“Fraport AG continued to develop very positively in the previous year,” said Fraport’s executive board chairman Dr. Wilhelm Bender at the company’s Annual General Meeting (AGM) in…
“Fraport AG continued to develop very positively in the previous year,” said Fraport’s executive board chairman Dr. Wilhelm Bender at the company’s Annual General Meeting (AGM) in Frankfurt-Hochst.
Bender explained to shareholders how Fraport again in 2006 achieved traffic growth as well as over-proportionate gains in business results. “This also confirms the success of our strategy to focus consistently on flight and terminal operations and aviation ground services – the ‘classic’ airport business – as well as other revenue sources such as retailing, real estate utilization, and external business.”
Earnings before interest, tax, depreciation and amortization (EBITDA) – operating results – climbed in 2006 by 6.6 percent to €578.4 million; profit for the year jumped by 41.7 percent to €228.9 million. Therefore, the executive and supervisory boards are recommending that shareholders receive a dividend of €1.15 per share – almost 28 percent more compared to fiscal year 2005.
Speaking again about the necessity for market-driven capacity expansion of Fraport’s Frankfurt (FRA) home
base, Bender said: “We risk falling behind in the increasingly broader and ongoing redistribution of global air traffic flows, because no one around the world even takes into consideration the fact that in Germany we require a lead time of more than ten years for urgently needed infrastructure investments.”
He stressed that an international air transportation hub like FRA must have sufficient capacity reserves available to secure its top position in the future. “This is not only in the interests of Fraport and its shareholders but, above all, the Frankfurt/Rhine-Main region and the entire Germany economy,” Bender added. “And we don’t have any more time to lose.”
Furthermore, Bender said that the agreement with Ticona/Celanese for closing its chemical plant northwest of FRA by 2011 substantially improves the calculability of the timeline for expansion planning. Fraport expects the final decision on the Airport Expansion Program from the Hesse Ministry of Economics by the end of 2007. Following foreseeable legal proceedings and a two-year construction phase, the inauguration of the planned Northwest Landing Runway can be expected between the end of 2010 and the 2011 Winter Timetable.
“This gives Frankfurt Airport clear perspectives for securing its future and competitiveness.”
In this context, Bender campaigned for an “anti-noise pact,” as envisaged in the Mediation on Airport Expansion process. He reiterated Fraport’s readiness to intensify dialog with communities in region and with environmental organizations. “We certainly prefer having an alliance for reducing noise and promoting good-neighbour relations than time-wasting legal squabbles.”
Bender proudly noted that the Fraport Group scored important successes again in its external business last year. A consortium involving Fraport won the bid for operating and expanding the airport in the Indian capital of Delhi. Furthermore, Fraport won the concession for managing and modernizing the tourist airports of Bourgas and Varna on the Bulgarian Black Sea coast. Fraport will be expanding its activities in Antalya, Turkey, beginning in September 2007. Finally, Fraport is taking a 24.5 percent share in Xi’an Airport in central China. Bender described it as simply the first step: “We are planning to expand our activities in this country.”
Commenting on the 2007 prognosis, Fraport’s executive board chairman said Group revenues for the current year are expected to be higher than in 2006. After eliminating the 2006 special effects, operating results for 2007 are expected to hit or slightly exceed the previous year’s level. “The signs for Fraport’s continuing success remain unchanged,” concluded Bender.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
