Aeroports de Paris Enters Georgian Market
22 March, 2012

 

French-based ‘Aeroports de Paris Group’ undertakes  management of Georgian international airports of Tbilisi and Batumi as a result of acquisition of 38% of Turkish ‘TAV Airports’ that operates Tbilisi and Batumi airports through its affiliated Company ‘TAV Georgia’. From the newly established partnership Georgia expects better management skills and more flights in its airports as well as lower flight costs.

On March 12, 2012 the sides announced the fact of signing the contract for the acquisition of 38% of ‘TAV Airports’  and

49% of ‘TAV Investment Holding’  by Aeroports de Paris Group for USD 874 million and USD 49 million respectively. According to the deal, the French Company will not change management at TAV and two companies will provide services for 180 million passengers at 37 airports in total.

The transaction valued TAV Airports Holding equity at USD 2.3 billion and TAV Investment Holding’s equity at USD 100 million.

The newly established partners hope to get a niche of one of the world's largest collaborations in the airport operation sector.

Aeroports de Paris (ADP) with its up to 67 years of business experience in airport operation manages  25 airports including Paris-Charles de Gaulle-the second largest air-port in Europe, Paris-Orly and Paris-Le Bourget. In 2011, ADP handled more than 88 million passengers and almost 2.5 million tons of freight and mail. In 2011, the group revenue stood at EUR 2.502 million.

TAV Airports operates 12 airports in five countries including Istanbul Ataturk, Ankara Esenboga, Izmir Adnan Menderes and Antalya Gazipasa Airports in Turkey as well as Tbilisi and Batumi Airports in Georgia and airports in Latvia, Macedonia, Saudi Arabia and Tunisia.

Both ADP and TAV Airports top officials accentuate they have sealed a great strategic partnership to be the best.

Pierre Graff, Chairman and CEO of Aeroports de Paris, called TAV to be a major strategic investment for ADP and pointed out that Turkey is one of the fastest growing countries in OECD with a favorable business environment.

“Not only the geographic proximity but also the cultural and business model proximity of both companies will ease future development plans, in particular in new airports investment opportunities. Fully in line with our international strategy, this transaction will have a strong positive impact on the Group’s performance,” he said.

“We believe TAV Holding will achieve greater success in cooperation with the leading global air-port company of Aeroports de Paris. Thanks to partnership of these two companies 180 million passengers in 37 airports globe over including Tbilisi and Batumi will enjoy the best service. We believe partnership between ADP and TAV Airports Holding will attract investments to Georgia,” K. Mete Erkal, General Manager of TAV Georgia, said.

According to TAV Georgia, it has already invested more than USD 100 million in both Tbilisi and Batumi airports. TAV Urban founder of TAV Georgia took Tbilisi international airport by 15-year management right in 2005, constructed a completely new airport building and infrastructure that opened in 2007 quite scandalously: the wind took the roof off the new airport shortly before it opened its doors; the rain leaked within the building and another roof-off incident came up again just within a month since the opening ceremony.

TAV Georgia management claimed the unusual wind force was the culprit but Georgian independent engineers questioned the company’s construction skills. The scandal did not undermine Georgian authorities’ trust toward TAV Georgia however and granted the company with a privileged right not to allow any other investor to develop an international airport within 300 kilometers of radius from Tbilisi and Batumi thus ensuring monopolist position of TAV Georgia in fact: due to this very reason government failed to divest Kopitnari airport located between Batumi and Tbilisi in about 100-150 kilometers [from each]  irrespective its symbolic divesture price of GEL1. TAV Georgia turned out the only bidder and government canceled the auction.

As a consequence TAV Georgia enjoys high tariff rates, air-companies claim and even his Excellency Mikheil Saakashvili, the President of Georgia, openly said in his speech past year that Turkish company fixes inflexible tariffs that jack ticket prices up and hamper to low-cost companies to enter Georgia.

Another problem scaring low-cost air-companies off Georgia is sluggish passenger traffic that barely exceeded million in Tbilisi International Airport past year and stands at 133 306 in Batumi airport, official statistics say.

Now Georgian side expects new air-companies to come to Georgia along with the ADP entrance that should increase passenger traffic and cut prices down.

According to United Airport of Georgia LLC (UAG), entrance of ADP, one of the biggest airport operators worldwide, that has experience not only in airport management but also in airport infrastructure planning, construction and development will improve TAV Airports’ management know-how that will reflect on skills of its affiliations including TAV Georgia.

“ADP has many-year relationships with many air-companies globe over and once it acquired a significant share at TAV Airports it will give an impetus to air-companies to start flights in all airports under Turkish company’s management including Tbilisi and Batumi ones,” UAG spokesperson commented to Georgian Journal.

Georgia has already established close partnership with ADP, UAG source accentuated, for ADP worked out a new runway project at Tbilisi airport on the base of grant disbursed by French government. Now significant investments are necessary to put the project into reality and UAG hopes to complete the project successfully through joint effort with Aeroports de Paris Group.

 

Print
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30