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Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 9/97 GERMAN AIRPORTS FACE UP TO INTERNATIONAL COMPETITION by Heiko Reuter The airports of the European neighboring countries are attempting to outstrip the German airports. The Amsterdam airport Schiphol, for example, is a thorn in the side of the German airport managers, especially of the ones in the state of North Rhine-Westphalia. Four runways are open at Schiphol day and night, a fifth is to follow in a few years: This looks like paradise as compared to the situation in Germany. The Dutch hub was used by 27,8 million passengers in 1996, which is almost ten percent more than in the year before. The Düsseldorf airport in Germany was facing a five percent decrease in passenger numbers in the same period of time, down to 14,4 million in 1996. Even the Frankfurt airport, with 38,8 million passengers the biggest hub in Central Europe, registered an increase of only 1,5 percent. The airports of the European environs are attracting more and more German passengers. Supposedly, even at the airport Charles de Gaulle in Paris, every sixth passenger is German. But how can an airport improve its competitiveness if the ground infrastructure is at its limits and expansion plans are increasingly hindered by the politicians? Experts believe that privatization is the solution to the problem. States and counties are the main share holders of German airports, such being responsible for the airports' strategic development. Of six of the major airports, the government is holding shares. The German Minister of Transport has announced plans of selling these government shares. This would not only raise funds for the empty government budget but also generate potent investors for the airports. However, there are different opinions about the right way into the privatization. Wilhelm Bender, head of the Frankfurter Flughafen AG (FAG), is pleading for a strong compound of the German airports, similar to the successfully working British Airports Authority (BAA) in Great Britain. However, Bender's ideas are criticized by other German airport managers. Willi Hermsen from the Munich airport is objecting to any financial connection of the German airports, saying that this would not generate any additional passenger streams, and that such a compound is rather based on FAG's intention to be at the head of an alliance structure. Transport Minister Wissmann, on the other side, is favoring a stronger connection of the airports but wants to hinder the dominance of individual airports: "There will be no centralized solution." The Hamburg airport is one of the most promising candidates for a quick privatization. Managing Director Werner Hauschild counts on the three shareholders, government, city of Hamburg and state of Schleswig-Holstein, selling a total of 49,9 percent of their shares next year. The value of the Hamburg Fuhlsbüttel airport is estimated to be DM500 million to 1,4 billion. At the beginning of September of this year, a decision is expected as to who will take over a 50 percent share of the state of North Rhine-Westphalia at the Düsseldorf airport. The two candidates are, for one, the industry consortium Harpen AG together with the US airport operator Airport Group International, and, secondly, the Hochtief Projektentwicklung GmbH together with the Irish airport operator Aer Rianta. The Frankfurt airport, which didn't get a chance in the tenders for the Düsseldorf airport, is now hoping for an entry into the Cologne-Bonn airport. Independently from the privatization plans, both of the airports are projected to be connected by the ICE fast train network beginning in 2001 (trip-length less than 60 minutes). Bender recently announced that this new airport duo will possibly be better connected than the two Paris airports Charles de Gaulle and Orly. Will these measures be enough? Others have already acknowledged the advantage of an integrated traffic. The Schiphol airport will also get an ICE connection. The capacity of the Dutch airport will also be expanded to a potential capacity of 80 million passengers per year. The German airports are facing really serious competition. From page 30 of FLUG REVUE 9/97 Home | Update | Latest Issue | Gallery | FR Profile | Datafiles | FR 9/97 Copyright 1997 by Motor-Presse Stuttgart. All rights reserved. Last updated August 5, 1997 FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany