Home Annual Statements Financial Statements 2012 Notes to the consolidated financial statements Notes to the consolidated balance sheet Contingent assets and liabilities
Schiphol Group’s pension plan is administered by ABP and qualifies as a defined-benefit plan. This means that Schiphol Group should recognise its share of the present value of the defined-benefit obligation, plan assets and income and expenses arising out of the plan and make the related disclosures. ABP is currently not in a position to supply Schiphol Group with the information necessary to treat the pension plan as a defined-benefit plan as there is no consistent and reliable basis for allocating the benefit obligations, plan assets and costs of the ABP plan to individual affiliated employers participating in the plan. Consequently, the plan is recognised as a defined-contribution plan. Schiphol Group recognises the pension contributions payable to ABP as an expense in the income statement.
The ABP pension regulations do not contain provisions on additional contributions to the fund or withdrawals from it in respect of Schiphol Group’s share in surpluses or deficits of the pension fund. Consequently, any surpluses and deficits will only result in changes in the amount of the contributions payable by Schiphol Group in the future and these will depend on the actual and expected financial position of the pension fund as reflected in the funding ratio. ABP’s funding ratio was 96% at 31 December 2012 and it has taken measures to ensure that it recovers its financial soundness including a 0.5% reduction in pensions from 1 April 2013 (pension entitlements of workers and pension rights of retired individuals). ABP is considering a further reduction in 2014 if its financial situation does not improve in 2013.
Covenants on the future development of Amsterdam Airport Schiphol
The Alders Platform was created in December 2006 and is a consultative forum presided over by Mr Hans Alders to advise the Government on balancing the requirements of aviation growth at Amsterdam Airport Schiphol, disturbance reduction and local environmental quality in the medium term (to 2020). All relevant parties are represented in the Alders Platform: the State (the ministry of Infrastructure and the Environment), aviation parties (Schiphol Group, Air Traffic Control the Netherlands (LVNL) and KLM), a number of regional and local authorities (the provinces of North-Holland and South-Holland, the municipalities of Haarlemmermeer, Amstelveen, Uitgeest and Amsterdam) which form the Schiphol Regional Airport Governance Group (BRS), residents living in the vicinity of Amsterdam Airport Schiphol via the Schiphol Regional Consultative Committee (CROS), and the Association of Joint Platforms (VGP). The Alders Platform presented its recommendations for the medium term on 1 October 2008 since when the parties involved have been implementing the agreements. Progress is discussed within the Alders Platform at least twice a year. The details have been set out in three covenants ‘Local environmental quality in the medium term’, ‘Disturbance reduction and development of Amsterdam Airport Schiphol in the medium term’ and ‘Maintaining and strengthening the mainport function and network quality’.
A two-year experiment with a new noise reduction scheme for Amsterdam Airport Schiphol started on 1 November 2010 with the aim of maintaining the network of connections at Amsterdam Airport Schiphol while providing equal or better protection to the local community. In addition, the scheme should not be complicated and be easy to explain. During the experiment, the present scheme of threshold values at measurement points will remain in force.
The experiment will be evaluated in 2013 and the Alders Platform will decide on its permanent implementation. Earlier agreements will also be examined in respect of their timing and mutual consistency with the arrangements made with regional airports.
Covenant on local environmental quality in the medium term
The arrangements to be made under this covenant concern area-specific projects (improvement of the quality of the local environment in particular areas), individual measures (mitigation in individual cases of noise-related distress) and generic arrangements. Schiphol Group provided EUR 10 million (charged to the financial year 2006) for the near term to 2010, earmarked exclusively for the funding of individual measures in distress cases. The State and the province of North-Holland have also provided EUR 10 million each to fund all the above measures. Furthermore, if the chosen approach proves to be successful when measured against the substantive criteria from the covenant, the process and the availability of projects whose primary financing has been arranged, the three parties intend to provide a second tranche of EUR 10 million each for the medium term (up to 2020). The parties will evaluate the approach during 2013 as part of the four-year evaluation and determine whether a second tranche is opportune.
Covenant on disturbance reduction and development of Amsterdam Airport Schiphol in the medium term
This covenant includes arrangements on subjects such as traffic volume and selectiveness (a maximum of 580,000 air transport movements per annum, of which 70,000 elsewhere), operations and runway usage, and a new system of threshold values and enforcement. With regard to disturbance reduction, Schiphol Group specifically undertakes, on its own or in collaboration with others, to take measures restricting ground-noise levels (noise barriers to the southwest of the Runway 18R-36L), discourage operations with ‘bottom Chapter 3’ aircraft (marginally conforming aircraft), set objective criteria for prioritising the installation of new NOMOS noise monitoring points and provide insight into the current quality assurance of the NOMOS system, develop an environmental simulator providing insight into ground noise perception, and extend the provision of information via the Local Community Contact Centre Schiphol (Bas). To date, the majority of the arrangements have been complied with and so this covenant will be included in the broader evaluation of the Alders Accord. The Alders Platform decided in October 2012 to vary the details of the Continuous Descent Approach (CDA) arrangements, including a reduction in night flights from 32,000 to 29,000 over a period of three years as a compensating measure until the original ones can be met.
Covenant on maintaining and strengthening the mainport function and network quality
In line with the agreements made in the Alders Platform, the parties are making every effort to ensure that total additional capacity of around 70,000 air transport movements at the regional airports can be used. The Alders Platforms for Eindhoven and Lelystad airports agreed in 2010 and 2012 respectively that the capacity required for this (25,000 movements at Eindhoven Airport and 45,000 at Lelystad Airport) can be created.
The creation of capacity at the regional airports requires planning procedures and other preparatory activities before additional capacity is actually available The average completion time of these procedures and activities and the stakeholders’ involvement in making and implementing decisions require a well-timed and careful process.
Rerouting of the A9
In 2005, an agreement was concluded between the State of the Netherlands, the province of North-Holland, the municipality of Haarlemmermeer, the Amsterdam Regional Body, the municipality of Amsterdam and Schiphol Nederland B.V. on financing of the project to reroute the A9 motorway at Badhoevedorp. Schiphol Nederland B.V. has undertaken to pay a contribution towards the costs of up to EUR 15.0 million, provided that the rerouting of the A9 meets the conditions it has set in relation to the cost-effectiveness of the expenditure, the flow of traffic and the accessibility of the airport grounds. This amount is indexed and is now EUR 16.4 million and will have to be paid in 2013 as an irrevocable decisions was taken on the route in December 2012.
In the spring of 2007, Schiphol Group and the municipality of Haarlemmermeer reached agreement on an additional contribution of EUR 14.8 million from the Elzenhof area development for the rerouting of the A9 motorway. This amount was indexed and amounted to EUR 15.6 million in 2011. As a condition for this contribution, Schiphol Group stipulated that irreversible planning permission be given for the development of 100,000 m2 of the Elzenhof area that it owns. This permission can be effected in the form of a Section 19 exemption or a zoning plan. The latter will determine the time at which and the instalments in which the contribution will be paid by Schiphol Group. The zoning plan is expected to become irrevocable in early 2013 and on that basis EUR 11 million will have to be paid in 2013 and EUR 5.6 million in 2017 (four years after the zoning plan become irrevocable).
Rerouting of the N201
In 2005, an agreement was concluded between the province of North-Holland and Schiphol Nederland B.V. on the financing of the project to reroute the N201 provincial road between Uithoorn and Hoofddorp. Under the terms of the agreement, Schiphol Nederland B.V. has promised to contribute up to EUR 5.0 million in cash (payable on completion in equal annual instalments) and up to EUR 7.0 million in kind. Conditions have been attached to this contribution. Over time, the proportions of the contributions in cash and kind have changed. Currently, the contribution is EUR 10.0 million plus and EUR 0.9 in kind (since 2005 by the secondment of staff members of Schiphol Group or third parties working on project management and/or services supporting project management) and EUR 2.0 in cash. The first instalment in cash (EUR 2.0 million) will become due one year after the required changes in the zoning plan regarding those elements of the project that are most essential to Schiphol Group have become irreversible. As the zoning plan became irreversible on 11 September 2011, this will be in early 2013.
Water remediation plan
To improve the quality of the surface water in the long term, a remediation plan has been drawn up to reduce the harmful effects of winter operations. Remediation Plan Part 4 was recently submitted to the Rijnland Water Board. At the Water Board’s request, Part 1 of the current plan has been combined with Part 4 to create a single document that clarifies all the measures to be taken by the airport. The new Remediation Plan Part 4 was drawn up in close co-ordination with the Rijnland Water Board.
The plan includes source-reducing measures and capital expenditure on sweeping and suction equipment for runways and aircraft stands. The Water Board is expected to approve the final plan in February 2013.
Schiphol Group’s Management Board is not yet in a position to make a reliable estimate of the investment and costs that the group will have to bear in the coming years in connection with the sanitation plan.
Nitrogen dioxide offset
The amended ‘Airport Traffic Ruling’ came into force in 2010. It is geared towards managing the environmental impact of air traffic to and from Amsterdam Airport Schiphol and includes measures which will offset the expected increase in nitrogen dioxide concentrations. The amended ruling requires Schiphol Group to install fixed power points and preconditioned air units at fifteen or sixteen aircraft stands annually from 2010. By the start of 2014, there will be 61 aircraft stands with an electricity supply.
The current estimate is that Schiphol Group will have to invest a further EUR 5 million to install this infrastructure in the coming, final, year. It was also decided, in consultation with the sector, at the beginning of 2011 that Schiphol Group will also pay for the 400Hz converters. This investment is included in the EUR 5 million.
transavia.com submitted a complaint to the NMa in mid-October 2012 pursuant to Section 8.25 et seq of the Aviation Act, claiming that Schiphol had improperly denied it access to handling at the H pier and the associated lower charges. transavia.com then also submitted a claim against the lower handling charges at the H pier and the reasonableness of the applicable terms and conditions. The NMa will decide on these claims within about four months of their submission; if the two claims are consolidated, the NMa is expected to have decided both of them by 1 April 2013.
KLM has submitted a complaint to the NMa on the consultation procedure and the charges, terms and conditions from 1 April 2013, specifically on the settlement for 2011, the liability clauses in the Schiphol Rules and Regulations, the consultation on the Redevelopment Lounge 2 project, the allocation of space in the B/C Corridor for prior years, the allocation of costs for the Central Control Room Infrastructure and the allocation of various building-related charges (other offices). The NMa has stated that it intends to decide this claim before the relevant charges, terms and conditions come into force on 1 April 2013.
easyJet has submitted a complaint to the NMa against the charges from 1 April 2013, specifically on the inclusion of costs for High Risk Flight measures in the general security charges. The NMa has stated that it intends to decide this claim before the relevant charges, terms and conditions come into force on 1 April 2013.
Border Control Reform (No-Q)
In mid-2009, Schiphol Group and the Immigration and Naturalisation Service (IND) of the ministry of Justice decided to launch a joint Border Management Reform programme, as part of their ongoing cooperation in the area of safety and security at Amsterdam Airport Schiphol. The aim of the programme is designed to help increase safety and improve the quality and speed of services by creating an effective and efficient border control process involving the greatest possible use of intelligence-driven action, based on information about passengers and their baggage received in advance, and the application of new automatic border control concepts. Schiphol Group and the IND have committed one-off financial contributions to the programme of up to EUR 16.5 million and EUR 10 million respectively for the development and application of a new automatic border control concept currently being investigated and developed in the No-Q project. Schiphol Group reached agreement at with IND the end of 2012 for the period from 2012 to 2015 which put all of the initial arrangements into practice.
Contamination by extinguishing water
In July 2008, the Rijnland Water Board collected contaminated extinguishing water released during an incident at a KLM hangar in Schiphol Southeast and stored it in reservoirs made available by Schiphol. The Water Board had been granted a permit for this by the province of North-Holland. Although the contaminated extinguishing water was removed and decontaminated in 2009, it was later discovered that the soil and groundwater around the reservoirs had been contaminated. As the owner of the land concerned, Schiphol Group suffered damage as a result. The Water Board removed the sludge from the reservoirs in 2011, as a result of which no further contamination is taking place through the soil. The Water Board, KLM and Schiphol are now working together to take control measures aimed at preventing the further spread of contamination through groundwater. The contaminated reservoirs will ultimately have to be cleaned up. A study will be carried out in 2012 to determine the method to be used.
The watercourses at Schiphol that were contaminated during this incident will be cleaned up within the framework of the regular dredging programme. The most heavily contaminated locations close to the hangar will be accorded priority. The additional costs incurred on top of the regular dredging programme for the transport and processing of the contaminated material will be charged to KLM. Evides, a water decontamination company, is taking measures in consultation with the municipality of Haarlemmermeer to deal with the technical facilities that were also contaminated by this incident.
Covenant to reduce the risk of bird strikes at Schiphol
On 16 April 2012, Schiphol and the Dutch Airline Pilots Association, Natuurmonumenten, Staatsbosbeheer and landschap Noord Holland (nature conservancy organisations), the Netherlands Horticultural and Agricultural Organisation, municipality of Haarlemmermeer, provinces of North-Holland, South-Holland and Utrecht, and the State signed a covenant on reducing the risk of bird strikes at Schiphol. The parties committed to implement the covenant and participate in the Netherlands Control Group for Bird Strikes (NRV). The aim of the covenant is to reduce the risk of collisions between birds, especially geese, and aircraft in the area around Schiphol each year. The Control Group has a four-track plan for achieving the aims of the covenant. The four tracks are 1) population management, 2) crop adjustment, 3) adaptation of surrounding wetlands and 4) technology. Working closely with LVNL and KLM, Schiphol Group is responsible for developing the technology track. The cost of the various measures will be allocated fairly and reasonably among the parties. Financing the measures is a joint responsibility. Schiphol will pay the costs of the bird detection system and of monitoring bird strikes and near misses.
Other contingent assets and liabilities
The company is committed to contributing EUR 0.5 million to the Schiphol Fund in 2012. It not guaranteed loans taken out by employees. A bank guarantee amounting to EUR 2.3 million relating to payment commitments connected with the ‘Storage in Underground Tanks’ order has been given to the province of North-Holland.
Schiphol Group had a liability of EUR 14.1 million in connection with the cash collateral with JPMorgan, for the difference between the liability in the balance sheet and the amount received as collateral. Villa Carmen Srl and Avioport SpA have issued bank guarantees to construction companies for EUR 4.4 million (the share for Schiphol Group being EUR 2.4 million).
Various other claims have been filed against N.V. Luchthaven Schiphol (hereafter: the company) and/or its group companies, and there are disputes which have still to be settled. All claims and disputes are being contested and the company has taken legal advice on them. However, as it is impossible to predict the outcomes with any certainty it is not yet clear whether any of the cases will result in actual liabilities for the company and/or its group companies. Accordingly, no provisions have been recognised in the balance sheet in respect of these claims and disputes.
The company has also brought claims against third parties and has disputes pending in which it is claimant. Since it is not yet clear whether these cases will be resolved in the company’s favour, no related receivables have been recognised in the balance sheet.