Page 104 - TURKRptMay19

Skoda, owned by German car giant Volkswagen, is grappling with labour shortages in the Czech Republic. Some of its production is already being carried out in other factories of the Volkswagen concern.
9.2.3 Transport corporate news
● TAV
Turkish TAV likely to get concession for Montenegro’s two international airports. Turkish TAV could get the concession for Montenegro’s two international airports in Podgorica and Tivat, news outlet CDM reported on April 10, quoting information from the transport ministry. The two airports are small, but important for Montenegro’s economy, which relies strongly on foreign tourists to boost its GDP. Montenegro’s government is yet to launch a tender for the concession of the two airports. However, according to CDM, transport ministry officials have said that several big Turkish companies have shown interest in the airports. TAV already manages the international airports of North Macedonia, as well as the airport in Zagreb, where the company cooperates with French companies. The concession contract for the two airports will be offered for 25 to 30 years.
Turkey’s TAV bids to develop and operate Sofia Airport. A consortium formed by Turkey’s TAV and its main shareholder Groupe ADP has submitted a bid in a tender to operate and develop Sofia Airport in Bulgaria, with a 35-year concession contract, the Turkish airport operator has announced in a filing with the stock exchange. Sofia Airport last year served a total of 7mn passengers.
TAV also reported that its revenues increased by 9% y/y to €270mn in the first quarter of 2019 . Its Ebitda was up 2% on an annual basis to €98.4mn. The company’s net profit soared 233% y/y to stand at €23.9mn while its net debt declined 28% to €538mn. TAV also reported that it served 28.9mn passengers in the first quarter of 2019, a 5% decline from a year earlier. Its financial results showed that the duty-free spend per passenger decreased 19% y/y to €10.3. TAV operates five airports in Turkey and six airports abroad. Ataturk in Istanbul was the largest airport in TAV’s portfolio. However, it lately ceased its commercial operations with flag carrier Turkish Airlines moving its flights from Ataturk to the newly built mega-sized Istanbul Airport. In the first quarter of 2019, Ataturk Airport served a total of 15mn passengers (11mn international plus 4mn domestic). In 2018, some 68mn people used the airport, a 6% increase from the previous year. In a filing with the stock exchange, TAV said that Turkey’s airports authority (DHMI) previously gave an assurance that it would reimburse the company for loss of profit that may be incurred due to the opening of Istanbul Airport before the end of TAV Istanbul’s lease period which ends in 2021 and that independent companies may be consulted for the calculation of the total amount of the loss of profit. TAV added that the compensation for loss of profit for the early termination of Ataturk Airport operations was currently being evaluated by DHMI and TAV. This year, TAV is targeting the serving of 90 to 94mn people, excluding Ataturk, and it projects that Ebitda will be some 38-42% lower compared to 2018.
● Others
Newly founded Air Albania to add new destinations in Europe and North America. Albania's new national air carrier Air Albania announced on April 27 it plans to add flights to new destinations from Europe and North America. Air Albania is a joint venture between Turkish Airlines, which owns 49% of the company, locally-owned MDN Investment controlling 41% and state-owned air controller Albcontrol, which has a stake of 10%. In March last year, Albania’s civil aviation authority issued a certificate to Air Albania for the provision of transportation services. Air Albania will initially fly with its sole aircraft, an
104 TURKEY Country Report May 2019 www.intellinews.com