Published On: Sat, Feb 15th, 2014

CAP plans to invest $10 million to further develop and improvement of Curaçao International Airport

CAP1WILLEMSTAD - 2014 will be another year in which Curaçao Airport Partners N.V. (CAP) continues its commitment to the further development of Curaçao International Airport.

CAP will invest approximately $10 million on projects that will enhance the airport experience for all passengers, stakeholders and the local community.

The projects in which CAP plans to invest include: final engineering on the Terminal Expansion Project (TEP);  a General Aviation Center (GAC); air-conditioning at both the Check-In and Security screening Area; an Airport Plaza with new shops and waiting area for “meters and greeters”; rejuvenation of the Hato Handling building; and a continued Runway upgrade program. A Mirador is being planned as an important part of the new TEP Total planned investments by CAP at Curacao International Airport amounts to approximately $48 million from 2014 till 2018.

These investments confirm the confidence and commitment of the shareholders in the development of the airport, which is critical to the continued development of Curaçao as a tourism destination and hub.

CAP: Airport Expansion Positions Curaçao As A Stronger Regional Competitor

The Customer is the source of all revenues… and ultimately in support of all jobs! That’s why one of CAP’s main goals going forward is to secure a greater percentage of total revenues from non-aeronautical sources in order to reduce the burden of rates on the aeronautical users. However, airline payment delays of these users can amount to millions of guilders outstanding for CAP, which puts extreme pressure on CAP’s cash flow.

70% of CAP’s revenues are generated from the aeronautical tariffs authorized by the Government. The remaining 30% of CAP’s revenues are generated through non-aeronautical activities such as Car Parking, food & beverage, car rental concessions, Retail and Duty Free stores. CAP’s goal going forward is to secure a greater percentage of total revenues from non-aeronautical sources by attracting new activities and expanding the retail and food & beverage opportunities in order to reduce the burden of rates on the aeronautical users.

Unlike many of CAP’s users, primarily the airlines, CAP’s entire business model is based on the performance of Curacao as a tourist and business destination.  Airlines, who also invest significantly in operational assets (mainly aircrafts), have the luxury of reallocating their assets to new and/or more profitable markets based on the demand for air service.  Airlines are also free to determine their level of airfares and make changes they want to these rates whenever they perceive an opportunity to take advantage of specific market conditions.  The airlines also receive payment of their revenues upfront when selling tickets, while CAP extends payment terms of 30 to 45 days to its customers. Airlines receive an extended 45 days payment period and sometimes even more favorable arrangements are being made to assist an airline that encounters difficulties. Unfortunately, despite this generous allowance of payment terms, CAP experiences some significant airline payment delays of up to 9 to 12 months which can amount to millions of guilders outstanding for CAP.  This puts extreme pressure on the cash flow of CAP and also adds to CAP’s expenses to recover these outstanding payments.

CAP Foresees A Bright Future For Curaçao’s Competitive Position

Despite the challenges, CAP sees a bright future for the airport and for Curacao and is pleased to be a part of the expected growth of this unique island. CAP’s new traffic forecasts projects and average annual passenger growth rate of approximately 3% annually from the expanded services of existing airlines as well as from new airlines who have expressed an interest in serving Curacao.  This growth will be well supported by the new terminal expansion currently being planned, which will secure Curacao’s position as an effective regional competitor for future business and tourism growth.

CAP: “10 Years Of Dedicated Service And Strong Commitment To Curaçao”

As of 2003 CAP has continuously proven its commitment towards the development of one of Curaçao’s most important assets: Curaçao International Airport. CAP recognizes and aims to intensify the Airports growth potential and its position as a reliable employer and partner within the community of Curacao.

CAP currently employs approximately 205 professionals of which two (2) employees are expatriates. An estimated total of 1,500 employees are employed in the airport community.

The upcoming years will among others be focused on enhancing the airport experience through customer service, expanding current air services, and exploring new route opportunities; all of which are key to the development and growth of the airport as a reliable economic impulse for Curaçao.  CAP continuously strives to improve the customer service levels at the airport and a heavy focus is placed on retaining and expanding  current air service, as well as aggressively focusing on exploring new route opportunities to complement the already existing ones, which is key to the development and diversified growth of the airport and Curaçao.

CAP is grateful to the Government, the local community, its partners and its employees, which all were and instrumental in achieving the positive development at our local airport.

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