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MUNICH AIRPORT SEEKS EXPANSION

Airport CEO Willi Hermsen had good reason to be happy. Last year Munich's airport again made profits in all areas. 19.3 million passengers passed through the hub in the Erdinger Moos, eight per cent more than in the previous year. "Another record result," said the nimble Hermsen. He saw 1998 as a great success also from a financial point of view. Turnover rose by three per cent to DM915 million while profits saw an increase of DM62 million, which was more than double the profit made in 1997.

Munich is booming. The increase in passengers means twice the growth rate of the average increase at the German airports. This figure excludes charter flights, which are receding. According to the ADV, the German Airport Association, the average growth of other German airports is just 4.6 per cent. The only airport, which can boast an even better growth rate than Munich is Münster/Osnabrück with an increase of 16 per cent in 1998.

The reason for the success of the Bavarians: The load factors constantly are improving. Last year they rose by 2.6 per cent to an average of 65 per cent. Willi Hermsen explains, "For airlines a better use of their planes' capacity means an increase in productivity, which they achieve on their flights to and from Munich." Lufthansa, the most important customer, was able to improve load factors in 1998 by five to 68 per cent. This company is constantly expanding Munich as second most important hub after Frankfurt. Munich is being used increasingly by transit passengers because of Lufthansa's involvement. In 1998 26 per cent of all travellers arrived at Bavaria's airport, - which is one per cent more than in 1997-, in order to catch another plane to continue their journey. Even 40 per cent of these flew Lufthansa.

This rapid expansion has one drawback: Things at the airport are getting a bit tight now and this only seven year after its opening. The terminal is being expanded and rebuilt wherever possible. By next summer a high performance baggage transportation system for connecting passengers, will be taken into service. At the same time the Munich Airport Centre, a large service centre with office and conference buildings, business branches, restaurants and shops will open.

The most ambitious project, however, is the construction of a second terminal, which is scheduled to open in 2003 and will enable at least another 15 million passengers to use the airport. Terminal 2 will exclusively be used by Lufhansa and its partner airlines. According to press reports Lufhansa will contribute DM520 million of the construction costs, amounting in total to DM1.3 billion. However, it has been claimed that the City of Munich as one of the airport's three shareholders, has moved away from selling its share, because this terminal is being co-constructed by a private company. It is uncertain whether Munich's airport will be privatised now.

From page 30 of FLUG REVUE 4/99