The Privatization of Aéroports de Paris: Questions and Controversies
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Aéroports de Paris, privatization, ADP, State revenue, economic growth, innovation, budget discipline, European partners
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Abstract
The privatization of Aéroports de Paris (ADP) raises questions and sparks controversy, with economists and public opinion divided on its benefits and drawbacks. Will the sale of ADP's infrastructure and exploitation rights bring in much-needed revenue for the State, or will it lead to costly losses and a loss of control over the country's airports?
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[...] The last argument in favor of the privatization of ADP is advanced by economist Serge Blondel4. According to him, since the privatization takes the form of a concession - the State will recover the operation of ADP in 70 years - we can expect a modernization of the Parisian airports that will benefit all users, of course, but also the State, which will be able to realize a significant profit at the end of the contract. II. The privatization of Aéroports de Paris raises despite everything questions and calls for caution Despite the arguments expressed in favor of the privatization of ADP, it raises questions, particularly within public opinion, and its interest does not make consensus among economists. [...]
[...] The privatization of ADP is therefore far from being a success among voters. In addition, the financial gain for the State in this operation is far from being assured. First, if we follow the conclusions of a report by the Court of Auditors, we can note that the experience of the privatization of the airports of Toulouse, Nice and Lyon has highlighted the fact that these capitalist operations can be particularly costly for the State.6. These costs are particularly related to the remuneration of intermediaries in charge of ensuring the transaction. [...]
[...] In the case of the privatization of ADP, it will be the American bank Bank of America. In addition, although the privatization results in a surplus of tax revenues, the annual losses to come for the State should not be omitted from the analysis. Indeed, as the main shareholder of ADP, the State receives annual dividends, all the more so as ADP is a company that quasi-systematically makes profits. Thus, the State received 261 million euros in dividends for the year 2017.7. [...]
[...] The privatisation of Aéroports de Paris a failure? I. The privatisation of Aéroports de Paris as an opportunity for the State The law for the growth and transformation of companies, known as the Pacte law, voted in June 2018, provides for the privatization of Aéroports de Paris (ADP) for the course of 2020. More precisely, it is a matter of selling the infrastructure of Parisian airports, as well as the associated exploitation rights. The State, currently holding around 50% of the capital of this public limited company, hopes to collect a substantial amount during the sale of its shares, estimated at 9 billion euros1. [...]
