October 23, 2008

Aeroports De Paris, Schiphol Group to Create Long-Term Alliance

European airport operators Aeroports de Paris and the Schiphol Group have announced their intention to create a long-term industrial co-operation alliance and will enter into an 8% cross-shareholding agreement to create an influential player in the airports industry.

The industrial co-operation agreement would be signed for an initial period of 12 years, and would be supported by an efficient and balanced governance structure to ensure its success.

The alliance between two of Europe's largest airports is expected to generate significant joint mutual benefits in all key business areas. The agreement is expected to improve the competitiveness of both airports through the consolidation of a dual-hub which will offer airlines over 143 destinations and over 30,000 frequencies among all European airport hubs.

The Schiphol Group and Aeroports de Paris intend to further accelerate the growth and profitability of their retail, real estate and telecoms activities through the exchange of best practices, technology and processes that will increase revenues and reduce costs. The two groups will jointly approach future international airport developments with a key focus on strengthening the dual hub within the SkyTeam network internationally, and with an opportunistic approach in non-SkyTeam zones.

The two airport operators have identified combined revenue and cost synergies of around E71 million per annum on a fully phased basis by 2013, and expect to reduce capital expenditure by E18 million on average per annum from 2013 onwards. The Schiphol Group's CEO and CFO would be appointed to the Aeroports de Paris board of directors, and Schiphol's CEO would be proposed to become a member of the strategy committee of the board.

Aeroports de Paris would acquire 8% of the Schiphol Group share capital through a reserved capital increase, representing a total investment of E370 million. The Schiphol Group would acquire 8% of Aeroports de Paris share capital from the French government at a price of E67 per share, representing a total investment of E530 million.

Pierre Graff, chairman and CEO of Aeroports de Paris, stated: "This co-operation represents a breakthrough transaction in our industry and a unique opportunity to improve our operations and our competitiveness in the new worldwide airport landscape."

Gerlach Cerfontaine, president and CEO of the Schiphol Group, stated: "This move is certain to improve our competitiveness, as well as that of SkyTeam, relative to our competitors in Europe and the Middle East."