Hermes Airports Ltd has noted, with regret, what was published in the media regarding airport charges increases at Larnaka and
It is clarified that airport charges are not imposed equally on arriving and departing passengers, but mainly on the departing ones. The total charges of CYP 18.84 per passenger, which will be applicable after the increases to be effected in November 2007, relate to a return trip. Part of this amount is chargeable on departure and part on arrival of a passenger. Hence, the passenger is not charged with CYP18.84 on departure and another CYP18.84 on arrival. Therefore, the total revenue for Hermes Airports Ltd from airport charges for 2008 is expected to be around EUR100 million Euros and not EUR223 million Euros that was reported by IATA and IACA representatives and was published by the newspapers. This amount is therefore imaginary and by far unrealistic. Consequently, the amount of EUR73.6 million Euro that will allegedly be received by the Government is again imaginary and unrealistic.
It is reminded that the above charges were part of the terms of the bid submitted by Hermes Airports Ltd and that all calculations and negotiations with its Lenders – Bankers and the Government were made on this basis.
It is obvious that the Airlines Associations IATA and IACA are not correctly informed with regards to these charges It is, we believe, to their own benefit as well, to have true, and not hypothetical, information.
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Development works at the airports
Substantial improvements and quality upgrading in the provision of services have been made at the existing airports, whilst construction works at Larnaka and Pafos airports are progressing rapidly.
We note specifically the:
Addition of luggage conveyor belts (increased from 3 to 5) for expediting collection of luggage by arriving passengers. This has already had a positive effect and Larnaka airport can now be favorably compared with many modern airports.
Renovation, improvement as well as extension of areas for a speedier service to the public, at both departures and arrivals.
Substantial improvement of Duty-free, Restaurants, Cafeterias and food & beverage areas. The improvement works are progressing rapidly and will be concluded by the end of May 2007.
Addition of new toilets, which are attended continuously and maintained clean.
Installation of new passenger security equipment.
Runway and aircraft parking improvements.
New modern equipment is currently being installed in the car park and will be put into operation in a few days, upgrading considerably the service offered in this area. It is reminded that the first 20 minutes of parking is free.
It is clear from the above that Hermes Airports Ltd, in the short period of time that it has been operating the Airports of Larnaka and Pafos, has spent and it is continuing to spend large amounts for the improvement and upgrading of the quality of service of the travelling public. The real and substantial difference will certainly appear on the completion and operation of the new terminal buildings, which seem to be ahead of schedule.
With regards to the airport charges, the Company believes that these are reasonable and justifiable and in no way acting as a deterrent for the country’s tourist industry. Cyprus’ airports continue to be very competitive in comparison to other European airports and much cheaper compared to others recently built, such as those of Greece and Malta, the charges of which are much higher. It is certainly not right to compare with airports of countries in Africa, Asia and the Middle East which are not members of the European Union and whose airports are subsidised in various ways.
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