City wants higher profit distribution from Airport

The Eindhoven City Council wants to receive a higher annual profit distribution from Eindhoven Airport.

A majority of the City Council members found that Councillor Steenbakkers should enter into discussions with Eindhoven Airport’s other shareholders. Currently, the shareholders, which includes the municipality, get only 10% of the profits distributed. The airport saves the rest, while there has already been a tremendous amount of equity built up.

Schiphol is the largest shareholder. It pays half of its profits to its shareholders. Eindhoven wants that the same arrangements are made for Eindhoven Airport. A motion for this by GroenLinks (Green Left Party) and the PvdA (Labour Party) got a lot of support from the rest of the Council on Tuesday night.

Eindhoven Airport has built up a reserve of more than EUR8 million. The so-called solvency has thus increased to 70%, while the law state that it should be a minimum of 40%. Eindhoven believes the municipality has lost EUR10 million over the last few years due to the low profit distribution.

Councillor Steenbakkers must now find out if the airport’s savings are needed for future investments. If there is no good explanation, he is going to call for an adjustment of the dividend policy.

Source: www.studio040.nl

Translated by: Bob

Edited by: Melinda

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