Airport Charges at FRA: Fraport and Airlines Reach Agreement
Fraport AG and airline representatives have agreed on the development of airport charges at Frankfurt Airport (FRA) during the years 2012 to 2015. A corresponding agreement was signed today by representatives of Fraport AG, the airlines and airline associations.
"We have reached an agreement which 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 already reached agreement on revising airport charges for the years 2010 and 2011. During the years 2012 to 2015 charges will rise by 2.9 percent 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: If passenger figures at Frankfurt Airport develop faster than expected, the airlines will be reimbursed one third of the additional revenue.
Fraport is currently investing about EUR1 billion annually in the modernization and expansion of FRA's airside facilities - including the 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 EUR100 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. Today's agreement is subject to approval to be obtained next week from the individual airline association members.
