Consolidated Management Report
This means that the formal reason for awaiting the decision of the Federal Administrative Court in the pending proceedings concerning WIENER NETZE GmbH no longer exists. A decision regarding the substance of the cost appeals now needs to be made.
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The Federal Administrative Court has indicated that the case will continue in the near future. So far no application has been made to the Federal Administrative Court for a deadline to be set for a decision on the pending appeals. Transfer of pension obligations to WIENER STADTWERKE Holding AG As of 31 December 2016, Wiener Stadtwerke Holding AG took over the pension obligations (pension provisions) of WIENER NETZE GmbH at their market value by way of private debt assumption. This means that WIENER STADTWERKE Holding AG is now responsible to the City of Vienna for these pension obligations instead of WIENER NETZE GmbH. The transfer at market value has been funded through a loan. Furthermore, WIENER STADTWERKE Holding AG provided a capital contribution in the form of a debt waiver, which reduces the corresponding liability and is recorded under capital reserves.
Transport Development of the modal split The share of public transport in the modal split remained unchanged on the prior year at 39 percent. This means that the city continues to occupy a leading position compared with other large European cities. It remains the target of Wiener Linien to increase the modal split share of public transport to 40 percent and to reach the one-billion-passenger mark. Fourth Railway Package In January 2013, the European Commission announced amendments to the EU regulation on public passenger transport services by rail and by road (Regulation (EC) No 1370/2007 [PSO-VO]) as part of the Fourth Railway Regulation and State Aid Packages. The proposed amendments to many parts of the regulation would have had a negative impact on Wiener Linien. The European Parliament made amendment
proposals in its first reading. The Council of Transport Ministers also passed the dossier in October 2015 with its amendments. A number of provisions with a negative impact on Wiener Linien have been initigated as a result as result of the amendments made by the European Parliament and the Council of Transport Ministers. The dossier is currently being debated by the European Commission, European Parliament and the Council. It remains to be seen how these talks will conclude and what impact these will ultimately have on Wiener Linien. Consequently, Wiener Linien has submitted statements to the appropriate offices and institutions, notably through Wiener Stadtwerke’s office in Brussels. The progress of negotiations on the Fourth Railway Package is being closely monitored and the interests of Wiener Linien safeguarded. Funerals and cemeteries The funerals market in Austria was deregulated as early as 2002 and is largely unaffected by trends in the general economic environment. Business development in the funerals and cemeteries segment is dependent on mortality rates and the number of competitors. The willingness to renew tenure for graves is of significance in the cemeteries business. One negative effect, however, is the long-term decline in the significance attached to dealing with death and hence the funeral and cemetery-related services. There are currently over 20 competitors active in Vienna in the funerals segment outside the B & F Wien division. Car parks Besides general economic development factors, the parking habits of customers are also influenced by broader circumstances relating to parking facility management and the tariffs for local public transport.