Aeroports de Paris falls after Paris CDG expansion announcement
- Aeroports de Paris (AdP) shares fell 4.9% after CEO confirmed no plans to scale down Paris airport expansion despite low demand.
- AdP plans to construct a new terminal, Satellite 4, at Paris Charles de Gaulle airport, increasing capacity to 80 million passengers per year.
- The new terminal is expected to be completed in 2012, despite not being required for approximately ten years due to the global financial downturn.
- AdP decided to proceed with the project to compete with London Heathrow and Madrid airports for stopover passengers.
- AdP is negotiating fee increases at Charles de Gaulle and Paris Orly airports to fund the 2011-2015 investment program, facing objections from easyJet.
- Fraport and BAA parent company Ferrovial also experienced share price declines.
AdP plans to construct a EUR560 million terminal, Satellite 4, increasing capacity at Paris Charles de Gaulle to 80 million passengers p/a. The new terminal is expected to be completed in 2012. According to a Bloomberg report, Mr Graff stated AdP could have postponed the construction but decided to proceed with the project due to increased competition for stopover passengers from London Heathrow and Madrid airports.
AdP is in negotiations to increase fees at Charles de Gaulle and Paris Orly airports to fund the 2011-2015 investment programme. easyJet has objected to the move. The airport also expects 2010 traffic to match last year's levels, when Paris CDG handled 58 million passengers. See CAPA's profile on AdP.
Elsewhere, Fraport fell 3.6%, while BAA parent, Ferrovial, dropped 3%.
Selected airports daily share price movements (% change): 04-Jun-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance