Compensation Payment to PIATCO for the Manila Terminal Project
FRANKFURT, Germany, October 11, 2016 /PRNewswire/ --
Fraport AG Frankfurt Airport Services Worldwide welcomes the Philippine government's compensation payment made to PIATCO for the expropriated terminal project at Manila airport. This payment is in keeping with the Philippine Supreme Court's decision of September 8, 2015, which was again reaffirmed in April of 2016. The Supreme Court stipulated that the government of the Philippines must pay compensation because it declared the concession contract with PIATCO null and void and, in 2004, expropriated PIATCO's newly built airport terminal in the capital city of Manila.
Following the decision of the Philippine Supreme Court, PIATCO has received compensation payments for the expropriated terminal project in Manila. Based on this compensation, PIATCO has already made a partial payment to Fraport AG. Furthermore, Fraport AG intends to sell its shareholdings in companies in the Philippines and will no longer purse claims in connection with the expropriation of the terminal project at Manila airport.
Fraport AG's share of the total transaction amounts to about 270 million US dollars.
From the compensation inflows, Fraport AG is required to repay the German federal government up to some €40 million, which the company received in fiscal year 2008 under Germany's GKA (Bundesgarantie für Kapitalanlagen im Ausland) foreign-investment guarantee program.
The rest of Fraport's compensation sum will primarily impact the Group EBITDA, EBIT, and EBT in the current fiscal year and - taking into account taxes to be paid - will have correspondingly positive impact on the Group result.
In due time, the Fraport AG executive board will recommend to the supervisory board whether and to what extent the gain should be reflected in the dividend payment to the shareholders of Fraport AG.
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Fraport AG - which ranks among the world's leading companies in the global airport business - offers a full range of integrated airport management services and boasts subsidiaries and investments on three continents. The Fraport Group generated sales of €2.6 billion and profit of about €297 million in 2015. In 2015, some 111 million passengers used airports around the world in which Fraport has more than a 50 percent stake. In its Mission Statement, Fraport places the focus on customers. The Group's commitment to ensuring a "good trip" to all passengers and travelers is also reflected in the corporate slogan: "Gute Reise! We make it happen". This dedication applies to all of Fraport's business activities in Frankfurt as well as the Group's airports worldwide.
At its Frankfurt Airport (FRA) home base, Fraport welcomed more than 61 million passengers and handled about 2.1 million metric tons of cargo (airfreight and airmail) in 2015. For the current summer timetable, FRA is served by 95 passenger airlines flying to 290 destinations in some 100 countries worldwide. Half of FRA's destinations are intercontinental (beyond Europe) - underscoring Frankfurt's role as a leading hub in the global air transportation system. In Europe, Frankfurt Airport ranks second in terms of cargo tonnage and is the fourth busiest for passenger traffic. With about 59 percent of all passengers using Frankfurt as a connecting hub, FRA also has the highest transfer rate among the major European hubs.
Frankfurt Airport City has become Germany's largest job complex at a single location, employing more than 80,000 people at some 500 companies and organizations on site. Almost half of Germany's population lives within a 200-kilometer radius of the FRA intermodal travel hub - the largest airport catchment area in Europe. FRA Airport City also serves as a magnet for other companies located throughout the economically vital Frankfurt/Rhine-Main-Neckar region. Thanks to synergies associated with the region's dynamic industries, networked expertise, and outstanding intermodal transportation infrastructure, FRA's world route network enables Hesse's and Germany's export-oriented businesses to flourish in global growth markets. Likewise, FRA is a strategic gateway for companies wanting to access the huge European marketplace. Frankfurt Airport - which is strategically located in the heart of Europe - is one of the most important hubs in the global logistics chain.
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Fraport AG
Robert Payne
Spokesperson
Press Office, Corp. Communications
60547 Frankfurt, Germany
Telephone: +49-69-690-78547
E-mail: [email protected]
Internet: http://www.fraport.com
Facebook:http://www.facebook.com/FrankfurtAirport
SOURCE Fraport AG
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