TAV IT

primarily from aviation income from the Monastir
Airport in Tunisia that the Company began operating.
On the other hand, due to the International Financial
Reporting Interpretations Committee (IFRIC) 12 practice,
guaranteed passenger income of EUR 13.7 million from
the Ankara Esenboğa Airport and EUR 15.9 million from
the İzmir Adnan Menderes Airport were not included
in aviation income during this period in the income
statement prepared in accordance with the IFRS. The
adjusted aviation income figures presented in this report
are inclusive of these guaranteed passenger revenues.
• Sales of duty free goods grew 10% in 2008, to EUR 148.7
million, up from EUR 135.5 million in 2007. Average duty
free expenditures per passenger increased from EUR
14.8 in 2007 to EUR 15.4 in 2008. In 2008, average duty
free expenditures per passenger were EUR 11.6 at İzmir
Adnan Menderes Airport (2007: EUR 11.6), and EUR 13.4
at Ankara Esenboğa Airport (2007: EUR 11.6). Despite the
downward pressure exerted on duty free expenditure
per passenger by the 41% increase in transit passenger
traffic, duty free revenue per passenger at İstanbul
Atatürk Airport rose from EUR 16.0 in 2007 to EUR 16.5
in 2008 as a result of the reorganization of the duty free
area in the last quarter of 2007.
• Ground handling income rose 67% in 2008 to EUR 106.4
million, an increase from EUR 63.5 million in 2007. This
increase was caused primarily by increased flight traffic
as well as full consolidation of Havas since the last
quarter of 2007 (while it was 60% consolidated in the
prior periods).
• Concession fees from duty free sales grew 19% in 2008
to EUR 72.7 million, an increase from EUR 60.8 million in
2007.
• Income from catering services increased 15% in 2008
to EUR 36.4 million, an increase from EUR 31.7 million in
2007. The increase resulted from higher expenditures per
passenger as well as the expansion of the operations of
Cakes&Bakes.
• Other operating income increased 18% in 2008 to EUR
104.4 million, up from EUR 88.5 million in 2007. The
primary drivers of this increase were the higher revenues
from CIP lounge operations (due to the increase in the
number of passengers using the lounges as well as the
opening of new lounges) and from car park and shuttle
bus operations (due to the full consolidation of Havas).
Operating expenses rose 13% in 2008 to EUR 521.4 million,
up from EUR 460.6 million in 2007. This was primarily
the result of the commencement of operation of the
Monastir Airport, as well as increases in employee benefit
expenses and cost of services outsourced due to the full
consolidation of Havas. Despite this, the share of operating
expenses excluding concession rent expense, depreciation
and amortization expenses in total income dropped from
57% in 2007 to 53% in 2008.
• Concession rent expenses rose 11% in 2008 to EUR 156
million as a result of rent payments for the Monastir
Airport. However, the ratio of concession rent expenses
to total income dropped from 28% in 2007 to 25%
in 2008, thanks to operational leverage. Concession
rent expenses consist of rent payments made to the
Turkish State Airports Authority (DHMİ) pursuant to
Atatürk Airport’s lease agreement (EUR 141.2 million),
and rent payments made to the Tunisian Civil Aviation
and Airports Authority (OACA) for the Monastir Airport
(EUR 14.8 million) that the Company began operating on
January 1, 2008.
• The cost of duty free inventory sold rose from EUR 56.0
million (40% of revenue) in 2007 to EUR 58.8 million
(41% of revenue), for a 5% year-over-year change, which
is lower than the increase in duty free sales growth over
the same period.
• The cost of catering inventory sold, which was EUR 10.9
million in 2007, rose 21% to EUR 13.2 million in 2008.
• Employee benefit expenses grew from EUR 113.3 million
in 2007 to EUR 145.9 million in 2008; a 29% increase.
This increase resulted from the commencement of
service at the Monastir Airport and the full consolidation
of Havas. The average number of employees rose 18%
over the same period.
• The cost of services outsourced increased from EUR 22.6
million in 2007 to EUR 36.9 million in 2008. The increase
is almost exclusively attributable to the full consolidation
of Havas. This item is comprised of the consolidated
operating expenses of ATU, BTA, TAV O&M and Havas.
• Amortization and depreciation expenses grew 16% to
EUR 34.9 million in 2008, an increase from EUR 30.1
million in 2007.