"Schiphol profit down because of flight tax"

14th February 2008, Comments 0 comments

Schiphol Airport expects to make less profit this year because of the introduction of the flight tax on 1 July.

14 February 2008

SCHIPHOL – Schiphol Airport expects to make less profit this year because of the introduction of the flight tax on 1 July. The company announced this on Thursday at the presentation of its annual figures.

Schiphol director Gerlach Cerfontaine says the number of passengers travelling through Schiphol, Rotterdam and Eindhoven airports will rise only slightly, if at all, this year as a result of the flight tax. Last year the number of passengers rose by more than 4 percent to 50.4 million.

The stagnation is particularly bad news for Schiphol because the airport lost its position as fourth airport in Europe to Madrid last year.

The flight tax is part of a package of government measures to cut CO2 emissions. Because of the tax, passengers for flights within Europe will be charged EUR 11.25 extra. Passengers heading for destinations outside Europe will be charged EUR 45.

Schiphol already saw a significant drop in profits last year, a 40 percent decrease to EUR 316 million. In 2006 the government company was able to book a one-off windfall of EUR 309 million because of a tax break.

If the one-off windfall and value increase of Schiphol property are not taken into account, the airport company booked a profit increase of almost 18 percent to EUR 233 million. Turnover rose by 10.6 percent to EUR 1.15 billion.

Turnover grew strongest over the past year from the operation of shops and parking areas. Schiphol made the most profit with the development of its property.

The airport company wants to invest EUR 550 million this year, half in air traffic facilities at Schiphol. In order to finance this the company will need to attract additional capital.

[Copyright Expatica News + ANP 2008]

Subject: Dutch news

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