Letter from the Executive Board
2017 was a special year for Munich Airport. 25 years after the move from Munich-Riem to Erdinger Moos, we celebrated the airport's birthday and its success story with our employees, our partners and neighbors at the airport, and more than 50,000 guests. 1992 saw the start of a climb for Munich Airport that was continued in style during its anniversary year: With revenue of 1.47 billion euros, we generated almost eight percent more in 2017 than in the previous year. The earnings before tax (EBT) rose by more than nine percent to a record high of over 229 million euros. This economic success corresponded with renewed strong growth in traffic at our airport: 44.6 million passengers flew from and to Munich last year, 5.5 percent more than in the previous year, which was another new record. The number of aircraft movements likewise rose strongly by more than 10,000 or 2.6 percent to just under 405,000. This increase would have been higher were it not for the insolvency of Air Berlin. Given these excellent results, I would like to thank sincerely all those who made this past year's success possible: our customers, the airlines, passengers, business partners and of course our employees.
Munich Airport has never been more successful.
Munich Airport has never been more successful. Our standing in the group of large European hub airports received a significant boost in 2017 thanks to the new additions to Lufthansa's long-haul fleet stationed in Munich. By basing these new Airbus A350s here, aircraft that are significantly economically and environmentally enhanced, Lufthansa has demonstrated a strong commitment to our airport. With these, we are now a major European air transport hub. We want to show a little of this class that we have achieved after a quarter century in our new location in this integrated report.
For the future, we see three major challenges in particular:
- The infrastructure at the airport must be expanded to match the growing demand for mobility both among private and business customers. This naturally includes the construction of the third runway. This expansion of our capacity remains the most important future project for us. Through the renovation of Terminal 1, we aim to raise standards significantly in the older passenger handling building in the coming years. The LabCampus too is included in the investments, with which we intend to meet the demand from companies – from start-ups to DAX-listed groups – for innovative, flexible office environments and create an entirely new form of urban life at the airport. The landside access and traffic development at Munich Airport is to be significantly improved in the coming years and parking facilities will also grow to meet demand.
In the years to come, LabCampus will have a lasting effect on Munich Airport and therefore make it even more attractive.
- A second key challenge for our company is the imminent generational change. Over the next few years, many of our employees will retire. We must focus now on attracting suitable young talent for the airport and on ensuring the required transfer of knowledge. One thing that is hugely pleasing in this context is the fact that according to our employee survey for 2017, loyalty to the airport as an employer has increased significantly.
- The third challenge is the megatrend that is digitalization, which impacts on the most varied of areas within an airport. We have developed a clear strategy for this and have defined the key fields and processes where we will see some considerable changes in the years to come. We want to optimally utilize the opportunities that digitalization will offer us as an airport.
The non-aviation sector is currently a significant economic factor.
And here we have the chance to show our class in the sense of being a class act. For us this means the obligation to take into consideration as best possible the interests of all the stakeholder groups. We feel responsible for our passengers, employees, neighbors, society and the environment. Munich Airport is setting standards in this too: as the best and only 5-star airport in Europe. It is Germany's top employer in the transport sector and won an award last year for having the best climate protection of all airports worldwide. Munich Airport is a committed supporter of the region and the state capital, and demonstrates this in many ways. In our opinion, showing class, and not just on quantitative criteria, is indispensable for the sustainable further development of Munich Airport.
Dr. Michael Kerkloh