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2nd half year 2010 Volume 02 - No. 8 |
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PJIAE Records Positive Performance in 2009 |
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 Lower
passenger and aircraft traffic in 2009, associated with the global
economic downturn, resulted in a decline in total revenue of NAf. 4.3
million for the Princess Juliana International Airport operating company
(PJIAE). Former President of PJIAE Eugene Holiday, in his last fiscal
year as president before being appointed Governor of St. Maarten,
outlined in PJIAE’s annual report the challenges and efforts to mitigate
the effects of the economic downturn. However, despite the decline in
revenue, PJIAE recorded a positive overall financial performance with a
net positive result of NAf 4.6 million.
While PJIAE’s balance sheet total declined by 14.1 per cent from NAf.
326 million in 2008 to NAf. 280.1 million, the mitigation of the
negative effects on the operating results of the economic downturn
combined with the deleveraging of its balance sheet through the debt buy
back operation, resulted in PJIAE maintaining a stable return on asset
at some 6.4 per cent. “Operating in 2009 was particularly challenging
due to the impact of the global financial and economic crisis on the
business activity at PJIA,” drs. Holiday said. “By meeting the
challenges head on with determinate actions, we managed to strengthen
the financial position of the company and create value for our
stakeholders,” he said, adding that passenger movements dropped 5.8 per
cent and aircraft handled declines 12.9 per cent.
To offset the lower revenues, PJIAE implemented policies in expenditure
management, policies that focused on increasing non-aeronautical
revenues, maintaining rates and charges to airlines at the current
levels and strengthening of air service development efforts. “Some of
the key policies include the retention of capital through tightening
cost controls, rationalizing of energy costs, freezing the hiring of
personnel, investing in increased safety and customer comfort and
implementing debt service burden reduction strategies,” drs. Holiday
noted.
He said despite increased passenger movement at PJIA in the first half
of 2010, “we are clearly not out of the woods as yet. With the US
economy continuing to show signs of weakness, the outlook for the rest
of 2010 and 2011 remains uncertain.”
Therefore, drs. Holiday stressed, financial and economic challenges
require continued application of best business practices, caution and
prudence in the management of the affairs of the company. “It is my hope
that the future management of PJIAE will adhere to these sound
principles to guarantee the continuity of our islands single most
important economic engine and thus secure and build on PJIAE’s position
as the third busiest airport in the region,” drs. Holiday said.
In the context of good business principles, he also took pride in noting
that PJIAE received a positive review in keeping compliance the
Corporate Governance Code and pertinent legislation. External auditors
PricewaterhouseCoopers reported that PJIAE’s balance sheet and statement
of income for 2009, are consistent, in all material respects, with the
consolidated financial statements.
“The governance approach is critical to the realization of the
objectives of any organization. It is our policy to apply and encourage
strict adherence to the principles of best business practices. The
recent introduction of the Corporate Governance Code provides a good
yardstick for the measurement of the observance of the best business
practices. In this regard we continuously evaluate our policies and
procedures for observance with developments in the area of corporate
governances,” Holiday said.
Looking ahead, Holiday reiterated that PJIAE’s only mission should be
continuing to focus on ensuring safe and secure operations in keeping
with international safety standards and on the provision of efficient
and quality services with the aim of improving its competitive position.
The report of 2010 is expected during the course of 2011.
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Upon
his arrival from the Netherlands after being sworn in as the
First Governor of Country St. Maarten by Queen Beatrix,
Governor Eugene Holiday was welcomed by staff of the
Princess Juliana International Airport Operating Company,
and immediate family members. Two students from the Oranje
School, where he started his education, were on hand with
their teachers to present the Governor and his wife Marie
Louise with a plaque and a bouquet of flowers. Obviously
surprised by the welcome, Governor Holiday, in a short,
impromptu speech, said that it is this type of support from
family and friends that would make his “honorable task”
possible. Drs. Holiday has been at the helm of the company
for twelve years, leading the execution of multiple
important projects for airport and island. |
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