With words of praise from the attending ministers and a representative of the Royal Schiphol Group (RSG), a Memorandum of Understanding (MoU) was signed between the Government of Aruba and RSG, aimed at benefiting Aruba and its economy, according to Minister of Tourism, Labor and Transport, Mr. Wendrick Cicilia. Earlier this week, the Interim Management Team of Aruba Airport Authority (AAA) met to discuss the contents of the agreement. The AVP – FUTURO coalition holds a different view from the outgoing MEP–Raiz government on this matter.
Prime Minister Mike Eman clarified that the MoU simply opens the door for continued negotiations toward a full management agreement with RSG. He expressed strong appreciation for RSG, likening its reputation to that of KLM—synonymous with success both in the Dutch Kingdom and internationally.
This decision aligns with the vision of AAA’s shareholder, although the final agreement, including its terms, lies in the hands of the board, which will engage in further talks with RSG. The AVP – FUTURO Cabinet is focused on maintaining strategic management and believes the extensive knowledge and decades-long experience RSG has with Aruba’s airport justifies continued collaboration. A reputable name like RSG is also seen as a valuable asset when seeking market confidence and financing. Branding plays an essential role, especially with Aruba’s ambition to keep growing.
Lack of local leadership still an issue
One issue that continues to surface is the lack of a qualified local professional to manage airport operations, despite this being stipulated in the original agreement signed in 2004. RSG claims no Aruban is currently capable of taking on the director’s role, yet fails to mention that in recent years—after RSG withdrew from day-to-day operations—three Arubans successfully managed the airport. Not only did they maintain operations, but they also broke growth records in the history of AAA.
Do we still need Royal Schiphol Group?
Public opinion is divided. Some believe Aruba no longer needs RSG: the airport is financially stable, airline partnerships are strong, and tourism demand remains high. Critics question the need to keep paying a Dutch company when Aruba has local professionals capable of doing the job.
On the other hand, others worry that if the government takes full control, political interference may return to airport operations. RSG’s expertise in construction and infrastructure development, as well as their ability to secure financing, remains a valuable asset. Some fear that if RSG is removed, lenders could lose confidence and create financial hurdles.
Tough negotiations with previous government
Negotiations with the previous MEP–Raiz government were not smooth. After 20 years of partnership, RSG still has not fulfilled its obligation to appoint a local director. Each time, foreign professionals are brought in instead. While the agreement requires training locals for leadership, past training efforts have not resulted in a local appointment.
Additionally, RSG now seeks to double its annual fee from Afl. 2.5 million to Afl. 5 million, arguing that this is the going rate at other airports under its management. They also continue to request a seat on AAA’s Supervisory Board—a demand made for years but never granted by successive Aruban governments.
Airport generating strong profits
In 2023, Aruba Airport Authority reported a total revenue of Afl. 182,876,032, an 18% increase over 2022’s Afl. 154,760,107. After expenses, net profit stood at Afl. 44,507,303. Very few government-owned entities in Aruba achieve such annual profits. Last year, AAA paid a dividend of Afl. 12.6 million to the government based on 2022 results, and a similar amount is expected this year. On top of that, the airport annually pays about Afl. 12 million in profit tax, along with other contributions like the concession fee.
RSG’s fees significant
The partnership with RSG comes at a price. Last year, the government paid the group around Afl. 6.7 million, which includes consultancy fees, the director’s salary, and additional benefits. In context, this means RSG receives roughly half of the dividend that Aruba—100% owner of AAA—earns annually from the company.
Airport thriving
By the end of 2023, Queen Beatrix International Airport employed 238 people and processed 2,888,695 passengers—an increase from 2,570,108 in 2022. The airport currently serves 26 airlines, offering connections to 32 cities, including 30 non-stop routes.
History with Royal Schiphol Group
The collaboration between AAA and RSG began in April 2004 under Tourism Minister Ing. Eddie Briesen. Initially intended as a short-term arrangement, both AVP and MEP administrations have since renewed the contract multiple times.
RSG eyes regional expansion
One of the points currently under discussion is RSG’s interest in managing other regional airports, such as Sint Maarten, Bonaire, and Curaçao. However, Aruba’s contract with RSG states that they may not manage airports in the region that could pose direct competition. RSG has already taken over management of Sint Maarten’s airport during its reconstruction phase and is helping to establish a solid business structure there. While these islands are part of the Kingdom, they still represent competition. Aruba cannot afford to sit back and watch as RSG redirects passengers from our island to others in the region.
About Royal Schiphol Group
Founded in 1916 and headquartered at Amsterdam Airport Schiphol, RSG has become a global leader in airport management. In October 2008, RSG and Aéroports de Paris each acquired 8% of the other’s shares, creating one of the largest airport management groups in the world.
RSG owns 100% of Amsterdam Airport Schiphol, Rotterdam The Hague Airport, and Lelystad Airport. It also owns 51% of Eindhoven Airport and 19% of Brisbane Airport. In addition to Aruba, RSG operates Terminal 4 at JFK Airport (New York), Incheon International Airport (South Korea), Brisbane Airport (Australia), and Hong Kong International Airport (China).
Ownership of RSG is divided as follows: the Dutch Ministry of Finance (69.77%), the City of Amsterdam (20.03%), the City of Rotterdam (2.2%), and Aéroports de Paris (8%). In 2019, RSG reported record revenues of €1.615 billion, from which €155 million was paid in dividends. In 2020, for the first time in decades, the group posted a loss due to a 70% drop in passenger traffic. RSG currently employs 2,324 people.
About Aruba Airport Authority
Aruba’s airport is a private entity managed by RSG. It is named after former Dutch Head of State, Princess Beatrix. Aruba is one of the few Caribbean islands offering US Border Pre-Clearance and opened its private aviation terminal in 2007. Today, the airport handles around 2.8 million passengers annually.
Historically, Manuel Viana launched weekly flights to Curaçao in 1934, which KLM took over later that year. The airport, originally called KLM Field, was used by U.S. armed forces during World War II to protect Caribbean shipping routes and the Panama Canal. It was renamed Dakota during that period.
On October 22, 1955, the airport was named after Princess Beatrix during a royal visit. In 1980, the name changed to Queen Beatrix when she ascended the throne. The current airport has existed since November 1972, with a major expansion completed in 1999, including a large concession area, eight aircraft positions, and separate check-in buildings for U.S.-bound and other international flights.
Working closely with RSG, Aruba Airport Authority N.V. operates a modern and efficient airport comprised of three buildings that together form the terminal. The airport features 66 ticket counters, airline offices, and a variety of amenities for travelers.
