1. MEMO REPORT
Louis de Vos (s2163039)
To: Head of senior management Konopnicka Airport
From: Louis de Vos (Communications working committee Konopnicka
Airport)
Date: 10 October 2011
Subject: Action plan for decisions concerning the enlargement of the Airport
Introduction:
In order to make decisions about the upcoming construction of the airport enlargement, built
by the German construction company Laumann, which will get financed by the German
Weber bank, delegates of both, constructor and airport party negotiated in a meeting to decide
about Financing, Operation Management, Repayment, Building schedule and possible
risks.The following decisions were made:
Financial accommodation towards the German constructor.
Calculations on both sides provided that the total cost for this concern will account for 120
million Euros. While firstly, every party insisted on its own interest, the airport yielded finally
to the claims of the construction firm. The airport depends on the German bank and their
funding. Furthermore, the Konopnicka Airport has not enough capital to raise the sufficient
money for the construction. According to this, the board has to relent to the claim of the
company of giving the airport a funding of 83% and an interest of 4%. These numbers were
the maximum we could achieve while trying to obtain any advantages at all.
Operation Management will be collaborated.
Secondly we negotiated about the operation management of the project.We seek to reach a
full autonomy after the project will be completed, while the German company stated the claim
that they should be involved in subsequent actions. Therefore, the two commissions met in the
middle and arranged collaboration during the next four years, in which Laumann will be
member of the management and can feature in eventual decisions. Conversely, Laumann
commits itself to build up new relations in order to drag the polish airport in a wider public,
train staff and deliver know-how to obtain new orders.
Repayment will provide securities on both sides.
2. The repayment of the money funded by the Weber bank, is supposed to be paid off within the
next 12 years instead of the firstly considered 20 years. However, the starting point for the
payback will be the endpoint of the construction work. Referring to the discussion, this will
make sure, that the money flow for the airport already started when the payback begins. This
offers securities to effect that the airport can pay and Laumann can receive, thus, these
decisions will be beneficial for both sides. Furthermore it was decided that Konopnicka would
receive all money to pay the interest of the funding while they can keep revenues, which are
excess funds.
Building schedule will fit to the claims of the Konopnicka Airport.
Finally, we determined the approximate building time, which is set to 27 month with a
deviation of six weeks. The team decided to give a deviation concerning eventual hard
winters during the building period. Conversely, Laumann has the authority to decide which
company will be a possible partner for the construction.
Risks are divided in half.
The risks, which could occur during the construction period, will be split between the airport
and the company. According to this, Konopnicka will raise a maximum amount of five
million Euros if the construction wont be finished in time, while the airport has to take care
about the responsibility towards eventual delays, noise or other problems.
Conclusion:
In order to realize our perceptions of a larger, better and more international Airport, which
will offer a huge benefit in European competition, we would advise to stick with the decisions
mentioned above. According to our decision-making, it has to be said that everyone has to
lower one’s sights in order to let things happen. Nevertheless, we think we can recommend
our suggestions to you in order to achieve the desired benefits.
We look forward to your reaction and we hope for a fast and successful handling of this
concern.
Louis de Vos
Head of Communications working committee Konopnicka Airport