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Transcript of Management report 2010
MANAGEMENT REPORT 2010
BRUSSELS SOUTH CHARLEROI AIRPORT S.A. ORDINARY GENERAL MEETING, 17/06/2011
2
1/ The Board of Directors
BSCA’s Board of Directors is made up as follows:
Laurent LEVEQUE* Chairman
Valérie LEBURTON Vice Chairman
Jean-Jacques CLOQUET Managing Director
Leonardo BELLODI Director
Alain BELOT* Director
Carlos BOURGEOIS Director
Anne Sophie CHARLE* Director
Christophe CLERSY Director
Marc DENEVE* Director
Antonio DI SANTO* Director
*At its meeting of 18/06/10, the General Meeting ended the terms of the following Directors: Alain Belot,
Marc Denève, Antonio Di Santo, Jean-Pol Fontaine, Dominique Hausman, Jean-Marie Hoslet,
Christophe Jonlet, Laurent Lévêque, Pierre Rombaux, Philippe Suinen, Luc Vuylsteke. At its meeting of 18/06/10, the General Meeting appointed the following as category A Directors, for a
term that will end on 10/12/2014, with the exception of Pierre Rombaux, whose term will expire on
30/09/10: Laurent Lévêque, Valérie Leburton, Anne-Sophie Charle, Marc Denève, Antonio Di Santo,
Georges Dutry, Jean-Marie Hoslet, Anne Prignon, Pierre Rombaux, Philippe Suinen, Luc Vuylsteke. At its meeting of 24/06/10, the General Meeting appointed the following Directors as Independent
Directors: Dominique Hausman, Louis Marie Piron, Leonardo Bellodi.
3
Georges DUTRY Director
Jean-Pol FONTAINE* Director
Dominique HAUSMAN* Director
Jean-Marie HOSLET* Director
Christophe JONLET* Director
Enrico MARCHI Director
Louis Marie PIRON Director
Anne PRIGNON Director
Pierre ROMBAUX* Director
Paolo SIMIONI Director
Philippe SUINEN* Director
Luc VUYLSTEKE* Director
At its meeting of 18/06/10, the General Meeting appointed Christophe Jonlet as a category C
Director, for a term that will end on 10/12/2014. At its meeting of 27/01/11 the General Meeting appointed Christophe Clersy and Jean-Jacques
Cloquet as directors until 10th December 2014, the second of whom has been given the task of the
day-to-day management of the company, as well as the role of company representative by the
Board of Directors after making its decision on 22nd December 2010.
4
2/ Shareholders
Since the Extraordinary General Meeting of 10th December 2009
SHAREHOLDERS NUMBER OF SHARES OWNED
Category A
REGION WALLONNE
loco SOGEPA
3,450
SOWAER 2,815
SAMBRINVEST S.A. 2,390
IGRETEC S.C. 289
Category B
SABCA S.A. 83
Category C
BELGIAN AIRPORT s.a 3450
Number of registered shares 12,477
5
3/ Observations on events in 2010
3.1 Major events in 2010
3.1.1 Launch of the North Taxiway on 8th July 2010
The North Taxiway was launched on 8th July 2010. This major
infrastructure is a vital improvement in terms of traffic control, as
it means that planes no longer have to cross the main runway.
3.1.2 Long-term car park
Completion and opening of a new car park with 1,500 spaces in
May 2010.
3.1.3 Jean-Jacques Cloquet appointed as Managing Director
On 10th December 2010, the Board of Directors elected Mr Jean-
Jacques Cloquet as Managing Director, giving him the task of
managing the company on a day-to-day basis.
6
3.2 Aviation activities
Sales income from airlines (refuelling, excess baggage, ticket sales etc.)
is €4,965, equivalent to €1.90/departing passenger.
Despite a large number of cancellations and diversions this year
following the volcanic eruption, strikes in France, Belgium and Spain,
and terrible weather conditions in December, 2010 saw a 32% increase
in passenger numbers compared to 2009 and the launch of 23 new
connections. Ryanair, Jetairfly and Wizzair continued to grow by
intensifying their presence at Brussels South Charleroi Airport.
In terms of airline companies, we have seen a general rise in the
number of passengers compared to 2009: +32% for Ryanair, +7% for
Wizz Air, +71% for Jetairfly and + 61% for Jet4you.
A total of 182 ad hoc flights were recorded in 2010, broken down as
follows:
- 162 positioning flights,
- 1 extra departure following a technical problem after takeoff (bird
strike),
- 19 ad hoc flights operated by Nouvelair Tunisie, Danube Wings, Adria
Airways, Jetairfly for TV Limburg, TNT & Strategic Airlines.
In 2010, Ryanair introduced 14 new destinations and also changed
flight frequencies, mainly by increasing them. The new destinations
were: Barcelona BCN, Bari, Fuerteventura, Gothenburg, Ibiza, Kaunas,
Krakow, Lappeenranta, Larnaca, Nador, Oujda, Seville, Verona and
Zadar.
Flyonair restarted flights to Pescara and Sicily during the summer of
2010.
Jetairfly launched 9 new destinations, namely Al Hoceima, Algiers,
Antalya, Fez, Heraklion, Istanbul, Rhodes, Tangiers and Toulon. Flights to
Antalya were operated by Freebird Airlines on behalf of Jetair.
7
Air Arabia decided to transfer its flights to BRU from November 2010
because of competition for Moroccan destinations with Ryanair,
Jetairfly and Jet4you, the fact that cargo operations are not possible at
our airport, the absence of a VIP lounge and the constantly falling
prices at BRU.
In terms of passenger load factors for airline companies, the following
changes were observed:
Passenger load factor Jan. - Dec.
2009
Jan. - Dec. 2010 Change Y-1
All airlines 79.98% 77.73% -3%
Ryanair 80.50% 77.08% -4%
Wizzair 78.40% 79.07% 1%
Jetairfly 84.12% 86.83% 3%
Jet4you 77.65% 77.76% 0%
Air Arabia 55.39% 69.59% 26%
FlyOnair 60.72% 59.80% -2%
Freebird Airlines - 86.04% -
8
In terms of airline companies’ market share, the following changes
were observed:
2005
2006
2007
2008
2009
2010
Number of
passengers
1,873,651
2,166,915
2,458,980
2,957,026
3,937,187
5,195,372
Total number
of movements
61,212
66,480
70,725
79,487
81,726
80,009
Market share Jan. - Dec. 2009 Jan. - Dec. 2010
Ryanair 82.54% 82.73%
Wizzair 9.66% 7.86%
Jetairfly 4.59% 5.96%
Jet4you 1.67% 2.04%
Air Arabia 0.89% 0.60%
Freebird Airlines 0.00% 0.37%
FlyOnair 0.20% 0.09%
9
3.3 Marketing and Communication activities
Marketing and communication activities targeted 3 different sectors:
tourism, aviation (airline companies) and the general public. In most
cases, the activities organised make use of marketing and
communication.
3.3.1 Marketing & Communication
As far as the aviation sector is concerned, collaboration with
airline companies present on the airport site has been very
proactive. Every 6 months, a marketing plan and a
communication plan are presented to them and approved.
For the general public, the purpose of the 15 campaigns
collaborated on by both the marketing and communication
departments was to improve the airport’s reputation and
promote the lines that need support. Examples of activities
include: a flash mob on Valentine’s Day, the ad hoc flight
organised for TV Limburg, and a number of radio partnerships.
3.3.2. Marketing
In 2010, promotion of the airport and its services within the
tourism industry (travel agencies, tour operators, tourist
information offices) was intensified and customised, with, among
other things, the introduction of a monthly newsletter,
involvement in B2C events and the organisation of a fam trip.
3.3.3. Communication
In terms of internal communication, the department is
responsible for producing the internal magazine (“Entre Nous”),
which comes out once every 3 months. Every day, they look at
the media coverage of BSCA, its partners and issues connected
to the airport, with a view to carrying out a press review.
10
When it comes to external communication, there are two main
target audiences (apart from airline companies): the press and
the general public (travellers or potential travellers).
In 2010, the airport organised 6 press conferences to present the
development of its airline companies, the new services available
at the airport, as well as events put on within the terminal. 33
press releases were sent out. Several press trips were organised in
collaboration with tourist offices and airline companies to
promote new destinations or those needing support.
Communication targeting the general public uses a number of
different channels. First of all there is “Gate” magazine, which
the airport gives out to passengers in the terminal free of charge.
Its purpose is to promote routes in need of help, and to
encourage passengers to want to go there. Another goal is to
promote the services available at the airport and become a
money maker.
In order to promote the lines that need support, a promotional
campaign was created and rolled out through the terminal. 29
signs were put up in the airside zone, in baggage reclaim and
near the ticket offices. To launch the summer season, Vivacité
and Radio Contact broadcast their morning shows from the
airport’s airside zone. This helped us promote BSCA, its services
and its destinations (interviews with different departments on the
airport site), as well as the Charleroi region in general, Wallonia
and Belgium.
11
3.4 Commercial concessions
Our non-aviation commercial income rose by 42% compared to 2009.
This figure is double the amount seen in 2008.
We have a range of car parks that are easy to use and accessible, with
carefully fixed prices; a car park with 1,470 spaces was built to offer
different options for all budgets.
On a number of occasions, during very busy periods, the Economy car
park, which is a bit further away, was used and will soon be redesigned
to cater for long-term customers.
This year, the shuttle bus to Brussels was renamed, the “Brussels City
Shuttle”, and increased its frequency (to once every thirty minutes) to
the main Brussels-Midi station. To avoid passengers having to queue, a
booking service has been launched via the website, and ticket
machines are located outside the terminal.
A shuttle service between Brussels South Charleroi Airport and the
Luxembourg region has been introduced. It has been such a success
that the frequency has been increased to 15 shuttle buses a day, so 30
return trips every day, between Charleroi airport and Arlon,
Luxembourg centre (3 stops), Thionville and Metz.
In the public part of the terminal and in the boarding area, the
restaurant and bars offer a broad range of dishes and sandwiches to
eat before flights.
A petrol station, carwash, 5 car hire companies, a travel agency, a
bookshop, a sweetshop, a duty free shop, a florist and a toyshop
complete our range of concessions.
As part of the services we offer our passengers, we have increased the
Internet points (terminals and areas), and we have launched services
such as the fast lane and the corporate card.
The airport has grown and developed its welcome desk. This service is
available for passengers as an information and reception point and to
market our products in the BSCA colours.
12
During April 2010, BSCA carried out a survey among its passengers with
a view to assessing how satisfied they are with the quality of services
available. The infrastructure, the airport staff and security checks are
the main areas with which passengers her happy. Areas where the
most passengers are unhappy are the commercial outlets and the
accessibility of the airport.
There were a number of “mystery shoppers” who visited the HoReCa
outlets: what was offered to customers, the quantity and quality of the
dishes available and the visibility of menus and prices were given high
scores, as did the staff.
BSCA plans to repeat these kinds of surveys in the future in order to
continue to improve the service that we offer our passengers.
Revenue from the different concessions represent a total income of
€21,608,095 for the airport, equivalent to €8.30 per departing passenger.
The largest profits are generated by the car parks, the shuttle service to
Brussels, HoReCa and the Duty Free shop.
13
3.5 Human resources
In 2010, the number of employees at BSCA rose by 30 people between
1st January 2010 and 31st December 2010.
This represents a total of 414.40 full-time equivalents as of 31st
December 2010.
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
Staff
number
FTE FTE FTE FTE FTE FTE FTE FTE FTE FTE FTE FTE
Jan Feb Mar Apr. May Jun Jul Aug Sep Oct Nov Dec
TOTAL 372.85 362.99 365.20 389.11 386.99 386.31 392.25 412.53 403.68 399.17 392.38 414.40
FTE Clerical 202.65 197.54 198.75 206.06 206.65 208.76 210.7 230.96 222.61 221.42 213.1 229.60
FTE Manual 170.20 165.45 166.45 183.05 180.34 177.55 181.55 181.57 181.07 177.75 179.28 184.80
TOTAL 372.85 362.99 365.20 389.11 386.99 386.31 392.25 412.53 403.68 399.17 392.38 414.40
The majority of these jobs are based on permanent contracts.
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
372,85 362,99 365,20 389,11 386,99 386,31 392,25 412,53 403,68 399,17 392,38 397,64
Staff numbers 2010
14
BSCA currently has more clerical staff than manual labourers (55%
clerical compared to 45% manual).
The male/female division is as follows: 28% women compared to 72%
men.
BSCA has a youthful population; our average age is 33.
We have introduced a new procedure for workplace accidents, which
is proving useful.
3.5.1. Training
BSCA attaches particular importance to training. This involves
operational training on the one hand and training focusing more
on behaviour on the other.
In 2010, 1,079 days of training were provided.
3.6 Management of environment measures by the
SOWAER
Spurred on by the Walloon Government’s determination as well as by
the legal stability acquired in 2005, the Société Wallonne des Aéroports
(Walloon Airport Authority, SOWAER) has continued and improved its
handling of communication from local residents within the context of
managing environmental measures in the areas around Wallonia’s two
airports.
Lastly, the ongoing monitoring of sound levels, compliance with noise
reduction procedures and information for local residents remain the
main ongoing actions of the Sowaer.
15
Management of environmental measures
3.6.1 Acquisition of buildings in zones A’ and B’ of the P.E.B. (Plan
d’exposition au bruit, noise exposure plan) and soundproofing in
zones A’ to D’
Within the context of an agreement with the Walloon Region,
buildings and land in zones A’ and B’ of the Charleroi airport
P.E.B. were purchased by IGRETEC on the SOWAER’s behalf.
On 31/12/2010, 158 buildings had been bought, and 2,050
buildings had been soundproofed.
The following statistics have been provided by the SOWAER:
PEB zones A’ B’ C’ D’ Total
Charleroi – completed
- soundproofing
- purchases
4
74
101
84
510
0
1,435
0
2,050
158
Charleroi – underway
- soundproofing
- purchases
10
38
38
63
200
0
805
0
1,053
101
3.6.2 Relocation allowances for tenants of buildings in zones A’ and B’
of Charleroi.
On 31st December 2010, 25 relocation allowances had been
paid to tenants who had moved from zones A’ and B’.
16
3.6.3 Compensation for commercial difficulties in zones A’ and B’ of
the P.E.B.
On 31st December 2010, 6 payments had been paid to people
who had been working in zone A’ or B’ and who had moved or
stopped this work.
3.7 Board of Directors, Management Committee,
Nomination and remuneration Committee and
Strategic Committee
At its meeting of 24/06/10, the Board of Directors unanimously decided
to appoint Laurent Lévêque as a member and Chairman of the
statutory boards and committees. It also appointed Valérie Leburton as
a member and Vice Chairman of the statutory boards and
committees.
Management Committee
The Board of Directors unanimously decided to appoint the following
members:
Laurent Lévêque, Chairman
Valérie Leburton, Vice Chairman
Paolo Simioni, Director
Nomination and Remuneration Committee
The Board of Directors unanimously decided to appoint the following
members:
Laurent Lévêque, Chairman
Valérie Leburton, Vice Chairman
Monsieur Carlos Bourgeois, Director
Enrico Marchi, Director
17
On 25/11/2010, Enrico Marchi resigned from the Nomination and
remuneration Committee and was replaced by Paolo Simioni, Director
Strategic Committee
The Board of Directors unanimously decided to appoint the following
members:
Laurent Lévêque, Chairman
Paolo Simioni, Director
Christophe Jonlet, Director
Jean-Jacques Cloquet, Managing Director
Jean-Jacques Cloquet became a member of the Strategic Committee
when he was elected by the Board of Directors on 10/12/2010.
The Board of Directors unanimously decided that Pierre Rombaux
would be invited to join the Board of Directors because of his role as
representative of BSCA Security to BSCA.
The General Meeting appointed the following as Independent
Directors:
Dominique Hausman
Louis Marie Piron
Léonardo Bellodi
At its meeting of 27/01/11, the General Meeting unanimously
appointed Christophe Clersy and Jean-Jacques Cloquet as Directors
until 10th December 2014, the second of whom has been given the task
of the day-to-day management of the company.
18
4/ Observations on the annual accounts
All the amounts mentioned in this paragraph are in THOUSANDS OF EUROS,
unless indicated otherwise.
4.1 Profit and loss
4.1.1. Sales and Services
Sales in 2010 were clearly directly affected by the rise in the
number of passengers recorded during the year (+37% rise in
turnover for +32% in terms of passengers).
The main sources of this rise are the profits from handling
activities (+30%), income from commercial concessions (+42%)
and the income we receive from airline companies, mainly for
ticketing, refuelling and excess baggage (+45.7%).
The total for sales and services was EUR 81,387 for 2010
compared to EUR 67,533 in 2009, so an increase of 20.5%.
4.1.2. Cost of sales and services
The entry for “Miscellaneous goods and services” rose to EUR
39.349 compared to EUR 37,444 in 2009. This is the result of the rise
in costs directly linked to the number of passengers, as well as
the running costs for BSCA Security, which represent EUR 13,745
compared to EUR 13,523 for 2009.
In order to deal with the increase in passenger numbers,
additional staff were taken on. This led to an increase in staff
costs of 14.4%, rising to EUR 21,459 compared to EUR 18,754 in
2009.
Capital allowance was EUR 2,149 for 2010 compared to EUR
1,780 in 2009. This increase can essentially be explained by the
capital allowance for the low-cost car park, which was the first
major investment by BSCA from its Equity.
The total for the “Cost of sales and services” was EUR 66,162
compared to EUR 60,474 in 2009.
4.1.3. Financial income
Financial income fell (- 27.2%), which was mainly a result of the
significant reduction interest rates in 2010.
19
4.1.4. Pre-tax profit
The pre-tax profit was EUR 14,952 compared to a profit of EUR
6,860 in 2009. Taxes on profit were EUR 4,958.
4.1.5. Profit to be allocated
The profit from this period to be allocated was EUR 9,994
compared to a profit of EUR 4,445 in 2009. The Board of Directors
recommends that the General Meeting distribute a dividend of
EUR 2.079. This is made up of a preferred dividend for Belgian
Airport of EUR 1,799 and an ordinary dividend for the other
shareholders of EUR 280. The profit to be carried forward was EUR
20,109.
20
4.2 Balance sheets
4.2.1. Assets
Fixed assets increased, rising from EUR 19,064 in 2009 to EUR
22,324 in 2010. This increase can be explained by the acquisition
of new handling equipment and by accounting for the new low-
cost car park.
Accounts receivables rose from EUR 8,044 to EUR 11,576,
following the increase in our sales and services.
Short-term investments and cash assets also rose, increasing from
EUR 18,499 in 2009 to EUR 23,143 in 2010.
4.2.2. Liabilities
Equity rose to EUR 28,618 instead of EUR 20,703 in 2009.
Debts more than one year old mainly represent the long-term
share in the funding for the oil tank infrastructure.
Trade debts fell from EUR 14,813 to EUR 13,744.
21
5/ IMPORTANT EVENTS AFTER THE END OF THE YEAR, AND
CIRCUMSTANCES THAT MIGHT HAVE A SIGNIFICANT INFLUENCE ON
THE COMPANY’S DEVELOPMENT
5.1. Development of aviation activities
After a relative drop in activities traditionally seen over the winter, BSCA
is preparing for a summer that should once again break all records, with
the presence of 19 planes based at the airport (16 Ryanair and 3
Jetairfly) from01/04/2011.
5.2. Addition of 4 additional departure gates
To deal with this, work began on the construction of four additional
departure lounges in January 2011, decided on in 2010. The lounges
should be ready for use in July-August 2011.
5.3. Master Plan
To support development, BSCA released an invitation to tender with a
view to preparing a Master Plan. The purpose of this is to plan out the
site’s growth over the next 20 years, starting in 2011.
5.4. 20th birthday
During 2011, BSCA will celebrate its 20th birthday. A number of events
have been planned throughout the year. The keywords for the
celebrations will be “Inclusivity and Solidarity”.
5.5. Implementation of the Strategic Committee
On 24/03/2011 the strategic committee was held for the first time to
give its opinions in order to provide the Board of Directors with more
information to help it make its decisions.
5.6. Resignation of a director
In a letter dated 10/05/2011, Mr Marchi resigned from his role as a
Director of BSCA.
22
5.7. Brainwin dispute
On 18/04/2011, Brainwin started proceedings against BSCA as part of
the dispute between them (see pt. 9.5).
6/ Research and development
N/A.
7/ Indications relating to the existence of a subsidiary
N/A.
8/ Financial instruments
BSCA does not use financial instruments.
9/
23
9/ Description of the main risks and uncertainties
9.1. Risks connected to the appeal against permits
On 1st February 2005, the City of Charleroi granted the SOWAER an
environmental permit.
On 14th February 2005, the planning officer and technical officer
granted the single permit for the first investment phase for Charleroi
airport.
Having exhausted all internal appeal processes, the residents’
association filed appeals to suspend and annul these with the Council
of State. The appeals to suspend the permits were rejected by the
Council of State on 17th January 2006. The appeals to cancel them
were still underway on 31st December 20112010.
9.2. Risks connected to residents’ civil appeals
A number of residents brought proceedings against BSCA and the
Walloon Region in November 2003, to demand compensation for
damages for faults allegedly committed by BSCA and the Walloon
Region, who they claim, in substance, authorised flights producing
sound levels over and above the authorised limits, as well as flights that
breached the provisions of the decree of 23rd June 1994 relating to
airport opening times.
In the ruling of the Charleroi Tribunal de Première Instance on 30th
March 2004, movements contrary to article 1b of the decree of 23rd
June 1994 were prohibited, with penalties, and a legal assessment was
ordered to determine any excess noise for the residents concerned.
On 1st February 2005, the Mons Court of Appeal amended the ruling,
confirming the legal assessment, and asked the Court of Arbitration for
preliminary rulings for the moment when, after 1st April 2004, the decree
had been modified to relax a number of disproportionate restrictions
related to running the airport.
The Court of Arbitration ruled that the decree of 1st April 2004 did not
breach the constitution.
After the end of the current year (the expert has submitted his draft
report to the parties), the case will be heard again and examined on its
merits to assess the damages that the residents claim they have
suffered.
The expert’s report, whose conclusions supported BSCA and the
Walloon Region, was submitted to the Charleroi Tribunal de Première
Instance de Charleroi on 23rd January 2008.
The case has not seen any developments during 2010.
24
9.3. Decontamination for the South fuel station.
In accordance with a Walloon decree, the ground must be cleaned up
as soon as activities cease at the South station. A fund of €95,000 has
been entered in the accounts for 31/12/2010.
Studies are due to start during the 2nd quarter, and the work itself is
planned to be carried out during the 4th quarter.
9.4. Dependency on one main client
RYANAIR is currently BSCA’s main client and generates over 82% of its
passengers. This presence could discourage other companies from
developing their business in Charleroi.
However, it is worth highlighting the growing success of WIZZ Air, Jet 4
YOU and Jet Air Fly (3 planes based at Charleroi), which has helped to
reduce the proportion of RYANAIR passengers.
9.5. Risk connected to the existence of a consultancy
contract
A consultancy contract currently poses a problem, as the legislation
governing public contracts has not been respected, which means that
this contract is not applicable in terms of its financial implications.
Invoices raised by this consultant have been sent to BSCA. These were
included in the accounts but disputed immediately by BSCA, through a
credit note to be received, on the basis of this same issue.