21 October 2008

PARIS -- The state-owned operators of the Paris and Amsterdam airports announced a partnership Tuesday under which they would share services and exchange ownership stakes to make the two transport hubs more competitive.

Aeroports de Paris and Schiphol Group were to sign an "industrial partnership accord" later Tuesday, Aeroports de Paris said in a statement.

The French government will cede 8 percent of its majority stake in Aeroports de Paris to Schiphol Group for about EUR 530 million, or EUR 67 per share, the statement said. In return, AdP will get 8 percent of Schiphol for about EUR 370 million.

The French government will retain 60 percent of AdP after the deal and intends to remain the chief stakeholder, the finance ministry said.

The companies foresee EUR 71 million in cost savings from the deal through 2013, and savings of EUR 18 million per year after that.

The two companies will retain their management structures but exchange board members. A new cooperation committee will be formed to oversee the partnership, and will include the CEOs and four executives from each company.

The airports will "use the profit of their joint experience to increase their competitiveness in the airport sector," the ministry said.

The move comes after the flagship airlines of France and the Netherlands, Air France and KLM, joined forces in 2004. After the merger, they retained separate headquarters at Paris' Charles de Gaulle Airport and Schiphol.

AdP shares were trading up 4.9 percent after the announcement at EUR 49.37.

[AP / Expatica]