Belgrade Airport operator eyes Zagreb counterpart


The operator of Belgrade Nikola Tesla Airport, VINCI Airports, is considering significantly increasing its stake in the majority state-owned Groupe Aeroports de Paris (ADP), which heads a consortium running Zagreb Airport. The French government owns a 50.6% share in the company and is ready to sell its entire stake. An operating licence of between seventy and ninety years will be imposed on any buyer. According to reports, a number of groups have already expressed interest in purchasing the government's stake. However, the favourite appears to be VINCI, which already owns an 8% share in ADP. Ownership of ADP would secure longer-term revenue streams for VINCI as the group will lose a majority of the 5.3 billion euros it collects in annual revenues from its motorway business as French concessions come to an end over the next fifteen years.

The potential purchase puts nearby counterparts Belgrade and Zagreb airports in an interesting position. VINCI has said the Serbian capital will serve as the company's “hub” in Southeast Europe, a geographical area in which it has not operated in the past. On the other hand, ADP Management (a wholly owned subsidiary of Groupe ADP), which is among the two largest shareholders within the consortium running Zagreb Airport, has described it as a "strategic asset" in its portfolio of airports across the world. Furthermore, it aims to transform Zagreb Airport into a regional hub over the coming years. ADP manages a portfolio of 23 airports worldwide, which handle over 240 million passengers per year. VINCI, which runs 45 airports in twelve countries, is now the second largest airport operator in the world, behind Spain’s Aena but has overtaken ADP following its acquisition of Gatwick.

One of the criteria outlined as part of Belgrade Airport's concession process was that the individual bidder could not hold more than 20% of the share capital or voting rights of an airport with more than one million passengers located within a 450 kilometre radius from Belgrade. ADP itself holds a 20.8% share in Zagreb Airport. VINCI's concession of Belgrade Airport will run until 2043, while Groupe ADP will operate the Zagreb Airport concession until 2042. VINCI Chairman and Chief Executive, Xavier Huillard, said, “If there is an opportunity on ADP, we will try to play a role. We are interested in airports. We already have an 8% stake in ADP, which is a nice asset”.




Comments

  1. Bravo France!

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  2. I have also wondered what will this mean for the future relationship between these two airports.

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    1. Wouldn't Vinci be in breach of its agreement then?

      "One of the criteria outlined as part of Belgrade Airport's concession process was that the individual bidder could not hold more than 20% of the share capital or voting rights of an airport with more than one million passengers located within a 450 kilometre radius from Belgrade. ADP itself holds a 20.8% share in Zagreb Airport. "

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    2. I think the two airports would coexist as they do at the moment. I don't think they are direct competition to each other.

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    3. @9:07,
      In tender was "bidder" bu now they are not "bidder" but "user of concession"

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    4. Well yes, I guess they would just look the other way.

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    5. Tender je zavrseno proslo glagolsko vrijeme

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  3. And then VINCI will also have shares in TAV through ADP if they buy ADP. Crazy.

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    1. Yep 46,1%.

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    2. So in that case one company will have shares in BEG, ZAG, SKP and OHD.

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    3. TAV is a Turkish company.

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    4. TAV Airports Holding is owned 46% by ADP.

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    5. Prodace Zagreb TAVu.

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  4. Who are the other shareholders in ZAG consortium besides ADP?

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    Replies
    1. Bouygues Bâtiment International. IFC, Marguerite and TAV. Viadukt d.d. also has shares but the company is bankrupt and trying to (unsuccessfully) sell them.

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    2. Aeroports de Paris Management (20.77%), Bouygues Batiment International (20.77%), Fond Marguerite (20.77%), IFC (17.58%), TAV Airports (15.0%) and Viadukt (5.11%).

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    3. Thank you!

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    4. I'm surprised no one has still bought Viadukt's share.

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    5. How much are they asking for it? Maybe that's the problem?

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    6. They are selling their shares for a minimum of seven million euros (it's a bidding process). I think both attempts to sell the shared have failed. They have been trying to sell them since December.

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    7. "Viadukt's bankruptcy manager, Milorad Zajkovski, said he was surprised that no one had come forward to purchase the shares, especially among those who already form part of the consortium. "

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    8. I think the issue is about the debt.

      "The potential buyer would be required to take on all of Viadukt's obligations within the consortium, including loan repayments. "

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  5. Very interesting. We will see what happens. Vinci is definitely the favorite for ADP but it will probably be a long process since there are many who oppose its privatization.

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    1. Vinci is already the unofficial winner for taking over ADP. The problem like you say is opposition to sale.

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    2. Yes the sale of ADP might go to referendum.

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    3. Only in France would they organize a referendum about selling a state owned company lol.

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  6. Could this be a chance for strategy to somewhat change and ZAG start attracting more LCCs?

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    Replies
    1. That would be good.

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    2. I'm not sure that has much to do with an airport operator. There are a lot of things at play such as how much money is ZAG making, whether there is some deal to protect OU etc.

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    3. Literally all of that has to do with an airport operator.

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  7. I also think that if Vinci buys ADP they might sell some of its assets. Possibly Zagreb to TAV like someone mentioned.

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    1. So ZAG would be totally run by the Turks?!?! Croatian government will never allow that to happen.

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    2. Well TAV has increased its share in ZAG since the consortium took over. Also Zagreb Airport's CEO is from TAV now (no longer from ADP).

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    3. It wouldn't totally be run by the Turks. If ADP was to sell its stake to TAV is would have a 35 share in the consortium running ZAG.

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    4. But it would be the single largest share holder.

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    5. I suppose that technically, if Vinci acquires 42.1% at least of the 50.6% state part of ADP, it will consolidate it (it owns 8%), BUT ADP already consolidates TAV with its 46+%, so if Vinci "sold the 21% of ADP in ZAG to TAV", it would still be a Vinci asset... There's no such thing as a TAV decision unless ADP (or Vinci) jettisons its consolidating majority in TAV, which they are never ever doing, as it is their (excellent) instrument to grow in the Middle East, which is dephased risk-wise vs Europe.

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  8. Ha and their concessions run almost until the same year.

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    Replies
    1. The Belgrade concession has an extension possibility.

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  9. What I see happening is JU introducing overnight flights to ZAG to feed its western European network.

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    Replies
    1. And JU does not have its western network so it must feed ZAG?

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    2. ? Well they could do it today. No nee to wait for any airport aquisitions :D

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    3. This makes sense, Zagreb would become the long-haul hub while Belgrade would be the LCC one. Perfect combination.

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    4. And what happened after you woke up?

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    5. Even if it becomes some sort of a Balkan hub, ZAG will always remain a seasonal hub at best.

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  10. This could also impact Montenegro concessions.

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    1. Hopefully it won't go to the French. There would just be a huge concentration of French-run airports in the region and potentially in the future all those French operators would be owned by Vinci. It's not good for competition.

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    2. I agree. Let's not forget the franco-turkish consortium at Pristina Airport as well.

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    3. I don' mind. They are doing a relatively good job.

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    4. I think TAV has the greatest chance with Montenegro airports.

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  11. It will be interesting for sure.It´s quite typical for bigger French companies to eat smaller ones.
    That said, if ADP wins the SOF concession then the French will be quite dominant in the Balkans in the upcoming decade at least.

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    1. That makes me think that there is some wider plan in play.

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    2. Has ADP bid for Sofia? What is the status of the tender process? Thanks.

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    3. Yes, they offered the highest concession fee at the Sofia Airport tender.

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    4. ADP offered the highest price for the bid (huge difference compared to the rest) - 33 million euros, followed by Copenhagen Airports - 26 million and Munich Airport - 24 million, Fraport - 21 million and Manchester Airport Group - 20 million.
      Winner is still not announced.

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    5. It's not just ADP it's a consortium consisting of ADP and of course TAV.

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    6. @9.58 When will the final decision be made about the concessionaire?

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    7. It's still unclear but will most likely take at least 1-2 months as the current offers provided will have to be studied. Each concessionaire is offering a different idea e.g. Fraport not demolishing Terminal 1 making it domestic.
      Danes are promising a new terminal by 2024, etc.
      Even if ADP pays the highest price, this doesn't necessarily mean they will win.
      MAG have been studying the airport for more than 2 years and insisting that there is room for many new routes, especially long-haul.

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  12. "is now the second largest airport operator in the world, behind Spain’s Aena"

    wow who would have thought that Aena is the world's largest airport operator!?! Which airports do they manage outside of Spain?

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    1. They don't but they manage 47 airports in Spain and keep in mind they hand;ed 263.7 million passengers in 2018.

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    2. wow impressive.

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    3. It's surprising they never competed in any tender in the region.

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    4. They obviously don't care to make acquisitions outside of Spain.

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    5. Madrid and Barcelona handled 108,063,797 in 2018 so no surprise about the great numbers.

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    6. You forgot PMI and AGP.

      Last year, PMI handled around 30 million passengers, which is really impressive.

      http://www.aena.es/csee/ccurl/792/416/Informe2018_provisionales.pdf

      Barajas is also doing pretty well. 8% growth.

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    7. Must say I'm surprised how busy Spanish airports are. Not just Madrid and Barcelona.

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    8. Not that surprising. Span was the most visited country in the world last year.

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    9. Third most visited:

      1. France
      2. USA
      3. Spain

      But your point still stands.

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  13. The French are coming.

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  14. ZAG needs to further consolidate its role as a regional hub, flights on EK, KE, BA and other premium airlines make it an attractive prize. French know that very well.

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    1. ZAG can't become regional hub having only 200.000 passenger in average per month in first 3 months of the year. It is way too small.

      EK is replaced by FZ during winter months and FZ even reduced flying to ZAG from 7 pw to only 4 pw in next winter season.

      KE during winter months combine ZAG with ZRH due to low LF

      LX flies only easonally to ZAG as well as OK, Norwegian cancelled some of the flights to ZAG, national carrier is in terrible situation, no new airline in ZAG this summer etc.

      And you want it to become regional hub with premium airlines? Yeah, sure

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    2. ZAG has got a lot of catching up to do if it plans to overtake the current regional hub. And its, as you say "premium airlines" model is just slowing down its growth. On the other had, BEG has got it right, with a balanced legacy and LC growth, which in the long run will guarantee diversified growth and continuous rapid expansion.

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    3. With Air Serbia being a LCC now (see INI route openings and position) I would rather say BEG is now more an LCC hub, than balanced between LCC and legacy.

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    4. Them operating subsidized flights from Nis does not make them low cost. But facts matter little to you. Especially since we are talking about Belgrade here. Air Serbia's Nis flights have nothing to do with it.

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    5. Really? Lets see how many people flying from BEG to STR/FRA etc. will opt out to fly INI-HHN/FKT etc in the future for a "sponsored" fare.

      Btw. what makes a LCC? Maybe that FR and WIzz fly to airport that have low handling fees, get subsidies to fly, do not serve anything for free... So what is the difference between those and JU?

      So if Ryanair decides to offer one destination with free food, that are not LCC anymore?

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    6. I'm asking you how is Air Serbia a low cost airline from Belgrade? You are talking absolute nonsense.

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  15. So basically when you it comes down to its there are basically three players in the region - Vinci, ADP and TAV.

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    1. Yes and ADP owns a large potion on TAV and VINCI has a share in ADP which it plans to increase to a majority share :)

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    2. Fraport is present in the region to some extent - Slovenia, Bulgaria and Greece.

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    3. How many airports does Fraport operate in Bulgaria?

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    4. 2 - Burgas and Varna.

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    5. Is Fraport a state owned company in Germany?

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    6. The biggest shareholder is the state of Hesse. Also 32% of the company's owner are registered as "unknown" haha.

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    7. And Lufthansa also has a big share in Fraport. *no conflict of interest there*.

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    8. When you are the main player in the EU the same rules don't apply as to other countries ;)

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    9. I think TIA is also owned by a German company, I am not so sure if it is Fraport though.
      Anyone has any info if the Greeks and the Bulgarians are happy with them?

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    10. BOJ and VAR are completely new airports after Fraport took over.
      VAR already managed to secure winter flights with W6, not to mention TK, OS and S7.
      VAR has a new runway and BOJ will have a bigger terminal by 2022.

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  16. And to think just a few years ago all ex-Yu airport were state run.

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    Replies
    1. Macedonia broke the ice with TAV.

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    2. All in all I think it was a smart decision for SKP, OHD, PRN and ZAG. Jury is still out on LJU. I don't see any major progress since airport was given up for concession. BEG is still too early but plans look promising.

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    3. Although SKP did get a nice new terminal, it benefited the most from Wizz Air which has nothing to do with TAV and would have come anyway - TAV or no TAV.

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    4. TAV provides incentives to Wizz.

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    5. @13:01

      Hilarious.

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    6. Trust me they do. (Anon 15.14)

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  17. Bratstvo i jedinstvo via France.

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  18. Would be interesting what a VINCI-ADP tie up would mean for long haul flight development at ZAG and BEG. in the region only ZAG, BEG and BUD have wide body flightals. No other airport will get long haul flights anytime soon, airports like SJJ, SOF, SKG, SKP,TSR, TZL.

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    Replies
    1. It is interesting that Sofia and Bucharest don't have long haul flights.

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    2. RO gave up on their crazy idea to fly longhaul.

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    3. What ZAG needs are more LCCs. Travelling from Europe to ZAG is generally expensive. A lot of people use BUD as an arriving point and then travel on land to reach ZAG. Only cheap destination from Europe to Zagreb is Germany.

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    4. But why don't LCC's come to ZAG? Too expensive? Is it so more expensive than BEG?

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    5. It is expensive, they don't want to come to terms with any LCC. And they want to protect OU.

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    6. @ Anon 11:52. LCCs dont come to ZAG, because they fly massively to destinations in the same country that are barely a 3 hour car drive away.

      Lets wait and see what impact INI will have on BEG in terms of passnegers choosing to fly BEG-FRA/STR/ for 200€ return if they can go INI-HHN/FKB for barely 50 RT. Lets wait and see ;)

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  19. Стратешки будућим развојем, инвестицијама у Србију и Београд, уз премрежавање ауто путевима и саобраћајном инфраструктуром, Београдска ваздушна лука има предности.
    Док Загребачки аеродром има неупоредиве могућности у сезонским и чартер летовима у Интер континенталном саобраћају. У односу на Београд. Ипак Винцијева инвестиција од једне ипо милијарде евра за аеродром Београд, подстиче
    настојање овог концесионар а за новом аквизицијом.
    Верујем да продужење концесије од још десетак година би
    Било обострано корисно. За ваздушни саобраћај Србије и посебно за Београдски авио саобраћај. Верујем да доста
    људи са блога (и поред блога) ће са непријатношћу читати задњих пар реченица. Ако неко незна ћирилицу, биће му "лакше". Србија је почела добар преображај аеродрома и до некле националне авио компаније. Углавно све околне земље се труде по својој моћи у развоју цивилне авијације.
    Србија неће заостајати. Напротив...
    Радован и пријатељи аеродрома. ✈🌐✈☺✈🌞✈🌍🌏🌎✈🌗✈☺✈ Сиднеј Аустралија.✈

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    Replies
    1. "Верујем да продужење концесије од још десетак година би Било обострано корисно."

      Rodeny, na koju osnovu si to napisao? Nije prošlo ni šest meseci od preuzimanje BEGa od strane Vinci-a?

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    2. Поштовани Чарли 16:40.
      Продужење концесије од десет година би више утврдило и ојачало потпуни капацитет и утврдило развој пословања ваздушне раскрснице на Сурчину.
      Аеродрома Никола Тесла. Једино инвеститори попут ВИНЦИ Еропотс су у могућности да инвестирају милијарду ипо евра. Преобразе цео аеродром, укључујући целокупно пословање и однос у бизнису.
      Србија са неможе сама развијати аеродром са пројектованим капацитетом од изнад 15 милиона путника на годишњем нивоу. Да није тако Србија би дизала кредите... Успорено би развијала. Више би личило на крпљење него на брзи развој. Путујући по свету и пролазећи до сада на преко сто седамдесет аеродрома у задњих педесет година, имам нешто могућности да упоређује разлике и разлоге развоја.
      Лично примећујем да у Србији има много људи који су идеолошки "наоружани" и штитећи шлосера и његову идеологију, упорно тврдећи како нас странци
      "експлоатишу и поробљавању". Интерес Србије није у кредитима које не може да врати, и током времена
      Их не наменски потроши и део сами међу собом опљачкају... Верујем да ће Србија стварати мир и развијати се као развијенији део света. Да се неби одлазило у тај " неправедан и опаки" свет. Основ суштине јесте у могућности и избору! "Шлосерова" идеологија и начин управљања није се прославила.
      То сведочи време од пре 40 година. Од када је он спуштен у рупу на Дедињу. Макар и празан сандук са све деликтом говора...
      Србија је на путу преображаја развоја, али спорог Духовног уздизања.
      Много Вам среће поштовани Чарли.
      До виђења на отварању аеродрома Морава код Краљева на Видовдан, за месец дана.
      Искрено, Радован Маринковић
      Кинга Парк, Сиднеј. ✈☺😇🌞✈🌐✈🌗✈🌎✈🌏✈🌍✈

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  20. this is odd as France is the only remaining country in the EU which is against opening EU-negotiations with new yugo-states (in this case MK).. or its maybe only tactics before the european election.

    btw i would be happy if the french take over exyu airports.

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    Replies
    1. Well this is not so much about ex-Yu. VINCI wants ADP because of Charles de Gaulle snd Orly. It just happens by chance that ADP operates ZAG and VINCI operates Belgrade.

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    2. Kollateralachaden kako kazu svabi

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  21. So we could see some future cooperation between BEG and ZAG.

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    1. In which Universe?

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    2. This one.

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    3. Highly doubt

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    4. I admire the optimism of some people on this forum. They must be from outside ex Yu. Otherwise they would realize how silly their writing seems to the rest of us.

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    5. How would they cooperate? Ok they could fly Serbians to ZAG and Croats to BEG. But otherwise?

      There is hardy any intersection between the two.

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