Business

Zagreb Airport to Follow Paris Business Model?

By 15 April 2018

French airports make as much as 24% of their profits from selling products and providing services to travellers.

The France ADP Group is managing or is otherwise involved in operations at 26 airports in the world, including, since the end of 2013, a 30-year concession for the Franjo Tuđman International Airport in Zagreb, reports Poslovni.hr on April 15, 2018.

The company is based in Paris, where it operates all three airports: Charles de Gaulle, Orly and Le Bourget. The seat is at the Charles de Gaulle, which is the second largest airport in Europe by the number of passengers, behind London's Heathrow, and the tenth largest airport in the world.

Although the Zagreb Airport can hardly be compared with the primary Paris airport, the fact is ADP, in addition to investing funds in the construction of the new terminals, is continuously transferring knowledge and experience within members of its business group. ADP is using synergies to increase turnover and profits at all its airports all over the world.

In the past 12 years, Zagreb has doubled its passenger numbers, from 1.58 million people in 2006 to almost 3.1 million in 2017. The existing capacity is five million passengers, but ADP and its company MZLZ, which manages the Zagreb airport, are already thinking about increasing the capacity with the second phase of investment, which would enable the airport to receive eight million passengers a year.

At its three Paris airports, ADP services more than 101 million passengers annually, and last year it generated 3.6 billion euros in revenue, with 571 million in net profits. Additionally, Paris is preparing for the 2024 Olympic Games, and some of the most significant investments are planned for transportation improvements. ADP will invest 4.6 billion euros by 2020 to expand and modernise existing capacities.

A large part of the investment, in cooperation with the City of Paris and other stakeholders, is a rapid rail line that will allow passengers from the Charles de Gaulle to reach the city centre in 20 minutes. The airport is already well-connected with rail and road infrastructure, with 45 TGV (fast rail) lines per day linking it to 52 destinations. There are also 40 bus lines and three motorways. In order to serve nearly 70 million passengers annually, with a growth trend towards 100 million, there are more than 28,000 parking spaces at the airport.

The Zagreb Airport can use the experience of Paris. For example, the revenues from air operations comprise just 46 percent of the income of the Paris airports. Commercial revenues and services provided to passengers account for 24% of the revenue.

According to Fernando Echegaray, the director of international operations at ADP, one million bottles of wine and 400,000 bottles of cognac are sold every year at the Charles de Gaulle airport. Likewise, the airport has more different luxury brands, such as Cartier, than there are in Paris. Charles de Gaulle has about 42,000 square metres of retail space at its terminals.

Translated from Poslovni.hr.

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