Amsterdam Airport Schiphol takes additional financial measures due to coronavirus
Royal Schiphol Group is taking additional measures in order to remain financially sound. These measures are needed because of the loss of income as a result of the COVID-19 pandemic. The pandemic is having a huge impact on the aviation sector and, as such, also on the airports. Not paying dividends and postponing the distribution of variable remuneration and any pay rises form part of the financial measures. Previously, Schiphol announced it was adjusting its financial targets.
No dividend payment
Schiphol put a proposal to its shareholders (the Dutch State, Municipality of Amsterdam, Municipality of Rotterdam and Aeroports de Paris (AdP)) to refrain from effecting payment of the dividend for 2019 (151 million euros). The shareholders agreed to this proposal in the shareholders’ meeting on Tuesday 14 April 2020. Schiphol regrets having to make this choice, as it means that the shareholders will also be affected financially. However, this measure is necessary in order for the airport itself to remain financially healthy.
Wage control measures
After consulting the unions and the Works Council, Schiphol has also decided to take wage control measures. The variable remuneration of the Management Board and employees for 2019 will, for the time being, not be paid out and any pay rises will be suspended. Schiphol is also taking advantage of the financial bailout package put in place by the Dutch government for the benefit of all businesses in the Netherlands. Schiphol has not made any further requests for assistance.
Support for partners
The corona crisis is also having a significant impact on Schiphol's partners, including airlines, shops and catering outlets. In spite of the impact on Schiphol itself, Schiphol is unburdening these businesses wherever possible. Schiphol's partners at the airport will be allowed – effective immediately and at no extra cost – to defer payment for 60 days and can convert quarterly payments into monthly payments. For the airlines specifically, the increase in airport charges as of 1 April 2020 will be suspended until the end of June. Previously, it was announced that they can park their aircraft free of charge.