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Schiphol Action Programme
Schiphol Action Programme
2 | Ministry of Infrastructure and the Environment / Ministry of Economic Affairs
Contents
1. Introduction – Why an Action Programme? 5
1.1 Joining forces to strengthen the position of Amsterdam Airport Schiphol 5
1.2 Prospects for growth 6
1.3 Principles 7
2. Point of departure: the facts 8
2.1 Economic importance 8
2.2 Strong position 9
2.3 Challenges 11
2.4 Importance of collaboration 12
3. Strengthening the flight network and boosting the economy 13
3.1 Aviation policy 13
3.2 Improving air cargo processes 15
3.3 Business climate in the Netherlands and the Holland brand 16
4. Towards a competitive cost level 18
4.1 Cost reduction by the aviation sector 19
4.2 Focus on further cost-cutting measures 20
5. Improving rail and road accessibility of Schiphol Airport 26
5.1 Improving public transport 26
5.2 Improving the road network 29
6. Working towards innovative and sustainable aviation 31
6.1 Innovation 31
6.2 Sustainability 32
6.3 Environmental quality 34
7. Providing scope for a growing airport 36
7.1 Environmental capacity 36
7.2 Operational capacity of Schiphol Airport 40
7.3 Capacity for security and border control 40
7.4 Airspace capacity 42
8. Balancing habitation and aviation 45
8.1 Short term 45
8.2 Medium to long term 48
9. Conclusion 50
Colophon 52
Schiphol Action Programme | 3
Photo: Rijksoverheid Mediatheek 4 | Ministry of Infrastructure and the Environment / Ministry of Economic Affairs
1. Introduction
– Why an Action
Programme?
1.1 Joining forces to strengthen the position of Amsterdam Airport
Schiphol
The aviation sector is something the Netherlands can be truly proud of, especially this year as Schiphol
Airport marks its 100th anniversary. What began as four wooden hangars in a field has grown to become one
of the largest and most modern airports in the world – an airport with an extremely extensive network of
flight connections, in which hub carrier KLM plays a significant part.
Amsterdam Airport Schiphol is indispensable to the national economy. In direct terms, it accounts for more
than 100,000 jobs. Indirectly it accounts for many more jobs as the international hub for people, trade and
knowledge. Apart from these figures, many people feel closely attached to Schiphol Airport. The same is
true for the hub carrier KLM.
Both have long histories and are strong brands that shaped and are part of the Dutch identity. This is why
discussions about their future concern more than just the business aspects.
The current position of Amsterdam Airport Schiphol is strong, but its future is less certain. The development
of the Asian market and the rise of the Gulf States have brought about a change in dynamics within inter
national aviation. Large new airline companies have entered the market, as have new hub airports outside
Europe. Budget air carriers are also on the rise and there is now fierce competition on the European routes.
The Dutch government aims to further strengthen the already strong position of Schiphol Airport. Other
parties are demanding the same. This will require close collaboration between all parties involved. In this
Action Programme, we therefore explore the opportunities and threats that exist for this major transport
hub and indicate what measures the national government, the aviation sector and other parties are taking
to answer the most important questions of the moment. How do we maintain and improve our connections
with the rest of the world? How do we deal with the growing volume of air traffic, both in the air and on the
ground? How can we keep the costs competitive? How can we promote sustainability and innovation? What
Schiphol Action Programme | 5
perspective can we give for the construction of new homes in the region around Schiphol Airport as it
relates to the airport’s further development?
1.2 Prospects for growth
In a rapidly changing global economy, it is essential for the Netherlands and the Dutch business community
to uphold their competitive position. The development and growth of the economy form the basis for
employment, prosperity and services in the Netherlands. The Netherlands is home to numerous companies
and sectors that operate and export goods and services worldwide owing to the country’s favourable
location, a good business climate, and a highly educated population.
International accessibility for people and goods is crucial to strengthening and facilitating the economy.
The aviation industry makes a significant contribution to providing this intercontinental and European
accessibility and, in so doing, helps to ensure that the Netherlands is and remains an attractive business
location for international companies. Via international air travel connections, the Netherlands continues to
be connected to the world’s most important current and new economic centres. These air connections also
enable organisations in the Netherlands to be active, do business, make investments and exchange
knowledge – from business services to logistics, from high tech to the creative industries. Individual
consumers, too, can travel the world via these international flight connections.
International flight connections in the Netherlands are primarily provided via Amsterdam Airport Schiphol,
with subsidiary links to Eindhoven Airport and, from 2018, Lelystad Airport. As an international hub,
Schiphol Airport brings in a large volume of international economic activity. This means that the airport
and the economic activities linked to it function as one of the key engines driving the Dutch economy.
The Dutch government recognises the great potential that Schiphol Airport has for the Dutch economy. To
further expand this potential, it is crucial to keep this major airport competitive, particularly in view of the
fact that the importance of aviation will only increase in the years to come. It is primarily the responsibility
of the Dutch aviation sector to meet this competition head on. The government sees it as its own
responsibility to create the best conditions in which a strong major airport can thrive.
Among other things, this means that the aviation sector must be given the space to grow in the Netherlands,
now and in the future. The demand for air transport to and from the Netherlands, and specifically at Schiphol
Airport, will only increase in the years ahead. This expectation can be found, amongst other places, in the
study entitled Exploring the Future of Prosperity and the Living Environment (Toekomstverkenning Welvaart en
Leefomgeving), which was conducted in 2015 by the Netherlands Bureau for Economic Policy Analysis (Centraal
Planbureau - CPB) and the Netherlands Environmental Assessment Agency (Planbureau voor de Leefomgeving - PBL).
The study entitled Exploring Market Developments in Aviation (Verkenning Marktontwikkelingen Luchtvaart)
– which was conducted in 2014 by the aviation parties in the Schiphol Airport Environment Council
(Omgevingsraad Schiphol) – and forecasts by Schiphol Airport also assume that there will be an increase in
demand for air transport.
Based on analyses conducted by the aviation sector, it is forecast that the number of aircraft movements at
Schiphol will increase by between 1.5% and 2.2% per annum. The forecast presented in the Exploring the
Future of Prosperity and the Living Environment study is even higher. The government wants to accommodate
this growing demand in the Netherlands, more specifically at the airports Schiphol, Lelystad and Eindhoven.
Of course this should occur in balance with the surrounding environment and within the frameworks set
for safety and sustainability. We will take up the challenge to make this possible, in order to ensure that
Schiphol Airport can continue to compete with existing airports in Europe and new airports in Turkey and
the Gulf States in the future. Decisions have already been taken on this for the short term. For the (medium
to) long term, we would like to work with the aviation sector and other parties involved to come up with an
intelligent approach to the issue of expansion that will stand the test of time.
6 | Ministry of Infrastructure and the Environment / Ministry of Economic Affairs
1.3 Principles
To a large degree, our policy is and will continue to be based on the Aviation Policy Memorandum
(Luchtvaartnota). This Schiphol Action Programme is an appendix to this memorandum. Ongoing actions
have been mapped out and supplemented with new actions. This creates an up-to-date integral overview of
what the national government and the aviation sector are doing to bolster the competitive position of
Schiphol Airport.
To create the Action Programme, we consulted the aviation sector and a range of other parties, including
regional governments, employers, environmental organisations and residents. Brainstorming sessions
were also held with aviation experts.
Coming up with a single Action Programme in the face of all the different perspectives and visions is a
complex and challenging process. However, we must not allow this complexity to paralyse us. Our focus
must be on creating the best conditions for a strong major airport: when possible, we steer this effort in the
right direction, in order to allow the Netherlands to continue to reap the benefits of a well-run Schiphol
Airport, an extensive network of flight destinations, and the opportunities that international aviation has to
offer. This is the focus of this Action Programme.
Schiphol Action Programme | 7
2. Point of departure:
the facts
2.1 Economic importance
Amsterdam Airport Schiphol makes a substantial contribution to the Dutch economy and to social
prosperity. The airport sector, including airlines, the airport itself, ground handlers and related suppliers
together provide a large number of jobs in the Netherlands. In a study commissioned by the national
government, the direct added value of Schiphol Airport was estimated at € 9 billion and the number of
direct employment opportunities at more than 100,000. If we include indirect added value and indirect
employment, then we come to an added value of € 27 billion and more than 300,000 jobs.1 Good
international accessibility via direct flight connections makes the Netherlands an international hub for
trade flows and an attractive place for companies to set up business. Corporate head offices and distribution
centres, and specific sectors such as tourism and congresses, trade and commercial services draw particular
benefit from direct flight connections that are close to hand. For many companies this is a crucial factor in
their decision to set up operations in the Netherlands. For individual consumers, too, the network of flight
connections provides many opportunities, because this network enables them to reach many destinations
throughout the world. So the economic and social importance of this major airport is evident.
1 Cf., for example, studies by McKinsey/BCG (2011) and ACI/Intervistas (2015). They come up with much higher figures than
Decisio (2015) because those studies include uncertain indirect contributions to the economy. Yet there is no clear method
to quantify this. The Decisio figures concern that part of the economic contribution by Schiphol about which there is no
discussion. The method used by Decisio is supported by the Netherlands Bureau for Economic Policy Analysis (CPB).
8 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsPhoto: Hollandse Hoogte | Marco van Middelkoop luchtfotografie
2.2 Strong position
With more than 58 million passengers, Amsterdam Airport Schiphol was the fourth busiest airport in the
European Union (EU) in 2015 and the 14th busiest airport in the world in terms of passenger numbers. With
respect to cargo transport, Schiphol Airport is ranked third in the EU after Frankfurt and Paris Charles de
Gaulle. Via Schiphol, no fewer than 322 destinations could be reached directly in 2015: 188 within Europe
and 134 intercontinental destinations. The Monitor of Network Quality and State Guarantees 2015
concluded that in 2015 Schiphol Airport’s network quality (flight destination connectivity) grew faster than
at any other major competing airport in the EU.
Yet the flight networks of Dubai and Istanbul are developing even more rapidly. Schiphol Group expects the
number of passengers to grow by around 6% in 2016. The number of travellers at Schiphol Airport is expected
to increase (significantly) in the years thereafter. These forecasts can be found in the aforementioned
prognoses of the Netherlands Bureau for Economic Policy Analysis (Centraal Planbureau) and the Netherlands
Environmental Assessment Agency (Planbureau voor de Leefomgeving), as well as in Exploring Market
Developments in Aviation (Verkenning Marktontwikkelingen Luchtvaart) and in the forecast of Schiphol Airport
itself. Schiphol is also performing well in financial terms and is making a very healthy profit.
Schiphol Action Programme | 9Transfer traffic is essential for Amsterdam Airport Schiphol
From Schiphol Airport an extraordinarily large number of destinations can be reached on a direct
flight, which is particularly notable in view of the airport’s relatively small domestic market. Clearly,
Schiphol is a transfer airport, a hub where many passengers transfer to connecting flights that fly
on to destinations outside the Netherlands. Due to the large proportion of transfer passengers, it is
possible for the hub carrier to offer a high frequency, close-knit network of direct connections
throughout the year, which benefits those passengers for whom the Netherlands is their point of
departure or final destination.
Figure 1: the point-to-point and the hub-and-spoke model
point-to-point hub and spoke multi hub
Schiphol Airport has a relatively small domestic market and therefore depends more than other
European airports on transfer traffic. An illustration: 40% of Schiphol’s passengers are transfer
passengers. For the hub carrier KLM, the figure is 65%. Transfers are the driving force behind the
flight network at Schiphol, but that also makes the airport vulnerable. Transfer passengers are
particularly price sensitive. They can easily choose to transfer at another airport; and changes in the
demand for one route filter through to the entire network of connections to and from the
Netherlands. To maintain the transfer traffic at Schiphol Airport, a competitive level of airport
charges and government levies is vitally important.
The loss of Schiphol’s position as a hub airport would have major consequences for the
international accessibility of the Netherlands. Some 40% of the current traffic at Schiphol Airport
would disappear in such a case. Intercontinental destinations would be the primary loss.
A deterioration of the network of connections may have a considerable impact on the number of
passengers for whom the Netherlands is their departure point or destination, both business
passengers and tourists. This would harm the Dutch economy and our business climate.
Since 2000, the number of European hub airports has declined. Experience shows that the loss of
an airport’s position as a hub is irreversible. Amongst other things, this is due to the limited
availability of connecting slots, traffic rights and the high investment costs that are necessary to set
up a new hub carrier. To maintain Schiphol Airport’s broad network of flight connections, the
position of KLM as a hub carrier is, therefore, essential.
10 | Ministry of Infrastructure and the Environment / Ministry of Economic Affairs2.3 Challenges
In the years to come the demand for air transport will grow significantly more rapidly in the emerging
markets than in Europe. This pertains particularly to Asia due to the strong growth of its economy, amongst
other things. Airports in cities like Dubai and Istanbul benefit from their geographic location between the
emerging markets in Asia and the existing large European market. They are also growing more rapidly than
the market as a whole due to the shift of existing traffic flows to their home airports. Huge investments are
being made in the building or renovation of mega airports in these countries. Emirates and Turkish Airlines,
home carriers that show rapid growth, have a similar business model to KLM at Schiphol: the international
transfer model. The hub carrier of Schiphol Airport is increasingly finding itself in competition with such
carriers, especially in the intercontinental markets. In this respect it should be noted that, according to the
international trade association for airline companies (IATA), European airline companies on average have a
relatively low profit margin (1.3% in 2014).
The liberalisation of the internal market within the EU has led to new airline companies, new business
models and lower prices. So-called point-to-point traffic, in particular, has increased rapidly as a result,
especially via the low cost model. In Europe especially, routes are flown more frequently as a result and the
number of direct destinations has increased minimally. On the other side of the coin this has put the
European feeder network for intercontinental transfer traffic at Schiphol Airport under pressure.
Passagiers Schiphol
Figure 2: Passengers at en andere
large grote hubs
hub airports (bron: AAS)
2001-2015
80
70
Numbers (x 1,000,000)
60
50
40
30
20
10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Heathrow Frankfurt Istanbul
ParisCdG Schiphol Dubai
Competing airports within Europe have not stood still either. Together with their governments, they are
investing in the expansion of capacity, the improvement of quality and in the accessibility of airports by
land and by air. They are also introducing price reductions, where possible, to attract more airline
companies and passengers. The increasing activity at the airport and in the airspace is presenting us with
challenges – to have sufficient capacity in the future and to realise our ambitions with respect to noise, air
quality and CO2 emissions. Technical and operational innovations are essential in this respect.
Schiphol Action Programme | 112.4 Importance of collaboration
The role of the national government
The national government creates optimal preconditions for Dutch aviation via legislation and
regulations and through supervision and enforcement. Agreements are also reached with
stakeholders, incentives are built in, and in some cases stimulus measures are taken. Depending on
the issue and the level at which it occurs (international, European or national), the national
government determines which management instrument is deployed. Wherever possible, issues are
tackled in an integrated manner in collaboration with the main ministries involved. The Ministry of
Infrastructure and the Environment, as the ministry responsible for aviation policy, takes a
managerial role as the linchpin. The Ministry of Economic Affairs is closely involved due to the
crucial role Amsterdam Airport Schiphol fulfils as a major airport hub for the Dutch economy and
more specifically for the business climate. The Ministry of Security and Justice and the Ministry of
Defence are involved as well due to issues in the area of security and border control. The Ministry of
Defence also has to deal with issues pertaining to Dutch airspace. The public interest is guaranteed
by the share that the government holds in the business end of Schiphol Airport. Via the Ministry of
Finance, the government is a majority shareholder with 69.7% of the shares. The government also
holds 5.9% of the shares in KLM, and the government owns the independent management body
called the Netherlands Air Traffic Control (Luchtverkeersleiding Nederland).
The international connectivity of the Netherlands via the high-quality network of flight connections offered
at Schiphol Airport serves the public interest. A variety of aspects, such as security, aviation safety,
accessibility by road and rail, sustainability and ensuring a good living environment in the Schiphol region
are linked to this public interest. The Aviation Policy Memorandum (Luchtvaartnota) gives a full account of
the importance of Amsterdam Airport Schiphol and the role of government in this area. It is pointed out
that the joint efforts of government and all parties in the aviation value chain are needed to achieve optimal
network quality and competitive and sustainable aviation. The Dutch government underlines the
importance of maintaining close collaboration between the aviation sector, knowledge institutes and
interested parties such as regional governments and trade organisations. An illustration of this is the
Schiphol Airport Environment Council (Omgevingsraad Schiphol), in which discussions are held with
governments, the airport, residents, the aviation sector, trade and environmental organisations about the
development of the airport.
Summary
• Schiphol Airport is vitally important for the accessibility of the Netherlands and for our economy.
• The current position of Schiphol Airport is strong.
• Transfer traffic is the engine driving the network of flight connections at Schiphol Airport, but it
also makes this major airport vulnerable.
• International aviation is changing: markets are shifting, new business models are emerging.
• Close collaboration between all interested parties is essential. Optimal preconditions are created
by the national government.
12 | Ministry of Infrastructure and the Environment / Ministry of Economic Affairs3. Strengthening the
flight network and
boosting the
economy
Various studies show that there is a positive relationship between the quality of the flight connection
network and the economic development of a region. By offering a variety of frequent flight connections,
the business climate is improved and it becomes more attractive for international companies and
knowledge workers to establish themselves and invest in the Netherlands.
The aviation sector is responsible for realising the network of flight connections at Schiphol Airport.
Airline companies bring flight connections into existence and continually assess whether these connections
are and will continue to be sufficiently interesting from an economic perspective to keep them operational.
Schiphol Airport and the Netherlands Air Traffic Control facilitate airline companies by making infrastructure
and facilities available. The national government creates the political preconditions for aviation that make
air transport (of both passengers and cargo) possible.
3.1 Aviation policy
The national government is responsible for granting and obtaining air traffic rights for both passenger and
cargo transport and for granting the necessary permits. Promoting the quality of the flight connection
network is the primary objective. The assessment framework for this has been established in the Aviation
Permit Memorandum (Vergunningennota Luchtvaart) (2009) and in the Policy Rule on permits for regular and
irregular air transport. Air cargo makes an important contribution to the quality of the flight connection
network at Schiphol Airport. It also helps to make certain connections profitable, because cargo may also be
carried on a passenger flight in the aircraft’s cargo hold (belly cargo). Passenger and cargo transport thus
reinforce each other.
Schiphol Action Programme | 13Air traffic rights and aviation treaties: the situation in the Netherlands
• Air traffic rights for regular air transport (regular services) can be exchanged, based on bilateral
and multilateral aviation treaties. In bilateral treaties, the Netherlands negotiates directly with
third countries (countries outside the EU). In multilateral treaties, the EU negotiates (partly on
behalf of the Netherlands) with third countries. The Netherlands can also grant permission for
irregular air transport (charter flights) outside the legal frameworks of an aviation treaty. In all
cases, it concerns conscious decisions taken to trade rights and obligations with other countries
for airline companies.
• Current multilateral agreements:
-- Within Europe, all EU airline companies have the right to exercise transport rights on all routes
in the EU, including on routes within each other’s member states;
-- The EU and its member states have also concluded open skies treaties with the United States,
Canada, Morocco, Jordan and Israel, among other countries.
• Current bilateral agreements:
-- Dutch aviation treaties differ considerably in nature from one country to the next. Some of
them are extremely open, such as the one with Mexico. Others are more restrictive in nature,
such as the one with Argentina.
• The national government itself handles the bilateral relations with third countries with which the
EU has no agreement and with which the EU is not engaged in negotiations.
To strengthen the network of flight connections, the government is focusing on the following actions:
Granting negotiating mandates for EU-wide aviation agreements with the Gulf States and Turkey, amongst
other countries, in line with the EU Aviation Strategy.
With respect to negotiating mandates for EU-wide aviation agreements, the starting point of the
Netherlands is that these are only granted when such an EU-wide aviation treaty has a verifiable added value
for the EU. Such is the case, for instance, when an uneven playing field is involved whereby EU airline
companies cannot operate under equal competitive conditions. Other EU member states also attach great
value to this. The government sets great store by properly functioning, competitive markets. It is important
that EU airline companies are able to operate under the right preconditions for fair competition, and under
open and fair conditions. The government wants the EU aviation agreements to contain clear and binding
agreements on fair competition, for which transparency of operations, the procedure and the possible
sanctions are particularly important. These are the preconditions for any agreements concluded with the EU
concerning greater access to each other’s markets (which the Gulf States, in particular, are demanding).
Even after the EU negotiating mandates have been granted, the Netherlands will be closely involved in these
important negotiations. Once an agreement between the EU and a third country has been reached, EU
member states will need to give their approval before the agreement can be ratified. This provides sufficient
opportunities to safeguard the importance that the government attaches to fair competition.
Revision of EU regulation 868/2004 concerning the subsidising and unfair pricing practices of non-EU
airline companies.
The regulation that is designed to serve as a protection against unfair pricing practices is currently being
revised to make it more effective. The goal is to broaden the scope of the regulation, to lower the standard
of proof, and to include effective sanctions.
14 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsPhoto: Schiphol Group
3.2 Improving air cargo processes
Thanks in part to the logistics sector, a leading sector in the country, the Netherlands facilitates no less than
3.7% of world trade.2 In addition to its own added value and the employment it provides, the logistics sector
fulfils a facilitating role in international trade for other (top) sectors as well. A study conducted by Seabury
shows that the Netherlands performs relatively strongly in the field of air cargo, in relation to its economic
size. The Dutch economy accounts for 4.9% of the total economy of Western Europe (measured in GDP).
Yet its market share of air cargo imports (694 kilotons, 17.6%) and exports (356 kilotons, 7.1%) is
substantially higher.
Working together with the government, the Dutch air cargo sector is striving to make air cargo handling at
Schiphol Airport as efficient as possible. This calls for a good airport infrastructure and efficient chain
processes. It is also important to promote the quality of air cargo services at and via Schiphol Airport
internationally, and to continue to attract European distribution centres to the Netherlands. Schiphol Airport
also serves as a transfer destination for the European air cargo sector. To achieve this position, public-
private collaborations between the various government organisations (e.g. customs, inspectorates) and
sector parties are essential. Equally, the Smartgate Cargo/Redesign Cargo concept makes a significant
contribution. The starting point for this success is an integral area development scheme for Schiphol
Airport and the vicinity that stresses accessibility and road access. The cargo strategy recently launched by
Schiphol Cargo aims at optimising the air cargo process on the ground, securing a leading role in the area
of innovation and technology, and strengthening its competitive position. This strategy is complemented
by KLM’s cargo strategy. KLM is investing in the premium sectors of E-commerce (small packages), express
(fast dispatch), and pharmaceutical products.
2 Within the top sector approach, a component of the business policy pursued by the government, the Ministries of Economic
Affairs and Infrastructure and the Environment, and Customs – in collaboration with companies and knowledge institutes
– are focusing on the further strengthening of the Dutch logistics sector.
Schiphol Action Programme | 15The government and the air cargo sector are focusing on:
• Improving the airport cargo handling process. Amongst other things, this involves a joint study into the
optimisation of the supply and transport of air cargo between Schiphol Airport and the Dutch and
European hinterland as well as innovative applications (e.g. tracking and tracing systems with
temperature tags and cool chain throughout the supply chain, to preserve product quality).
• Strengthening chain information. This focuses on a neutral information platform that can be used by
parties (such as customs and inspection teams) to share information and to make the air cargo chain
more efficient, faster and more reliable.
• Targeted deployment of inspection teams. Greater flexibility and efficiency through coordination and
collaboration between inspection teams, gearing the inspections conducted by the Dutch Food and
Consumer Product Safety Authority (NWA) to private parties’ wishes. The concrete possibilities here, with
respect to the Dutch Food and Consumer Product Safety Authority, will be subject to ongoing studies into
bottlenecks and efficiency, and into prices (commissioned by the Ministry of Economic Affairs). These
studies will be completed before the summer of 2016 and will subsequently be submitted to the Dutch
House of Representatives via the Ministry of Economic Affairs.
• Continuation of regular consultations held by Customs Officials with the business community and
Schiphol Airport concerning the changes in the Netherlands’ logistics function, such as the emergence of
ecommerce and the increasing use of technology. The Dutch Customs Agency has established how
Customs Officials should anticipate both these and other changes (to laws and regulations) in its multi-
year vision, Breaking New Ground (Grensverleggend). This vision strikes the correct balance between law
enforcement and facilitating business by effectively conducting inspections with a minimum of
interference with logistics.
• Further promotion abroad (by Schiphol Airport, Netherlands Foreign Investment Agency and trade
missions from the government) of Schiphol as an outstanding cargo airport, focusing on key regions,
countries and product flows important to the Netherlands (such as pharmaceuticals, flowers, high tech
goods) as identified in the Seabury study into promising corridors and air cargo flows.
In 2016, the annual Cargo Round Table organised by the Ministry of Infrastructure and the Environment will
focus on the further substantiation of the actions that have the highest priority for the cargo sector. The
Ministry of Infrastructure and the Environment, and the Ministry of Economic Affairs, in consultation with
the sector, will also identify what actions are potentially eligible for co-financing from the top sector
approach.
3.3 Business climate in the Netherlands and the Holland brand
In the years ahead, the business community and the aviation sector must ensure that, through interaction,
they optimally profit from the opportunities offered by the improving world economy and the emergence
of new markets. The national government encourages this as follows:
• Active use of the Netherlands Foreign Investment Agency (NFIA), an operational unit of the Ministry of
Economic Affairs, to attract foreign companies and to promote the Netherlands abroad as a country with
an attractive investment and business climate. Under the heading Invest in Holland, the NFIA and its
regional partners will place greater emphasis on attracting companies and investments from top sectors
such as Agri & Food, Chemistry, High Tech, Life Sciences & Health, ICT and Logistics up to 2020. The efforts
expended by the NFIA helped encourage Jet Airways to open a new branch at Schiphol Airport in 2016.
• Active use of the Netherlands Bureau for Tourism and Congresses (NBTC) Holland Marketing for the
branding and marketing of the Netherlands at home and abroad. It is the Netherlands’ ambition to
welcome some 16 million (international) visitors by 2020. To achieve this goal, it is important for the
Netherlands to continue offering a high-quality tourist product. With partners from the sector and NBTC
Holland Marketing, the Ministry of Economic Affairs is working on promoting incoming tourism, the
spread of tourists over time and space, and collaboration within the sector. The hospitality sector is
significant for the Netherlands. This sector has an annual turnover of € 68 billion and accounts for more
than 600,000 jobs (366,000 of which are full-time jobs). Presenting good tourist facilities also contributes
to projecting a positive image of the Netherlands as a host country for businesses.
16 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsThrough a public-private cooperative model efforts are being made to increase the number of foreign
visitors and the money they spend. Targeting China and South-East Asia specifically, NBTC is collaborating
in a Holland Alliance with KLM, Schiphol Airport and Amsterdam Marketing.
• During trade missions and other meetings with foreign partners, the excellent logistical facilities in the
Netherlands, in which Schiphol Airport plays a key role, are brought to the partners’ attention.
• The national government, Schiphol Airport and the airline companies are exploring ways in which the
network of flight destinations can be further strengthened, based on the needs of national and
international companies. So-called white and grey spot analyses are being conducted to this end.
Business climate in figures
• One per cent of all companies in the Netherlands are foreign branches. Foreign companies
provide nearly one million jobs or 15% of all jobs in the Netherlands and are responsible for
more than one-fourth of the total added value of trade and industry in the country.
• More than a third of the turnover and nearly one-fourth of the investments come from
companies under foreign ownership.
• To illustrate, more than 300 foreign companies together invested € 1.87 billion in the
Netherlands in 2015. Together, these companies accounted for 9,300 extra jobs in the
Netherlands.
It is important that the regional economy and Schiphol Airport’s network of flight connections mutually
reinforce each other. Towards this end, regional authorities have developed the concepts of ‘Key Corridor’
(interconnection of Schiphol Airport, the South Axis [Zuidas], Amsterdam city centre) and ‘Logistical West
Axis’ (Westas – interconnection of Greenport Aalsmeer, Schiphol Airport and the Port of Amsterdam).
In the period ahead, these concepts will be further developed by the region. The Policy Memorandum on
the Major Airport and the Metropolitan Area (Beleidsnota Mainport en Metropool) discusses the spatial-
economic development of the region surrounding Schiphol Airport in detail. This is attached as an
appendix.
Main actions
• Focus on negotiating mandates for EU-wide aviation agreements with the Gulf States and
Turkey, amongst other countries, in exchange for fair competition.
• Support a revision of the European regulation on unfair pricing practices.
• Improve the handling of air cargo through innovation in the supply and transport of air cargo
between Schiphol Airport and the EU hinterland, the improvement of chain information and
targeted deployment of inspection teams.
• Promotion of Schiphol Airport and the Netherlands as a place for companies to set up business.
Schiphol Action Programme | 174. Towards a
competitive
cost level
To maintain and strengthen the network of flight connections offered by airline companies at Schiphol
Airport, a competitive cost level is enormously important. The bulk of airline company costs concern the
costs for personnel and fuel (together accounting for an average of 50% to 60% of the total operational
costs of a company). Other costs include government levies, airport charges and the costs of air traffic
control. Due to the relatively small domestic market in the Netherlands, the network of flight connections
at Schiphol Airport depends more heavily on transfer passengers than is the case at many other airports.
Because of price sensitivity among transfer passengers and strong competition between airline companies,
maintaining low costs for the network of flight connections at Schiphol Airport is especially important.
In view of public interest in Schiphol Airport, the government is taking a critical look at the costs that are
charged on to the sector. The annual SEO benchmark (figure 3) shows that Schiphol Airport scores well with
respect to airport charges and government levies, especially compared with major competitors in the EU.
The rapidly growing airports in Dubai and Istanbul charge lower rates than Schiphol Airport. Their home
carriers, Emirates and Turkish Airlines, draw particular benefit from this. Just as for Schiphol Airport and
KLM, they follow the international transfer model and are therefore significant competitors with Schiphol.
That is why continual attention is required to keep Schiphol Airport competitive in the future.
18 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsMonitoring airport charges and government levies
The Ministry of Infrastructure and the Environment has commissioned SEO to make an annual
comparison of the airport charges (the rates charged by the airports) and government levies at
Schiphol Airport and those at ten significantly competitive airports (in the EU, Dubai and Istanbul).
The benchmark for 2015 produced the following picture.3
Totaal van havengelden, securitygelden en -heffingen, ATC- en overheidsheffingen 2015
(Bron: SEO Benchmark Luchthavengelden en Overheidsheffingen 2015)
Figure 3: SEO benchmark for airport charges and government levies 2015
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The SEO benchmark shows that Schiphol Airport scores well on the combination of total airport
charges and government levies. London Heathrow is the most expensive airport, Schiphol ranks
ninth. Dubai and Istanbul are significantly cheaper.
4.1 Cost reduction by the aviation sector
The aviation sector itself must take the initiative to work towards achieving a competitive cost level.
Schiphol Airport works continually to achieve more efficient operations and process optimisation. This
results in lower rates for airline companies and creates space for investments and innovation. In 2015 the
airport rates at Schiphol fell by 6.8% and as of 1 April 2016 the airport rates were lowered further by 11.6%.
Due to an increase in air traffic and transport at Schiphol, the turnover from airport charges at Schiphol
rose in 2015 by 0.6%, despite the lower rates. It is expected that airport tariffs at Schiphol will increase in the
years to come. This is primarily due to the large-scale investments made in the A area, comprising a new
pier and terminal, amongst other things.
KLM and the Air France KLM group are facing the challenge of lowering their costs structurally in the
coming years as well as increasing productivity and bringing this more in line with major competitors.
The first steps to achieve this goal have been taken. Air France KLM achieved positive financial results in
2015 (net profit of € 118 million), but the low price of oil contributed substantially to these results.
3 The calculation shows what a flight traffic package, representative of Schiphol, would cost at the other airports;
Source: SEO processing of Schiphol statistics, IATA Airport, ATC and Fuel Charges Monitor and airport charges schemes.
Schiphol Action Programme | 19Unit costs have fallen by 0.6%, which is less than the target set by Air France KLM, i.e., an average of 1.5% per
annum for the period 20152017. More far-reaching measures for cost reductions and productivity increases
are still necessary, both at Air France and at KLM. In September 2015, KLM announced it would accelerate
the agreed cost savings programme. In mid 2015, KLM concluded collective labour agreements in which
costs were cut and space was created for growth. A number of collective labour agreements at KLM are
coming up for renewal this year. The KLM Board of Managing Directors will therefore enter into consultation
with the trade unions to explore the possibilities for further cost reduction. It should be stressed that
responsibility for taking corporate decisions aimed at strengthening the competitive capacity of the
company lies with Air France KLM and KLM. The government will focus on safeguarding the public interests
associated with the flight connection network of the hub carrier.
As a hub carrier KLM is, after all, vitally important in maintaining the Netherlands’ links with the rest of the
world. To continue fulfilling this function, the company must have a sufficiently independent position
within the holding company, Air France KLM. Within this context, promises have been made by the holding
company concerning the continuation of the government guarantees that were extended in 2010, pertaining
to employment and independent financial management and to the continuation of the Dutch foundations
SAK1 and SAK2 (Stichting Administratie Kantoor – Trust Office), which manage a significant part of the shares in
KLM. With respect to the position of KLM within the holding company, the government maintains contact
with KLM, the holding company and the French government.
4.2 Focus on further cost-cutting measures
The national government can contribute to ensuring the best possible competitive position by optimising
the preconditions. In this respect, the government considers various factors, including the regulations
governing the pricing system for Schiphol Airport, the security costs, the costs for air traffic services and the
costs that can ensue from the regulatory burden.
Regulating the fees at Schiphol Airport
Schiphol Airport charges airport fees to the airlines for the use of the airport. What Schiphol may include in
these fees is stipulated in the regulations. The Authority for Consumers and Markets (Autoriteit Consument
en Markt) oversees this. Regulation of the airport fees is necessary to prevent abuses of Schiphol’s economic
dominance with respect to aviation activities.
The regulations governing the airport fees at Schiphol Airport are currently being reviewed. Important
points for improvement include:
• Improving the consultation process.
• Introducing multi-year airport fees.
• Introducing efficiency incentives for large investment projects.
• Introducing a mandatory financial contribution from non-aviation activities towards aviation activities;
this has a moderating influence on tariff increases.
• Bringing transparency to the effects of new tariff proposals on the quality of the network.
Security costs
The security charges at Schiphol Airport are a significant part of the total airport charges. The centralised
security system was introduced at Schiphol in 2015. It allows significant efficiency benefits and cost savings,
and the first results of this system are already visible. Yet it is expectedthat in the long term, security costs
will rise further due to geopolitical developments, new (international) regulations, and the resultant
necessary investments.
20 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsCivil Aviation Security
Civil aviation security is an important focus area in the fight against terrorism. The National
Coordinator for Security and Counterterrorism (Nationaal Coördinator Terrorismebestrijding en
Veiligheid), on behalf of the Minister of Security and Justice, is responsible for ensuring that civil
aviation in the Netherlands is adequately protected. Civil aviation security is primarily concerned
with protection against terrorist attacks, such as (bomb) attacks on aircraft and civil aviation
premises, hijacking of aeroplanes, as well as other forms of sabotage with fatal consequences.
The Minister of Security and Justice sets the standard for civil aviation security. The sector (airline
companies, airports) is responsible for carrying out security measures. Important areas of focus in
civil aviation security include the checking of passengers, hand baggage and hold baggage, as well
as providing security for the airports themselves through entry checkpoints and guarding the
periphery of airports, amongst other things. The Royal Military Police (Koninklijke Marechaussee)
oversee the security measures taken by the sector and take action if special circumstances or
abnormalities are identified. The Royal Military Police also perform tasks in the context of security,
such as armed security and the deployment of air marshals.
The aforementioned measures are a part of the so-called security processes. In addition to these
processes, there are measures that fall under the border processes such as border control (see para
7.3). By controlling migration activities at the border, the Royal Military Police combat cross-border
criminality. This includes duties that focus on counterterrorism, drugs smuggling, criminal money
laundering, identity fraud and human trafficking. These duties are a part of the wider task of border
policing, which the Royal Military Police carries out. The Royal Military Police are responsible for
assuming general policing duties at the airport and, as such, perform all associated processes in the
context of enforcement and detection. All of these processes (security and border processes) are
closely interconnected and make an important contribution to the fight against terrorism and the
security of the airport.
In the Netherlands, the national government funds the deployment of the Royal Military Police for
the border control process, for overseeing the security process and for armed security measures.
The implementation of security measures is a task that is vested with the airport. The costs that
Schiphol Airport incurs for security are then, in accordance with the law, entirely charged on to the
airline companies. In 2015, the costs at Schiphol Airport amounted to €294 million, €150 million of
which was charged to KLM.
In the area of civil aviation security, it is the government’s ambition to be among the best in the world.
This calls for high-quality, passenger-friendly security in which a high level of security is maintained and an
optimum through-flow of passengers is ensured, even as traffic increases. At the same time, the government
and Schiphol Airport are both committed to ensuring that security costs are lowered, through innovations.
Lower costs lead to lower airport fees, which will benefit Schiphol’s competitive position. In consultation
with Schiphol Airport, therefore, the government is working out the possibilities for innovative measures
and investments in the area of security in 2016, including funding options. Potential measures include the
further integration of security (Schiphol) and the border control process (Customs and Royal Military Police).
Schiphol Action Programme | 21Photo: Schiphol Group
In addition, the national government is committed to:
• Providing an annual financial contribution to research and investments from the innovation budget of
the Ministry of Security and Justice;
• Offering the possibility of temporary government funding for unforeseen security measures. This is
pertinent when specific security measures are abruptly taken as a result of sudden emergencies;4
• Establishing international/EU frameworks that offer Schiphol scope for the effective and efficient
substantiation of measures.
In 2016, in consultation with the Ministry of Security and Justice and the Ministry of Infrastructure and the
Environment, Schiphol Airport will conduct an operational audit into the cost efficiency of the security
measures at Schiphol. This audit will investigate the security processes.
4 When the required accelerated introduction of the measures prohibits the immediate incorporation of their costs into the
airport charges, such costs will temporarily be borne by the government until they can be included in the airport charges in
accordance with the price regulations.
22 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsCosts for air traffic services
The costs of air traffic services provided by the Netherlands Air Traffic Control, the Maastricht Upper Area
Control Centre, and the Royal Netherlands Meteorological Institute (KNMI) are funded by airline companies
via levies. A comparison of the levies charged in 2015 shows that Dutch rates are competitive and are below
the EU-wide average.
Figure 4: comparison of rates for air traffic services 5 / 6
Vergelijking tarieven luchtverkeersdienstverlening
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Terminal fees 2015 in euros EU average in 2015
5 There are two types of levies: the terminal fee (for services in and around the airport) and the en route levy (for overflying
and approaching traffic up to a distance of approx. 18 km and a height of approx. 1 km).
6 In the United Kingdom and Spain, the terminal fees are largely a part of the landing fees of the airport. The actual costs that
are charged are therefore higher than appears to be the case in the figure.
Schiphol Action Programme | 23It is important to keep these costs competitive. The government will focus on the following actions:
Achieving a Single European Sky (SES)
The European Commission has established that the costs of air traffic services in EU member states per unit
of service should decline by 3.3% per year in the period 20152019. This pertains primarily to en route costs, but
it also has a lowering effect on terminal fees. The European Commission is considering the introduction of
a separate efficiency objective for terminal services. The Netherlands is striving to achieve this objective
wherever possible, and this has been worked out in the national performance plan, resulting in a stable rate
of fee development that is structurally lower than inflation.
Exploring possibilities for lowering the costs of control tower services
In July 2013, the government announced its intention to develop a different funding system for the control
tower services. The guiding principle is covering costs at each individual airport in order to phase out cross-
subsidisation. Further analysis shows that there are limited possibilities of lowering the costs of control
tower services. Nonetheless, the government, the Netherlands Air Traffic Control and the regional airports
together will explore how the costs of control tower services may be lowered, and what is needed legally to
accomplish this.
Other costs
The national government is also aiming to lower costs in other areas. Below are a few examples.
Sound insulation programme Schiphol (GIS) levy
Via the GIS levy, sound-sensitive buildings – such as houses and schools – are insulated. This programme
was conducted in three phases: GIS1 commenced in 1984, GIS2 commenced in 1997, and GIS3 commenced
in 2006 and was completed in 2012. The total costs for carrying out the three phases amount to approximately
€ 577 million. Schiphol has charged these costs on to airline companies via the GIS levy. The government
has concluded that, with the completion of GIS3, the major insulation project, which started in 1984, is now
completed. This GIS levy therefore stopped in July 2015.
Maximum take-off weight (MTOW) levy
Via the MTOW levy, the losses resulting from planning decisions, the costs of compensation for such losses
and the costs of purchasing and demolishing homes in the noise and safety zones are charged on to airline
companies. In the period from 2005 to the present, more than € 100 million has been levied. The collection
of this MTOW levy will cease in 2016 as soon as all the costs prefunded by the national government have
been repaid by the airline companies. If, after new decisions, compensation for damages is found to involve
costs, then the collection of the MTOW levy may be re-introduced. Based on current insights, however, it is
expected that this will not be necessary.
Dutch Food and Consumer Product Safety Authority charges
The government has commissioned a study into how Dutch charges for inspection and supervision of
imports and exports compare with those charged in neighbouring countries. The Dutch charges for
inspection and supervision are also tested against the agreement in the report “Maat Houden” (Moderation).
This study is expected to be completed before the summer of 2016.
24 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsCosts ensuing from the regulatory burden
Regulatory burden is a subject that has drawn the attention of the government at both national and
international levels. It is also an area in which optimisation is a continual endeavour. At the national level,
new regulations are always tested to ascertain whether they will increase the administrative burden.
In consultation with the sector, the national government examines whether benefits can be gained from
existing regulations, e.g., for the general aviation sector. An inventory taken of national regulatory burdens
within the sector around Schiphol Airport has not, up to now, revealed any starting points for possible
improvements. At the international level, the government sees more possibilities. The government
therefore supports the EU Aviation Strategy initiative to establish goal-based regulations for aviation safety
and risk-based legislation for aviation security. In aviation security, this could save costs because it leaves
more scope for tailored approaches in specific circumstances. Security checks could also become less
cumbersome for passengers by allowing more room for technological innovations.
Main actions
• Improving regulations in the area of aviation fees.
• In consultation with Schiphol Airport in 2016, the government is working out the possibilities for
innovative measures and investments in the area of security.
• Stopping the GIS levy and the MTOW levy.
• Lowering costs ensuing from the regulatory burden.
• Further cost reductions by the aviation sector.
Schiphol Action Programme | 255. Improving rail and
road accessibility of
Schiphol Airport
Good, preferably direct and, particularly, reliable connections via the main road network and main railway
network are essential for the accessibility of Schiphol Airport and the size of its market area. Up to the end
of 2028, the government will invest nearly € 12 billion in further improving these connections.
5.1 Improving public transport
In the coming years, the national government and the region will invest heavily in the quality of public
transport in order to remove current and future bottlenecks.
Railway Station at Schiphol
Improving the traffic flow at Schiphol Airport railway station presents a major challenge. A joint MIRT Study7
conducted by Schiphol Airport, Dutch Railways, Prorail, City Region of Amsterdam (Stadsregio Amsterdam)
and the national government has determined that the Schiphol railway station is reaching the limits of its
capacity in various ways. Solutions are being sought by enlarging the Schiphol Airport railway station and
improving access to the platforms. The aim is to further elaborate this through MIRT exploration.8 A decision
to launch an MIRT exploration is expected to be ready in the summer of 2016. In the run-up to this decision,
the Ministry of Infrastructure and the Environment, City Region of Amsterdam, Schiphol Airport and Dutch
Railways have concluded an agreement of intent comprising the following elements:
7 MIRT stands for Meerjarenprogramma (Multi-year programme) Infrastructuur (Infrastructure), Ruimte (Space) and Transport.
An MIRT Study focuses on challenges and/or developments at play in the spatial planning domain that are important to or
perhaps require the involvement of the national government. The outcome will lead to an accentuation of the challenge
faced or the direction of development.
8 Characteristics of an MIRT exploration are that it involves short-term investment by the national government (e.g. 4 years),
an intervention in the spatial-physical domain, and the interest of the nation.
26 | Ministry of Infrastructure and the Environment / Ministry of Economic AffairsYou can also read
