Council of Ministers Government deregulates passenger railway

Council of Ministers
Government deregulates passenger railway sector and allows private capital in AENA
Moncloa Palace, Madrid, Friday 13 June 2014
The Council of Ministers pushed through two structural reforms in the transport sector: the deregulation of
passenger transport and the entry of private capital in AENA. The aim of these reforms is to improve the
quality of public transport service and the mobility of citizens throughout the country.
The Minister for Public Works, Ana Pastor, asserted that the government wishes "to provide the railway
transport market with a greater offer of services and far more competitive prices resulting from greater
competition", and thus increase its use. In this regard, she highlighted that in the two and a half years of the
legislature, passenger transport has increased thanks to "a new pricing policy and travel times more tailored to
passenger need". Ana Pastor added that the aim is also to increase the use of the "excellent" railway, land
and air "infrastructures" that exist in Spain.
Ana Pastor explained that on Friday the government agreed to tender a licence through a public procedure
that will allow a private operator to provide passenger railway services to compete with Renfe in the Levante
corridor for a term of seven years. Following this term, the corridor will be fully opened up to free competition.
The new operator may freely set travel times, services and prices, and rent the rolling stock from Renfe
Sociedad de Alquiler.
"We will organise the entry of private operators thus ensuring a wider range and better offer of services, whilst
guaranteeing the continuity of the services offered by Renfe and the appropriate levels of quality control and
safety by the public authorities", she stated.
The Minister for Public Works underlined that AENA Aeropuertos will continue to be a public entity because it
will continue to hold the majority of the shares and capital - 51%. "The government will maintain the majority of
the capital of AENA and the State will continue to hold a majority on the Board of Directors of AENA
Aeropuertos. The remaining 49% of the capital will be structured between 28% traded on the stock exchange
through a public offering (Spanish acronym: OPV), and 21% will be put to tender to ensure a stable core of
compatible shareholders that will be selected through a public procedure", she specified.
Ana Pastor indicated that AENA Aeropuertos is the leading airport operator in the world in terms of passenger
numbers, and is profitable for the first time, with a net profit of 597 million euros. In 2013, 187.4 million
passengers used AENA Aeropuertos, a new record in Spanish civil aviation. "When we came to power, gross
operating profit stood at 883 million euros, which had risen by the end of 2013 to 1.61 billion euros", she
clarified.
According to the minister, the presence of private investors will strengthen the management of the company,
guaranteeing the future sustainability of the Spanish airport system network. "AENA's increased efficiency will
serve as a stimulus for the air transport sector in Spain, and to the associated strategic sectors, such as
tourism and trade, as well as foster the international development of the company".
Ana Pastor recalled that AENA does not receive a single euro from the General State Budget and maintains
its operations from the revenue obtained through its commercial policy and tariffs. Furthermore, she
announced that airport taxes will not be raised next year and announced the approval of a regulatory
framework that will establish, every five years, the conditions and levels of service quality and the tariff
framework.