New strategies for Aviapartner
May 23, 2009 10:00 pmAviapartner has reorganised and prepared for the current economic environment. Despite this environment, the group’s turnover has increased from €344 million in 2007 to €371 million in 2008 (+7.8%). However, the loss of volumes in the 3rd and 4th quarter 2008 and the adverse movements in the cost structure, led to a 2008 EBITDA of around €8 million.
Against this background, in 2008, 3i and the new management team initiated discussions with a range of parties and this has led to an agreement in principle between the company, the shareholder 3i and funds managed by 3i, and the lenders that have financed Aviapartner. The terms of this agreement lead to a significant reduction in the consolidated financial debt of Aviapartner Holding NV to a maximum amount of €50 million.
An agreement in principle has been reached for additional liquidity of € 35 million (€ 25 million thereof through a capital increase) that will be made available to Aviapartner Holding NV by the banks, 3i and funds managed by 3i, the management and the mezzanine lender.
The new management is implementing a rigorous simplification and re-organisation of its management, operational, and legal structures in order to restore long-term profitability. Aviapartner has also started renegotiating tariffs and terms with all airports where it is active and is reviewing all contracts with customers and suppliers.
The group entered into negotiations with the workers’ representations in the countries in which the group operates for new labour agreements that will allow the group to increase flexibility in the work force, reduce labour costs and adapt staffing levels.