fl ight information on the go: text messages sent to the
mobile phones of customers who subscribe to the service.
At end-2009, Aéroports de Paris put the total number of
customers purchasing one or more services at 60,000.
In the telecommunications area, Internet access points and
a Wifi network were installed providing the public with wireless Internet access. Aéroports de Paris constantly monitors the quality of these services to ensure availability for
customers.
3.5.2 2006-2010 ERA service quality indicators
The main priority of the 2006-2010 ERA has been the opening of new facilities to respond to the increase in traffic at
Paris-Charles de Gaulle airport, while improving the quality
of the offering, particularly by increasing the contact rates.
The ERA quality indicator definition runs consistently with
this policy for the installation of new infrastructures and
has also met the desire to implement an initiative for the
improvement of aspects deemed unsatisfactory by passengers, whilst focussing on the reliability of the facilities made
available to both companies and to the public.
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Ten indicators with a financial impact (bonus/penalty system applied to the price cap of the so-called ”principal”
airport charges) have been retained in the 2006-2010 ERA:
- Five equipment availability indicators each associated with a maximum financial incentive up to +/-0.05% per year:
•
•
•
•
•
DPS: availability of aircraft stands,
DPT: availability of telescopic jetties,
DEE: availability of electromechanical equipment,
DTB: availability of baggage delivery conveyors,
DSI: availability of information systems,
- Three passenger satisfaction indicators also associated with a maximum impact of +/-0.05% per year:
• SPR: satisfaction with regard to airport terminal cleanliness,
• SIV: satisfaction with regard to orientation and flight information,
• SCB: satisfaction with the availability of baggage trolleys;
- O
ne compliance indicator, DRR, relating to the customer complaint response time, with a maximum financial impact
of +/-0.05% per year;
- O
ne indicator, known as RPC (new contact stand provision), measuring the respect given by Aéroports de Paris on the
scheduling for the main investment operations associated with the availability of new aircraft stands in contact with
the terminals; given the special role played by these operations within the 2006-2010 ERA, the maximum financial
implication of this indicator was set at +/-0.5% per year.
Other important quality aspects relating to passenger services were the subject of monitoring indicators with no financial implications, where either the main areas for action do not relate to Aéroports de Paris, or the relevant services do
not fall within the field of activities funded by airport charges. However, this monitoring does constitute a resource for
the mobilisation of the airport community, beyond Aéroports de Paris, based around the desire to generally improve
passenger satisfaction.
Three indicators with no financial implications were therefore retained in the 2006-2010 ERA:
- PIF: passenger security checkpoint wait time (aspect funded by the airport tax);
- TLB: baggage reclaim time (service relating to airlines and their ground handling service providers);
- CTF: border control checkpoint wait time (public service tasks carried out by government authorities).
Results from the equipment availability indicators:
In application of the ERA, these were measured over a yearly period, beginning on 1st July and ending on 30 June the
following year.
The DPS indicator has had a target since 1st July 2007, while the other availability indicators (DPT, DTB, DEE and
DSI) have been associated with targets since 1st July 2006. These targets were readjusted on 1st July 2008 to include
non-availabilities regarding preventive maintenance for equipment.
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Except for the DTB in 2008/2009, all targets were exceeded thanks to the efforts of Aéroports de Paris staff.
With regard to DPS, meteorological conditions may have a significant impact on the availability of aircraft stands, and
the tougher annual targets has required constant efforts on the part of staff.
Owing to the nature of the technical equipment concerned and the relatively restricted amount of equipment, the DPT
indicator shows relatively large monthly and quarterly fluctuations.
With regard to DEE, staff numbers have been increased in order to meet the target, preventive analyses have been
employed to avoid problems, and training for both sub-contractors and Aéroports de Paris agents has enabled greater
responsiveness and efficiency.
As regards DTB, the target was met in the first and second years. The company failed to reach its target in the third
year, however, mainly due to a breakage in the roller drive chain, followed by an incipient fire on 10 October 2008 on
baggage conveyor line 43 in terminal E. This caused a breakdown which led to an order for new parts. It was up and
running again on 31 January 2009.
Finally, with regard to DSI, inspections were set up in order to identify any broken or distorted/damaged displays. As
well as this, cathode ray tube displays are being gradually replaced by less fragile TFT monitors, and the network is
now more reliable.
Results from the passenger satisfaction indicators:
In application of the ERA, these were also measured over yearly periods, beginning on 1st July and ending on 30 June
the following year.
The very significant improvement in the SPR indicator is testament to the priority given to airport terminal cleanliness
within the company’s objectives, although more remains to be done on this point (see §3.5.1).
The SIV indicator is made up of a summary of answers to three questions asked in the framework of the passenger
observatory:
- What do you think of the ease of finding your way around the airport today?
- Have you found it easy to find airport and flight information?
- What is your overall impression of the flight information given on screens and displays?
The special effort made with regard to signage (see §3.5.1) was rewarded by the results from passenger satisfaction
surveys, whereas the initial level for this indicator was well below the target set by the ERA.
Finally, with regard to the SCB indicator, the replacement of all the luggage trolleys has been beneficial since the very
beginning of the ERA. The slight dip in this indicator can be partially explained by a few problems encountered with
service providers responsible for the maintenance of luggage trolleys. This led to an action plan to combat this trend
and improve luggage trolley point signage.
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Results for the DRR indicator:
In terms of the response times to customer correspondence, setting a target enabled the company to clarify the internal
complaints processing procedure and make it more reliable.
Targets were therefore achieved and even exceeded, thanks to streamlining procedures and to training provided to
each customer representative.
Result for the RPC indicator:
The aim of the RPC indicator chosen by the 2006-2010 ERA has been to measure the respect for commitments made
across the schedule for the availability of new contact stands served by a jetty at Paris-Charles de Gaulle airport.
This indicator measures the number of stands in service per quarter every year (calendar year), based on the following
breakdown:
-
availability on the east side of satellite S3: 8 stands;
availability on the west side of satellite S3: 11 stands;
return to availability on the south side of the terminal 2E boarding lounge: 10 stands;
return to availability of terminal 1 satellites upon completion of the renovation work on the central building of this
terminal: 4 stands;
- return to availability on the north docks of the terminal 2E boarding lounge: 6 stands.
The following table compares the ERA targets with the actual schedule:
Target
Performed
East side of S3
Q2-2007
Q2-2007
West side of S3
Q2-2007
Q4-2007
half Q1-2008
half Q2-2008
Q1-2008
End of CDG1 renovations
Q4-2008
Q1-2009
North docks of the 2E boarding
lounge
Q1-2009
Q1-2009 for NE dock (4 stands)
NW dock not entered into service
South side of the 2E boarding
lounge
The target was achieved on the east side of satellite S3 in 2007. However, the west side could not be opened until the
fourth quarter of 2007.
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In 2008, the target set by the ERA for this indicator was as follows:
- r eturn to availability of the south side of the terminal 2E pier (counted in the assessment of the indicator for 10
contact stands) for half of the first quarter of 2008 and for half of the second quarter of 2008: this target was exceeded insofar as all the aircraft stands for this pier were able to be put into service on 30 March 2008;
- r eturn to availability of all terminal 1 satellites in the fourth quarter of 2008 upon completion of the central building
of this terminal (completion of the renovations of the main building counted in the assessment of this indicator for
4 contact points). This indicator was not affected by the unavailability of aircraft contact stands arising from the
beginning of the renovation of the terminal 1 satellites: although all the satellites were able to be reopened on 16
December 2008, Aéroports de Paris decided that, in application of the ERA, the date to be taken into consideration
was that of the completion of the main building at terminal 1 - 30 March 2009. This deferral of one quarter in relation to the target therefore affected the RPC indicator in 2008.
With regard to 2009, the target set by the ERA was determined using the following considerations:
- r eturn to availability of the north docks on the terminal 2E boarding lounge in the first quarter of 2009. These docks
include 6 contact stands. Only the north-east dock, comprising 4 contact stands, was available for use on 19 March
2009. The north-west dock, however, where the TBF baggage handling is located, is no longer planned for entry into
service.
The following table shows the impact of this time offset on the RPC indicator:
Results for the monitoring indicators:
The three monitoring indicators had no targets given in the ERA. In order to enable monitoring to bring in ongoing
improvements however, an internal target was set for the PIF and TLB indicators.
Regarding the PIF indicator, the internal target of 80% of passengers waiting for less than ten minutes appears in the
Services Guidelines of the Union of French Airports. This target was met in 2007, 2008 and the 1st quarter of 2009. In
spite of a large drop in results arising from strengthened security checks-particularly from summer 2008 onwards - the
target was able to be met. However, this drop was felt very heavily by passengers, revealed by a fall in customer satisfaction. Operating methods have since been reworked alongside service providers. Areas have been refitted in order
to rectify the situation (see §3.5.1). An improvement in waiting times and passenger satisfaction has been witnessed
since the summer of 2009.
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The TLB indicator mainly relies on the efficiency of ground handling service providers, which are subcontractors of the
airline companies. A target of 95% of flights checked where the first piece of luggage is delivered in under 20 minutes
was difficult to achieve, owing to the structure of some terminals (long distance from a number of aircraft stands).
Performance in this respect fell in 2008. Since this time, the target has been set at 90% of flights checked where the
first piece of luggage is delivered in under 25 minutes20. As this is an important aspect for customers, performance
has been closely monitored in association with the airlines. This indicator is subject to ongoing monitoring with partners (support service providers and companies) as part of the Local Quality Committees, which meet twice a year, or
in bilateral meetings with the biggest companies. Please note that Aéroports de Paris has also acted, with initiatives
aimed at improving waiting times: introduction of baggage delivery waiting time displays, with the times quoted by
service providers; refitting of baggage collection areas (seats, information terminals about public transport and traffic
conditions in Paris; multiservice areas). Overall, the initiatives undertaken by the companies and by Aéroports de Paris
have brought significant improvements to passenger satisfaction with regard to this service.
The CTF indicator is only measured at arrivals. This indicator has been brought to a reliable level and the results obtained are regularly sent on to the DPAF in order to optimise resources in relation to the limitations presented within
each terminal.
3.6 Changes in airport charge pricing
Alongside a very ambitious investment programme and with regard to the relatively low ROCE of the regulated scope
in 2005, the 2006-2010 ERA has planned significant changes in the airport charges, 3.25% above inflation, with
the aim of achieving profitability consistent with the WACC by the end of the contract at the latest.
Under the terms of the ERA, the increase between one fee pricing period and another is capped by this ”base rate of
increase”, which applies on the one hand to all so-called principal fees21 and on the other to some ancillary fees22.
Within each of these categories, the ERA has not set rules as to the different changes in each of their constituent fees,
except for the obligation to remove the discount for cargo-only flights on the landing fee before the end of the contract.
Furthermore, as regards the principal fees, the abovementioned price cap is liable to be adjusted with regard to (i)
traffic, (ii) service quality and (iii) investment.
Therefore, the traffic adjustment factor (TRAF) is intended to take into account the discrepancies noted in relation
to the reference scenario assessed at the conclusion of the ERA (i.e.: an annual increase of +3.75% in passenger traffic
and 2.31% in traffic in movements): beyond a pre-set exemption zone (corresponding to an annual growth of between
+3.5% and +4.0% of passenger traffic), 70% of the surplus (respectively the deficit) revenue from the principal fees
was compensated by a lower price cap (respectively a higher one) for the following annual period. The TRAF factor
therefore reached -0.54% for the 2007 pricing period, -0.85% for the 2008 pricing period, was nil for the 2009 pricing
period and, due to the reduction in traffic experienced in 2009, reaches +5.13% for the 2010 pricing period.
As regards the quality of service factor (QDS), which was liable to constitute a bonus or a penalty, the results came
in from the measurement of the ten indicators with financial implications (see §3.5.2): nine of them could have led
to a bonus/penalty of +/-0.05% at maximum; these bonuses/penalties fed a clearing account: the accumulated extra
bonuses/penalties in relation to the thresholds of +/-0.35% gave rise to an effect on the price cap for the following
year. The 10th indicator, which measured the respect of the delivery schedule for new aircraft stands, was associated to
a maximum bonus/penalty ten times higher (+/-0.5%) due to the priority given to the improvement of the contact rate
during the 2006-2010 ERA, directly affecting the price cap for the following year.
20
Period measured between aircraft arrival at the parking stand and the delivery of the first piece of luggage
21
T he principal fees include the landing fee, the fee per passenger and, until 1st April 2009, the fee for using the fixed aviation fuel distribution facilities. After this date, this latter is included in the
parking fee.
22
T he ancillary fees, whose growth is limited by the ERA, are fees for the provision of check-in and boarding gate desks, for the baggage handling in centralized facilities, for the use of de-icing
facilities and services at Paris-Charles de Gaulle terminals, for the provision of electricity facilities for terminals and, until 1st April 2009, lighting. After this date, this latter fee will be removed and
the service is included in the landing fee.
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Overall, the quality of service factor (QDS) was therefore -0.29% for the 2008 pricing period, +0.37% for the 2009
pricing period and +0.08% for the 2010 pricing period. The breakdown of this incentivising factor among the various
applicable indicators is given in Appendix 3.
The investment factor (INV) relates to investments other than those for capacity, renovations and diversification
property development. In the event of expenditure under 95% of the relevant volume of investment, as provided for
between 2006 and 2008, this factor should have led to a reduction in the price cap for 2010 equivalent to 70% of the
annual costs saved. With regard to the capital expenditures, this factor has not come into play (see §3.4.3).
The following diagram shows the pricing mechanisms in play during the 2006-2010 ERA, which have led to the distinction of three pricing levels each year for the principal fees:
- the ”reference” tariff grid, to which the ”base variation” is applied;
- the ”adjusted” tariff grid derived each year by application of the aforementioned adjustment factors, which
constitutes the de facto annual price cap;
- the ”effective” tariff grid, corresponding to that decided by Aéroports de Paris with regard to this cap.
The discrepancy between the effective tariff grid ”n-1” and the adjusted tariff grid ”n” therefore constituted the price
cap in percentage for the principal fees for the year ”n” (i.e.: as of 1st April in year ”n”).
In fact, Aéroports de Paris has voluntarily invested below the authorised price cap every year. Specifically, in 2010,
Aéroports de Paris has chosen to freeze the average fee level as part of its policy for strengthening its competitiveness,
constituting one of the pillars of the balanced proposals made by the company for the 2011-2015 ERA.
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The main and ancillary fees have changed as follows23 since the beginning of the 2006-2010 ERA (excluding effect of
changes to the scope of the fees and/or services):
Therefore the yearly change in the principal airport charge fees will have been in average around 2.15% + CPI.
Furthermore, with regard to these average changes, Aéroports de Paris has been led to modify the pricing structure,
particularly in relation to:
- the gradual reduction in the weighting of fees levied on the aircraft (landing, parking stand, fuel and lighting) in comparison with the fees per passenger, in order to reflect the impact of heavy investment made in terms of passenger
terminals in recent times; this movement also enables the company to fall more into line with the pricing structure
of comparable European airports;
- seeking improved competitiveness for medium and heavy carriers, having the effect of a significant reduction in the
landing fees for these modules;
- incorporation of the fuel fee into the parking charge and lighting fee into the landing charge in order to simplify the
pricing and bring it more into line with international practices;
- with the aim of better reflecting the use of airport resources, on the one hand the gradual harmonisation of the fee
per passenger for domestic and Schengen area destinations – achieved in 2009 – and one the other hand the reduction of the gap between fees per passenger for destinations in the Schengen area and for non-Schengen destinations
within the European Union, achieving a price difference limited to 10%;
- gradual shift to a -40% discount in fees per connecting passenger compared to fees per “origin/destination” passenger with regard to the services performed for each of these two traffic categories.
Furthermore, falling under the ”Grenelle” commitments of 28 January 2008, set in place by the Interministerial order
of 26 February 2009, new environmental noise modulation rules relating to aircraft noise have been introduced on
the landing fee as of 1st April 2009 at Paris-Orly and Paris-Charles de Gaulle. To provide a greater incentive, these new
modulations are based on the acoustic rating of aircrafts already included in the air noise tax and have led to a distinction between two periods (6am-10pm and 10pm-6am), with a fee modulation of +50% during the night-time. Such
acoustic modulations in the landing fee will also be applicable as of 1st April 2010 at the Paris-Le Bourget platform,
subject to their approval by the State.
Regarding ancillary fees, the rates for the centralised baggage sorting infrastructure fees at Paris-Charles de Gaulle
have been successively lowered (to 2nd April 2007 for connecting baggage at terminal 1, to 1st November 2009
for local baggage at the same terminal, and to 1st October 2008 at terminal 2) to reflect the transfer of responsibility
for baggage handling to the airlines. A dual pricing system with a fixed fee and a variable fee was introduced on the
de-icing service at Paris-Charles de Gaulle (as of winter 2007-2008) and then on the check-in desks (at 1st April 2008).
23
2010 pricing subject to State approval
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Finally, two new services were funded by ancillary fees outside the price cap set by the ERA, during the period covered:
- a fee for badges (staff passes) was set up on 1st January 2008 at the Paris-Charles de Gaulle, Paris-Orly and Paris-Le
Bourget platforms; the introduction of this fee came as a result of the administrative decision not to pay this service
by the airport tax after this date; in application of the ERA, the price for this new fee was set with regard to the full
costs of the activity;
- a fee for the assistance of persons with reduced mobility (PRM) was introduced on 22 July 2008, with two separate
prices for Paris-Charles de Gaulle and Paris-Orly, in line with (CE) regulation no. 1107/2006 from the European
Parliament and Council of 5 July 2006 concerning the rights of disabled and persons with reduced mobility when
travelling by air, due to the transfer of responsibility for this service from the airlines to Aéroports de Paris; in application of the ERA, the prices for these fees were determined in accordance with the marginal costs of the activity
for Aéroports de Paris.
The details of the applicable rate tables since 2006 are given in Appendix 4.
3.7 Growth in economic performance
The initial aim of the ERA was to reach a ROCE for the regulated scope in line with the WACC by the end of the 20062010 period at the latest. Running consistent with the criteria for economic regulation, this objective has led the ERA
to bring forward the performance of significant efforts from Aéroports de Paris in terms of productivity and cost control,
and to plan for a sustained revenue dynamic, brought through corporate projects in terms of shops and property development as well as through fee price changes (see § 3.6).
Although it comprehensively met its commitments on costs and non-aviation business, Aéroports de Paris will have
passed pricing changes well below the rates enabled by the 2006-2010 ERA (see § 3.6), to take into account the problematic economic situation affecting air transport and to run consistent with the balanced proposal for the following
ERA.
3.7.1 Changes in the asset base and profitability
One of the challenges for the 2006-2010 ERA in increasing the capacity of facilities at Paris-Charles de Gaulle by
almost 25 million passengers resulted in a rise in capital employed per passenger by 17%.
The regulated asset base therefore changed a great deal owing to a high investment cycle, with a very high expenditure
level in 2006 et 2007 mainly allocated to satellite S3, the east baggage-sorting system, terminal 2G, the reconstruction
of terminal 2E boarding lounge and the continued restructuring of terminal 1. Change also came about due to the
continuation of the construction of satellite S4 in 2010, expected to open in the third quarter of 2012.
In spite of this rise in the capital employed, the economic situation affecting air transport since 2008 and the price
freeze of 2010, Aéroports de Paris succeeded in considerably growing the margins released by the regulated scope, in
particular thanks to the company’s efforts towards costs, productivity and the strong growth in non-aviation revenue.
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Regulated asset base and operating profit for regulated scope (2005-2010)
The rapid growth in profitability up to 2007 was however impacted from 2008 onwards, with the ROCE forecasting
a level of 5.8% in 2010 and 6.2% on average over the 2006-2010 period, amounting to a level appreciably
lower than the WACC.
Changes to the regulated scope ROCE (2005-2010)
3.7.2 Trends in operational costs for the regulated scope
Between 2006 and 2010, Aéroports de Paris’s efforts to control operational costs and improve productivity will be
reflected by an average annual increase in regulatory scope costs per passenger of 2.9% in current euros, excluding
depreciation, amortisation and tax, leading to a stabilisation in operating costs per passenger in constant
euros, in spite of the impact of the opening of new terminal capacity and new activities such as assistance for the
persons with reduced mobility.
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Operating expenses trends in the regulated scope (2005-2010) – current euros
Trend in operating costs per passenger in constant 2010 euros
on the regulated scope (2005-2010)
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Productivity
Across the whole of the Aéroports de Paris SA scope, the average workforce will have reduced by over 10% over the
duration of the economic regulation contract. Excluding the ground handling activity, the 2010 workforce will be the
same as that of 2005, reflecting the greater efforts made by the company over a period of an unprecedented rise in
airport capacity, of the commencement of new activities (assistance for the PRM), of improved quality of service and
increased airport security teams.
On the regulated scope alone, levels of staff contributing directly or indirectly to the constituent activities will have
reduced by 0.4% per year on average over the period, with increased resources allocated to passenger reception
being compensated by significant gains in productivity made elsewhere.
Direct and indirect workforce trends in the regulated scope (2005-2010)
Operating costs
Since 2005 and the change in its status, Aéroports de Paris has made significant efforts to improve its operational
efficiency and to control operating costs, made all the more necessary since the economic downturn in the second half
of 2008. With regard to the regulated scope, these efforts have contributed to improving the margins released in spite
of the quick entry into service of new terminal capacity, enabling the company to offer its customers a moderate pricing
policy over the coming years. Aside from the strong growth in productivity, these efforts were directed in particular
towards energy consumption, purchasing from external services and subcontracting management.
The following changes are particularly evident:
- In spite of the high opening rate of new facilities (satellite S3, terminal 2G, boarding lounge in terminal 2E), the
introduction of new services (special assistance for PRM), and dynamic subcontracting contract revaluation indexes
of almost 3% on average per year, the company has been able to control its subcontracting expenditure, mainly
through targeted economic plans – in particular for cleaning and transport, the introduction of the LISA and CDGVal
automatic metro shuttles enabling a reduction in public transport costs and optimised shuttle circuits;
- In 2007, Aéroports de Paris launched action plans to secure, diversify and reduce the costs of its supplies and its
means of energy production; in association with efforts undertaken to reduce energy consumption either through
operational measures or through targeted investment, these efforts contribute to the company’s commitments to
sustainable development;
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- A
éroports de Paris has also been able to control its expenditure for external services through the systematic repurchase of all current leasing contracts, controlling its damage and building insurance costs and its external communications costs.
3.7.3 Trends in revenue of the regulated scope
The average growth in aviation revenue of 5.9% a year over the 2006-2010 ERA will have been driven by a
combination of an average annual passenger traffic growth of 1.25%, average price increases of 3.7% per year (including inflation), and structural effects such as opening new capacity and trends in the traffic mix.
The growth in non-aviation revenue averaging around 4.5% a year is driven by growth in revenue from
airport and non-airport rental activities, and the performance of commercial areas.
The regulated scope sells various services to other Aéroports de Paris SA businesses (internal transfers), such as the
provision of administrative and maintenance services to the airport safety and security, or airport premises rental. The
stability of this internal revenue generated comes in particular as a consequence of the transfer of the parent company’s ground handling activities to its subsidiary.
Revenue trends in the regulated scope (2005-2010) – current euros
Aviation revenue
In spite of the objective of bringing up aviation fees to a level ensuring a fair payment of the capital employed,
Aéroports de Paris has taken into account the air transport industry crisis since 2009 in its fee proposals. The growth in
aviation revenue will therefore be around 5.9% per year on average over the period 2006-2010.
This growth includes a dynamic pricing trend over the first part of the regulation contract, followed by a pricing
moderation, with a freeze on the average fee level in 2010.
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In terms of trends in sales, the growth in revenue generated by the principal fees was driven by a combination of the
following factors:
-
1.25% average annual growth in passenger traffic;
a price increase for main fees representing 2.15% per year on average (in constant euros);
improvement in passenger traffic structure and average weight on landing;
in terms of structure offering, the commissioning of the new contact stands linked to the new S3 satellite and the
re-opening of the terminal 2E boarding lounge;
- conversely, the improvement over time in aircraft noise performance, which have had an adverse impact on trends
in landing fee revenue.
The growth in ancillary fee revenue, covering ancillary charges set by Aéroports de Paris and contractual fees agreed
with some customers (e.g. baggage sorting system for SkyTeam), will have enjoyed an average 12.6% increase per
year. Beyond the effects of activities and pricing changes, this trend above all benefits from the connecting flight luggage sorting service, the introduction of a fee related to badges for restricted areas access as of 1st January 2008, and
the introduction of a special assistance service for PRM on 22 July 2008. Aircraft services (400 Hz) were also developed
alongside the entry into service of new terminal facilities.
Trends in aviation revenue (€m in current euros) for the regulated scope
Non-aviation revenues
Non-aviation revenues for the regulated scope include:
- R etail and service activities such as shops, bars and restaurants, in-terminal hotels, bank and foreign exchange
services, advertising and car rentals, as well as a number of other miscellaneous services (airport business centres,
Aéroports de Paris’s lounges, etc),
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- rental income (made up of in-terminal activities, airport-related real estate and diversification real estate),
- public car parks and subscription car parks,
- industrial services provided for real estate customers and terminal tenants,
- miscellaneous services, including those provided on a contractual basis for the air navigation services department,
development and equipment works for tenants, and certain specific services.
Aéroports de Paris’s efforts concerning these non-aviation activities will have resulted in a strong average revenue
growth of 4.5% a year over the period 2006-2010:
Non-aviation revenues for regulated scope (€m, current euros)
This robust growth mainly comes to bear on the results of rental activities, whose revenue will have increased on
average 9.2% per year, thanks to property that benefited from a strong price index from 2007 to 2009 and the opening
of almost 285,000m² over the course of five years (see § 3.4.2). In other respects, the invoicing of some industrial
services was reclassified in the accounts as re-invoicing for rental charges in 2009.
The improved performance of commercial activities and services can be seen in an average growth in revenue of 4.9%
per year, and stands testimony to the determined policy of Aéroports de Paris to improve its offering and the development of trade areas: areas for shops and catering will have increased by 34% over the period, including a growth of
70% of shop floor space in the restricted terminal areas, thanks in particular to the opening of new terminal facilities
(satellite S3, terminal 2G, reopening of terminal 2E boarding lounge), to meet the highest standards in terms of commercial density and variety.
Other non-aviation revenue (parking, industrial services and other income), increasing by an average of 0.1% per year,
in particular reflect the erosion of the car park market share, the loss of operating subsidies from the STIF and the
reallocation of services provided to the air navigation services departments.
4. Traffic forecasts
and capacity growth
Economic Regulation Agreement 2011-2015
4 Traffic forecasts and capacity growth
Traffic forecasts
and capacity growth
4.1 2010-2020 traffic forecasts
In view of the uncertainties relating to medium to long-term periods, as the previous two five-year periods have shown,
the assumptions regarding traffic on which Aéroports de Paris is basing itself are deliberately reasonably conservative,
although this may mean making provision for adjustment factors within the next ERA that could be applied to fees and
investment programmes on the basis of traffic that has actually been observed.
In addition, even if Aéroports de Paris is confident of the medium-term and long-term growth of its business, these
traffic scenarios must nevertheless take into account a certain number of risks:
- Uncertainty over the pace and impact of the current economic recovery,
- The risk of a possible slowdown in household spending, notably due to rising unemployment,
- The risk of structural changes in travel demand, notably in the business segment, which could persist after the economic crisis ends,
- The risk of a probable upturn in oil prices.
Moreover, considering the structural causes of the 2008-2009 economic crisis, which differs from the temporary events
that previously affected air traffic (the Gulf war, 9/11 terrorist attacks, SARS pandemic), there might not be a ”catchup” effect at the end of the economic downturn, as pointed out during discussions with the economic consultative
commission. For these reasons, and after consultations with its users, Aéroports de Paris does not expect growth trends
to be as strong as in the past in a world in which economic financing conditions are likely to become more restrictive.
Other considerations, such as the maturity of the Paris-Charles de Gaulle hub and the LCC market, also argue for slower
growth rates.
Lastly, unlike for airlines, which have a certain degree of flexibility to rapidly adapt their capacity to demand (aircraft
leasing, the possibility of cancelling or delaying orders, suspending operations in certain units), the characteristics of
airport capacity are that they are fixed and not ”liquid”, leading to surplus capacity that can end up being costly for
the sector. This situation also argues in favour of a business plan based on reasonably conservative traffic scenarios,
requiring Aéroports de Paris to be prepared to accelerate the pace of development of its capacity in the case of stronger
growth in activity.
Under these circumstances, Aéroports de Paris, after hearing the recommendation of the members of the economic
consultative commission, is basing its projection on an average annual passenger traffic growth rate of 3.2%
between 2010 and 2015. In addition to this, the need to anticipate the investments required over periods spanning
a decade has prompted Aéroports de Paris to maintain its traffic growth projections up to 2020.
In the table below, passenger traffic growth forecasts are presented for each airport for the period 2010-2015, as well
as traffic growth trends up to 2020 (excluding transit traffic):
Concerning the structure of passenger traffic, the scenario calls for stronger growth in intercontinental traffic and a
regular decrease in the share of domestic traffic, notably due to greater competition from the TGV high speed train.
At the same time, the share of connecting traffic at Paris-Charles de Gaulle is also bound to increase, from 32.4% in
2010 to 33.6% in 2015.
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As to aircraft movements, trends will be shaped by a big increase in the average passenger load capacity:
- A
t Paris-Orly, average load will rise from 117.0 passengers per aircraft movement (excluding cargo) in 2010 to 126.3
passengers in 2015. With takeoff and landing slots currently limited to 250,000 annually, the increase in aircraft size
will be the main factor absorbing passenger traffic growth;
- A
t Paris-Charles de Gaulle, the upturn in long-haul destinations combined with bigger aircraft on each of these routes
categories should boost the average passenger load from 123.4 in 2010 to 131.3 in 2015.
Similarly, the total landing weight will also benefit from the tendency to strengthen the market share of long-haul
destinations.
With regard to cargo traffic, there is an assumption being made, as of 2010, of growth characterised by an elasticity of
1.5 times that of passenger traffic growth, in line with past trends.
Finally, the assumption accepted for growth in movements to Paris-Le Bourget is 4.0% per year on average over the
period of the next ERA.
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4 Traffic forecasts and capacity growth
4.2 Capacity growth
Runway capacity assumptions for Paris-Charles de Gaulle
As the only European airport with two pairs of parallel runways, Paris-Charles de Gaulle has the infrastructure to meet
the demands of medium to long-term traffic growth.
As to air traffic control capacity, peak flight programmeming capacity increased from 105 movements per hour in 2005
to 114 in 2009. Aéroports de Paris assumes that programmeming capacity will increase to 120 movements per
hour by 2015.
This growth in aerial navigation will be accompanied, from the point of view of runway infrastructure and equipment,
by the reconfiguration of the threshold of runway 08 and the installation of the RWSL (Runway Status Lights System)
during the course of the 2011-2015 ERA. Subsequent ERAs are likely to require major taxiway improvements (including
bypassing runway thresholds).
These improvements would help keep pace with forecasted traffic needs without increasing the constraints on the slot
allocation.
Terminal capacity growth at Paris-Charles de Gaulle
The total capacity of the Paris-Charles de Gaulle terminals is currently 71.8 million passengers (cf. § 3.3). However,
Aéroports de Paris does not include within its future projections of terminal capacity the capacity provided by the hall
near the Hotel parking stands (“SH” with an annual capacity of 1.3 million passengers), which could be used to provide
reserve capacity when needed for specific delimited requirements (such as the recent A/H1N1 flu), and so the current
capacity used as a basis for future projections is 70.5 million passengers.
The airport has sufficient capacity to meet its needs to 2015 and beyond. Even so, Aéroports de Paris proposes to
continue building the S4 satellite of terminal 2E, with an additional capacity of 7.8 million passengers. With the
opening of the S4 satellite in 2012, it would be possible to shut down terminal 2D (capacity of 8 million passengers). This would create a major driver for improving the quality of service in the years ahead.
The opening of the S4 satellite would also make it possible to transform terminal 2F from a dual-status terminal
to a mono-status terminal dedicated to Schengen destinations, resulting in a net capacity gain of about
2.3 million passengers.
Completion of the junction between terminals 2A and 2C, also in 2012, would optimise passenger flows,
enhance the range of services offered and result in a capacity gain of about 0.5 million passengers.
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Inversely, renovation work on terminal 2B would temporarily reduce terminal capacity by half between 2012
and the end of construction scheduled for year-end 2015. By then, the reconfigured terminal should offer additional
capacity of about 1.1 million passengers.
Under these conditions, Paris-Charles de Gaulle is estimated to have total terminal capacity of 82.2 million passengers by full-year 2016, with a capacity of 74.2 million open to traffic (terminal 2D closed for
renovation).
After renovation, terminal 2D would be reopened depending on real traffic needs during the period 2016-2020
(in 2019 according to Aéroports de Paris’s scenario). As a result, available terminal capacity would total
82.2 million passengers by 2020.
Thereafter, the overall plan for Paris-Charles de Gaulle airport calls for the construction of a terminal 4 to the north
of the Roissypole area, the capacity of which could eventually attain around 30 million passengers, phased in over
time. Based on Aéroports de Paris’s central traffic forecast, the first phase of the new terminal would open around
2023-2024. The covered hall with a capacity of 9 million passengers would initially be equipped to accommodate
6 million passengers a year.
At this point, Aéroports de Paris’s estimates are deliberately conservative. They do not take into account the capacity
of the ”SH” hotel satellite, nor any capacity gains from the gradual optimisation of passenger flows, the continuous
increase in average aircraft size or advances in check-in and boarding technology. They also exclude any effects from
smoothing peak traffic periods relative to the current situation, which would increase the annual handling capacity for
the same facilities and aircraft size.
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4 Traffic forecasts and capacity growth
Terminal capacity for Paris-Orly
The terminal capacity of the Paris-Orly airport is currently estimated at about 30 million passengers: Orly-West has
a capacity of 18 million passengers and Orly-South, 12 million passengers.
In general, current capacity should cover demand for the next decade. Nevertheless, the division between the
Schengen and non-Schengen status is likely to lead to a shortage of non-Schengen capacity over the next few years.
For this reason, Aéroports de Paris plans to reconfigure halls 3 and 4 at Orly-West as part of the 2011-2015 ERA, not
only to optimise passenger flows but also to provide adaptability of use for these areas with regard to the Schengen /
non-Schengen division.
At this point, the terminal capacity of the Paris-Orly airport is considered to be constant throughout the period. Yet, this
figure could be revised upward in the future to take into account the gradual increase in average aircraft size, improvements in check-in and boarding technology, and the reconfiguration of halls 3 and 4 at Orly-West. Moreover, towards
the end of 2016-2020, there are plans to build additional boarding capacity at Orly-South.
Finally, there is no plan to expand car park capacity during the 2011-2015 ERA at either Paris-Charles de Gaulle or
Paris-Orly.
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5. Customer satisfaction
at the heart of the company’s strategy
Economic Regulation Agreement 2011-2015
5 Customer satisfaction at the heart of the company’s strategy
Customer satisfaction
at the heart of the company’s strategy
5.1 The ambition of Aéroports de Paris
Service quality is a major strategic challenge in terms of competitiveness, attractiveness and corporate
image, both concerning the efficiency of airport operations with respect to airlines and the attractiveness of the platforms for passengers, which is also a determining factor in the development of the service offering.
This is why Aéroports de Paris is intending to make service quality and customer satisfaction the main development
line of the ERA 2011-2015 in accordance with the recommendations issued by its customers.
The main priority of the 2006-2010 ERA has been the opening of new facilities to respond to airline demand, while
improving the quality of the offering, particularly by increasing the contact rates. However, while Aéroports de Paris has
experienced a sharp turnaround in customer satisfaction over the 2006-2010 ERA, its position remains unsatisfactory
when compared internationally.
This is why, for the 2011-2015 ERA, Aéroports de Paris wants to commit to ambitious service quality objectives that
prioritize the renovation of the oldest terminals in order to significantly increase quality and reduce the high
disparity in perception between terminals. Indeed, the very high level of perceived quality in the most recent terminals
demonstrates that quality, modern infrastructure is a major factor for customer satisfaction.
With this ambition to significantly boost performance in the coming years, Aéroports de Paris also decided to structure its organisation by creating a Customer Satisfaction department on 1st December 2008, which is responsible for
spearheading a company-wide project called the “Customer Satisfaction Initiative”.
The aim is rapidly to enhance the satisfaction of Aéroports de Paris customers in the lo ng term: priority will be given
to passengers, airlines, tenants and companies as well as internal customers. It involves a deep transformation in the
corporate culture in order to address customer needs at all levels and to sustain customer satisfaction efforts.
In order to achieve this qualitative development, one of the main aspects of this procedure involves identifying overall
customer requirements by striving to improve the level of services provided by Aéroports de Paris as well as that provided by all the company’s partners: airline companies, commercial business dealers, government services, subcontractors, etc.
5.2 The “customer satisfaction initiative“: a priority strategy aim
In order rapidly to enhance the satisfaction of Aéroports de Paris customers in the long term, the action plan of the
customer satisfaction initiative pursues a twofold aim: It aims not only to enhance the satisfaction of Aéroports de
Paris customers (passengers, airlines and tenants), but also to ensure that the customer-focus culture is firmly rooted in
the company. The customer satisfaction procedure involves a deep transformation in the company in order to develop
and establish the “customer reflex” at all levels. All the employees are therefore concerned by this corporate initiative.
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The main principles pursued are:
- t he standardisation of the service provided by Aéroports de Paris (between terminals and in the long term: aim for a
consistent level of service); to achieve this, a priority action is to eradicate "customer unacceptables"; so, standards
of service have been defined to gradually cover all areas which affect passenger routes;
- b ehaving not only as a service company but also as a "service integrator" company: being able to guarantee customers a level of quality in all the services provided by the airport, the airlines which operate there, subcontractors,
dealers or government services.
The desire of Aéroports de Paris to step up and enhance the improvement of the services provided to its customers, be
they passengers or airlines, has resulted in particular in the creation of a company-wide division called the Customer
Satisfaction department in order to coordinate this development initiative. This department’s mission is to coordinate
the “Customer Satisfaction initiative” project on the basis of a general action plan intended to mobilise and focus
the efforts of the different teams within the company with regard to the main expectations of customers. It is also
responsible for the analysis of different surveys and benchmarks in order to determine the levels of objectives to be
attained and to identify the standards to be reproduced.
It is responsible for circulating the customer-focus culture within the company and encourages its appropriation.
On the basis of these enhanced resources and a high level of ambition, Aéroports de Paris is keen to enhance the
attractiveness of Paris in a competitive context which concerns both correspondence traffic and the choice of the entry
point to Europe for international customers.
5.3 Consultation initiatives and future priorities
In order to respond more successfully to its customers’ expectations, Aéroports de Paris has implemented a number of
methods to evaluate their satisfaction as well as their requirements and expectations. These surveys help to prioritise
the development activities which Aéroports de Paris intends to implement with the ERA 2011-2015.
5.3.1 Consultation initiatives
Consultation with the customers of d’Aéroports de Paris is based essentially on surveys (see § 1.8) such as:
- t he passenger observatory, a satisfaction survey conducted by Aéroports de Paris on Aéroports de Paris passengers
(departure and arrival);
- mystery customer campaigns (10 measurements per month per terminal);
- t he ACI survey which proposes each quarter a classification of international airports which have subscribed according
to different passenger satisfaction criteria;
- the “companies” survey, a satisfaction survey conducted by Aéroports de Paris on the company’s airline customers.
Additional analyses are also conducted in order to identify the importance of each criterion and its contribution to the
overall image in addition to the level of satisfaction attained. This analysis is based on statistical methods (passenger
observatory: by analysing correlations between the satisfaction fluctuations of each criterion compared with the fluctuations of the overall satisfaction) or direct questions posed in the surveys.
In addition, one-off surveys are conducted on a regular basis involving in-depth interviews in order to examine expectations and dissatisfactions in more detail and to identify new potential approaches.
The two consultation bodies represented by the airport steering committee and the economic consultative commission
for Paris-Charles de Gaulle and Paris-Orly airports (see § 1.8) offer forums for communication which have brought the
proposals made by Aéroports de Paris for the ERA 2011-2015 into clearer focus.
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5 Customer satisfaction at the heart of the company’s strategy
5.3.2 The expectations of passengers perceived through the Passenger Observatory
The analysis of survey results is important not only to keep track of quality scores and rankings, but also to conduct
"causality analyses" of customer satisfaction. A causality analysis identifies the factors with the highest weighting in
the overall satisfaction of passengers, which can be used to determine priorities to attain a given perceived quality
improvement target the most effectively.
Using Passenger observatory data on departing passengers, this causality analysis conducted between Q4 2008 and
Q3 2009 helped identify areas that need the most attention to boost passenger satisfaction, based on both current
performance and the priorities expressed by customers:
- I n boarding lounges, the main criteria for passenger satisfaction are comfort, atmosphere and services, although
the quality of infrastructure also makes a big contribution to overall passenger satisfaction: an aspect which is clearly
improving at Aéroports de Paris, it has benefited in particular over the last few years from the effect of the new terminal facilities and the renovation of the boarding lounges; the introduction of services intended for different categories
of customer (diversity of the rest and relaxation areas, games area for families and young people, work areas) also
contributes to the overall positive perception;
- In public-access halls, quality-service factors needing attention include the overall atmosphere, availability and
comfort of seating (although the situation has improved significantly since 2005, it is still deemed unsatisfactory),
orientation, cleanliness, presence of airport staff and acoustic comfort.
- T he passenger security checkpoints, the level of satisfaction with which had decreased significantly since mid2008 (dropping from 86% satisfaction during Q1 2008 to 81% during Q1 2009) in parallel with the increased
security checks; this point was the subject of a priority action plan in 2009, which resulted in a return to an overall
level of satisfaction of 86% during Q3 2009;
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- Passengers also gave priority to the fluidity of passport checkpoints, which has tended to decline since 2009;
- E ase of connections, whose satisfaction level is currently insufficient. This component is a priority item for Aéroports de Paris and is being addressed as part of a project of the customer satisfaction initiative;
- F inally, satisfaction with bars and restaurants, whose very low satisfaction rate is incompatible with the image
that a customer, particularly a foreign customer, should have when passing through Paris. This component is also a
high priority for Aéroports de Paris.
The equivalent analysis, conducted for passengers on arrival during in 2008, has indicated the following priority criteria
(listed by order of priority):
- baggage delivery (information provided, length of wait).
- staff availability;
- passport controls;
- ease of orientation, particularly to access public transport;
- overall atmosphere, cleanliness;
- luggage trolleys.
5.3.3 Assessment of satisfaction and expectations of passengers with regard to the ACI ASQ survey
The improvement of satisfaction noted among passengers over recent years (see § 3.5) has not enabled Aéroports de
Paris to obtain a satisfactory classification in the comparisons with peers conducted in the ACI ASQ survey.
In this survey, Paris-Charles de Gaulle airport is compared mainly with 4 other European airports of an equivalent size
(London-Heathrow, Frankfurt, Madrid and Amsterdam), a panel among which it is still classified in last place in spite
of a significant increase. Paris-Orly airport may be usefully compared with 5 other European airports of a similar size
(Zurich, Munich, London-Gatwick, Copenhagen and Rome); after being ranked last in 2007, Paris-Orly was on a level
with Rome in 2008.
This classification and the trend of the company’s score are not satisfactory for Aéroports de Paris. Therefore, in order
to reach a better understanding of the potential improvements, a number of in-depth analyses have been conducted
on the basis of the ASQ/ACI survey.
Comparisons between the most recent facilities:
A specific extraction requested from the ACI concerning 2008 aimed to compare the various Paris-Charles de Gaulle
terminals with the other European airports. For this purpose, a distinction was made for London Heathrow between the
new terminal T5 and the airport as a whole.
This analysis revealed that the classification of the Paris-Charles de Gaulle terminals is directly linked to their age: as
in the case of the Passenger observatory, terminal 2E is in "pole position" followed by terminal 2F, whilst the older
terminals which have not yet been renovated, such as terminals 2B and 2D, are in the lowest positions. This analysis
highlights the importance of the modernity of the facilities in terms of passenger expectations.
It has also revealed that terminal 2E is in second position, just after the T5 in London with a very similar score and
just ahead of Amsterdam, the best airport in the panel of the largest European airports in terms of service quality. By
examining the analysis by item, it was possible to identify the areas in which even terminal 2E still falls considerably
short of the best performances in Europe: transport between the city and the airport, check-in, passport control, clarity
of directions, particularly for transfers, restaurants.
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Analysis of number of extremely dissatisfied passengers:
A further analysis involved comparing the number of extremely dissatisfied customers for each item with the average
numbers obtained by the other airports in the panel. This analysis highlighted the items for which the number of extremely dissatisfied customers was significantly higher than for other European airports.
If we only take into account the items for which the number of extremely dissatisfied customers was greater than 4%,
the following areas were identified in which the level of extreme dissatisfaction in Paris-Charles de Gaulle was more
than double that of other airports: ease of transfers, restaurants, financial services, boutiques and shops, passport
control, number of toilets, transport between the city and the airport.
Analysis of the weighting of items in terms of overall satisfaction:
In 2008, the ten most important criteria in the eyes of customers were: ease of orientation, check-in (waiting time and
efficiency of staff), security checks (waiting times and precision of checks), transport between the city and the airport,
feeling of safety, cleanliness of the toilets, comfort of the boarding lounges and passport control (waiting times).
5.3.4 Priority action in terms of improving passenger satisfaction
On the basis of all these analyses, priority actions have been identified in order to improve the satisfaction of passenger
customers:
- improving the atmosphere in the airports, particularly in the boarding lounges, improving the comfort and availability of seats, continuing to improve cleanliness;
- improving ease of orientation, particularly for transfer customers at Paris-Charles de Gaulle;
- helping the security and passport controls to run more smoothly;
- improving the quality of the bars and restaurants;
- h elping to improve the link between the city and the airport (signposting in car parks, signposting towards
public transport, movement on esplanades, etc.).
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5.3.5 The expectations of the airline companies
In 2008, Aéroports de Paris organised an initial survey on airline companies in order to identify their expectations.
Although the response rate was relatively disappointing, the results nevertheless provide valuable information.
The airline survey covered the following areas:
- quality of relations with Aéroports de Paris,
- quality of services provided to the airlines,
- quality of services provided to passengers.
The following conclusions can be drawn from the survey:
- t he level of satisfaction with Aéroports de Paris is generally higher at Paris-Orly than at Paris-Charles de Gaulle; The
highest scores were for passenger services while the overall results still showed room for improvement;
- the quality of Aéroports de Paris’s services has improved over the past three years;
- specifically:
• A
ccording to the airlines, the company’s customer relations management could be improved and its organization lacks clarity. Other weaknesses include monitoring requests and keeping users informed on a
daily basis, as well as understanding and taking into account the airlines’ needs;
• T he airlines expressed satisfaction with security, business planning and preparations, and the coordination
of airport operations; however, certain areas still fall short of the companies’ expectations: management
of peak periods and organisation of baggage handling;
• T hey felt there was a good understanding of passengers needs in terms of the airport experience, services
and atmosphere, but expect improvements concerning the comfort of certain terminals, fluidity and airport
orientation.
A series of interviews conducted in the second half of 2009 will help refine this analysis and step-up actions taken to
meet the airlines’ expectations. The constant process of listening to and informing the airlines will be strengthened over
time. All parties will be given greater visibility over planned projects and their expected benefits, with better transmission of forward-looking data to facilitate operations, notably during peak periods.
A number of other expectations were expressed by the airlines in the context of the consultation conducted, in preparation for the ERA 2011-2015, within the economic consultative commission, notably the desire to implement a service
quality monitoring mechanism between Aéroports de Paris and the airlines which are closest to the field and the most
responsive.
In connection with all these elements, it would appear that the main expectations of the airlines with respect to Aéroports de Paris relate to:
- the suitability of capacities for requirements and the management of peak periods,
- t he operational availability of the facilities they use, in order to provide passengers and staff with efficient and
comfortable facilities and fluid passenger routes,
- t he regular joint monitoring of service quality close to the field in order to improve responsiveness and
efficiency.
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5.4 Progress drivers
In order to meet the ambition for substantial, sustainable improvement in the quality of services provided to customers,
Aéroports de Paris intends to deploy three major performance drivers simultaneously:
- the managerial driver;
- the operational driver;
- the investment programme.
In the first place, management constitutes a priority transmission system for the internalisation and diffusion of a customer-oriented culture to all levels of the company. Overall passenger satisfaction has therefore been incorporated and
reinforced within executives’ individual targets and within the new employee profit-sharing agreement. More broadly,
customer satisfaction constitutes a systematic point of examination and analysis within the company’s decision-making
bodies. In addition, the opening of a Services University in 2010 will enable developments expected with regard to the
importance attributed to customer satisfaction to be monitored through targeted training programmes and in-house
consulting missions. Lastly, greater cross-functionality and fluidity will be sought at all levels of the company.
With regard to the operational drivers, projects linked to the orientation of connecting passengers, reducing the
time needed to clear security checkpoints and the work done by cleaning service providers will now be based on
technological developments (Bluetooth, 2D bar codes, image analysis, automatic data entry, etc.), which will enable
performance measurement to be developed and a quality steering system to be put in place gradually. More broadly,
the development of management systems (integrated management systems, ISO certification, etc.) contributes to improved control over processes and a steady improvement in performances.
In addition, within the context of coordinating and integrating services, Aéroports de Paris has identified nine areas
of passenger satisfaction to be jointly managed with the airlines: check-in, attitude of security checkpoint staff,
orientation for connecting passengers, atmosphere of boarding lounges, information during abnormal events, sense of
service among staff, availability and comfort of seating, baggage delivery time and jetty installation time. More generally, Aéroports de Paris’ intention is to develop and structure joint monitoring with the airlines, within each terminal, of
quality of service and the implementation of the corresponding action plans. At the same time, Aéroports de Paris will
continue its joint actions with the border police services to improve the flow at the border checkpoints.
The investments proposed for the 2011-2015 ERA should also make a major contribution to the company’s ambition with regard to quality of service. As shown by the results obtained following the opening of new facilities,
the quality of infrastructure constitutes a powerful driver of passenger satisfaction.
Investment and action plans will be a way to respond to the priorities expressed by the airlines, in particular
through:
- t he restructuring and opening of facilities with optimised features, notably in terms of passenger flow
management, orientation and fluidity: the S4 satellite, the development of a one-stop security policy at Paris-Charles
de Gaulle with, in particular, the construction of a pedestrian gallery between terminals 2E and 2F, the conversion of
terminal 2F into a Schengen-only zone, the prospect of the closure of terminal 2D, the restructuring of terminal 2B,
the opening of the junction between terminals 2A and 2C, the completion of the renovation of the terminal 1 satellites, the optimisation of Schengen passenger flows and baggage handling for departing passengers at Orly-South,
the freeing up of the flow of boarding and arriving operations within the international area of the same terminal,
and the restructuring of halls 3 and 4 at Orly West;
- t he development of services aimed at improving operational efficiency: new check-in and boarding technologies, electronic baggage tracking, electronic monitoring of passenger routes, the further deployment of 400Hz
power supply for aircraft parking in contact, and 50 Hz for parking at remote stands, installation at the S4 satellite of
automatic guidance lights for aircraft and air pre-conditioning modules, and continued experimentation with a view
to the future deployment of self-service baggage check-in desks, etc.
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5.4.1 Projects aimed at monitoring cultural transformation and the company’s managerial processes
The plan for the creation of a “Services University” will be implemented from 2010, following the example of what has
been implemented within other large services companies. It represents a tool that, very far from just being a training
component, allows for the monitoring of the change in methods and view-points at all decision-making levels of the
company, in order to develop the “customer-oriented" vision of managers and other personnel.
At the same time, two key business processes have been laid down in order to integrate the “customer” dimension
much more strongly: it represents on the one hand the steering process through operational plans and performance
reviews of the company’s operational management, which has been revisited through joint work between the Management Control department and Customer Satisfaction department, and on the other the process for the steering
of large-scale infrastructure projects, with several renovation projects being monitored by the Customer Satisfaction
department in order to put in place “customer vision” oriented methods of analysis. Therefore, by way of illustration, it
is planned for several of these renovation projects to be the subject of a debate with passenger groups through "focus
groups" organised closely with the airlines concerned.
In addition, work has been undertaken to redefine a reference system for the company, drawing in particular on the
reference system defined within the framework of the work of the UAF (Union of French Airports), work to which Aéroports de Paris has made its contribution over the course of the last three years. Service certification is anticipated on
the basis of this reference system in the future.
Finally, the co-operation with Schiphol airport has given rise to the launch of a large-scale project, Hublink (see § 1.1.3),
organised by areas of competence and expertise, and enabling joint teams from the two companies to examine their respective processes and organisations in depth, and to draw lessons on best practice from this. These exchanges between
professionals enable possible changes and the appropriation of methods that have proved their worth to be streamlined,
Schiphol airport figuring within the highest classification levels among European airports with regard to quality of service.
5.4.2 The development of dialogue and co-operation with airlines
On the basis of the survey conducted in 2008 among airlines, the operational management of the Paris-Charles de
Gaulle and Paris-Orly platforms have reorganised information processes and processes for consultation on the ground
with the companies, in such a way as to institute a more regular occurrence and agenda, and to allow companies that
cannot draw upon sufficient resources to take part in these enabling bodies to follow the content of them by means of
written documents made available to them, and to react if the case arises. In this way, it has been possible to increase
the number of exchanges, and to favour dialogue and the taking into account of the needs of each party.
Meanwhile, work on exchanging the results of the customer satisfaction indicators of operating teams has already
been undertaken with several airlines. The specific goal is to gradually build, with all willing companies, a shared
performance chart for steering passenger satisfaction, in order to prioritise by common agreement the actions to be
taken by each party.
This initiative forms part of Aéroports de Paris’ desire to develop, alongside all companies that wish to do so, strengthened co-operation focused around quality of service, and in particular passenger satisfaction. It takes full account of the
strong overlap between the services provided by Aéroports de Paris and those of airlines, which contribute jointly to
the perception and satisfaction of passengers.
Within this context, nine major indicators relating to passenger routes have been identified, on the basis of which it has
been possible to construct a common performance chart for the main companies operating within each terminal. There
are calls to examine this performance chart on a regular basis on the occasion of bilateral meetings held with each company (monthly for the largest companies, quarterly or half-yearly for the others), which will give rise to joint action plans,
the results of which will be shared. These indicators include in particular baggage delivery time, for which airlines have
the main responsibility, but for which support activity is also carried out by Aéroports de Paris. This method of functioning
has also begun operating with several airlines. The entire operational management of airports is involved in this process.
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In addition to this procedure and at the request of several members of the economic consultative commission, Aéroports de Paris proposes to strengthen, in the context of ERA 2011-2015, the cooperation with the airlines in the field by
setting up, terminal by terminal, joint bodies responsible for operational monitoring of the quality of service indicators
of the ERA and of the previously arranged action plans (see § 5.6).
5.4.3 The fundamental driver constituted by investment projects
As has been shown by satisfaction surveys, the modernity of terminal installations constitutes a powerful driver of the
improvement of the perception of customers of the quality of the services provided by the company.
This is why it is proposed that the construction of the S4 satellite be continued in line with initial plans, despite
the downturn in traffic observed in 2009: Thanks to the terminal capacity created, this installation would also enable
terminal 2D, which constitutes one of the airports given the worst ranking by passengers, to be closed prior to
renovation.
In addition, the entry into service of this satellite should contribute to the continued improvement in flight contact rates,
a fundamental factor in operational effectiveness for airlines and satisfaction for passengers: the contact rate for the
hub could therefore reach the order of 86%. It will also contribute to bringing the hub terminals closer geographically
at the east of the TGV station, and will also be a major driver of the improvement in operational processes.
The proposed investment programme also focuses on the gradual renovation and restructuring of the oldest terminals:
therefore, after the refurbishment of terminal 1 at Paris-Charles de Gaulle, the 2011-2015 ERA will be marked by the
complete renovation, both technical and functional, of terminal 2B of this airport.
In parallel, the junction between terminals 2A and 2C should contribute significantly to improving passenger
flows and enable the range of services provided to be strengthened. Still at Paris-Charles de Gaulle, the gradual implementation of a of the one-stop security process, particularly through certain improvements to airports, including
in particular a pedestrian walkway in a secure area connecting the boarding areas of terminals 2E and 2F, should
constitute a significant driver in improving satisfaction among connecting passengers.
In addition, at Paris-Orly, restructuring of halls 3 and 4 in the west terminal will be a means of taking action
on passenger flows, on perceived quality and on the range of services provided at the same time. Also, taking action to
improve passenger and baggage flows in the south terminal, several operations are planned, in particular on
departing baggage conveyors, the optimisation of the handling of departing passengers within hall B and the ongoing
installation of new structures to separate arriving and departing passenger flows, working towards improved passenger flows to contribute to flight punctuality.
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Lastly, with a quality service budget of just over €130 million, the 2011-2015 ERA will fund a series of one-off,
high-impact measures.
Overall, around €750 million in investment is planned between 2009 and 2015, to meet this high ambition with
regard to quality of service and customer satisfaction (see section 6).
5.4.4 Other projects oriented towards quality of service
Other high-impact quality of service projects include several work sites (security checkpoints, cleaning, bars and restaurants) linked to the steering of the performance of subcontractors or concession-holders. These work sites have already
led to the development of both contractual models (introduction of objectives of compliance with a customer reference
system, the idea of an incentive bonus for the achievement of these objectives) and methods for steering subcontracting (generalised use of “mystery customer” type measures, regular sharing with service providers of information
relating to the measurement of their compliance with regard to different levels of representatives of the companies,
monitoring of action plans decided upon by the service providers in consultation with Aéroports de Paris, reinforcement
and development of the profiles of Aéroports de Paris teams in charge of this steering etc.).
Passenger flows:
One of the major quality of service challenges, from the point of view of both the passengers and the airlines, concerns
measures for improving passenger flows within airports.
To this end, the gradual centralisation of security checkpoints (terminal 2F, the 2A-2C connection, halls 3 and 4 of OrlyWest) and their upgrading (hall B of Orly-South, satellites of CDG1) allow resources to be pooled and, at the same time,
the improvement of reactivity with regard to flow evolutions during the day may be sought. In addition, work carried
out with security providers will now be based on technological developments (Bluetooth, 2D barcode, image analysis,
automatic data entry, etc.), which will enable the development of the automatic measurement of waiting times and the
gradual installation of a system for the supervision of flows and production control. This overall steering system in real
time, currently being experimented with, will be gradually put in place from 2010, with the aim of refining knowledge
of presentation curves at security checkpoints and deducing from this potential action to be taken to improve flow
during traffic peaks.
In addition, still with regard to security controls, the policy of developing the one-stop security process for connecting
passengers, in which Aéroports de Paris intends to invest heavily, should bring about a clear improvement in terms of
flows and the simplification of all routes for all customers benefiting from it.
With regard to flows at cross-border controls, which come under the governing powers held by the services of the
government, the overall results obtained today for passenger satisfaction with regard to their waiting times mask a
wide disparity during the day: even though controls take place under conditions adjudged satisfactory for a large number of passengers, they may at any given point represent waiting times that could be deemed excessive. Aéroports de
Paris’ action on this is based on several plans:
- h e putting in place of consultation bodies bringing together the Border Police (PAF), Aéroports de Paris and airlines, at different levels, on the problems encountered and on customer satisfaction indicators; these exchanges
have given rise in particular to changes made by Aéroports de Paris to police booths to make them more ergonomic (such as the invention of the reversible booth), the putting in place of a provisional traffic data exchange
process allowing for improved anticipation of peak flows, awareness sessions for police officers on the welcome
provided by Aéroports de Paris, the decision of the PAF of Paris-Charles de Gaulle to deploy a police officer fulltime within Air France’s CCHub24 ;
CCHub : CCHub: Control Centre for Air France’s ground operations, steering operational activity in real time
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- t he putting in place of orientation personnel upstream of waiting lines; the presence of these personnel allows
for the orientation of customers (in particular reduced mobility customers, who are escorted through, as well as
aircrew) and the signalling of possible bottlenecks.
In addition to these initiatives, it is envisaged that the PAF will be able to benefit from automated measurement techniques
that will deployed for security checkpoints. Finally, Aéroports de Paris is continuing very actively, under the control of the Interior Ministry, the implementation of the "PARAFES" cross-border control system, automated using biometrics. By 2011, it is
planned that a total of 27 such automatic checkpoints will have been put into service in the terminals of Aéroports de Paris.
With regard to the fluidity of embarkation and disembarkation operations, in addition to the impact of the development of embarkation technologies and the entry into service of automatic guide lights at some aircraft stands, intended
to reduce delays in loading the jetties, localised operations are planned in connection with the problems specific to
each terminal: therefore, in the Orly-South hall, the deployment of revolving doors to separate flows (five pieces of
equipment of this type will be in service by 2012) will be carried out in order to optimise the management of embarkation and disembarkation flows, and a second jetty will be installed shortly at a wide-body gate to speed up these flows
for the purposes of improving punctuality.
Passenger orientation:
Signposting and the orientation of passengers remains a priority. Within the airport, following the important work
of upgrading the graphic chart, programming work will be undertaken. Supplementary orientation media, such as
information stations, and also an application accessible by mobile telephone, will be gradually deployed. “A la carte”
assistance services will be offered, both within the airports and for town-airports connections. Signposting will also be
reviewed in car parks, then on road access.
With regard to mobile applications, the study project would consist of offering an “indoor” geo-localisation service by
mobile telephone (My Airport application) which would allow, along the lines of what has been developed by certain
museums, the passenger to be guided for the entire length of his/her route. The advantage of this type of application
would also be communication with each individual in the language of his/her choice.
In addition, with regard to orientation stations, Aéroports de Paris has been testing several concepts in airports since
2008. Following an in-depth examination of the results of these tests on passengers and those accompanying them, a
type of station model will be selected and deployed throughout all airports in 2010, to supplement the existing media.
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Touch-screen information
terminal.
Touch-screen information
terminal
Visualisation of the passenger’s route
from the terminal to his/her place of
arrival. Printing of the itinerary.
Displays a background and screensaver and indicates the directions
to take through the appearance of
arrows.
TGV direction terminal
Passenger Orientation Stations.
Visualisation of the passenger’s route
from the terminal to the public CDG2
ABCDEF halls.
Displays the number and direction
together with the time for the route,
after reading the bar code on the
boarding card
.
Environment and cleanliness of terminals:
The environment within airports will be the subject of specific work: renewal of seats and upgrading of seating areas,
renovation of sanitary facilities, lighting and soundproofing and checkpoint area environment are projects that are
already being studied or planned for 2010.
Specific action will also be taken within the framework of the “Cleaning Project” (see § 3.5.1): this project deals with
all aspects of cleaning activity: technical, quality, social, economic etc., all of these factors being intimately linked. It
brings together experts in the areas of cleaning, quality and human resources. It is conducted in line with processes
involving all of the airports concerned, in particular the ground personnel in charge of steering subcontracting and
quality control. It will also closely involve companies employed by tender, particularly for putting in place an integrated
supplier / Aéroports de Paris quality system. This should be formalised through progress plans that will be negotiated,
for each market, with the companies employed, and the duration of the implementation of it is likely to take place over
around three years from the application of the new contracts.
A substantial programme of renovation of restaurant areas will also be implemented over the next 3 years. Accompanied by the potential renewal of concession-holders whose contracts are coming to an end, this should allow for an
appreciable improvement in consumer satisfaction.
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Development of information and arrivals services:
Information is provided by Aéroports de Paris, in
the large majority of baggage delivery halls in Paris-Charles de Gaulle and Paris-Orly, concerning the
planned delivery schedule. This information is calculated on the basis of the flight arrivals timetable, as
well as of statistical data. Currently, various leads are
being studied in order to check the reliability of this
information. In particular, the development of the use
of RFID (Radio Frequency Identification), a system of
"radio tagging” that allows remote reading of a baggage identifier that is the subject of joint testing with
the Air France-KLM Group and Schiphol airport, and
which could bring considerable advantages to companies and ground handling services: the possibility
of identifying at all times where an item of baggage
is and therefore estimating more precisely its delivery schedule, but also the possibility of carrying out
a posteriori production check analyses and of identifying targeted corrective action for certain flows.
Finally, with regard to passenger satisfaction upon
arrival, Aéroports de Paris has introduced, by way of a
test, new services areas in the baggage delivery hall
(Internet connection, drink and sweet distributor, TV
information). According to the results of
these tests, these spaces have the potential to be rolled out more generally.
In addition, new seating areas have been
installed in several baggage delivery halls.
Information on town-airport means of
transport is provided, and public transport
ticket distributors are also installed. The
introduction of dynamic public transport
information systems in the terminals is
also planned. All of these services have
the same aim: shortening the perception
of waiting time through the optimisation
of the time available.
Test of the service area in the baggage
delivery halls of the Aéroports de Paris
terminals in 2009
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5.4.5 The 2009-2011 action plan
Pursuing this great ambition for quality of service, 16 work sites have already been launched in 2009 within the
framework of customer satisfaction initiative. They are mobilising more than 200 employees of the company for their
study, implementation and deployment.
These work sites should contribute to the improvement of customer satisfaction with regard to all six aims identified:
- Improving passenger satisfaction,
- Improving the satisfaction of airlines,
- Improving the satisfaction of Aéroports de Paris tenants;
- Developing the customer-focus culture within the company and its suppliers,
- Improving the flow of internal functioning,
- Providing customer satisfaction steering tools.
They are being called upon to continue in 2010 and beyond until the expected results have been achieved.
5.5 Proposals for indicators and objectives for the 2011-2015 ERA
Aéroports de Paris’ ambition to make the 2011-2015 ERA a major driver for a significant improvement in quality
of service and customer satisfaction should translate, with this new economic regulation agreement, into quantified
objectives, measured on the basis of indicators partially revised compared with the 2006-2010 ERA to
reflect the company’s and its users’ shared priorities for quality of service.
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In this regard, and summarizing the analyses of passenger surveys, it has identified the following priority drivers for
the improvement of customer satisfaction:
- satisfaction of connecting passengers,
- perception of the general atmosphere,
- satisfaction with regard to seating,
- satisfaction with regard to the presence of personnel,
- perception of cleanliness,
- facility of orientation,
- comfort of boarding lounges,
- flows at security checkpoints and cross-border controls,
- baggage delivery time,
- satisfaction with regard to bars & restaurants.
At the same time, on the basis of the survey initiated with them and the dialogue that took place within the economic
consultative commission, it has been possible to identify the priority expectations of the airlines with regard to
Aéroports de Paris:
- capacity, quality and reliability of the installations made available,
- punctuality of flights / fluidity of passenger routes,
- sharing of predictive information,
- quality of relations,
- crisis management.
In addition, several supplementary expectations in relation to strengthening co-operation between Aéroports de Paris
and airlines were expressed during the consultation process that took place within the economic consultative commission in preparation for the 2011-2015 ERA. More specifically, these expectations concern operational monitoring,
terminal by terminal, of the level of quality of service attained and action plans implemented.
In this regard (see § 5.4.2), Aéroports de Paris has said that it is prepared to put information and co-operation bodies
in place between its operational teams and those of the airlines, in each terminal, the role of which would be focused
towards joint action and implementation of stages of progress. Each body, the frequency of meeting for which would
be quarterly or more often if it chose, would have at its disposal a performance chart of quality of service indicators
relating to the terminal concerned, including the indicators used by the ERA.
5.5.1 Indicators with financial incentives
With regard to indicators that would provide a financial incentive when the 2011-2015 ERA is applied, Aéroports de
Paris considers that, in the interests of effectiveness and prioritisation of the progress to be made, it is desirable to
limit these to a relatively small number, of the order of ten.
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In addition, objectives that may be associated with financial incentives within the framework of the 2011-2015 ERA
should be based, in order to be compatible with the purpose and goals of an economic regulation agreement, on
indicators that respect the following principles:
- being measurable with a high degree of reliability,
- for satisfaction, availability and compliance indicators, providing a measurement history that is sufficient for appreciating the level of the objective,
- b eing attached to areas in which the leverage that Aéroports de Paris and its sub-contractors have is significant
relative to the role of other players (airlines, ground-handling services, government departments, etc.),
- b eing linked to services funded by the airport charges, as the conditions for respecting the associated objectives could
give rise to rewards or penalties related to these fees.
Within this framework, Aéroports de Paris proposes, having taken into account the observations expressed within the
economic consultative commission, to adopt ten quality service indicators with financial incentives within the next
ERA, linked to the main drivers for improving customer satisfaction. Aéroports de Paris proposes in particular
to adopt certain indicators that are significantly more stringent than those in the first ERA, notably indicators that
directly measure passenger satisfaction, including service chains for which Aéroports de Paris is not necessarily the sole
provider, but for which it might want to act as manager or integrator.
In this context, Aéroports de Paris proposes:
- five indicators of passenger satisfaction
• o verall arrival and departure satisfaction (source: passenger arrival and departure observatory; question asked: "Overall, what is your assessment of the services that you have used in this airport today?"),
• s atisfaction with regard to cleanliness in the terminals (source: passenger departure observatory; question asked:
"During your movements around the airport today, what did you think of the cleanliness?"),
• s atisfaction with connection orientation at Paris-Charles de Gaulle airport (source: passenger departure observatory;
question asked: "What do you think of the ease of finding your way during connection?"),
• s atisfaction with regard to orientation and flight information (source: passenger departure observatory; questions asked: "During your movements around the airport today, what did you think of the ease of orienting yourself?", "What
do you think of the ease of finding the sources of information?", "With regard to the flight information provided by
televisions and display boards, what is your general assessment?"),
• s atisfaction with the boarding lounges (source: passenger departure observatory; question asked: "With regard to the
embarkation lounge, what is your general assessment?"),
- three equipment availability indicators:
• availability of aircraft parking stands,
• availability of electromechanical equipments in terminals,
• availability of telescopic jetties,
- one compliance indicator:
• response time to customer complaints,
- one indicator measuring compliance with the schedule for delivering high-risk investments:
• junction between terminals 2A and 2C, satellite S4, connection gallery between terminals 2E and 2F, reconfiguration of threshold 08 of Paris-Charles de Gaulle’s south runways, completion of deployment of 400Hz electrical
supply equipment in terminal 1, restructuring of terminal 2B, restructuring of halls 3 and 4 at Orly-West.
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The precise definition of each indicator should allow an adequate level of representativeness of the measurement from the point of view of the service provided
by Aéroports de Paris.
With regard to the satisfaction indicators, the methodology applied within the
framework of the passenger observatory (see § 1.8) guarantees this adequate
level of representation.
With regard to the definition of equipment availability indicators, Aéroports de
Paris proposes that the measurement methodology used for the 2006-2010 ERA
is developed to take into account timeslots for each terminal, determined so as
to correspond to the periods of heaviest traffic: the indicators could then be measured solely for these periods, or take into account a greater weighting for them.
In addition, with regard to these availability indicators, the 2006-2010 ERA provided for the possibility of not using availability linked to planned work, conditional upon an advance notice period of
3 months. In practice, this time period turned out not to be very appropriate for the reactivity necessary for the triggering of work: Aéroports de Paris proposes that this time period be brought down, within the 2011-2015 ERA, to one
month. This time period should be sufficient in any given case to take the appropriate operating measures, as required,
in order to minimise the problems caused.
Lastly, with regard to the compliance indicator used, the response time threshold used in the measurement of the
indicator proposed could change from 28 days to 20 days from mid-2010, and then to 15 days as of mid-2012, so as
to run consistent with the objectives and practices of other service companies.
5.5.2 Objectives and mechanism for bonuses/penalties
Aéroports de Paris also proposes to renew the financial incentive mechanism based on a symmetric system of bonuses
and penalties for the 2011-2015 ERA, as its effectiveness was demonstrated within the 2006-2010 ERA, rewarding the
efforts made by the company and encouraging its teams to engage in the quality improvement process.
With regard to the setting of target levels and calculation ranges for rewards and penalties, Aéroports de Paris believes that
the parameters for the 2011-2015 ERA should create bigger incentives for the company than those for the first ERA.
Owing to this, the objective levels proposed for the satisfaction indicators are markedly more stringent than those used for
the 2006-2010 ERA; it is also proposed when appropriate that the minimum (generating the highest penalty) and maximum
(generating the highest reward) levels be markedly broadened so that quality improvement incentives can be maintained
throughout the duration of the new ERA.
Aéroports de Paris proposes that the objectives, together with the levels giving rise to the maximum bonuses and penalties,
be set as follows:
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With regard to the nominal timetable for the implementation of investments used for the final indicators, it is set out
below:
For the purposes of the 2011-2015 ERA, these ten indicators would be measured, starting from the 1st of July 2010,
between the 1st of July of the year "n" and the 30th of June of the year "n+1". The bonuses/penalties resulting from
this would be applied to the price cap relating to the fare period "n+2".
With regard to the size of bonuses and penalties, Aéroports de Paris proposes to place an annual ceiling on them, all
indicators combined, equivalent to 1.0% of all fees submitted to the ERA. This amount, which is about the same
as under the 2006-2010 ERA, would lead de facto to a significantly greater weighting of this financial incentive in
relation to fee price cap, reflecting the priority given to quality of service in the 2011-2015 ERA.
Aéroports de Paris also proposes that each of the ten indicators be allocated the same weighting, meaning a maximum
reward/penalty of 0.1% each.
5.5.3 Monitoring indicators
Indicators with financial implications will not howe er be exclusive of other indicators that there may be cause to monitor within the framework of the 2011-2015 ERA.
The monitoring indicators proposed by Aéroports de Paris have been selected in relation to the importance that they
might have for customers, although they have not been included among those with financial implications for several
reasons:
- they deal with a quality of a service that does not come within the area of fees,
- the operational driver that Aéroports de Paris has available in relation to the types of tasks in question is not deemed
sufficient,
- the indicator has yet to be put in place or its track record is not deemed sufficient to evaluate a relevant objective,
- certain indicators, within a prioritisation context, have not been included among those with financial implications.
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Aéroports de Paris, taking into account the wishes of the economic consultative commission in this regard, proposes
to adopt the monitoring indicators below, which will be among those examined by the bodies to be set up in each
terminal (see § 5.4.2):
- proportion of contact stand passengers;
- p roportion of flights delayed for airport reasons, measured on the basis of declaration by airlines or ground handling
operators and accepted by Aéroports de Paris;
- a vailability of check-in desks, including associated IT services and baggage-handling equipment upon departure,
measured on the basis of declaration by airlines or ground handling operators and accepted by Aéroports de Paris;
- a vailability of 400 Hz electric power supply, measured on the basis of declaration by airlines or ground handling
operators and accepted by Aéroports de Paris;
- a vailability of telescopic jetties, measured on the basis of declaration by airlines or ground handling operators and
accepted by Aéroports de Paris; this indicator would be in tandem with the one measuring the temporary rate of
availability proposed in § 5.5.1;
- waiting time at security checkpoints;
- waiting time at passport checkpoints;
- p roportion of incidents relating to the provision of assistance to individuals with a handicap and reduced mobility,
measured on the basis of declaration by airlines or ground handling operators and accepted by Aéroports de Paris;
- availability of baggage handling conveyors;
- availability of CDGVAL and LISA;
- satisfaction with the cleanliness of sanitary facilities;
- overall satisfaction with bars and restaurants;
- satisfaction with town/airport connections;
- satisfaction with the availability of baggage trolleys;
- baggage delivery waiting time.
5.6 Setting up of the operational committees for quality of service in the
terminals
The phase of preliminary consultation concerning the ERA 2011-2015 that took place in the economic consultative
commission of the airports of Paris-Charles de Gaulle and Paris-Orly brought to light high expectations on the part of
the airlines regarding strengthening of the co-operation of the operational teams in the field. The requests made point
towards regular monitoring, for each terminal, of the quality of the services provided to the airlines and passengers as
well as closer co-operation in the implementation of the joint action plans.
Aéroports de Paris wishes to give a favourable response to these requests, as making them a reality can only give more
weight to its priority of increasing the satisfaction of its customers. A strengthened and structured procedure such as
this, closely related to operational concerns and focusing on action, is expected to take into account the significant
overlapping of the services provided to passengers respectively by Aéroports de Paris, the airlines and their service
providers.
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In these conditions, Aéroports de Paris proposes that in addition to the centralised process of assessment of the bonuses-penalties of the company the summarising of which is the responsibility of the economic consultative commission, an operational committee for the quality of service in the terminal should be set up in each terminal.
The role of these committees would be the following:
- r egular monitoring, each quarter or more frequently on the initiative of the participants, of the quality of service
indicators defined in the ERA and relating to the terminal concerned; the performance chart which would be made
available to each operational committee could be supplemented, on its own initiative, with additional indicators
specific to the particular problems of each terminal;
- joint action plans would be discussed, defined and then assessed by these committees in order to work on the
priorities identified concerning the quality of the services provided;
- r unning consistent with service quality issues, the role of each committee should extend to scrutinising investment
projects relating to the relevant terminal;
- with regard to Aéroports de Paris, participation will specifically include the platform director or their representative.
Furthermore, the joint working group formed between Aéroports de Paris and the airline companies for the preparation of the 2011 – 2015 ERA is e xpected to pursue its work on quality of service in the long term. It will ensure the
smooth operation of local operating committees and will be asked to deal with cross-disciplinary questions that may
be escalated from these committees. Moreover, it will ensure the relevance of monitoring indicators selected and their
measurement methods and, if applicable, may propose changes. It is proposed that the working group meet twice a
year (or more frequently if desired), as an adjunct to the meetings of the economic consultative committee. The workshop will be organised under the auspices of the Aéroports de Paris customer satisfaction department and will include
representatives from each airport, as well as members appointed by the airlines or representative associations from the
economic consultation committee.
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6. Investment
programme
Economic Regulation Agreement 2011-2015
6 Investment programme
6 Investment programme
6.1 Priorities of Investment programme
After focusing on the development of terminal capacity at Paris-Charles de Gaulle over the period 2006-2010, Aéroports de Paris proposes to focus the 2011-2015 ERA mainly on initiatives aiming to improve the quality of facilities and
services and optimise existing facilities, an objective in line with the concerns expressed by the airlines.
Improving terminal standards:
As part of this strategy, Aéroports de Paris intends to continue its initial plans to build the S4 satellite of terminal
2E at Paris-Charles de Gaulle, due to open in the third quarter of 2012. While the additional capacity is not strictly
necessary within this timeframe, as with the recently opened S3 satellite and terminal 2E jetty, it should help improve
customer satisfaction significantly. In particular, it will facilitate the shutdown for renovation of terminal 2D, which is
currently one of the most poorly rated terminals by passengers. The capacity offered by the S4 satellite should also
mean that new terminal facilities will not need to be built for another decade.
As part of this strategy of improving service quality and optimising existing facilities, the investment programme calls
for the continuation of renovation work on the oldest terminals. At Paris-Charles de Gaulle, following renovation
of the central building of terminal 1, which was completed in 2009, the 2011-2015 ERA provides for further renovation
of satellites of terminal 1, as well as the complete refurbishment of terminal 2B. At the same time, the city-side facades
of terminals 2A and 2B would be renovated before those of terminals 2C and 2D over the next five-year period. The
esplanades of terminals CDG1 and CDG2 would undergo conversion work, and car parks adjoining terminals would
continue to be renovated. In the longer term, terminal 2D would be fully renovated in 2016-2020 and reopened once
the extra capacity is needed depending on passenger traffic trends.
As for Paris-Orly, the remote-boarding halls of the south terminal will be renovated and expanded by 30% between
now and 2012 and the commercial space in hall B of the same terminal will be reconfigured and extended.
Optimising existing capacity and improving passenger and baggage flows:
In pursuit of the goals of optimising existing capacity, improving flow in the passenger and baggage routes, and increasing the quality of the service offering, the 2011-2015 ERA will also feature the following:
- for Paris-Charles de Gaulle, opening the junction between
terminals 2A and 2C, transforming terminal 2F into a
Schengen-only zone, and
adapting a second satellite
at terminal 1 and a boarding lounge in terminal 2A
to accommodate the Airbus
A380;
- F or Paris-Orly, the reconfiguration of halls 3 and 4 as well as
an initial phase in the adaptation
of hall 1 of the west terminal
and, in the south terminal,
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optimisation of Schengen flows, further improvement of departure baggage chains (creation of new check-in counters, generalisation of service between multiple counter clusters, integration of security devices into the conveyance
chains, introduction of a redundant loop to limit impact of operational incidents, multiplexing of security checkpoints
and increasing the number of sorting points), implementation of changes to enhance fluidity of arrival and departure
flows while keeping the two separate (revolving doors).
In the longer term and as part of the same strategy, terminal 2D will be fully renovated over the period 2016-2020
and reopened at the same time as the junction between terminals 2B and 2D. Similarly, junctions between terminal 1
satellites could be planned as of the 2016-2020 ERA.
Aéroports de Paris will also proactively pursue the development of a single one-stop security process (French
acronym: IFU) to improve the fluidity of flight connections, notably through terminal enhancements: a pedestrian
gallery will be built in the restricted area linking the terminal 2E and 2F boarding lounges, to be opened in
the third quarter of 2012 if possible. Once terminal 2F has been converted into a Schengen-only zone, module P will be
fitted out to provide a one-stop security link from terminal 2F to satellite S3. A review is also underway to change the
status of the connecting shuttle under customs authority by placing it under IFU status. As regards terminals 2ABCD,
the creation of a junction between terminals 2A and 2C will allow for single passenger screening from other terminals
by bus. In the longer term (2016-2020 ERA), it would also be possible to link all of 2AC to all of 2BD via a gallery
subject to single passenger screening status. Lastly, a one-stop security process is also planned for terminal 1, and more
specifically, (2011) within satellite 7 (Schengen satellite) to begin with. Single passenger screening solutions between
terminals 1 and 2 are more complicated and could be implemented by a bus link.
A dedicated "service quality" budget:
Furthermore, a budget will be set aside for service quality (see section 6.5), managed by the Customer Satisfaction department, for targeted measures to ensure both greater transparency in the company’s actions and the continuation of the priorities set out in the Customer Satisfaction programme. This budget does not include contributions to
service quality from investments in structural projects, capacity and restructuring.
Continued development of services to the aircrafts and to the airlines:
The services offered to the airlines and their subcontractors will also be improved by developing ground services: the
investment programme proposed by Aéroports de Paris takes into account the installation of a 400Hz electric power
supply system for satellite S4 and contact stands for Paris-Charles de Gaulle that are not yet equipped with this high
value-added service for the airlines (satellites at Paris-Charles de Gaulle terminal 1) as well as their successful implementation at Paris-Orly. There are also plans to develop a 50Hz power supply system for remote stands at Paris-Charles
de Gaulle (terminal 1, terminal 3 and the south cargo terminal). A study is also underway to evaluate the opportunity
of generalising this service to all remote stands at Paris-Orly.
To improve airline operating efficiency, Aéroports de Paris also intends to roll out new services at the S4 satellite, such
as automatic docking guidance systems (being tested in 2009 at terminal 2F1 and satellite S3) and air pre-conditioning
units for aircraft.
There are also plans to test self-service baggage check-in counters ("drop-off" counters) and to share experiences with
Schiphol airport on this theme. Depending on the results, the system may be rolled out gradually.
Continued adaptation of automatic baggage sorting capacity:
The 2011-2015 ERA would also increase the capacity of the baggage sorting systems at the east of CDG2 via
several modules to keep pace with traffic growth and the development of the hub. Initially, handling capacity for local
traffic would be expanded in connection with the opening of satellite S4, followed by handling capacity for connecting
traffic with growth in the volume of hub activities.
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Additional handling capacity for connecting baggage is also planned in 2016-2020, as the CDG2 hub is further
extended again to the west.
At the same time, the existing baggage sorting system will have to be renovated in a programme spread out over the
entire period.
Optimising runway safety:
Another important part of the proposed investment programme concerns runway infrastructure and equipment at
Paris-Charles de Gaulle to ensure continuous safety enhancements and to support the planned increase in air traffic
control capacity. Pursuant to the recommendations of the French civil aviation authority (Direction Générale de
l’Aviation Civile) and pilot organisations, threshold 08 of the southern runways doublet at Paris-Charles
de Gaulle must be fully renovated. New safety equipment will also be installed over time, including a Runway
Status Light System (RWSL), and avian radars and FOD detection systems would be assessed in situ. The problems associated with service vehicles crossing aircraft taxiways (particularly taxiway E at Paris-Charles de Gaulle)
will also be studied and assessed in order to present technological solutions to be approved by the French Civil
Aviation Authority (Direction Générale de l’Aviation Civile).
In the longer term (as of the 2016-2020 ERA), there are plans to extend taxiway medians and build perimeter
taxiways to reduce the number of aircraft runway crossings.
Improving ground access, living and working conditions for employees of airport-based companies:
One of the main ways of improving service quality for passengers, cargo operators and the employees of airportbased companies is to constantly improve access conditions to the various airport areas, in particular within the
Paris-Charles de Gaulle airport.
One of the major improvements expected in the next few years concerns the overhaul and optimisation of road
signs at Paris-Charles de Gaulle. Furthermore, access to the south cargo area (to and from Paris Nord II) will
be improved with the redevelopment of a roundabout on Route de la Croix au Plâtre (late 2010). Access flows in
the north cargo area may also be improved if the Conseil Général for département 95 doubles the size of route
RD 902 between the A1 expressway and the north cargo area.
Since 2007, the launch of CDGVAL has significantly improved the speed and comfort of staff and passenger transport between terminals and car parks. In terms of comfort and traffic flows at esplanades, the plan to modernize
the esplanades at terminals 1 and 2 should also make a major contribution, as well as planned developments to
serve taxis, in particular by extending the support area at Paris-Charles de Gaulle.
With respect to Paris-Orly, the redevelopment of the airport accesses, modification of the appearance of the terminal
esplanades in order to make them more legible and urban as well as renovation of outdoor spaces will be completed
by 2013. Before that time, a one-minute parking zone will be set up in 2010 at Orly-South to ensure a smooth flow
for vehicles and secured passenger unloading zones.
Furthermore, the arrival of the tramway by 2013, with a station at Orly-South, and the new links with the new Cœur
d’Orly district will relieve commuter traffic for persons working at the airport.
As regards working conditions for airline employees and ground handlers, a survey is conducted each year of
Aéroports de Paris’s responses to requests for premises in accordance with the company’s terms of reference.
At present, the survey does not show any major needs that have not been met. Furthermore, various measures to
improve workplace safety are in progress and others will be carried out under the 2011-2015 ERA. The corresponding initiatives are integrated into current investment budgets, and will be examined in close collaboration with
the airlines concerned. Investments in the baggage galleries will provide Paris-Orly in particular with more spacious
traffic routes in order to improve workplace safety conditions.
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Lastly, as regards employee catering services, in addition to existing staff and inter-companies restaurants – the
latest of which was recently opened within the terminals 2A/B/C/D – fast food catering facilities are being developed at Paris-Charles de Gaulle, as well as take-away sales for staff. The opening of the new "Aéroville" shopping
and services centre will also improve catering services, particularly for the cargo area. At Paris-Orly, the fast food
service offering will be completely renovated by 2013, which will improve access to a variety of catering services
for personnel.
Real estate, retailing and sustainable development:
Investment in 2011-2015 will allocate significant resources for the development of three fundamental aspects of
Aéroports de Paris’s strategy:
- d
eveloping new retail areas and improving existing retail spaces in order to continue to strive for performance improvements in this area; these targets would be achieved first as an integrated part of major new construction projects and projects to renovate terminals and second, through setting aside a dedicated budget for specific,
targeted initiatives in this area;
- r eal estate development will be stepped up, primarily in diversification real estate activity. This
development will be based on a differentiated strategy by airports and products and in some cases could involve
partnerships. A few targeted real estate acquisitions are also planned, in particular with a view to the Euro-Carex
Project. As to airport real estate activities, in order to keep pace with the needs of cargo companies, there are plans
to extend handling capacity at general terminals and to develop buildings for ground handling activities depending
on traffic trends and their geographical location at the Paris-Charles de Gaulle airport;
- s ustainable development, which in addition to ambitious targets to reduce energy consumption under terminal
renovation projects and structural programmes involving in particular rain water management systems will also
involve a specific budgetary allocation for more limited but high-impact initiatives.
Longer-term development of capacity and facilities:
In the longer term, for the construction of terminal 4, which is due to open around 2024 based on traffic growth
projections, the first investment flows should begin in 2016-2020, primarily to relocate aircraft parking areas and car
parks, develop access roads and prepare groundwork. Terminal 4 is initially intended to serve airlines outside the SkyTeam alliance, which are currently based at terminals 2A and 2C. With the opening of the new terminal, traffic at the
Air France hub could be extended westward at CDG2 to terminal 2A, in addition to terminals 2C, 2D, 2E, 2F and 2G.
To optimise passenger connections and extend the one-stop security process (IFU), a second CDGVAL line could be
built linking all the restricted areas under customs authority in the ABCD terminals to those in the EF terminals and S3
and S4 satellites, without requiring additional screening.
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The chart below shows the schedule for the primary initiatives planned at present for implementation in the next 15
years:
The main operations planned in the 2011-2015 ERA are detailed in sections 6.3 and 6.4 below as well as in appendix 5.
The corresponding investment flows between now and 2015 are given in the two tables below for all of Aéroports
de Paris SA and for just the regulated scope (excluding retail activities and real estate diversification as of 2011),
respectively.
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Investment programme ADP SA 2011 - 2015 (constant €m 2010)
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Investment programme Regulated scope (constant €m 2010)
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In 2011-2015, Aéroports de Paris SA plans to invest €2,367 million (in 2010 euros excluding financial investment), equivalent to a decline (in constant euros) of over 20% relative to investment in 2006-2010. The level of investment is likely to be roughly the same for the next five-year period (2016-2020). After taking into account adjustments in
the regulated scope in 2011, the company proposes investment of €1,757 million (2010 euros) in the regulated
scope over the period 2011-2015.
The breakdown of investment between the regulated and non-regulated scope takes into account that, starting from
2011, the regulated scope will exclude commercial activities and real estate diversification.
ADP SA’s investment programme
(€m, 2010 euros as of 2010, excluding financial investments)
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Aéroports de Paris SA’s investment is therefore broken down between regulated scope and non-regulated scope in the
same way as the breakdown of fixed assets as certified by the company’s statutory auditors:
- a s regards terminal buildings, investment in capacity, restructuring and ordinary expenditure are broken down
between aviation activities, rental activities and commercial activities, using specific distribution keys for each building, calculated according to the surface area used for each of these activities and weighted by their respective costs;
- investment relating to airport access is broken down using specific keys for each airport for the regulated scope
(passenger function, car parks, airport real estate) and the non-regulated scope;
- investment budgets relating to service quality (terminals, transport areas, car parks) and sustainable development
(terminals, car parks, aircraft power supply, industrial services) are almost exclusively for the regulated scope;
- investments specific to the non-regulated scope are identified separately in the investment programme: public service
missions financed by the airport tax, diversification real estate (development and current investment) and budgets
dedicated to retail activities;
- investments from supporting entities are distributed to both the regulated and non-regulated scope by applying a
consistent distribution key with weighting for each;
- the cost of studies and supervision of works (FEST) is calculated according to the investment rate for each scope.
The chart below shows the breakdown of the investment programme for the regulated scope by type of investment:
Details of investment programme for regulated scope
(€m, 2010 euros as of 2010, excluding financial investments)
This investment programme is consistent with the projected business growth scenario. However, in accordance with
the concerns expressed by the airlines during the preliminary consultative dialogue within the economic consultative
commission, this requires quick responses from the organisation should traffic growth become more dynamic. In this
case, Aéroports de Paris must be prepared, under the conditions to be defined in the 2011-2015 ERA, to advance
the completion of certain investment to keep pace with the needs of airlines and passengers.
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6.2 Focus on customer satisfaction drivers
Of the investments taken into account between 2009 and 2015, around €750 million (2010 euros) are for the
main initiatives that are expected to serve as performance drivers for the quality of service.
The main such initiatives are as follows:
- €270 million in capacity investment for projects maintained in the 2011-2015 ERA to improve customer satisfaction:
• b ased solely on the capacity/traffic adequacy ratio, the S4 satellite would not need to be opened until 2017,
five years after the opening date initially planned. Relative to this scenario, maintaining the initial schedule
for the satellite S4 will require an investment of €253 million between now and 2015;
• t ransformation of terminal F2 at CDG2 into a Schengen-only terminal, together with the opening of the S4
satellite, represents an additional investment of €8.5 million (excluding security);
• p lans to develop a second Airbus A380 boarding lounge at CGD1 as well as one at terminal 2A represent
an investment of €6.5 million and €2.2 million, respectively;
- €332 million investment relating to projects intended to directly improve service quality:
• 2A-2C junction: €55 million (excluding security);
• r enovation of 2A and 2B transport areas and improvements to public access from terminal 2G to the rest of
CDG2: €8 million;
• modification and renovation of terminal 1 transport areas: €18 million;
• pedestrian gallery between terminals 2E and 2F as part of the one-stop security process: €30 million;
• renovation of facades of terminals 2A and 2B: €20 million;
• renovation of AB car parks and public lighting: €18 million;
• reconfiguration of hall B at Orly-South: €4 million (excluding security);
• continued installation of 400Hz and 50Hz power systems in CDG: €7 million;
• budget dedicated specifically to projects to improve service quality: €172 million;
- an €85 million investment into functional improvements as part of renovation programmes:
• €52.5 million for the renovation of terminal 2B;
• an estimated €24 million for the reconfiguration of halls 3 and 4 at Orly-West;
• €8.5 million for the continuation of renovations for CDG1 satellites;
- around €65 million for the cost of studies and the supervision of works (FEST) relating to the aforementioned investments.
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6.3 Structuring and capacity investments
The main structuring and capacity initiatives for the 2011-2015 ERA concern the following points:
- Satellite S4:
Satellite S4 is being built to the east of satellite S3. Connected to the 2E-S3 system by the extended LISA line, it
will be used exclusively for international long-haul passenger boarding and disembarkation operations. It will use
Terminal 2E’s "city side" resources (check-in, baggage delivery, border crossing, etc.) and make it possible to accommodate 16 wide-body aircraft in contact, including seven Airbus A380s (as well as its future longer 900 version). It
will increase the capacity at Paris-Charles de Gaulle terminals by around 8 million passengers a year.
For Air France and the SkyTeam alliance, satellite S4 is a key element aimed at improving the performance of the
Paris-Charles de Gaulle hub. For Aéroports de Paris, it is essential for the company’s development and offers the
prospect of a significant increase in the quality of service offered to passengers. Satellite S4 will have an innovative
and high-performance shopping and service area (nearly 5,000 m² of shops, bars and restaurants eventually) with
integral waiting areas to optimise commercial revenues.
Satellite S4 is scheduled to be put into service in the third quarter of 2012.
In addition to the 100,000 m² building, the operation includes:
• technical link (via an underground tunnel) with Satellite S3;
• preparatory operations, which began in 2008, making it possible in particular to free up the site;
• t he construction of a 60-metre high “traffic area” observation post to control aircraft movements in and
around parking places to the east of CDG2;
• c onstruction of aeronautical infrastructures linked to the satellite (taxiways, 16 wide-body aircraft stands,
service roads);
• extension of the LISA line;
• infrastructures (galleries and rooms) necessary for baggage processing (routing and sorting of incoming
baggage) at this level.
The final cost of the satellite is estimated at €560 million (2010 euros) excluding FEST (studies and work controls)
and security.
- The A-C junction:
The creation of this connecting building between Paris-Charles de Gaulle terminals 2A and 2C will make it possible
to group all the control functions together, create new retail and service space, as well as offices and lounges for the
airlines.
Given the layout of the premises, connecting the two boarding halls will make it possible to:
• handle all emigration check points of terminals 2A and 2C at a single location,
• h andle all security check points of terminals 2A and 2C at a single location, including controls for connecting
passengers;
• p ut into service several hundred square metres of retail floor space, seeking as much as possible to attain
the optimum conditions defined by retail experts;
• free up areas to be assigned to offices and airline lounges or new services, in public or customs areas as
required.
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The operation comprises three stages:
• freeing up of the site (construction of the "CDGA" operational unit building, deconstruction of the Kbis tower);
• creation of the connecting building;
• associated adaptation of terminals 2A and 2C.
P reparatory work (networks and deconstruction of the Kbis tower) was carried out during the first half of 2009.
Commissioning is planned for the second quarter of 2012, for a total amount of €71million (2010 euros) including
€16 million in security budget.
- In the more general framework of the baggage development plan of the Paris-Charles de Gaulle platform, the
increase in baggage sorting capacity at the east of CDG2 will accompany development of the hub’s traffic and
installations: development of check-in and departure sorting capacities linked to the transfer of traffic from terminal
2F2 to the unit 2E-S3-S4, and development of transit baggage processing capacities;
- T he development of aviation equipment and infrastructure by continuing to improve runway infrastructure
safety at Paris-Charles de Gaulle, in particular by means of the Runway Status Light (RWSL) and redevelopment of
threshold 08: the objective of this second initiative is to simplify the geometry to the access threshold access for
enhanced legibility and safety, as well as creation of 4 new de-icing bays. These projects will make it possible to
support expected growth in the capacity to programme movements offered by air navigation services. There are also
plans to develop the service roads network and create systems making it possible to limit the risks of crossing aircraft
taxiways.
- T he development of the water distribution and treatment system (drinking water, wastewater and rainwater) in conjunction with development of the platform, particularly with commissioning of the future satellite S4
- An additional measure to strengthen runway 3 of Orly planned in 2015.
6.4 Restructuring investments
Restructuring projects include major renovation operations for existing infrastructures which are aimed mainly at adapting their performance or physical configuration to meet new commercial and operational requirements or changing
customer demands.
They represent one of the main drivers for improving customer satisfaction.
The main operations envisaged are as follows:
- T he renovation of CDG1 satellites: this renovation, in line with a programme drawn up for each satellite based
on a criticality analysis identifying priority actions to be implemented, should be finalised by 2014.
- T he refurbishment of terminal 2B: this operation involves equipping terminal 2B with boarding and disembarkation circuits compliant with current standards. This reconfiguration will be accompanied by technical renovation
improving energy efficiency and will seek to improve the commercial offer.
For the technical part, work to be carried out will be determined using the same method (called Maestro) as for the
CDG1 satellites: systematic referencing of the obsolescence of installations and evaluation of the criticality of risks
created by the ageing of each component. The main thrust of this renovation will be to improve energy efficiency.
The functional part consists in restructuring the boarding area, which is the point on which – whether in terms of
service quality, security or commerce – the current configuration presents the most serious faults. Correction of these
faults should give the air terminal a level of efficiency and services on a par with more recent terminals.
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The key points of the project are:
• merging the security control points into one unit
• c reating a boarding and shopping area of between 5700 m² and 8500 m2 according to options, divided
into a Schengen area and an international area (according to options this development could allow up to a
twofold increase in the current floor space of 1300 m² for shops, bars and restaurants in terminal 2B)
• one or two check-in areas
t this stage studies are in progress for stages subsequent to the preparatory phase completed in 2009-2010. The
A
aim is to complete this renovation in the 4th quarter of 2015.
- T he technical renovation of terminals 2A and 2C: terminal 2A has already been renovated at a functional
level, for example in its shopping area. The obsolescence of its technical facilities can be likened to that of terminal
2B for which complete renovation is planned. Work carried out during operation to reduce the obsolescence of its
technical installations is planned from 2011. The same applies to terminal 2C to a lesser extent, since this module is
more recent than module A. This work will provide an opportunity to improve the energy efficiency of these terminals.
- T he technical and functional renovation of terminal 2D: The launch of this project is planned after a period
of closure, made possible thanks to the capacity contributed by the opening of satellite S4 in 2012. More specifically,
the start of work to renovate terminal 2D will be based on a countdown schedule, to allow it to be reopened as required by future changes in traffic levels. In the light of traffic scenario prepared by Aéroports de Paris, the renovation
work is expected to commence at the start of the 2016-2020 ERA.
- The restructuring of halls 3 and 4 in the Orly-West terminal:
This major operation to renovate the halls should begin in 2012. The project includes at this stage:
• unifying boarding, providing flexibility between the International and Schengen systems;
• improving flow management and pooling resources thanks to one single check-in area, as well as reserves
for increasing the number of contact stands;
• improving the commercial offering by creating additional space;
• improving the security of the baggage delivery circuit.
6.5 Budgets reserved for quality of service, retail and sustainable development
To ensure better visibility for its actions and to ensure continuation of priorities outlined in its investment programme,
Aéroports de Paris has decided to identify, among operations other than those related to structuring, capacity and
restructuring investments, three dedicated budgets earmarked respectively for quality of service, businesses and sustainable development.
- A budget dedicated to quality of service, totalling €132m over the 2011-2015 ERA;
The approach aimed at improving customer satisfaction is based on priorities identified by the company as
likely to lead to significant improvement actions in the years to come.
In support of this collective ambition to make significant progress in customer satisfaction, the company
has chosen to set aside a share of the investment budget to be allocated specifically to the improvement of
customer satisfaction.
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In particular, this dedicated budget should only be allocated to fund measures that fall within the framework
of the Customer Satisfaction programme in keeping with priorities set out by the company, a few examples
of which are listed below:
• Improve passenger orientation and information at terminals, car parks and access areas;
• Control the overall atmosphere (comfort, cleanliness) in terminals and car parks;
• Focus on developing high standard facilities and services;
Using a grid of selected criteria, initiatives that will have a significant beneficial effect on customer satisfaction
have been identified in line with the above objectives.
The following criteria are used to determine whether an initiative qualifies for this investment:
• meets customer expectations (reassurance, comfort, positive experience, etc),
• addresses "unacceptable" situations,
• promotes uniform service standards and cross-functionality, notably due to the creation of standards,
By way of illustration, the following operations are currently being financed by this type of budget:
• s moother transit procedures and reassurance of passengers in terminals 2E/2F. This type of action will be
repeated in 2010 throughout Aéroports de Paris terminals and will focus on signposting inside terminals,
information and comfort,
• improved comfort and seat availability both in public areas and boarding lounges,
• b etter and more standardised information in car parks;
For the year 2010 and subsequent years, priority will be given to operations aimed at standardising facilities and
services: toilet blocks, lighting, car parks and facilities linked to control areas are examples of such investments.
- A budget dedicated to retail, totalling €59m over the 2011-2015 ERA;
The allocation of this specific budget is aimed in particular at accelerating the launch of projects relating specifically to retail, with the twofold objective:
• o f supporting growth in retail fees through targeted operations complementing major projects (S4, AC junction, terminal 2B in particular);
• o f improving the positioning of Aéroports de Paris in terms of international benchmarks, particularly as
regards bars and restaurants.
The implementation of this dedicated budget will make it possible in particular to:
• enhance Aéroports de Paris’s responsiveness over high leverage operations;
• e ncourage the development of projects outside the framework of large structuring projects through the
introduction of a special "task force";
• ensure a budgetary allocation that is not in competition with the company’s other projects.
The main commercial improvements intended to be carried out under this budget are as follows:
• creation of new commercial floor space;
• o ptimisation of commercial areas of varying efficiency: repositioning of shops in the passenger flows and the
coherent development of space to allow the inclusion of new brands;
• c ommercial areas improved and maintained to the highest standards (replacement of worn and ageing
materials, quality of lighting, shop signposting, etc).
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Projects likely to gain access to this budget will typically be as follows:
• opportunist projects (completion time less than one year): creation of new commercial premises in available sites;
• r estructuring projects intended to reorganise areas that are poorly designed, poorly served in terms of water
supply and structurally dysfunctional;
• projects designed to reallocate floor space that is well placed but not used for retail to date;
• p rojects designed to bring commercial areas up to the highest standards by improving the ambience and
the customer experience: interior design, quality of lighting, rapid zone maintenance (change of directory
immediately after the arrival of a new business, etc).
By way of illustration, the following are some examples of projects expected to be approved shortly for this
budget:
• Terminal 2F1: installation of a leading chocolate retailer (short term);
• reorganisation of the offer in the public area of Orly-West (completion in 2013);
• o pening of a fast food chain in the public area and a Food Court in the international area in Orly-South
(2011);
• s ignposting for the luxury area of the passageway of terminal 2E and upgrading of lighting in the commercial areas of terminal 2E and satellite S3 (completion in 2011).
- A budget dedicated to sustainable development, totalling €39m over the 2011-2015 ERA;
Consideration shown by Aéroports de Paris for the problem of sustainable development is demonstrated by
strong undertakings both as regards environmental policy and in the fields of economic and social cooperation
and societal responsibility.
In the field of the environment it is time to take a new step, placing ambitions on a par with national, European
and global challenges which are currently being assimilated by the company’s management (Grenelle law,
Copenhagen summit, etc). In addition, the appearance of provisions of the climate-energy contribution type
requires a new approach in terms of the production, distribution, metering and optimisation of installations to
take account of associated environmental challenges and economic constraints.
With regard to airports, the dual constraint of acceptability and attractiveness imposes an environmental policy
that is not only exemplary, but also innovative and ambitious: renewable energy, the preservation of water
resources and biodiversity, the optimised management of energy, waste and resources require an investment
programme that will guarantee compliance with all procedures and place the company in a prominent position
as regards the challenges of climate, local governance and more generally the well-being of its customers,
employees and partners.
To attain these objectives, the company has identified:
• s tructuring investments: to gradually attain BBC performance26 on new installations (65KWh/m²) and significantly optimise the energy efficiency of renovated installations (for example -35% for the renovation of
terminal 2B), to replace certain industrial energy-producing equipment with more efficient equipment, to
improve rainwater management systems;
• s pecific high leverage investments within the budget dedicated to sustainable development: optimisation
of metering methods used throughout the site, development of decision-making tools to optimise
consumption, introduction of site improvement plans to ensure rapid implementation of the conclusions
of energy audits that will be undertaken, significant increase in the share of renewable energy consumed
(geothermal works at Paris-Orly, study in progress at Paris-Charles de Gaulle for the installation of a biomass
plant, installation of refrigeration-heat pumps), upgrading of transport to clean electric or hybrid vehicles.
Low energy consumption buildings
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6.6 Real estate investments
Aéroports de Paris plans to allocate an investment of €284m (excluding FEST) over the period 2011-2015 to operations
developing real estate activity, a very significant acceleration compared to the 2006-2010 period (€185million). These
important resources convey the company’s objective to implement an ambitious real estate policy as one of several
priority strategic actions.
This budget would relate very largely to acceleration of the development of real estate activities in the field of diversification:
- € 204 million would be allocated to diversification (excluding current investment), including €42 million for development of the Cœur d’Orly area.
- €80 million would be set aside for airport real estate.
This ambition is supported by actions taken over the recent period that have allowed the gradual strengthening of
teams, the freeing up of land (nearly 100,000 m² of demolitions), the production of land and the securing of permits
(archaeological diagnostics, securing of consent for offices, revision of town planning documents, etc), but also the
preparation of large-scale projects such as the Cœur d’Orly business centre, with the approval of planning permission
for 73,000 m2, and the Aéroville shopping centre at Paris-Charles de Gaulle.
This ongoing work makes it possible to look ahead with confidence to the period covered by the 2011-2015 ERA,
which will be characterised by the gradual introduction of products with high added value, including:
- o perations linked to freight with new first and second front installations, to which will be added the preparation of
third front and TGV Freight operations as part of the CAREX project;
- o perations allowing the implementation of a real estate strategy based on the Airport City concept at Cœur d’Orly,
Aéroville and Roissypôle:
• increased diversification operations: shops, hotels, offices,
• quality of public spaces: green spaces, user-friendliness, etc.
• continued investments in partnerships and property acquisitions;
- lastly, a determined asset management policy commensurate with an asset manager in charge of a real estate portfolio of more than one million m2, characterised by the renovation of assets, their restructuring and their accelerated
development.
Focus on the development of freight-related real estate activities:
The development of real estate products related to air freight activity is directly linked with far-reaching restructuring
of the logistics chain, accelerated by the current difficulties in the sector.
Air freight is increasingly characterised by the emergence of global and multi-modal players, and the concentration and vertical integration of the logistics value chain.
The competitiveness of the Paris-Charles de Gaulle platform for its part is based on the heightened importance
of just-in-time and the aspect of choice of frequencies and destinations linked to the Air France and
FedEx hubs.
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Economic Regulation Agreement 2011-2015
6 Investment programme
Recent difficulties and the decline in transported volumes have highlighted the need to optimise operator cost prices
and projects to regroup in single, multifunctional sites.
These concentrations will increasingly have to take place as a priority at the airport which allows a
concentration of "front office" (handling, forwarding) and "back office" (short-term storage, transport and logistics)
activities in a single border building with direct access to the reserved area and aircraft stands. Indeed, "on-airport"
repositioning significantly improves operators’ immediate results by reducing their fixed property costs and operational
costs linked to multi-site operation.
Lastly, the visibility of the freight and logistics real estate offer of Aéroports de Paris, and also the active accompaniment
of those involved, has made it possible to limit the impact of the crisis in terms of rental vacancy, to increase the
size and competitiveness of forwarding agent establishments already present and to prepare for the
continued establishment of major forwarding agents not present.
At Paris-Charles de Gaulle, in a context marked by rapid changes to operators, the real estate development policy of
Aéroports de Paris in terms of freight and logistics will therefore be based on three additional factors:
- R
estructuring of space in the existing freight area: 17 hectares can be reassigned in the medium term to
create an active first front offer, including a new general purpose air freight terminal and the extension of existing
capacity (for a total of 23,000 m²; according to demand) and a passive offer (for a potential capacity of 34,000 m²);
these products will be assigned as a priority to the redeployment of the first front activities of forwarding agents and
handlers already present;
- D
evelopment of the real estate reserve of 12 hectares in freight area 5-6: products installed (for a potential capacity of 35,000m² of border air terminals) will primarily be situated in the passive first front and second
front, to meet the needs of the activities of forwarding agents and short-term storage for pre- and post-routing of
handlers present;
- S tudies and investments allowing future development of the real estate offer to allow the development
of FedEx and the arrival of new operators, in particular as part of the CAREX project; indeed, the recovery of organic
growth of trade over the medium to long term, particularly the Asian dimension, but also the dynamic specific to
CAREX, should generate additional requirements.
At Paris-Orly, the stability of tonnage involved (100,000 t/year) and the concentration of operators in 2009 a priori
greatly limits development operations that can be envisaged. Despite everything, the accompaniment of restructuring
by Aéroports de Paris customers and the freight area, as well as the demolition of obsolete buildings no longer meeting
requirements, may legitimise new investment operations as and when it is timely to do so.
6.7 Security and safety investments
Coming under the heading of airport tax financing, the runway safety (SSLIA and prevention of animal hazards) and
security missions (security screening of passengers and hand baggage, security screening of hold baggage, controlled
access to reserved areas), and measures carried out as part of environmental controls and cross-border control automation (PARAFES project) would be allocated an investment budget of €172million including VAT (VAT non-recoverable on these activities) excluding FEST.
The priorities for security investments concern the following areas:
- purchase of equipment linked with the commissioning of new facilities: CDG2 east baggage sorting systems;
- rationalisation of the security screening process for hold baggage (continued integration of equipment for security
screening of hold baggage in processing lines, continued development of multiplexing);
- continuing the video surveillance programme in the security field;
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- u pgrading facilities to meet standards (flow management, non-return conveyor belts, hold luggage inspection equipment, etc.);
- w
ork to optimise passenger security screening systems, relating in particular to the AC junction, terminal 2B, terminal
2F and halls 3 and 4 of Orly-West;
- continuation of the PARIF programme (road check stations outside the terminals);
- t he changeover to standard 2 for hold baggage security screening equipment between now and 2012, then gradual
implementation of the programme to integrate standard 3 norms.
6.8 Current Investments
These investments include the following typologies:
- renewal operations:
- These operations contribute to ensure renovation and replacement of existing, defective or end of life equipment;
- T his helps to improve the quality of facilities provided for passengers in the terminals, in particular with replacement
of electromechanical equipment placed at their disposal;
- In terms of aeronautical and roadway infrastructures, renewal investments allow Aéroports de Paris to ensure their
regular upkeep and keep their ageing in check;
- P art of the energy production facilities also needs to be renewed and current investments over the period include
converting the superheated warm water heating network to warm water for heating;
- L astly, these investments also make it possible to cover the renewal of equipment and ongoing improvements made
to the various IT software packages;
- safety operations:
- These
operations make it possible to secure facilities and protect goods and people, by replacing facilities or bringing
them into line with standards, and more specifically those relating to fire safety;
- facility optimisation operations:
- These operations enable highly targeted improvements to be made to the performance of existing facilities:
• optimising passenger flow in the terminals in order to limit congestion,
• optimising technical facilities in order to improve resilience faced with deteriorated situations.
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Economic Regulation Agreement 2011-2015
6 Investment programme
The following is a breakdown of programmed investment budgets between different company units:
A special effort has been made to control the budget for these investments whilst ensuring compliance with safety
obligations and with a view to maintaining the condition of existing installations. Thus, these investments correspond
on average to around 1% of the re-evalued net assets of the site concerned.
6.9 Proposed investment realisation indicators
Aéroports de Paris proposes that the investment realisation indicator followed under the 2011-2015 ERA should be
that which retraces the completion calendar of high-stake operations (see section 5.5.1) and be associated therefore
with the financial incentive system outlined in section 5.
6.10 Financing of investments
The company’s financing is analysed on an overall basis, spanning all activities, as the Group’s liabilities are not
segmented by type of activity. This approach is also consistent with that used by credit and equity research analysts
concerning the Group’s credit rating and the valuation of its weighted average cost of capital, respectively.
The planned investment flow profile for 2011-2015 coupled with the scenario of fee moderation would lead to a peak
in net debt of around €2.8 billion in 2012 and 2013, before the reduction in investment expenditure and the increase
in activity bring the level of debt into line with that seen at the end of 2008.
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This change in debt is consistent with the parameters used for the calculation of WACC (see section 2.3).
No significant investment subsidies are included in the Group’s business plan. Moreover, the organisation is not seeking
any investment pre-financing through its fees.
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7. Pricing
proposals
Economic Regulation Agreement 2011-2015
7 Pricing proposals
7 Pricing proposals
One of the main features of the Aéroports de Paris proposal for the 2011-2015 ERA concerns the strengthening of the
company’s pricing competitiveness in terms of fees compared to other major European airports.
This pricing competitiveness is of even greater importance in the current context of economic difficulties affecting the
air transport sector and is an essential lever to set in motion the upward spiral made possible by development of the
company’s regulated scope. It is an integral part of the balanced approach recommended by Aéroports de Paris to
underpin the 2011-2015 ERA.
It is with this in mind that the company has decided to freeze the average level of fees in 2010 (cf. § 3.6) and plans to
continue a policy of moderation throughout the 2011-2015 ERA, particularly in comparison with projected fee changes
for major competitor European airports. This policy, which is one of the basic pillars of the search to increase the attractiveness of Ile-de-France airports, will require important efforts by the company to improve its operational efficiency in
a context where significant investment volumes are still planned, particularly to improve service quality and optimise
the ground operations of airlines.
7.1 Fees subject to the 2011-2015 ERA price cap
In accordance with article R.224-4 of the civil aviation code, the next Economic Regulation Agreement will determine
conditions for increases in the fees referred to as principal fees as well as the most significant ancillary fees, with the
exception of those fees whose price conditions are determined directly by negotiation between Aéroports de Paris and
its customers due to specific services.
Aéroports de Paris proposes that the cap for the average price increase rate should apply to the following fees:
- passenger fee at Paris-Charles de Gaulle and Paris-Orly;
- landing fee at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget;
- parking fee at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget;
- fee for provision of check-in and boarding counters at Paris-Charles de Gaulle and Paris-Orly;
- fee for provision of baggage handling facilities at Paris-Charles de Gaulle terminal 1, classified as centralised ground
handling infrastructure in accordance with article R. 216-6 of the civil aviation code;
- n on-contractual fee for provision of transit baggage handling facilities at Paris-Charles de Gaulle terminal 2, classified as centralised ground handling infrastructure in accordance with article R. 216-6 of the civil aviation code;
- fee for provision of fixed facilities to provide electrical power for the aircraft (400 Hz and 50 Hz) at Paris-Charles de
Gaulle and Paris-Orly;
- fee for provision of aircraft de-icing facilities at Paris-Charles de Gaulle, classified as centralised ground handling
infrastructure in accordance with article R. 216-6 of the civil aviation code;
- check-in and boarding information systems fee ("crews" system);
- fee for accessing ID to restricted areas (badges) at Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget;
- fee for use of shredding stations at Paris-Charles de Gaulle and Paris-Orly, classified as centralised ground handling
infrastructure in accordance with article R. 216-6 of the civil aviation code.
In addition, Aéroports de Paris proposes that in line with (CE) regulation no. 1107/2006 from the European Parliament
and Council dated 5 July 2006 concerning the rights of disabled and reduced mobility persons when they undertake
air travel, the rates for the PRM assistance fee should be determined each year so that the forecast revenues from this
fee cover the costs attributable to this activity.
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7.2 Pricing periods
Article R. 224-4 of the civil aviation code stipulates that the next economic regulation agreement should determine
the successive pricing periods, not lasting more than one year: each period starts on the date when the changes to fee
rates covered by the agreement are planned to come into effect.
To remain consistent with the choices made in the first economic regulation agreement and the calendar of aeronautical seasons, Aéroports de Paris proposes the following successive pricing periods in the next economic regulation
agreement:
- 2011 pricing period: from 1 April 2011 to 31 March 2012;
- 2012 pricing period: from 1 April 2012 to 31 March 2013 ;
- 2013 pricing period: from 1 April 2013 to 31 March 2014 ;
- 2014 pricing period: from 1 April 2014 to 31 March 2015 ;
- 2015 pricing period: from 1 April 2015 to 31 March 2016.
7.3 Proposed average increase in fees subject to the price cap
In light of requests from customers for the marked moderation of fee levels during the current difficult period for air
transport and given the change in the regulated scope and the importance of increasing fee competitiveness over the
long term, Aéroports de Paris proposes to apply a moderate fee increase policy, during pricing periods covered by the
upcoming economic regulation agreement (starting on 1 April 2011), in the interests of improving the competitiveness
of the Paris airports.
After the freeze on the average fee level decided for 2010, this fee moderation policy should result in the following
average trends in fee rates covered by the next ERA, based on a constant range of services:
CPI: Consumer price index (4018E)
7.4 Perspective concerning possible changes in the pricing structure
Under the regulations, changes to the pricing structure are not necessarily covered by the ERA but by yearly consultations and decisions concerning fee changes. Nevertheless, to offer greater visibility of possible orientations of pricing
policy, Aéroports de Paris outlines below some foreseeable areas of change, bearing in mind that the company is closely
attentive to airlines on matters concerning the timeliness of policy and will not make any significant changes until indepth consultations have taken place.
On this point, particular and ongoing attention by Aéroports de Paris is being paid to ensure the appropriateness
of fees in relation to associated costs and to favour, where possible and at the request of the majority of airlines, a
simplification and improved visibility of fee pricing. This concern has also been expressed by several members of the
economic consultative commission.
In addition, strengthening the competitiveness of Ile-de-France airports in market segments subject to strong competition is also one of the company’s key concerns, which must inform any assessment of pricing changes.
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Economic Regulation Agreement 2011-2015
7 Pricing proposals
In terms of simplifying pricing, and at the request of several of its customers, Aéroports de Paris envisages including the
fixed part of check-in and departure desk pricing as well as associated IT services (Crews) on a passenger basis, with
identical pricing for all terminals.
Lastly, Aéroports de Paris proposes, during the 2011-2015 economic regulation agreement, to integrate revenues derived from "origin-destination" outgoing baggage sorting functions with the base for "origin-destination" passengers
of all terminals; the implementation of such integration, which would be subject to prior consultation and opinion
by the economic consultative commission of Paris-Charles de Gaulle and Paris-Orly airports and also to government
approval, would be carried out under condition of neutrality of estimated Aéroports de Paris revenues received in the
lifetime of the next economic regulation agreement.
7.5 Fee modulations
The civil aviation code stipulates that the ERA should set limits to the amplitude and duration of fee modulations for
general interest reasons. However under article R. 224-4 of this code, an ERA cannot set particular limits to modulations aimed at reducing or offsetting impact on the environment.
On this point, Aéroports de Paris introduced in 2009 at Paris-Charles de Gaulle and Paris-Orly airports a new system
of acoustic modulation of the landing fee acting more in the nature of an incentive than was previously the case (cf.
3.6). The introduction of this new system may give rise, after a sufficient period of observation, to an initial assessment
of its application.
7.6 Proposals for price cap adjustment mechanisms
7.6.1 Adjustment linked to traffic
In accordance with the French civil aviation code, the price cap on fee increases as governed by the 2011-2015 ERA
should include an adjustment mechanism based on the difference between actual traffic and the initial forecast. This
adjustment principle is consistent with the fair division of traffic risk between Aéroports de Paris and the airlines, as
well as in keeping with the specific nature of the business model of an airport operator, whose cost structure is not easy
to adapt to business volumes in the short term.
An adjustment mechanism of this kind (known as the "TRAF factor") was introduced in the 2006-2010 ERA with the
following parameters:
- the traffic monitoring indicator was weighted at 60% for passenger activities and 40% for the number of aircraft
movements at Paris-Charles de Gaulle and Paris-Orly airports;
- a n exemption bracket was applied, corresponding to a difference of +/-0.25% in the yearly change in passenger
traffic, within which no adjustments were taken into account;
- b eyond this bracket, 70% of traffic risk, measured by the aforementioned indicator, resulted in a corresponding
adjustment in the maximum change in prinicpal fees for the following year.
This mechanism benefitted Aéroports de Paris customers during the 2007 and 2008 pricing periods. However, due to its
overly volatile and counter-cyclical nature, it proved to be inapplicable in a period of very severe slowdown in activity.
Pursuant to the observations of the airlines and their representatives on the economic consultative commission, Aéroports de Paris therefore proposes an extensive review of the parameters used for the TRAF factor for the
2011-2015 ERA.
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The aim is to make it less volatile, which should lead Aéroports de Paris to take on a larger share of risk than set out in
the 2006-2010 ERA, less counter-cyclical, which would mean it would be possible to avoid implementing it each year,
and also enable it to be a driver for preparing for the future, making it possible to convert it into new investments.
Under these conditions, Aéroports de Paris’s proposal is as follows:
- u se of an indicator weighted according to the basis for the fees subject to the 2011-2015 ERA price cap: 65% for
passenger traffic and 35% for landed tonnage;
- e xemption zone corresponding to a yearly change in passenger traffic of +/-0.5% in 2011 and additional +/-0.25%
in subsequent years;
- beyond the exemption bracket, traffic risk is divided equally between Aéroports de Paris and the airlines;
- effect of the TRAF factor capped at +/-0.5% for the maximum change in tariffs for each period of application;
- t riggering of the first-time application of the TRAF factor on the basis of 2012 traffic, therefore to the 2013 pricing
period;
- p ossibility of converting all or part of a negative TRAF factor into new investment, on the initiative of Aéroports
de Paris approved by the French government after opinion by the economic consultative commission, to finance
initiatives not initially planned in the 2011-2015 ERA and representing a cost equivalent to the unused TRAF factor.
7.6.2 Adjustment linked to service quality
The Aéroports de Paris proposal, based on a bonus/surcharge system, is presented in chapter 5.5. The bonus/surcharge
specific to each indicator would be calculated on a linear basis between the proposed minimum and maximum performance levels (cf. § 5.5.2).
7.6.3 Adjustment linked to investments
The Aéroports de Paris proposal is presented in chapter 5.5 and reprised in chapter 6.9. The methods of calculating
the financial incentive would be consistent with those concerning indicators of satisfaction, equipment availability and
compliance.
7.6.4 Other adjustments
Following the example of stipulations outlined in the 2006-2010 ERA, Aéroports de Paris proposes that other adjustment factors should be taken into account, particularly in the event of legislative or regulatory changes impacting on
the level of costs or revenues of the regulated scope or in the event of changes in the scope of services covered by the
fees subject to the pricing cap (cf. §. 7.1). The principle followed in these respective cases would be that of neutrality
of such events on the estimated margin obtained with the regulated scope.
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8. Growth in
economic performance
Economic Regulation Agreement 2011-2015
8 Growth in economic performance
Growth in economic performance
Aéroports de Paris aims to pursue and strengthen the continuous progress plan undertaken during the 2006-2010 ERA
in terms of productivity and control over operational costs.
This focus will make a significant contribution to the company’s strategic goal of improving its competitive position,
particularly as regards airport fees, for the benefit of users. It is also a necessary counterpart to the adjustment of the
regulated scope due to be introduced in 2011. It will also pursue this focus fully in keeping with its aim of improving
quality of service and customer satisfaction, and with its aim of an approach that is both balanced and incentivising
for the company’s employees.
In accordance with the law, the regulated scope will be adjusted in 2011 by excluding the following activities compared with the current regulated scope:
- D
iversification real estate that is real estate outside the terminal buildings not used for aircraft maintenance, for
ground handling and fuelling operations, for air freight, and for business aviation and general aviation ; based on
the 2008 financial statements, this adjustment involves €131 million of Aéroports de Paris SA’s external and
internal revenue and €309 million in assets (net book value of property, plant and equipment and working
capital requirement on 31 December 2008);
- R etail and service activities such as shops, bars and restaurants, in-terminal hotels, banking and foreign exchange
services, advertising and car rentals; based on the 2008 financial statements, this adjustment involves €250 million
of Aéroports de Paris SA’s revenue and €169 million in assets.
Given the current economic conditions affecting air travel on the one hand and this substantial change in the regulated
scope on the other, Aéroports de Paris is proposing to treat the 2011-2015 ERA, from the point of view of the criteria
of return on the capital employed in the adjusted scope, as a transitional ERA.
Accordingly, the proposal made by Aéroports de Paris, in line with its aim of improving price competitiveness, will not
result in a WACC-consistent ROCE by 2015. However, continued efforts in terms of cost control and a downward shift
in the investment cycle should nevertheless put ROCE on an upward track enabling a WACC-consistent ROCE to be
aimed for during the 2016-2020 ERA.
The diagram below shows ROCE projections for the new regulated scope during the 2011-2015 ERA.
Trends in ROCE for the regulated scope (2008-2015) and 2010 pro forma after scope adjustment
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8.1 Trends in operating costs for the adjusted regulated scope
The efforts of Aéroports de Paris to control operating costs and improve productivity will be reflected between 2010
and 2015 in a stabilisation of regulated scope costs per passenger in current euros, excluding depreciation
and taxes, leading, in real terms, to a performance gain, based on inflation assumptions (1.75% increase in the consumer price index per year taken into consideration).
Trends in operational costs for the regulated scope (2010-2015) 2010 pro forma after scope adjustment – in current euros
Trend in operational costs per passenger in constant €
for the regulated scope (2010-2015) - 2010 pro forma after scope adjustment
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Economic Regulation Agreement 2011-2015
8 Growth in economic performance
Productivity
Between 2010 and 2015, Aéroports de Paris would forecast an average 2.0% a year reduction in headcount
across the Aéroports de Paris SA scope, in respect of current social rules. This average trend will be about the same
across the regulated scope.
It is envisaged that this prospect will be accompanied consistently by the progressive evolution of jobs and skills within
the company, thus allowing for performance gains while strengthening Aéroports de Paris in its major strategic priorities, which are mainly the improvement of the quality of service and the steering of its external costs.
Operating costs
Efforts to improve productivity will also be accompanied consistently by strict control over other operating costs,
with a special focus on reducing energy consumption and controlling subcontracting costs, with no detrimental effect
on the service level targets.
The main drivers will be:
1. the harnessing of synergies from the partnership formed in autumn 2008 with the Schiphol group ("HubLink"),
particularly in order to:
- Adopt best practices in supply chain and subcontracting management;
- Reduce the cost of acquiring new technologies through joint development and purchasing;
- O
ptimise airport operations: Pool purchases and set up a dual hub offering consistent services to airlines
and passengers in terms of service level and innovative solutions; in particular, this approach will allow for
collective purchasing.
2. Aéroports de Paris’s commitment to significantly reduce its carbon footprint through better control over energy
consumption:
- T he business plan aims to reduce the energy consumption of existing facilities, mainly by renovating the
oldest terminals;
- The geothermal project at Paris-Orly airport will play an active role in developing clean energies;
- Real estate development will henceforth promote the construction of low energy consumption buildings
(in line with the requirements of the Low Consumption Building label);
- New airport buildings such as the S4 satellite and the terminal A/terminal C junction will comply with HEQ
(High Environmental Quality) standards.
3. Effective management of subcontracting clearly directed at service quality and cost control, with a focus on:
- Cleaning and transport services through appropriate steering of subcontracting while maintaining a high
level of quality of service ;
- Optimising the facilities maintenance process based on European best practices;
- A cost control programme for all other external services.
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8.2 Trends in revenue of the adjusted regulated scope
Growth in aviation revenue averaging 7.1% a year during the 2011-2015 ERA would be a combination of
passenger traffic growth of an average of 3.2% per year, proposed price increases of 3.13% (including an assumed
+1.75% inflation), and structural effects such as the opening of new capacity and trends in the traffic mix.
Growth in non-aviation turnover, of the order of an average 3.7% a year, would result chiefly from growth in
revenue generated by car parks, industrial services, airport related real estate activities and in-terminal rental activities.
The regulated scope also sells various services to other parts of Aéroports de Paris SA (internal sales) and particularly:
- The provision of administrative and maintenance services to the safety and security function (airport tax);
- Letting airport premises to cross-functional administrative and technical support departments and the provision of
energy to diversification real estate;
- Provision of research and works to the abovementioned cross-functional departments and diversification real estate.
Trends in regulated scope revenue (2010-2015) - 2010 pro forma after scope adjustment
Aviation revenues
As Aéroports de Paris’s goal is to improve the price competitiveness of its airports through moderate increases in airport
fees, growth in aviation revenue will average about 7.1% a year from 2010-2015.
This takes account of Aéroports de Paris’s proposal to moderate its price increases in order to improve its
competitive positioning. After a freeze in 2010 of the average level of charges covered by the 2006-2010 ERA,
charge levels covered by the 2011-2015 ERA would increase, given an unchanged scope of services, by 1.38% per
year above inflation (cf. § 7.3).
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Economic Regulation Agreement 2011-2015
8 Growth in economic performance
Growth in revenue generated by the main charges will average 6.7% a year, driven by a combination of the
following factors:
- 3.2% forecast average annual growth in passenger traffic;
- average annual price increases of 1.38% above inflation (inflation rate assumption 1.75% a year);
- improvement in passenger traffic structure and average weight on landing;
- in terms of offering, commissioning of the new contact stands linked to the new S4 satellite due to be opened in the
third quarter of 2012;
- c onversely the improvement over time in aircraft noise performance, which has an adverse impact on trends in
landing fee revenue.
Growth in ancillary fee revenue, covering ancillary charges set by Aéroports de Paris and contractual fees agreed with
some customers (e.g. baggage sorting systems for SkyTeam), will average 8.9% a year.
Growth will be driven by the gradual commissioning of new baggage handling facilities leased to Air France, between
2012 and 2015.
As regards other ancillary charges, the forecast growth of 6.6% stems from the volume effect, the price increases
described above, development of the service offering (notably 400Hz) and the fact that financial reporting now takes
into account the shift in all of the current revenues from check-in desks and the associated IT (Crews) on a passenger
charge basis as of 2011, in line with the assumption presented at § 7.4.
Other changes in the pricing structure for ancillary fees, such as those referred to within this document (cf. § 7.4), have
not been taken into account within these simulations. Their financial impact on the 2011-2015 ERA would be marginal
if not neutral in nature in any case.
Trends in aviation revenue (€m in current euros) for the regulated scope
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Non-aviation revenues
Non-aviation revenues for the adjusted regulated scope comprise rental revenues (which in turn consist of revenues
from in-terminal rental activities and those from airport related real estate) and miscellaneous services (business
centres at terminals, ADP lounges, etc.), revenues from public and subscription car parks, and revenues from industrial
services provided for real estate customer and terminal tenants, including the sale to EDF of electricity co-generated at
Paris-Charles de Gaulle airport. They also comprise revenues from miscellaneous services, including those provided on
a contractual basis for the air navigation services department, development and equipment works for tenants, certain
specific services (n°1 access, rebilling of shuttle bus charges, inter-companies restaurants, medical centre, etc.).
The efforts made by Aéroports de Paris with regard to its non-aviation activities should result in an increase in associated turnover of an average of 3.7% a year for 2010-2015:
Non-aviation revenues for regulated scope (€m, current euros)
This robust growth should be driven primarily by revenue from rental activities, which are expected to increase by an
average of 4.1% a year thanks to:
- A
irport related real estate, which should benefit from the development of new capacity at cargo terminals and in
buildings relating to ground handling activities, new parking stands for FedEx and sustained and complementary
efforts to renovate assets in order to put or put back on the market products meeting the expectations of Aéroports
de Paris’s customers (cf. § 6.6);
- T he commissioning of new terminal facilities (S4 satellite) and robust growth in traffic expected during the second
part of the 2011-2015 ERA, generating additional needs for tenants at terminals;
- Taking into account a 2.5% change per year in the rental index in financial valuations starting from 2011.
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Economic Regulation Agreement 2011-2015
8 Growth in economic performance
Growth in other non-aviation revenues (car parks, industrial services and other revenues) of an average of around
3.3% a year reflects Aéroports de Paris’s efforts to offer its customers high quality services at reasonable prices:
- T he improvement of the standard of service at car parks would not result in any particularly significant change in
pricing given the price positioning already achieved; furthermore, in terms of volume of activity, the policy of streamlining the number of company subscriptions and the trend seen towards loss of market share by individual cars as a
way of transporting passengers at airports is likely to lead to average annual growth in turnover of just under 4%
a year;
- C
ontrol of energy production costs should partly benefit tenants and the agreement with EDF to purchase electricity
co-generated at Paris-Charles de Gaulle airport expires in 2013;
- A
range of effective services (n°1 access, dedicated shuttle services, development and equipment works for tenants)
with the aim of ensuring appropriate and shared prices.
8.3 Regulated operating profit and regulated asset base
Thanks to the major efforts planned relating to costs, operating profit for the adjusted regulated scope
should increase at a steady pace and benefit from robust growth in traffic as of 2013 and pricing trends for fees
in the second part of the 2011-2015 ERA.
The regulated asset base is likely to see very moderate growth, due to a combination of:
- An investment down-cycle, with a significant slowdown in expenditure as of 2013;
- A significant reduction in the negative working capital requirement, consistent with the investment down-cycle.
This rate of growth in regulated operating profit and the limited increase in the regulated asset base should result in
relatively weak growth in regulated ROCE up to 2013, followed by acceleration in growth up to an
estimated 5.4%, which is nevertheless still below the WACC target.
Regulated asset base and operating profit for regulated scope (2008-2015) pro forma 2010 for adjusted scope
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8.4 Sensitivity analysis
A sensitivity analysis of the 2015 ROCE for the adjusted regulated scope, given the main proportionate parameters of
the business plan, is set out below:
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9. Conclusion:
A balanced proposal
Economic Regulation Agreement 2011-2015
9 Conclusion: A balanced proposal
Conclusion:
A balanced proposal
Aéroports de Paris’s proposal for the 2011-2015 ERA, which falls within the framework of adjustment of the regulated
scope stipulated by the civil aviation regulations, is therefore based on the following balanced options, defined following the initial consultation phase with the airlines that has been going on for several months:
- p riority will be given to a decisive improvement in service quality and customer satisfaction, thanks in
particular to renovation of the oldest terminals, optimisation of existing capacity and development of services;
- a n investment programme reflecting the move to a down-cycle, with planned investment of €1.76 billion in the
regulated scope, while still maintaining strategic operations;
- e nhancement of Aéroports de Paris’s price competitiveness to the benefit of its customers by means of a moderate fee increase policy. Following a freeze in 2010, fees will gradually increase between 2011 and 2015 by an
average of 1.38% above inflation each year and at constant range of services;
- in order to support this ambition, significant efforts undertaken by the company to help to improve its financial
performance, by means of major productivity gains and a high level of discipline in controlling operating expenses;
- a traffic scenario based on a gradual upturn in activity over a number of years, resulting in an overall average
growth in passenger traffic of 3.2% a year from 2010 to 2015;
- u se of a less volatile traffic price cap adjustment factor that may act as a driver to prepare for the
future; such an adjustment scheme during the 2011-2015 ERA will enable Aéroports de Paris to react particularly
quickly in the event of stronger than expected traffic growth, to implement investments not initially planned in the
2011-2015 ERA;
- a mbitious service quality indicators, to give the most representative measurement possible of the quality of
service ultimately provided to the company’s customers;
- g
reater co-operation with the airlines by setting up a regular monitoring and local collaborative discussion in
each terminal between the Aéroports de Paris’s teams and the airlines.
The Aéroports de Paris’s proposal pragmatically takes into account the special situation of the 2011-2015 ERA which
will be analysed as a transitional ERA from the point of view of the return on the capital invested in the new regulated
scope: through the target of the average weighted capital cost will almost be achieved but not necessarily completely
by 2015, profitability is anticipated to return to the normal average during the next ERA.
Under these conditions, the Aéroports de Paris’s proposal will ensure a transition to the new regulated scope without
a negative impact on airlines’ costs but, on the contrary, by the company’s continued efforts, on its own costs and its
operational effectiveness. In addition, the new regulation system is destined to create a virtuous circle over time by
which the company will be particularly encouraged to make ambitious, constant progress in competitiveness and the
attractiveness of its platforms.
On this basis, the fundamental points of the Aéroports de Paris’s proposals will reflect the company’s
ambition to serve its customers more and more efficiently by constantly improving their satisfaction
and to improve competitiveness and the attractiveness of its platforms for the benefit of airlines as
well as the whole sector and the economic vitality of the Île-de-France.
For information purpose only - French version to be authoritative
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