Italy's Aeroporti di Roma stated (03-Jul-2012) Aelia (Lagardère Services Group) has been selected as the preferred bidder for the acquisition of ADR Retail, representing the end of the selection process for transfer of 100% of the capital of ADR Retail. A price of EUR229.4 million has been offered for 100% of ADR Retail. Aelia will also pay annual royalties equal to 32.5% of turnover. This ends direct management of duty free/duty paid by ADR. The financial resources deriving from transfer will be used to reduce ADR's indebtedness. ADR Retail manages the eight duty tree/duty paid shops at Rome Fiumicino and Rome Ciampino airports, with a total surface area currently amounting to around 3100sqm (reaching 4800sqm by Oct-2012) through a sub-lease agreement with ADR Spa through 31-Dec-2026. In 2011 direct retail activities involved a staff of approximately 250 employees and generated a turnover of approximately EUR92 million with a gross operating margin of EUR37 million. Within the end of the year, the company will start an expansion plan for the sales areas, increasing them by over 50% (approximately 1600sqm more). AdR’s eight stores at the airports are expected to make EUR140 million in annual sales once an ongoing modernisation programme is completed later this year. [more - original PR - LS Travel Retail] [more - original PR - Aelia]
Aelia (Lagardère Services Group) preferred bidder to acquire 100% of capital of ADR Retail
You may also be interested in the following articles...
Qatar Airways and Vueling to codeshare as LCC partnerships establish new models
Partnerships of any kind between Europe's principal LCCs and full service airlines are rare. The new codeshare between Qatar Airways and Vueling builds on the interline deal signed between the two in Oct-2014. Moreover, it marks a further deepening of the relationship between the Doha-based super connector and IAG, of which it now owns 20%. Vueling joins IAG-owned airline British Airways in codesharing with Qatar Airways, but the new agreement is more extensive.
Vueling is now carrying Qatar Airways' QR code on 67 European routes. These routes are from/to Barcelona El Prat and Rome Fiumicino, which are Vueling's two biggest bases, and both served twice daily by Qatar Airways from Doha. The accord significantly expands Qatar's offline network, but the value of this and two-stop connections is difficult to gauge.
Alitalia: "everyone has to pull in the same direction" – ongoing issues, and viability is at stake.
After Alitalia’s board approved the second phase of its business plan on 22-Dec-2016, CEO Cramer Ball stressed the importance of achieving the support of its workforce. He said, “Everyone has to pull in the same direction to make Alitalia a viable, sustainable success story and help the airline achieve its ambition of long-term growth and profitability”. Alitalia suffered strike action from some flight crew in 2016.
Full details of the plan, which has received the support of Italy's government, have not yet been made public. Alitalia's network strategy includes further long haul growth and a reworking of its short haul operation, with an emphasis on feeding long haul via Rome and Milan. Other elements of the plan include cost-cutting, reduced headcount and possible changes to joint venture agreements. Details are to be presented to Alitalia’s workforce in Jan-2017.
Also on 22-Dec-2016, Alitalia's shareholders approved short-term funding and gave management 60 days to begin negotiations with key stakeholders - lessors, suppliers and distribution companies, in addition to trade unions. Alitalia needs their support for deep cost reduction measures, in order to win the long-term financing needed to secure the airline's future.