Fraport And Airlines Reach Agreement

FRAPORT AG and airline representatives have agreed on the development of airport charges at Frankfurt Airport (FRA) FOR the years 2012 to 2015.  A corresponding agreement was signed in February by representatives of Fraport AG, the airlines and airline associations.
“We have reached an agreement that will provide planning security on both sides for the next six years.  The airlines need this security for their fleet planning and deployment, just as we need it to shoulder the enormous billion euro investments being realized by Fraport at Frankfurt Airport in the coming years,” explained Fraport Executive Board Chairman Dr Stefan Schulte.
At the beginning of December 2009, Fraport and airline representatives reached an agreement on revising airport charges for the years 2010 and 2011.  During 2012 to 2015 charges will rise by 2.9% annually under the latest agreement.  Fraport CEO Schulte emphasized the need for raising charges.  “The increase in airport charges is an essential element for financing the immense capital expenditures for FRA’s future viability and competitiveness.  With the charges agreed for 2010 and 2011 we have already taken into account the difficult economic situation currently facing the airlines, by staggering the increase well into 2010,” said Schulte.  A further result of the negotiations is that if Frankfurt’s passenger figures develop faster than expected, the airlines will be reimbursed one third of the additional revenue.
Fraport is currently investing about €1 billion annually in the modernization and expansion of FRA’s airside facilities − including its Airport Expansion Program.  “The additional capacities thus created will ultimately benefit the airlines and their customers as much as they strengthen the competitiveness of Germany as an aviation base.  However, it is important to note that each billion euro Fraport is spending requires about €100 million in additional expenditures per year for interest and depreciation.  These expenditures must first be earned via the expected traffic growth, additional airport charges, and increasing proceeds from retailing,” Schulte stressed.
Fraport’s CEO thanked the Hesse economics minister Dieter Posch and the staff of his ministry for their dedicated commitment and for mediating a long-term solution acceptable for both parties.