Aeroports de Paris to go ahead with CDG development
France’s Aeroports de Paris (AdP) CEO, Pierre Graff, stated the airport operator has no plans to scale down its EUR2.4 billion Paris airport expansion plans, despite the additional capacity not being required for approximately 10 years due to the global financial downturn (Bloomberg, 04-Jun-2010). 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. Mr Graff stated AdP could have postponed the construction but decided to go ahead 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. 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.
Aeroports de Paris: “easyJet says we’re over-investing but, on the other hand, if we didn’t go ahead with this we wouldn’t get around to upgrading their terminal … We didn’t really have a choice – even with less traffic we need Satellite 4 to boost our service quality and improve as a hub,” Pierre Graff, CEO. Source: Bloomberg, 04-Jun-2010.
easyJet: “We understand there’s a need for refurbishments, but we don’t believe the traffic forecast justifies the construction of a new terminal. The level of investment is too high for what’s actually needed,” Francois Bacchetta, Country Manager France. Source: Bloomberg, 04-Jun-2010.