Alpha Airports Group - Chairman's Statement

RNS Number:3083M
Alpha Airports Group PLC
15 June 2000

                                       
                                       
                           ALPHA AIRPORTS GROUP PLC
                            TRADING UPDATE FOR AGM



At the Annual General Meeting of ALPHA Airports Group Plc held today, the
Chairman Rodney Galpin made the following comments:

"Overall trading in the Group for the early months of 2000/01 has been in line
with our expectations, with the exception of Paris Orly.

In my statement at the time of the Preliminary Results in March, I reported
on  the need to restructure our Paris Orly kitchen. This has arisen due to the
policy of Aeroports de Paris to focus long haul international airline activity
at the expanding Paris Charles de Gaulle airport.  This has meant the transfer
of  many  airlines from Paris Orly airport to Paris Charles de Gaulle  airport
and a resultant major loss of business from our Paris Orly kitchen.  ALPHA has
looked at every opportunity to create a smaller viable kitchen, remodel the
business with non-airline catering or joint venture with competing caterers.
These efforts have not been successful and a trading loss of up to #1.3m  will
be incurred in the first half of 2000/01.  As a result we have started a three
month  consultation process with our Paris Orly employees regarding the future
of  catering operations.  Over the past two years we have warned that the net
cost of a full closure could be up to #2.5m.  However, we are taking steps to
mitigate this cost.  Any such charges will be reflected in the Group's results
in the first half of 2000/01.

Elsewhere,  I am pleased to report that, over the past few months,  ALPHA has
been successful in securing some significant contract gains.

Our ALPHA Travel Retail business has been awarded a contract by TBI plc to run
retail operations at Belfast  International, Cardiff International and
Stockholm  Skavsta airports.  This contract is expected to add some #11m per
annum to sales revenues.

We have also reached agreement with RoadChef for a 10 year contract to operate
confectionery,  tobacco and newspaper stores at RoadChef's UK  network of 20
motorway service areas.  This contract will add some #35m per annum to sales
revenues and is a major step in our expansion strategy into the wider UK
travel retail market.

Our  ALPHA In-flight Retail business continues to gain ground in its UK market
place  with the award of the in-flight retail concessions for British  Midland
and  Virgin Sun, where sales are expected to be #2.5m per annum.  In addition,
we have secured the concessions to operate the duty and tax free bonds for our
airline  customers at both Cardiff and Luton, bringing the number of UK  bonds
we operate to 15.

ALPHA  Flight  Services  has commenced in-flight catering  services  at  Cork,
Ireland  and  is building a #0.5m dedicated kitchen.  We have  also  agreed  a
50/50  joint-venture with Virgin Express at Brussels airport  to  provide  in-
flight  catering  and  in-flight retailing services.  In  Australia,  we  have
acquired a sixth kitchen at Cairns to extend our successful network operation.



For further information:

ALPHA Airports Group Plc
Kevin Abbott, Chief Executive           020 8580 3200

Gavin Anderson & Company
Laura Hickman/Amelia Hine               020 7457 2345




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