GERMANY. Munich Airport, the eighth busiest in Europe, is preparing for a major uplift in passenger numbers to Eastern Europe.
The airport is located at a crossroads between Western Europe and the 10 countries admitted to the EU last May. In 2004, traffic to the 10 new EU countries, mainly in Eastern Europe, jumped by +35%, according to the airport, and is set for more growth as the EU expands.
Munich Airport is 51%-owned by the state of Bavaria and 49% is jointly held by the city of Munich and the German Government. The city of Munich and the government have indicated they are keen to sell, though the Bavarian state is cautious. Plans are afoot to discuss a possible sale with the state of Bavaria in 2006. The airport is valued at between €1.5 billion and €2 billion.
Michael Kerkloh, Chairman of Munich Airport’s Executive Board, said that intercontinental connections were up +27% in 2004, while overall passenger numbers leapt by +10%.
Some 26.8 million passengers used Munich Airport in 2004, making it the eighth-busiest airport in Europe. It aims to top 50 million passengers in 2015. Kerkloh said that in 2005 he expects the airport to see about a +6% pick-up in passengers and +4%-5% jump in revenue.
Munich Airport posted a €55 million loss for 2004, which it attributes to costs associated with building terminal two. “We’ll be back in the black by the latest in 2007,” Kerkloh told Dow Jones, adding: “We certainly don’t have a lack of investment interest.”
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