9 Right-of-use assets

The Zurich Airport Group as lessee

Land

Via its operator Yamuna International Airport Private Limited, Flughafen Zürich AG holds the right-of-use asset relating to the land on which Noida International Airport, New Delhi, India will be built and operated in future. The right-of-use asset was recognised as an asset and a liability (see note 18, Financial liabilities) at the present value of the future lease payments (interest rate: 9.0%) of CHF 83.5 million and will expire at the end of the concession in 2061. The depreciation charges arising on the right-of-use asset in this context up until the date in 2024 when the airport is brought into use and any interest expenses incurred on the corresponding lease liabilities (see note 18, Financial liabilities) are capitalised as projects in progress (see note 8, Property, plant and equipment).

Real estate

The Zurich Airport Group has a right-of-use asset entitling it to use space in a building that is located on Flughafen Zürich AG’s land and was constructed under a granted building right from 2005. Although its right to use the space ends on 31 January 2080, the Zurich Airport Group has termination options, which have been taken into account. The undiscounted potential future lease payments for periods after the exercise date of the termination options that are not included in the lease term amounted to CHF 91.2 million as at 31 December 2022 (previous year: CHF 91.2 million).

In financial year 2020, following the completion of the real estate project the Circle, Flughafen Zürich AG moved into new office premises for which the company signed a 20-year lease with the co-ownership structure the Circle. Taking into account the extension option, the lease ends in October 2039. The company has also signed a management agreement with the co-ownership structure for the parking area in the Circle. Disregarding the extension option, this ends in 2031.

In addition, the Zurich Airport Group leases further space that is subleased as car parking space. The average period of use is five years.

The following table shows the carrying amounts of the lease liabilities and the changes during the reporting period:

A detailed overview of the maturities of the lease liabilities can be found in note 18, Financial liabilities.

In the reporting period, the following amounts were recognised in profit or loss in connection with leases:

The total cash outflow for leases amounted to CHF 9.0 million in the reporting period (previous year: CHF 7.4 million). Future cash outflows for leases not yet commenced as at the reporting date amount to CHF 0.0 million (previous year: CHF 13.8 million).

The Zurich Airport Group as lessor

The tenancy agreements entered into by the Zurich Airport Group as lessor may be either fixed tenancy agreements or commercial leases:

Fixed tenancy agreements

Fixed tenancy agreements comprise in particular agreements for office, warehouse, archive and workshop premises. They are divided into limited-term and indefinite agreements, with the latter usually being subject to either six or twelve months’ notice to be communicated in advance.

Commercial leases

Commercial leases consist primarily of leases of commercial space. These agreements between the parties generally comprise guaranteed basic rents plus turnover-based portions with a fixed term of five years and no other options. Moreover, some agreements involving basic rents and turnover-based portions exist as a function of passenger trends or prior-year sales.

Commercial revenue (retail, tax & duty free plus food & beverage) and real estate revenue (revenue from rental agreements) contained conditional rental payments amounting to CHF 11.5 million (previous year: CHF 6.1 million).

At the reporting date, minimum lease payments (fixed rents and guaranteed basic rents) under non-cancellable leases were as follows: