After the 180 million francs of bond issues, here are the 200 million loans from the canton. Geneva airport is increasing the number of borrowings, while traffic on its tarmac remains almost at a standstill. Cointrin announced last week that it had carried out its fourth bond transaction since 2017 which, in all, enabled it to raise 755 million francs. And on Wednesday, the Geneva Council of State told him granted a loan of 200 million francs.
“This loan is structured like a line of credit and the airport will borrow only the amounts necessary according to the evolution of the situation, beyond the lines of credit and loans concluded with its financial partners for ensure the continuation of its activities ”, indicates the Geneva executive. The interest rate for this loan was set at 1.5%.
It’s a first. Until now, the airport filled the coffers of the State by donating half of its annual profit. In 2019, 42 million francs had been paid in this way. From 2009 to 2019, the company recorded an average annual net profit of 73 million francs.
The pandemic, which continues to nail much of global aviation to the ground, has been a game-changer. At Cointrin, twenty line take-offs are scheduled for Thursday and sixteen were made on Wednesday, against a daily average of 215 in February 2019.
In 2020, the airport suffered historic losses – a deficit of 129 million francs and a 70% drop in passenger numbers – the first since World War II. Cointrin reported net debt of 618 million francs, a record. During the previous ten years, this figure has hovered around 228 million francs, according to our calculations.
A modification of the law on the airport was also validated Wednesday by the Geneva authorities. It is an implementation of the popular initiative “For a democratic piloting of the airport”, which had been accepted by the Genevans this fall. This reform aims to anchor several steering documents for the platform in the law.