REG - Gatwick Funding Ltd - Notice to Noteholders

Vinci SAAnnouncement

17/03/2020 17:00

RNS Number : 5076G
  
Gatwick Funding Limited
  
17 March 2020
  
 



Gatwick Funding Limited

17 March 2020
 
Issuer: Gatwick Funding Limited

Date: 17 March 2020

 
Gatwick Funding Limited (the "Issuer")

a company incorporated in Jersey (registered number 107376)
Gatwick Airport Update

 

 
Gatwick Airport takes decisive action to protect the business and recover quickly from the impact of COVID-19
 
Gatwick will provide a further update as part of its April 2020 Investor Report and Compliance Certificate.  
 
 
The spread of COVID-19 has had an unprecedented impact on the global aviation industry with our airline partners - including easyJet, British Airways, Norwegian Airlines, Virgin Atlantic and TUI - reporting significantly reduced levels of traffic and substantial cuts in their capacity over the next two months. 
 
As such, Gatwick has taken necessary and appropriate steps to safeguard the financial resilience of the business - and prepare it for a quick recovery - by significantly reducing costs.  
 
Operationally, this includes closing the airport to flights between midnight and 05.30 from Tuesday - except for emergency landings - and closing two of the airport's six piers due to fewer passengers. Further action is also likely to be announced in coming days to reduce the airport's 'operational footprint' in response to this very serious, ongoing situation.
 
In terms of capital expenditure, the airport is deferring spending on its investment programme for the foreseeable future.
 
Stewart Wingate, Gatwick's Chief Executive Officer and his executive team will take a 20% pay cut and waive any bonus for the current financial year. 
 
Gatwick has also taken the very difficult decision to terminate the employment of 200 staff employed on temporary fixed term contracts and contractors, in order to protect the business. We are consulting with employees on further measures to reduce near term operating costs by exploring the potential to introduce options for unpaid leave or temporary salary reductions for staff.
 
These unprecedented circumstances are also having a serious impact on the airport's third-party suppliers and the airport is working closely with them to reduce expenditure.
Along with other UK airports, Gatwick has also asked Government to ensure that the needs of UK airports are an immediate priority of the Chancellor's new Economic and Business Response Committee. 
 
 
 
We also fully support the AOA's request that Government urgently step in to see UK airports through the current crisis, including by suspending business rates and other government and local governments rates and taxes on airports, deferring payments of all VAT, corporation tax and other taxes for the duration of global flight restrictions and suspend regulatory costs on airports where possible.
 
Gatwick Airport, Chief Executive Officer, Stewart Wingate said:
 
"Gatwick is a resilient business, but the world has changed dramatically in recent weeks and we have been forced to take rapid, decisive action to ensure that the airport is in a strong position to recover from a significant fall in passenger numbers.
 
"We must all play our part in helping the airport recover and both myself and our Executive Board will take a significant pay cut to help reduce costs.  We also very much regret having to make this difficult decision to reduce our staff numbers and I would like to thank everyone for the contribution they made to the business.  
 
"Significantly reduced passenger numbers are likely to be sustained, at least in the short to medium term, and I need to prepare people for the news that other serious measures are likely.  We also strongly urge the Government to provide support in order to protect the business and the contribution it makes to the region and wider economy." 
 
About Gatwick Airport
 
Gatwick is the UK's second largest airport. It serves more than 230 destinations in 74 countries for 46 million passengers a year on short and long-haul point-to-point services. Gatwick is also a major economic driver and generates around 85,000 jobs nationally, with 24,000 of these located on the airport. 
 
In 2019, a new long-term partnership was formed with VINCI Airports who purchased a 50.01% stake in the airport. This partnership saw Gatwick Airport integrate into the network of VINCI Airports, the leading private airport operator in the world, which manages the development and operation of 45 airports located in Brazil, Cambodia, Chile, Costa Rica, Dominican Republic, France, Japan, Portugal, Serbia, Sweden, the United Kingdom and the United States. Served by more than 250 airlines, VINCI Airports' network handled 255 million passengers in 2019. Through its expertise as a comprehensive integrator, VINCI Airports develops, finances, builds and operates airports, leveraging its investment capability and know-how to optimise the management and performance of airports and carry out extensions and upgrades. In 2019, its annual revenue for managed activities amounted to €4.9 billion, for a consolidated revenue of €2.6 billion. 
 
Global Infrastructure Partners (GIP), which manages the remaining 49.99% interest in Gatwick, is an independent infrastructure investor that makes equity investments in high quality infrastructure assets in the energy, transport and water/waste sectors. GIP has US$68 billion of Assets under Management. Its 41 portfolio companies operate in over 51 countries with more than 67,000 employees and generate annual revenues of circa US$51 billion.
 
 
 
 
 
 
For more information on VINCI Airports please visit www.vinci-airports.com and for more information on GIP please visit http://global-infra.com
 
Media enquiries to:
GATWICK AIRPORT PRESS OFFICE
+ 44 (0) 1293 505000
gatwickmedia@gatwickairport.com
For further information on Gatwick Airport see www.gatwickairport.com or follow us on Twitter at www.twitter.com/Gatwick_Airport
 
 
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