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Commercial Services and Property Management

The main objective of the Commercial Services and Property Manage-ment Department is to maximize the revenues coming from the dif-ferent lines of business, while meeting the needs and demands of the passengers and helping to fund new investments throughout the en-tire network of airports under its purview.

Commercial revenue increased by 4.14% (24.67 million euros) in 2011 compared to the previous year, up to a total amount of 620.5 million euros. The per-passenger commercial revenue was 3.05 eu-ros, and commercial revenue represented 27.03% of all aviation rev-enue in 2011.

Commercial revenue in 2011 was 620 million, 4.1% more than the previous year

The commercial revenue per passenger was 3.05 euros

Digital advertising media at the Madrid-Barajas Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

78

The top seven network airports had a remarkable contribution in commercial revenues during 2011: Madrid-Barajas, Barcelona-El Prat, Palma de Mallorca, Málaga-Costa del Sol, Alicante, Tenerife South and Gran Canaria, which represented 76.91% of the total.

The most relevant business lines in the Aena network generating com-mercial revenue were: retail and duty free shops, parking areas, car rentals, food outlets, property management (rentals), advertising, fuel and business operations.

COMMERCIAL REVENuE DISTRIBuTION By LINE Of BuSINESS

The table below shows a comparison of the commercial activities in 2011, grouped by line of business, with respect to 2010:

BuSINESS LINE Chg(%) 2011 /2010

% Total commercial revenues

Duty free shops 9.49% 18.94%

Car park -6.87% 15.69%

Car rental -0.59% 15.48%

Food outlets 8.41% 13.11%

Shops 6.40% 11.64%

Rentals 2.64% 7.56%

Business operations 15.02% 5.09%

Fuel 12.83% 4.74%

Advertising 1.94% 4.56%

Consumption 14.57% 2.99%

Lounges -2.97% 0.16%

Other 30.34% 0.04%

Outside view of the VIP lounge at the Tenerife North Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

79

STRATEGIES

DEVELOPMENT Of NEW COMMERCIAL AREAS

One of the main objectives of the Commercial Services and Property Management Department is the optimisation of airport commercial venues by introducing large retail chains and prestigious brands in both shops and food outlets, as the different users of our facilities (passengers, companions, and employees) are demanding according to some studies carried out.

Below is a detailed account of the different projects carried out in air-ports:

Alicante Airport

After the opening last March 2011 of the new terminal, the commercial and retail surface expanded to a total of 8,500 m², located all through-out the terminal building. A commercial area with transparent shops in which glass and steel take precedence to make maximum use of the light of the Costa Blanca. The new design increased the commercial surface by 46.8%, arranged in 22 new stores offering a wide array of prestigious brands. The new duty-free shop “The Shop” is emblematic of the Walk-Through store concept. It is located close to the air ac-cess, with its surface area of 1,478 m² acting as a hub leading to the boulevard where the rest of the shops and food outlets round out the commercial offering. An additional two duty-free shops opened at the end of the commercial area, a 229-m² “Express Store” and a 138-m² “Arrival Shop”.

Walk-through shop in the new Alicante Airport terminal

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

80

La Palma Airport

Once the new terminal opened on July 6th, 2011, the surface area of the commercial establishments went from 94 m² to 264 m², resulting in a significant improvement in the commercial offerings.

Also, three shops and one food outlet were put out to tender. Thanks to these actions the new terminal will feature three shops and four food outlets.

Santiago Airport

The new terminal area, put into service in 2011, has a brand new com-mercial area concentrated on the air side, with the 327-m² duty free shop “The Shop” being its most notable addition.

Bilbao Airport

The departures area was remodelled and the duty free shop relocated to build a new, larger facility of approximately 228 m² that combines the concepts of Duty Free and Travel Value.

Palma de Mallorca Airport

In module C, five new stores began commercial operations in June 2011. Covering a total surface of 1,700 m², they offer such diverse products as food, clothes and accessories. In July, the duty free shop “The Shop” with a surface area of 1,587 m² was opened.

Interior of the new Santiago Airport terminal

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

81

COMMERCIAL REVENuE CONTROL

The implementation of a new revenue control system stands out as one of the key strategy issues of the Department. This management tool provides detailed knowledge of the purchasing and consumption habits of the various patrons, enabling us to make more effective deci-sions to improve our commercial offerings.

MARKETING INITIATIVES

The creation of Aena Aeropuertos in June 2011 involved changing Aena‘s commercial image. New colours and the new slogan, ”choose, taste and enjoy”, were designed to spearhead the commercial side of the new company and enhance the playful aspect of the traveller’s stay in the airport terminal.

With the opening of the new terminal at the Santiago Airport in Octo-ber 2011, the new Aena Aeropuertos brand was launched for the first time. Huge canvases hanging directly from the structure’s roof revealed a varied, attractive, and wide offering of food and retail goods and services.

Promotional activities associated with the opening of new terminals in Alicante and La Palma included giveaways for purchases over a certain amount.

Well-established promotional activities from recent years, like “Book Week”, were updated in the month of April time and sponsored under the new brand.

Christmas concert at the Madrid- Barajas Terminal 4

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

82

Our traditional Christmas campaign flooded every terminal of 13 of the network’s airports with light, encouraging sales at this special time of year. A new feature of the 2011 Christmas decoration campaign was a performance by students from the Real Conservatorio de Músi-ca of Madrid, who offered classical music recitals in the Plaza Comer-cial of Madrid-Barajas Airport terminal T4. The initiative had a positive response by visitors and workers and enjoyed wide media coverage.

SHOPS

Given the importance of our Duty Free retail activity, present in 15 Aena airports, the analysis of strategy and conditions of the new bids are being analyzed prior to the termination of the current contract.

In 2011 the walk-through store at the new terminal building of the airport of Alicante opened to the public, and the walk-through stores currently located in the terminals of Barcelona - El Prat T2, and Ma-drid-Barajas Airport T4 were consolidated, in keeping with interna-tional trends in the configuration and display of commercial areas in airports.

The retail offering was also expanded in the Madrid-Barajas Airport terminals 123.

New shops were opened in Module C of the Palma de Mallorca Air-port and in the Bilbao and Santiago de Compostela airports. Customer service was improved by installing boarding gate information screens inside the shops to give passengers peace of mind.

Sports outlet at the Madrid-Barajas Terminal 3

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

83

CAR PARKS

Car park management initiatives focused on becoming more competitive than other car parks near the airport and managed by other companies.

The strategy aims to address different custom-er price and service needs with a segmented car park service portfolio based on the dura-tion of stay. A communications campaign was also launched to highlight the competitive benefits Aena airport car parks offer compared to those of external operators, in terms of se-curity, quality of service, facilities and proximity.

This commercial strategy led to a more flex-ible commercialization of the service through new channels, and to encourage the use of new marketing tools. For example, several ac-tivities conducted on the Aena Aeropuertos website took on great relevance, focusing on improving communication over different car park choices, and making access to contents easier for users using the Aena Aeropuertos home page and the Infovuelos page. Simul-taneously, the online reserve system became operational, and is currently available for long stay car parks, though we are working to have the tool available all car park services in 2012.

Car park building at the Barcelona-El Prat Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

84

Likewise, in 2011 we opened the long stay, express and low-cost car parks in Madrid-Barajas Airport; also, the express car park in the Bilbao Airport, and the long-stay car park in the Seville Airport.

The car park fee policy addresses different customer price and service needs with a segmented parking service portfolio according to the duration of stay, proximity and additional services. Rotation fees and specific proposals for new products in overloaded airport car parks were also approved. To this end, we started to work on the analysis, proposal and implementation of a pricing system for car parks.

In 2011, the number of parking spaces in Aena airports exceeded 160,000.

CAR RENTAL

Car rental services are provided by national and international opera-tors. The frequency with which this service is used varied due to the growth of low-cost travel, since it is often part of a package deal or arranged at the point of origin. To address this threat, a web channel advertising car rental services was widely promoted to familiarize users with various offers from the moment they first plan their trip.

Express car park Bilbao Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

85

fOOD SERVICES

Food services are offered by concessionaires who rely on different con-cepts to satisfy the wide-ranging demands of all users by offering eve-rything from fast food to restaurants whose chefs have been awarded Michelin stars.

In 2010 Aena started the process of renewing the image of airport food services, a process that was expanded across the entire Aena network over the course of 2011.

As an innovative strategy, we created a new concept in food service simultaneously adapted to the consumer on different levels and which pays special attention to service quality and price control.

Demand from users and customers is heavily influenced by both the environment and the personal and cultural circumstances of each in-dividual; in this respect, the new food service offering can be adapted so as to satisfy each client’s specific need. Key factors considered were cultural patterns, economic capacity, available time and consumption habits.

The substantial investment the company made in infrastructures in the last few years offered a great chance to renew the existing offering by adapting it to the new strategy and introducing novel concepts. Now-adays, Aena network customers and users can choose from among various food service concepts. In 2011, the offering was considerably widened, ranging from the ordinary sandwich to cuisine d’auteur, the classical tapa, the set menu or portions.

Inside view of the La Moraga Restaurant, Malaga-Costa del Sol Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

86

Standard food service concepts were selected for the different air-ports, with world class brands. The multicultural environment led to the implementation of ethnic food (including English, German, Italian, Asian, Turkish and Mexican cuisine), which was favourably received by our patrons.

In recent years, the “Spain” brand name has received international rec-ognition and prestige, with gastronomy as one of its key values. We have made good use of this situation to introduced a wide range of designation of origin products.

Another fundamental and determining factor for customers is time availability, which is why new food service concepts range form takea-way food to more settings with the proper ambiance in which to enjoy a nice after-lunch conversation.

We also installed common sitting areas, a space with tables shared by more than one food outlet, allowing a group of users the choice of selecting the food service that best suits their preferences.

Another segment of patrons of Aena’s airport network services we are catering to is passenger companions The new strategy takes into ac-count the needs of companions by offering a diverse range of quality food services in the free access areas of the facilities.

Food service operators are held to high quality standards, like remov-ing food products not sold after three hours of being prepared. These standards made a key contribution to the gradual improvement in the quality perceived by patrons.

Holding monthly meetings with food service operators and keeping a strict price control policy so customers will not find price differences in the same food outlet outside the airport were key to the entire im-provement process.

Madroño Resturant in the Madrid-Barajas Airport

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

87

In 2011, consumers were able to enjoy four restaurants run by Miche-lin-starred chefs:

• In the Malaga-Costa del Sol Airport, we can find La Moraga, a res-taurant run by Dani García that offers a revamped version of Ma-laga’s traditional cuisine.

• In Barcelona-El Prat, Carles Gaig moved his hundred-year-old reci-pes and the character of the stoves of his prize-winning restaurant in Barcelona’s Horta quarter to Porta Gaig, located in the ultramod-ern environment of the airport’s new terminal.

• Alicante offers the freshness and dynamics of the sushi-bar concept under Quique Dacosta’s leadership in his restaurant “Aire Tapas-bar”, which takes the concept of tapas to new heights.

• In Madrid-Barajas, Beatriz Sotelo brings us a top quality Galician menu in the “El Madroño” restaurant.

The first result of these changes was the high quality service provided.Once these concepts took root in terms of planning and periodic con-trols, we started working on providing these restaurants with value added service, such as a free wireless system for recharging mobile phones and other electronic devices, and a preparation time guarantee shown right on the menu.

PROPERTy DEVELOPMENT (RENTALS)

In 2011 a leaseback agreement was signed with CLASA on a 9,346 m² lot of developed land located in the Tenerife North Airport to build a new cargo terminal to foster air transportation and related logistics activities.

In June and July, two corporate aviation fixed based operators (FBO) began operations at the Palma de Mallorca Airport.

Furthermore, two partnership agreements were signed with the An-dalusian Research and Development Agency (IDEA) and the Associa-tion of Science and Technology Parks of Spain (APTE) to evaluate and commercialize plots of land by creating two technology parks to in which to locate R&D companies. The first partnership agreement only included Andalusian airports. The second was wider in scope and in-cluded every Aena airport.

In December a partnership agreement was signed with the Consell Va-lencià de l’Esport of the Valencia Regional Government for the licenced use of the golf facilities at the Valencia Airport.

The objective is to enhance airport commercial areas and to continue to introduce large retail chains and

prestigious brands in shops and restaurants.

3 Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management

88

AVIATION fuEL

In 2011 two contracts were awarded for the aviation fuel supply at the Madrid-Barajas, Barcelona-El Prat, Palma de Mallorca, Malaga-Costa del Sol and Leon airports. In parallel, construction was started to con-nect the pumping system of the Madrid-Barajas Airport fuel network to CLH’s storage tanks in Torrejon.

The new pumping system as the Alicante Airport was also placed in operation, and construction was started on a new aviation fuel stor-age facility at the Seville Airport. Moreover, the Vitoria Airport started with the remodelling of its fuel facility, whereas the Son Bonet opened a new facility.

This business line relies on constantly improved facilities, as evidenced by the proposals made in 2011 to extend (Zaragoza Airport) or relocate storage facilities (Palma de Mallorca, Lanzarote and Madrid-Torrejon).

ADVERTISING

In 2011 state-of-the-art digital displays (full HD) were installed in strate-gic areas of the airports by advertising companies (video screens, walls, billboards), which attracted advertisers’ attention for their impact and innovation compared to traditional advertising displays. These displays were installed in Madrid Barajas T4 and in the Malaga-Costa del Sol, Alicante, Gran Canaria, Tenerife South and Palma de Mallorca airports.

Advertising activity in Spanish airports will be opened to public tender in 2012, and currently we are analysing the best strategy to follow. The idea is to preserve the advertising value of airport locations, using not only traditional advertising displays but also supplementing them with marketing afor events and shows. Adding new technologies for adver-tising use in airports really enhances the passenger’s travel experience.

3Aena Aeropuertos

2011 Annual report

Commercial Services and Property Management