Aéroports de la Côte d'Azur Group win win relationship with airlines : one step beyond! launch of the “contrat de competitivite territoriale”

Published on 16/06/2015 at 09:17 • Updated on 16/06/2015 at 09:25

The Aéroports de la Côte d’Azur Group announces for its Nice airport : REDUCTION in its airport charges (*) for scheduled commercial airlines during 10 years

Following a proposal made by the Management to the Supervisory Board, the Aéroports de la Côte d'Azur Group announces that it has decided, for the scheduled Commercial Aviation at Nice Côte d'Azur airport, to reduce aeronautical charges as of Winter 2016/2017 (-2.5% on passenger fees) then freeze these new fares over the next nine years. As far as the Summer is concerned, 2016 charges will remain unchanged for ten years (details of the appended “Contrat de Compétitivité Territoriale”).

In parallel, the Group has confirmed its investment projects on the same platform amounting to close to 350 millions euros over the next ten years (2015-2025).
This profound inflection in its pricing strategy, which took almost two years to hone, after fruitful discussions with the Direction Générale de l'Aviation Civile and in particular the Direction du Transport Aérien, was unanimously approved by representatives of shareholders, Member of the Supervisory Board, thus constitutes a firm commitment of the airport over the next ten years, on a like-for-like regulation basis.

Thus, the Group emphasises its commitment to the competitiveness of the air transport sector in France, creating a prime asset for its territory and its attractiveness. Nice-Côte d'Azur airport was already one of the most competitive unsubsidised airports in France, and has thus strengthened its appeal on the European stage for airlines compared to its competitors.
This reorientation is based on a deep conviction: Demand (development of the scheduled commercial aviation network) is elastic and varies according to the level of aeronautical charges AND visibility of the said aeronautical charges. Traffic risk will be fully on airport shoulders.

This will result in a transfer of value to passengers and airlines, estimated to be between 57m and 72m euros over the period (vs a "per 2014 Traffic" based on inflation of 1.5% / year over 10 years - according to the traffic growth scenario). The subsequent traffic growth in volume, especially regarding the international, should compensate the adverse impact of the decrease of airport charges per unit.

This step emphasises a will of actual moderation regarding the airport charges’ increase, in order to re-balance the transfer of values between airlines and airport management companies, for a win-win relationship.
This approach, based on the development of competitiveness AND the transfer of value to airlines, is a first in France and pre-empts a paradigm shift for the airline industry in France. It goes without saying that capacity investments (future extension of Terminal 2 and co-financing of the arrival of the tramway), development of service quality (renovation of Terminal 1 and 2) and the maintenance of potential will of course be maintained.
The aim is also to contribute to declared ambitions to make France the leading tourist destination (business and leisure) in the world, not only in terms of its number of visitors but also in terms of revenues. Aéroports de la Cote d'Azur will contribute to achieving the stated objective to receive 100 million foreign tourists (business and leisure) in France, generating non-relocatable jobs and strongly contributing to the balance of payments.

Our competitiveness is our "duty towards our Territory, its businesses and its citizens, to France and to the Principality of Monaco." We can now offer a long-term visibility to airlines, both in terms of price and service quality.

This new approach will apply for the next ten years to all airlines flying out of and in to Nice-Côte d'Azur and therefore to all airlines - existing or future, in short-, medium- and long-haul traffic.
In addition, the Group is pursuing its systematic efforts to reduce the Safety Tax (usually named “taxe d’aéroport”), paid by the passengers.