LUX ANNUAL REPORT 2017

LUX-AIRPORT

WELCOME 02

TABLE OF CONTENTS 03

01 02 03 04

WELCOMING OUR YEAR OUR YEAR OUR MESSAGES IN NUMBERS IN REVIEW PERFORMANCE

06 12 26 40 Message from the Chairman Facts & figures Sustainability Shareholding & balance sheet Tom Weisgerber 14 30 42 Highlights Core business Financial performance 08 Message from the CEO 16 36 44 René Steinhaus Traffic results Future prospects Governance 18 Cargo 20 Airlines 22 Network

LUX-AIRPORT ANNUAL REPORT 2017 04 01 05

WELCOMING MESSAGES

‘‘Welcoming our guests, facing new challenges each day and solving them with teamwork is fascinating.’’

Shéryl INFODESK REPRESENTATIVE 01 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 06

MESSAGE FROM THE CHAIRMAN 07

In 2017, the sustained regional, Euro- pean and global economic growth, as well as the particular attractiveness of Luxembourg, led to a continued in- EACH MEMBER crease of our traffic results. For passengers, we position oursel- ves as a high quality, boutique airport OF THE LUX-AIRPORT serving the Greater Region of Luxem- bourg and its surroundings. We seek to combine the services available at TEAM CAN BE PROUD larger airports with the convenience and pleasant user-experience of a OF OUR ACHIEVEMENTS smaller facility. Not only do we believe this is the right commercial strategy, but we think this LAST YEAR, WHERE is beneficial for the connectivity of operated by Luxair Cargo. The ex- who left lux-Airport after 4 years of Luxembourg and the Greater Region. pansion of our cargo apron from 8 successful development. However, he Our objective is to offer a state-of-the- to 12 aircraft stands will come on couldn´t have realized these achieve- THE MOST VISIBLE art product to our travelers, whether stream in autumn of 2018. This is an ments without contributions from all they are visiting for business or lei- important move to improve the cargo our staff members whom I would like sure. Investments into our infrastruc- serviceability. to thank for their on-going commit- ONE IS THE RE-OPENED ture are therefore vital and bringing While running an efficient, high per- ment and professionalism. Terminal B back into service in July formance airport is our number one Last but not least, I would also like was a significant step forward in this priority, we also strive to maximize to mention the EASA aerodrome TERMINAL B. respect. Adding more gate space and environmental sustainability. We have certification, obtained on time in 2017: allowing direct boarding of the plane hired a dedicated professional to work I remain extremely grateful for this without bus transport is certain to towards these goals and we joined the success as well as for the ongoing TOM WEISGERBER / CHAIRMAN OF THE BOARD vastly improve customer satisfaction. Airports Council International’s Green efforts of all parties cooperating at lux-Airport maintained its place as Airports Initiative in 2017 to achieve our airport. Europe’s sixth largest cargo airport, the highest standards in our industry. mainly thanks to the state-of- the- I would also like to pay tribute to the art all-cargo servicing capability work of our CEO Johan Vanneste,

Tom Weisgerber

LUX-AIRPORT ANNUAL REPORT 2017 01 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 08

MESSAGE FROM THE CEO 09

Our attractiveness for both network IT WAS EXCITING carriers and low-cost airlines has risen. Long-standing airline partners have increased services from Luxem- TO SEE LUX-AIRPORT bourg Airport, with many investing in new generations of aircraft to serve a growing number of destinations. DEVELOPING IN SO Network carriers who have arrived recently are also ramping up their services. MANY WAYS IN 2017. However, the largest change last year came in the low-cost sector. It’s now THIS WAS ONLY five years since this business model arrived in the Grand Duchy, and it continues to grow. There has been a POSSIBLE THANKS large boost in this market, with now reover, our new interactive website, partnership with Cargolux. five carriers operating in this seg- and revamped social media presence It has been unfortunate that some ment from Luxembourg Airport. This make it easier to stay in touch with us. passengers have experienced delays TO THE EFFORT includes Volotea, who we were de- The offering of retail and food & be- at passport control. New electronic lighted to welcome in 2017. verage outlets was also expanded by gates for EU-passport holders, put in We worked hard to increase capa- adding two shops in the new Termi- place in cooperation with the Airport AND PASSION OF city, ensuring that passengers have nal B. Working with our operator, we Police, are due to come into service the best possible experience. Reope- also used this opportunity to adapt over the summer of 2018. This high ning Terminal B added gate capacity, the food & beverage offering in exis- tech solution will speed up passenger ALL OUR STAFF comfort for our passengers, and a ting outlets. flows and add to the smooth atmos- product adapted to the requirements Thanks to strong cooperation with all phere at Luxembourg Airport. of our airline customers. involved parties, lux-Airport obtained On current trends, growth in both car- RENE STEINHAUS / CEO AD INTERIM The new, fully equipped business successfully and on time EASA aero- go and passenger traffic will continue center run by Regus provides mee- drome operator certification by the to be strong in 2018, if not at the levels ting rooms and all the services pro- end of the year. seen in 2017. Managing this success fessionals need. Our new high-speed The attractiveness of Luxembourg is a challenge, but we are committed public Wi-Fi compares favorably with as a cargo hub is born-out in the re- to making sure lux-Airport continues other airports. At our airport, there is cord-breaking figures. A new chapter to serve customers in Luxembourg, no time limit, and we make it easy to in this success story is Emirates Sky- the region, and beyond, continuing to connect, with just two clicks and no Cargo starting flights to Luxembourg meet the high standards for which we need to enter personal details. Mo- as part of their global operational are known.

René Steinhaus

LUX-AIRPORT ANNUAL REPORT 2017 10 02 11

OUR YEAR IN NUMBERS

‘‘I love seeing the huge aircraft on the airside with their engines running. They fascinate me, and give me an energy boost.’’

Rémy SAFETY AND COMPLIANCE MANAGER 02 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 12

FACTS & FIGURES 13

2017a year in numbers 78 3,600,000 19% 68,621 direct flight destinations passengers passenger number increase aircraft movements 16 362,243 938,000 7,400 scheduled passenger airlines passengers in the busiest month tonnes cargo car parking spaces 254 13,724 14% employees passengers on the busiest day cargo increase

LUX-AIRPORT ANNUAL REPORT 2017 LUX-AIRPORT ANNUAL REPORT 2017 J 13TH JANUARY 13TH fresh, user-friendly design. lux-Airport.lu anew, gets AND APP WEBSITE NEW ANNOUNCES AIRPORT LUXEMBOURG 02

F VOLOTEA INAUGURATES VOLOTEA ITS FIRST FLIGHT FROM FLIGHT FIRST ITS LUXEMBOURG TO NICE TO LUXEMBOURG HIGHLIGHTS WELCOMING MESSAGES

M 13TH APRIL LUXEMBOURG AIRPORT TERMINAL B AIRPORT LUXEMBOURG WAS SUCCESSFULLY REOPENED

A SKYCARGO START OUR YEAR INOUR NUMBERS YEAR AND EMIRATES PARTNERSHIP

Luxembourg Airport M Inaugural flight at Inaugural CARGOLUX 23RD MAY 23RD Airport’s main terminal. Luxembourg of heart Center, atthe located Express Business Regus new the of opening the announced together Regus and lux-Airport CENTER BUSINESS EXPRESS REGUS NEW 12TH JUNE 5TH JULY 5TH

J

J OUR YEAR IN REVIEW YEAR OUR 6TH OCTOBER 6TH CARGOLUX HEADQUARTERS BUILDING HEADQUARTERS CARGOLUX NEW ON STARTS GROUNDBREAKING 70 flight from Luxembourg Airport to Amsterdam Schiphol. Amsterdam to Airport 70 flight from Luxembourg lux-Airport held a farewell party for the last the KLM for afarewell held lux-Airport party Fokker HISTORY, ROYAL KLM DUTCH AFTER 97 YEARS OF SHARED SHARED OF 97 YEARS AFTER A AIRLINES PHASED OUT ITS OUT PHASED AIRLINES 1ST AUGUST “Aelia and Lounge” Store” Fashion “Lux Brewery LUXEMBOURG AIRPORT’S TERMINAL B AIRPORT’S LUXEMBOURG IN OPENED UNITS RETAIL NEW TWO LAST FOKKER LAST S 28TH OCTOBER OUR PERFORMANCE

O LUXEMBOURG AIRPORT AIRPORT LUXEMBOURG Obtaining aerodrome certification was the the was certification aerodrome Obtaining top priority this year for our company and and company our for year this priority top Administration de la Navigation Aérienne la Aérienne de Navigation Administration Chaussées, successfully completed on successfully on completed Chaussées, DAC in the framework of lux-Airport’s of DAC framework the in time the final verification audit by the audit by verification final the time and the Administration des Ponts et Ponts des Administration the and aerodrome certification application. application. certification aerodrome CERTIFICATION OF the entire airport community. entire airport the lux-Airport, together with the with the together lux-Airport,

AERODROME AERODROME N 19TH DECEMBER 06 07 14 15

D 02 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 16

TRAFFIC RESULTS 17

2017 19% New destinations were introduced PASSENGER INCREASE

ALICANTE LUXEMBOURG 3,600,000 PASSENGERS AIRPORT ONCE BARI AGAIN HAD AN BERLIN-SCHÖNEFELD 362,243 BIARRITZ PASSENGERS IN THE BUSIEST MONTH HURGHADA 13,724 MILAN-BERGAM0 PASSENGERS IN THE BUSIEST DAY MILAN-LINATE EXCELLENT ANNUAL EVOLUTION OF PASSENGER NUMBERS YEAR The leading destinations in terms of passenger numbers 2011 2017 2016 2013 2015 2012 2010 2014 2009

In 2017, 3.6 million 1 PORTO passengers traveled through the Greater 2 LISBON Region’s airport. For the first time, and

3 MUNICH 000 600 3 then on several other occasions, the airport 4 FRANKFURT registered more than 3,021,915 300,000 passengers per 5

LONDON CITY 2,687,566 month, with July 2017

setting a new record of 2,468,075

362,243 passengers. 2,197,497 However, by taking all four of London’s airports into 1,919,880

account (Heathrow, Gatwick, Stansted and City) the 1,791,255 1,630,165 capital of the UK remains the leading destination. 1,551,344

LUX-AIRPORT ANNUAL REPORT 2017 02 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 18

CARGO 19

IN 2017 14 % A TOTAL OF CARGO INCREASE

The 2008 financial crisis resulted in a substantial reduc- 938,000 tion in the volume of air freight, and it wasn’t until 2013 TONNES CARGO that Luxembourg Airport started to record renewed growth. The excellent results in 2017 were due to a spike in global demand for air freight, with IATA figures pointing ANNUAL EVOLUTION OF AIR CARGO VOLUME to a 9% increase in tonne-kilometers globally and 11.8% IN TONNES in Europe*.

To cope with this increased volume, at the start of 2017 2011 2017 2016 2013 2015 2012 2010 2014 2009 938,000 Luxembourg Airport began building work on an exten- sion of its cargo aircraft parking area. This will increase capacity from 8 to 12 stands, sufficient to take cargo pla- TONNES OF nes as large as the Boeing 747-8F and with one stand CARGO WAS designed for Antonov 124s. 938,000 One of the characteristics of Luxembourg Airport’s Cargo HANDLED Center, operated by LuxairCARGO, is its ability to handle non-standard gauge freight that can only be carried in 747 cargo planes. This is due to these aircraft having loa- 822,283 ding doors in the nose, a unique configuration.

It has taken 10 years 759,096

to beat the previous record Another specialty is the ability to transport pharmaceu- 735,212 set in 2007 of 896,000 tonnes. ticals that require strict temperature control throughout 725,062

the whole transportation cycle. In 2017, 31,000 tonnes of 693,153 676,708 pharmaceutical products were carried through Luxem- 672,114

bourg’s airport. 638,068

Other specialized merchandise carried included cars, helicopters and car engines. Thousands of animals were also transported safely including alpacas, bison, stags, fish, giraffes, gorillas, hamsters, horses, kangaroos, pigs, swans, tortoises and even zebras.

* 2017 worldwide airfreight results, released by IATA on 30 January 2018.

LUX-AIRPORT ANNUAL REPORT 2017 02 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 20

AIRLINES 21

TOP 5 AIRLINES IN TERMS OF OPERATING AT LUXEMBOURG AIRPORT IN 2017 CARGO TONNAGE

1

IN TERMS OF CARGOLUX PASSENGER NUMBERS 2

1 QATAR LUXAIR AIRWAYS

2 3 RYANAIR ATLAS AIR

3 4 LUFTHANSA SILK WAY WEST 4 AIRLINES EASYJET 5 5 CHINA KLM AIRLINES

OTHER AIRLINES

AEGEAN AIRLINES - BRITISH AIRWAYS - FLYBE - HAHN AIR - HOP ! - LOT POLISH AIRLINES - SWISS INTERNATIONAL AIRLINES - TAP AIR PORTUGAL TURKISH AIRLINES - VOLOTEA - VUELING

LUX-AIRPORT ANNUAL REPORT 2017 02 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 22

NETWORK 23

STOCKHOLM

MANCHESTER COPENHAGEN

TOP 3 DUBLIN BIRMINGHAM DESTINATIONS HAMBURG LONDON 78 (LGW/LCY/LHR/STN) AMSTERDAM BERLIN (TXL) DUSSELDORF DIRECT FLIGHT BERLIN (SXF) WARSAW 1 LUXEMBOURG FRANKFURT DESTINATIONS PRAGUE SAARBRUCKEN PORTO PARIS CDG VIENNA ZURICH MUNICH NEW DESTINATIONS GENEVA MILAN (BGY) LYON MILAN (MXP) 2 MILAN (LIN) VENICE BIARRITZ TURIN RIMINI

NICE ZADAR LISBON VARNA BASTIA DUBROVNIK CALVI BARCELONA ROME PORTO AJACCIO BURGAS MADRID FIGARI OLBIA NAPLES BARI ISTANBUL (IST) 3 PALMA LISBON ALICANTE DE MALLORCA IBIZA CAGLIARI CORFU MUNICH ALMERIA LAMEZIA TERME FARO PALERMO ATHENS MALAGA CATANIA KOS JEREZ ANTALYA RHODOS MALTA HERAKLION FUNCHAL DJERBA

MARRAKESH

AGADIR TENERIFE ARRECIFE FUERTEVENTURA LAS PALMAS

TOP 20 DESTINATIONS HURGHADA SAL 4 FRANKFURT 5 LONDON CITY 6 AMSTERDAM 7 LONDON 8 MILAN 9 ZURICH HEATHROW MALPENSA BOA VISTA 10 MADRID 11 LONDON 12 PARIS CDG 13 VIENNA 14 PALMA DE 15 BARCELONA STANSTED MALLORCA

16 ISTANBUL 17 BERLIN TEGEL 18 NICE 19 LONDON 20 ROME GATWICK

LUX-AIRPORT ANNUAL REPORT 2017 24 03 25

OUR YEAR IN REVIEW

‘‘lux-Airport has the desire and the drive to enact an ambitious environmental policy.’’

Sandrine ENVIRONMENT MANAGER 03 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 26

SUSTAINABILITY 27

LUX-AIRPORT HAS FIRMLY ORIENTED ITS DEVELOPMENT TOWARDS CONSTANT ENERGY AUDIT GROUND AIRPORT CARBON IMPROVEMENT OF An energy audit of lux-Airport buildings A survey of all ground zones in the ACCREDITATION THE ENVIRONMENT. was completed. Analyzing the current airport began. Boreholes will be situation revealed several potential sunk in these areas and the soil This internationally recognized ACI areas for improvement such as analyzed in the laboratory. A land accreditation features a certification changed programming of the heating/ use plan of zones will be established, program specifically dedicated to cooling systems based on principles enabling the necessary anti-pollution airports. Based on carbon footprint of energy optimization, replacement of measures to be taken to guarantee a management, it requires airports to defective meters, analysis and follow- healthy environment and to prevent become cleaner while taking into ac- up through the centralized technical contamination. count their primary role of facilitat- management system, revision of lux-Airport intends to ban the use ing personal mobility. Certification is lighting programming. of glyphosate on the airport site. An achieved through four levels of mea- alternative solution has been identified sures: and needs testing in 2018. Then rules ENVIRONMENTAL WATER of good conduct must be established MANAGEMENT for all stakeholders. Level 1 OBJECTIVES Mapping: footprint measurement (this A request for a new water manage- is in the process of being obtained) ment authorization for the airport site WASTE have been set in each of has been submitted to the Water Man- Work began on a new waste manage- Level 2 the relevant areas linked agement Administration. The applica- ment plan. The waste depot was to- Reduction: carbon management to the environment, in line tion details the current situation and tally reorganized as regards contain- towards a reduced carbon footprint with its role as an airport. plans for the future. At the moment ers, types of waste sorted, signage, water is collected and channeled, de- organization, etc. A sorting at source Level 3 pending on the degree of pollution, project is currently in the approv- Optimization: third-party engagement and is measured by the five existing al process, in particular at the level in carbon footprint reduction measurement stations at the airport. of goods confiscation points before access to the secured area. Level 4 De-icing accounts for around 80% Neutrality: carbon neutrality of water pollution at the airport. It is for direct emissions by offsetting AIR processed at the Uebersyren water Thanks to these steps we hope lux-Airport has already implemented a purification plant. Firm cooperation to be awarded the fleet of electric vehicles. The company agreements between the different SuperDrecksKëscht® fir Betriber With the energy audit finalized, also encourages its partners in their actors (SIDEST, Administration des label in 2018. lux-Airport received a full picture efforts to reduce the carbon footprint Ponts et Chaussées, and lux-Airport) of its carbon footprint. These of their vehicle fleets. A plan to make enables optimal coordination and calculations are the first step towards electric vehicles available for hire in processing. Studies of the short circuits projects gaining certification level 1 in 2018. the terminal’s underground car park “up-cycling” and “cradle to cradle” will has been approved. be on-going in 2018.

LUX-AIRPORT ANNUAL REPORT 2017 03 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 28

SUSTAINABILITY 29

ISO 14001 where several projects are being for its airport activity. This document CERTIFICATION planned. Compensatory measures for will cover how the airport is organized a bird habitat will be implemented. and run in the interests of the natural This environmental certification re- and human environment. It will be the quires that a range of standards be In cooperation with the Administration result of exchanges and collaboration adhered to when an environmental de la Navigation Aérienne, lux-Airport with all stakeholders and affected en- management system is being put in will install beehives in suitable areas tities around the airport. place. Thanks to these norms the air- of the airport site, probably during port is now in a position to manage the 2018. Pest control campaigns are con- This voluntary, shared code of best impact of its activities on the environ- ducted using organic solutions, such practice has a clear concern: the qual- ment and to show the efficiency of its as the use of essential oil-based re- ity of the environment in and around management systems. The principles pellents. Luxembourg’s airport. behind these standards also require a process of continuous improvement, Once management of water, waste, and the airport is committed to this. ENVIRONMENTAL the ground, and energy is optimized This process is initiated via the defi- CHARTER this will have defined the foundations nition of an environmental policy for for this charter. Certification is one of lux-Airport. lux-Airport is committed to draw- the tools used when putting this char- ing-up and putting into practice an ter in place. environment management charter AUTHORIZATION lux-Airport has started to compile an inventory of all authorization approv- als granted by the Environmental Administration and the Inspection du Travail et des Mines. There are a sub- stantial number of these documents, given the wide range of stakeholders working at the airport. They are being analyzed, as is the new compliance monitoring procedure.

FLORA AND FAUNA A study of how the natural environ- ment in a particular area will be af- fected by a planned building project was undertaken. It concerns a zone

LUX-AIRPORT ANNUAL REPORT 2017 03 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 30

CORE BUSINESS 31

CONTINUOUS IMPROVEMENTS T0

An information campaign was run at Numerous IT projects were under- the end of the year to raise awareness taken to meet the demand from other amongst airport users of safety and departments, and our partners and Two new video walls were driving rules on the tarmac. clients: installed in the departure hall Weekly and periodic meetings with to give flight information to all relevant partners and customers passengers. were introduced as part of the cer- The opening of Terminal B tification compliance process. This was one of the larger projects includes the cooperation with the Ad- handled by the teams. The entire Airport management software ministration des Ponts et Chaussées IT network was replaced and and data received a major up- LUX-AIRPORT and the Administration de la Naviga- developed, with the installation grade, with the installation of a tion Aérienne. This reinforced the co- of Wi-Fi transmitters, cameras, new, more user-friendly version ordination of operations, airport-re- passenger information systems with new functionalities. SERVICES lated publications, and work on the and equipment at each departure airport site. gate. The opening of Terminal B required Regarding baggage management, changes to procedures, both for the reconciliation solution was terminal operations, aircraft parking Another step towards a more implemented featuring a scanner allocation and for operations featur- user-friendly Luxembourg airport per station agent. ing direct access to the planes by has been made by upgrading the passengers. free, unlimited Wi-Fi network As for baggage handling, the baggage at the airport. Visitors and A new tarmac Wi-Fi solution reconciliation solution with scanners travelers can now benefit from managed by the airport was put was fully implemented. This new solu- a free Wi-Fi connection which in place, with the Wi-Fi signal AIRPORT tion enables bags to be loaded into is up to 10 times faster than expanded to cover the entire OPERATIONS aircraft, while being identified rapidly previously. tarmac. and efficiently. Free Wi-Fi is available in the The opening of Terminal B and the On the tarmac, equipment storage ar- public area of the terminal, at successful acquisition of EASA airport eas have been defined and marked on the boarding gates, in all shops, certification as aerodrome operator the ground to improve safety, and to restaurants and also in the short GENERAL AVIATION were the major projects in 2017. The facilitate the flow of all traffic. term car park C. There was slight growth in 2017, at department plays a key role by man- around 2.1% with 13,046 passengers aging a range of resources and by on an increased number of services, coordinating the operation of Luxem- IT We installed a new scalable the latter up 16.6% to a total of 7,092. bourg Airport. To fulfill the new tasks, The information technology depart- infrastructure system as a reorganization has created new ment’s main role is to ensure the part of the first phase of teams of duty managers and airside smooth running of all IT systems in the the SAP implementation. teams. terminal and the overall airport site.

LUX-AIRPORT ANNUAL REPORT 2017 03 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 32

CORE BUSINESS 33

AERODROME All work related to obtaining certifi- airport’s landside retail outlets was CERTIFICATION cation was carried out in partnership organized from October 2017 to the with different teams at the airport, start of January 2018. It was run in The achievement of the EASA aero- cooperation with the retailers in the drome certification and the takeover airport, the communication agency of the aerodrome operator function COMMUNICATION Plan K, and the smart car company. by December 2017 was an important AND MARKETING “Shop and win a car” sought to milestone for lux-Airport. promote shops and restaurants at New manuals and procedures were lux-Airport re-launched its website the airport. The prize was an electric written in cooperation with our part- www.lux-airport.lu, presenting it for smart forfour. Luxembourg’s airport ners, while existing documents were the first time during the Vakanz 2017 was presented at various national reviewed to ensure conformity with fair. The airport decided to refresh its and international trade fairs: the regulations. The main manuals are image, and one of the first steps was “Vakanz” tourism fair, “Transport the Aerodrome Manual, Airside Safety to redesign its website, and to adapt Logistics” in Munich (a fair focused Manual, Airside Driving Rules, Stan- it to the needs of today’s digital trav- on freight), as well as “Expo REAL dards Manual and the Positioning and eler. The goal was to create a website 2017” to present the “Airport City” Push-back Manual. All work related with a responsive design to offer us- project to international real estate to obtaining certification was carried ers a great, more customer-centered professionals. out in partnership with the Adminis- digital experience, with an intuitive tration de la Navigation Aérienne and design. We also sought to help people different teams at the airport, through connect with the airport by boosting RETAIL the creation of a working group, and our social media presence via Twitter, The choice of catering and retail op- meetings dedicated to specific top- Facebook, Instagram and YouTube. tions has expanded with the opening ics. In parallel, a Safety Management of Terminal B. One new shop and one System (SMS) was put in place for the Besides the re-launch of the website, new restaurant have opened in Termi- aerodrome. This SMS features an ac- lux-Airport re-designed its mobile nal B, thus extending the range of food tive security management system for apps for IOS and Android. Many new on offer. There is also a wider choice the maneuvering area. It uses a secu- features have been added and im- of products on sale in the retail sales rity policy, a definition of objectives, proved such as the parking calculator, outlets to meet the requirements of corrective and preventative reports, the possibility to track flights, to find travelers and visitors. and a risk analysis for changes. airlines serving Luxembourg Airport, As regards airport infrastructure, a New manuals and procedures were and receiving e-mail notifications In May 2017 the new Regus Express Maintenance Procedures Manual was New parking space marking Audits and bringing up to written in cooperation with our part- about a chosen flight. Business Center opened in Terminal A. developed. Also regular exchanges in zones P1, P2, P3, and P7 standard of marking, lighting, ners, while existing texts were re- This gives business travelers, as well were established between relevant and durability of tarmac viewed to ensure conformity with A microsite was created specifically as local and international businesses, airport bodies (Administration des regulations. The main manuals are to explain the main elements of the an ideal professional environment in Ponts et Chaussées and lux-Airport). Resurfacing of around 35,000 m2 the Aerodrome Manual, Airside Safe- planned Airport City real estate which to meet and work. Located on Every part of the infrastructure was of concrete with tarmac in P2 For all other infrastructure, action ty Manual, Airside Driving Rules and project. the first floor of the terminal, the Re- analyzed, and where possible, adapt- and P3 plans were defined and are being Standards Manual and the Positioning gus Express Business Center has five ed to conform to EASA regulations: followed up. and Push-back Manual. A marketing campaign promoting the fully equipped modern meeting rooms

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CORE BUSINESS 35

with capacity for up to 50 people. The required to reach the planes. SECURITY A large part of the LuxairCARGO facility offers an impressive view over The number of SAS between the freight center was integrated into the airport tarmac and the terminal At the end of the year Cargolux boarding gates and the baggage re- the airport’s security and regulated floor. Airlines and lux-Airport started to claim hall has been increased from access zone. Several doors were build a new headquarters for the two to three, thus facilitating the flow equipped with anti-intrusion alarms, airline. The building will be located in of arriving passengers. At the same and video surveillance cameras were INFRASTRUCTURE the commune of Sandweiler, and will time, we took the opportunity of re- also installed. AND TECHNICAL be next to the Cargolux maintenance placing the SAS to increase the level lux-Airport acted in response to a hangar. These buildings will be linked of security when moving between the Luxembourg government directive PROJECTS by a glass passageway. As well as critical zone of the airport to the non regarding checks on traveler identity Several operational and commercial new offices with car parking spaces, critical zone. documents at access points to the improvements were made during there will be the company training airport’s critical zone. the renovation of Terminal B. center, which will include facilities for At the beginning of June, Terminal B These included the creation of new crew training including two Boeing and the linking corridor were integrat- Waiting times at security checkpoints retail space, the renovation of the 747 flight simulators. The new building ed into the airport’s critical zone. To were excellent in 2017. On average, old business lounge into an open is being built and will be owned by achieve this, full sterilization of this 95% of travelers waited less than five comfortable room, and the installation lux-Airport, Luxembourg airport’s infrastructure was carried out by minutes, with 97% waiting less than of an ATM. As well, the orientation management company. Cargolux has lux-Airport security services, the Air- 10 minutes. of the way aeroplanes park was taken out a long-term lease. Work port Police, the Direction de l’Aviation changed, and a corridor was created started in late 2017 and should be Civile, and the Customs and Excise to link the two terminals. ready for occupation in early 2020. Administration. SAFETY With the opening of Terminal B, On 5th July 2017, nine years after Work began in Terminal A on prepara- The airport underwent a Europe- the security manual was adapted it was closed, Luxembourg Airport tion for planned changes to the transit an Commission security inspection. with an updated evacuation plan. Terminal B was returned to service. area, expansion of the non-Schengen During this inspection a group featur- Several training sessions were given, Extending gate capacity by renovating arrival zone, and an increase in the ing representatives of the European including courses to new staff on fire Terminal B had become an urgent number of passport control desks. Commission and observers from the and first aid. priority due to the increase in the Construction work began in January TSA (Transport Security Administra- number of passengers in recent years. 2018. tion) analyzed relevant EU legislation Just 11 months of intensive work were to check the compliance of securi- necessary to deliver a well equipped, Around 35,000 m2 of surfaces in air- ty measures in place in the airport. modern Terminal Building. Terminal B craft parking areas P2 and P3 were lux-Airport regained responsibility for is adapted to regional planes, with renovated with a thin layer of asphalt. distributing airport driving licenses. passengers embarking directly onto All markings related to parking places Between July and December 2017 we the aircraft that are parked in front were also renewed. issued 1,112 of these licenses. of the boarding gate. No shuttles are

LUX-AIRPORT ANNUAL REPORT 2017 03 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 36

FUTURE PROSPECTS 37

organic growth in 2018 as airlines cooperation with the bank ING. We respond to healthy market conditions. will continue to review our food and Already in the first half of 2018 we beverage offering to ensure it meets have seen several airlines expand or passenger demands. add new services: Luxair to Venice, All this work is focused on making Geneva, Barcelona, Dublin, Bari, the passenger experience as pleasant Milan-Linate, and Stockholm; Luxair and professionally useful as possible. Tours to Brac and Enfidha; Aegean to As part of our strategy to improve Athens; easyJet to Bordeaux; Ryanair services and promote environmental to Palma de Mallorca. If current sustainability, we will encourage trends persist, we expect passenger electric vehicle use. We are planning numbers to approach around to test electric-powered shuttle 4 million by year-end. Traffic on UK buses to serve our low-cost car park and Ireland routes has increased in located two kilometers from the main 2018 the last years, driven particularly by terminal building. We will also install growing cooperation between the six electric-vehicle charging points three country’s international financial in our car park A/B. This technology OUTLOOK sectors. Despite the UK’s decision to will be compatible with Luxembourg’s leave the EU, there is no sign of an national charging station network. immediate diminution in this traffic. Since May 2018, we are partnering with Traffic to North Africa and Turkey a Luxembourgish startup offering an remains sustained. When flights from app-based electric-car rental service these destinations coincide, delays “UFO Drive”. As well, our work to join can occur as passport checks are the Airports Council International’s conducted manually. Green Airports Initiative will continue. To ease this pressure, ten electronic Four additional cargo stands to the passport scanning gates will become west of the existing ones will be operational (in cooperation with the completed in autumn 2018, bringing Airport Police) over the summer the total number to 12. With Luxembourgish, European and of 2018: five for immigration and 2018 will also see us start to plan global economic growth likely to be five for emigration. These e-gates for the refurbishment of the runway. sustained throughout 2018, we expect will be accessible for holders of We will also continue work on our to report increased traffic this year in EU passports, with manual gates planning for the landside real estate both passenger and cargo segments. maintained for processing non-EU development called Airport City. Passenger number growth will passports. probably be less strong than the The waiting lounge in Terminal B increase seen in 2017. We can expect is being renovated in 2018, in

LUX-AIRPORT ANNUAL REPORT 2017 38 04 39

OUR PERFORMANCE

‘‘Our staff’s passion drives our performance’’

Suzy HR TEAM MEMBER 04 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 40

SHAREHOLDING & BALANCE SHEET 41

SHAREHOLDING BALANCE SHEET

2017 2016 AIRPORT-ENERGY SA One of the tasks entrusted to lux-Airport by the State involves the construc- Intangible fixed assets 914,651.83 607,857.63 tion, financing and operation of a cogeneration plant which meets the identified requirements of the airport precinct. This power plant, which was built at the Tangible fixed assets 163,737,632.46 163,673,199.78 same time as the new Terminal A and the underground car park, generates and supplies heat for heating applications, cooling energy for air-conditioning appli- cations and back-up power in case of a breakdown of the main electricity supply. Financial fixed assets 2,264,337.99 1,424,165 A second power plant was built and commissioned at the same time as the new maintenance hangar for Cargolux. Airport-Energy with 50% of its capital owned TOTAL FIXED ASSETS 166,916,622.28 165,705,222.41 by lux-Airport, is in charge of the development and management of these power plants. In 2017, the financial statements of Airport-Energy disclosed positive earnings Receivables 12,137,752.40 13,977,594.85 of € 367,063. Cash in bank, post office accounts, 75,737,455.73 74,529,295.89 cheques and cash LUXFUEL SA TOTAL CURRENT ASSETS 87,875,208.13 88,506,890.74 Pursuant to the acquisition of Cargolux’s shareholding in Luxfuel SA in 2011, lux-Airport now holds 30% of the shares of this company. Luxfuel SA is based at Luxembourg Airport and its mission is to operate a fuel and lubricants depot Prepayments and accrued income 654,207.33 363,344.33 as well as to receive, store, distribute and load these products onboard aircraft. As at 31 December 2017, the three shareholders of Luxfuel SA were Luxair (40%), TOTAL ASSETS 255,446,037.74 254,575,457.48 Skytanking (30%) and lux-Airport (30%). In 2017, the financial statements of Luxfuel disclosed positive earnings of € 1,802,938. Amounts are indicated in euros.

LUX-AIRPORT ANNUAL REPORT 2017 04 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 42

FINANCIAL PERFORMANCE 43

FINANCIAL PERFORMANCE

2017 2016 2017 2016

Subscribed capital 7,577,000.00 7,577,000.00 Net turnover 54,557,867.72 51,794,171.02

Share premium and similar 893.30 893.30 Other operating income 21,485,484.43 17,670,062.32

Legal reserve 757,700.00 757,700.00 Raw materials and consumables -3,399,728.31 -3,295,258.60

Other reserves 55,200,000.00 42,400,000.00 Other external expenses -21,812,407.28 -17,346,539.03

Surplus brought forward 252,557.54 243,965.94 Staff costs -13,068,120.98 -11,833,890.82

Result for the year 14,574,029.47 12,808,591.6 Value adjustments -17,403,690.85 -15,256,875.63

SHAREHOLDER’S EQUITY 78,362,180.31 63,788,150.84 Other operating expenses -2,089,385.43 -4,479,470.55

Provisions 14,536,600.52 13,960,861.34 Income from participating interests 800,000.00 225,000.00

Non-subordinated debt 159,170,475.56 173,315,442.59 Other interest receivable and similar income 275,478.97 122,691.47

Accruals and deferred income 3,376,781.35 3,511,002.71 Value adjustments in respect of financial assets 840,172.99 479,350.25 and of investments held as current assets TOTAL LIABILITIES 255,446,037.74 254,575,457.48 Interest payable and similar expenses -43,718.04 -37,782.46

Amounts are indicated in euros. Tax on profit or loss -5,567,923.75 -5,232,866.37 The balance sheet shown here is an abridged version of the balance sheet included in the annual accounts at 31 December 2017, which were audited by the certified auditor PwC, which issued an unqualified audit report without any reservation on 26 May 2018. PROFIT FOR THE FINANCIAL YEAR 14,574,029.47 12,808,591.60

Amounts are indicated in euros.

The profit and loss account shown here is an abridged version of the balance sheet included in the annual accounts at 31 December 2017, which were audited by the certified auditor PwC, which issued an unqualified audit report without any reservation on 26 May 2018.

LUX-AIRPORT ANNUAL REPORT 2017 04 WELCOMING MESSAGES OUR YEAR IN NUMBERS OUR YEAR IN REVIEW OUR PERFORMANCE 44

GOVERNANCE 45

SHARE- BOARD EXECUTIVE HOLDING OF DIRECTORS COMMITEE

Tom Weisgerber Josiane Pauly Johan Vanneste Chairman of the Board Board Member Chief Executive Officer Premier Conseiller de Gouvernement The share capital as Premier Conseiller de Gouvernement au Ministère du Développement au Ministère du Développement at 1st January 2012 stood at durable et des Infrastructures durable et des Infrastructures Alexander Flassak Director of Finance & Real Estate € 7,577,000 Development Félicie Weycker Damien Seil Vice Chairman of the Board Board Member Premier Conseiller de Gouvernement Staff Representative David Konsbruck Director Administration represented by au Ministère du Développement durable et des Infrastructures and Human Resources 7,577 shares Jeannot Waringo with a nominal value of €1,000 Board Member René Biwer Claudine Leinenveber Board Member until 26 May 2017 Director of Operations & IT André Weidenhaupt Directeur de l’Administration Board Member des Ponts et Chaussées René Steinhaus all held by the State of the Premier Conseiller de LUX-AIRPORT Commercial Director Grand Duchy of Luxembourg. Gouvernement au Département Jérôme Boyer de l’Environnement Board Member Staff Representative Véronique Wiot Board Member Attaché de Gouvernement Roland Fox au Ministère du Développement Board Member from 26 May 2017 durable et des Infrastructures Directeur de l’Administration des Ponts et Chaussées

Bahrudin Halilovic Board Member Staff Representative

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