22.3 million passengers in 2010 / Berlin Airports secures internal funding for BBI / The economic engine BBI gets rolling
2010 will go down as a record year in the history of Berlin Airports. For the first time, over 22 million passengers per annum were recorded in Schoenefeld and Tegel. With turnover reaching an all-time high of around €250 million and EBITDA amounting to approx. €90 million, Berlin Airports has already secured internal funding for the new Berlin Brandenburg International Airport (BBI).
Better than the market for the eighth year in a row
Passenger figures were up 6.4 per cent on the year in 2010. Commercial airports in Germany recorded average growth of around five per cent in the same period (source: Arbeitsgemeinschaft Deutscher Verkehrsflughäfen (ADV) – Association of German Commercial Airports). In 2010, a total of 22.32 million passengers were recorded at Berlin Airports. This growth also enabled Berlin Airports to fulfil its role as a tourism booster for the region in 2010. Good flight connections are crucial, especially for increasing the number of international visitors: approx. two-thirds of international visitors to Berlin arrive by plane.
Prof. Dr. Rainer Schwarz, CEO of Berlin Airports: “We are delighted with the new passenger record, which we were able to achieve despite a difficult year of ash clouds, strikes and harsh winter weather. This shows the robustness of growth in Berlin. For the eighth year in a row now we have performed better than the market. Over the past 10 years, passenger figures for Berlin have actually doubled. In 2010, with 22.32 million passengers and 12 long-haul routes, we achieved the targets that we had actually set for the year in which BBI opens.”
Berlin Airports secures internal funding for BBI
Even the key financial figures of Berlin Airports for the year under review add up, with EBITDA (earnings before interest, taxes, depreciation and amortisation) amounting to around €90 million. Berlin Airports has thus already generated €420 million of the €440 million of internal funding for BBI, aiming to generate the remaining €20 million in 2011. With an increase in turnover in 2010 to around €250 million (+3%), Berlin Airports was able to set another new record in the history of the company.
Air Berlin increases its presence in Berlin
Particularly positive developments in 2010 from Berlin Airports’ point of view were the continued growth in volume and the expansion of Air Berlin’s hub in May, i.e. before the opening of BBI. Air Berlin now offers more than 6,000 weekly flights to and from Berlin. Since expanding its hub, the airline has managed to double its transit passenger figures. In November 2010, the airline launched three new non-stop long-haul flights to Dubai, Miami and Mombasa in addition to its new European flights. Four weekly flights to New York will be launched in May 2011.
2010 – a turbulent year
Despite the positive developments in passenger and financial figures, 2010 was regarded as a particularly turbulent year in the history of Berlin Airports. Just as the company emerged relatively unscathed from an economic crisis, an ash cloud brought air traffic across half of Europe to a standstill. Dozens of strikes also had a negative impact on traffic growth. Traffic figures clearly show the effects of a hard winter in 2009/2010 and in late 2010. Other significant and particularly controversial topics for Berlin Airports in 2010 included the delayed opening of BBI and the debate on flight paths.
Non-Aviation sets standards at BBI
In 2010, Berlin Airports was able to announce the range of food, shopping and service outlets to open at BBI. The focus here was on regional concepts and products that would give the airport a distinct identity. Passengers will be able to shop, eat and drink in an area spanning approx. 20,000 m2. By 2011, Berlin Airports aims to have allocated all Non-Aviation space for BBI, including parking space management, mobile food outlets and service machines.
Over €2 billion worth of contracts awarded
Construction work on the new Capital Airport BBI continued in full swing in 2010. A total of over €2 billion worth of contracts have been awarded to date. So far, 360 companies from the Berlin-Brandenburg region have been able to secure contracts for BBI as a result of tender notifications.
Dr. Manfred A. Körtgen, COO of Berlin Airports: “The construction of the airport has been a huge success for the local economy, even before the opening of the new Capital Airport BBI. Over €2 billion worth of contracts provide economic stimulus for the German capital region. We are particularly delighted by the fact that our SME concept has proven a success and in terms of value, almost two-thirds of contracts were able to go to regional companies.”
BBI Terminal winter-proof, building application submitted for pavilions
Berlin Airports achieved key milestones on the BBI construction site in 2010: shortly before the end of the year, the final windowpane was fitted, thus completing the façade. Also in December, an application was submitted for building the extensions on the BBI Terminal, the so-called pavilions.
Go-ahead given to build Airport City
Work also began on building the Airport City in 2010. In a new service complex right in front of the terminal, seven buildings will be built on an area spanning 16 hectares in time for the opening of BBI: four multi-storey car parks, a car hire centre, a 4-star Steigenberger hotel and an office and service complex. Investment was secured last year for the multi-storey car parks, the car hire centre, a building for the security services and three buildings for the ground handling services. In May 2010, it was announced that Deutsche Anlagen-Leasing (DAL) would enable third-party investments of €240 million by means of new building leasing.
Outlook: topping the agenda in 2011
Traffic development: Traffic development is expected to stabilise in 2011, remaining at a high of 22 million passengers. Berlin Airports fear that the impact of the air transport tax, due as of January 2011, will dampen further growth. Ryanair set the ball rolling at the end of last year by cancelling domestic German routes.
Flight paths: The debate on defining flight paths for BBI will also continue in 2011. Schwarz on the subject: “The Noise Abatement Commission and Deutsche Flugsicherung have set to work. The Noise Abatement Commission has put forward a clearly scheduled work programme. We are very optimistic that viable solutions will be reached in the months to come and we will do everything in our power to help.” However, Schwarz warned against turning a legitimate debate on flight paths into a meaningless and detrimental debate on the airport: “Only if functioning fully can BBI have a much-needed positive impact on the Berlin-Brandenburg region. For example, those demanding a ban on night flights between 10 p.m. and 6 a.m. are in danger of permanently turning the German capital region into a flight province and putting up to 18,000 jobs at risk.”
BBI countdown begins: In 2011, the countdown begins. Just one year later, in June 2012, the new Capital Airport will open. Berlin Airports will concentrate on pushing ahead with the interior work on the BBI Terminal, building the additional pavilions and completing other operational buildings. Trial runs are scheduled to begin in late November 2011, with the Capital Airport opening six months later on 3 June 2012.
World Routes comes to Berlin: The most important aviation forum in the world is meeting for the first time in Germany, in October 2011 in Berlin. Berlin Airports will use the forum to present the new Capital Airport to over 1,000 international airline representatives.