Strategy

For Munich Airport, showing class means that from the very outset its corporate strategy takes all stakeholders into consideration, in order to generate sustainable value creation. It is only by succeeding with this objective that the airport can maintain and expand its position as a global leader that it has achieved over the past 25 years.

Thinking sustainably, acting responsibly

The airport’s business activities have a major impact on various areas and stakeholders: Munich, Bavaria, and Germany as business locations, the region and its inhabitants, the airport staff and passengers, as well as other companies in and around the airport plus further stakeholder groups. The airport’s over-arching aim is to make sure its business operations are financially sound and sustainable. However, it is also aware of the negative effects that its business may have, and is making targeted efforts to avoid these, keep them to a minimum and, where required, compensate for them. In this context, for example, Munich Airport aims to be carbon-neutral by the year 2030.

Facing the challenges of the future today

Munich Airport’s Strategy 2025 has laid the foundations for the company’s development. The strategy also incorporates economic, environmental and social aspects. With that, the airport aims to create long-term added value. The corporate strategy up to 2025 is made up of five main fields of action, which address the main challenges in operating Munich Airport, an international hub airport:

  • Airside traffic development
  • Landside access and traffic development
  • Seamless travel (contribution to digitalization and customization of the travel chain)
  • Expansion of non-aviation business
  • Off-campus growth

These fields of action were identified as a result of scenario analyses regarding the future of the aviation industry. The evaluation takes into consideration relevant factors such as the development of mobility worldwide and the global economy. Initiatives and steps that set out the airport’s future development are established in order to implement the strategy within the fields of action. Success is measured using defined key performance indicators. The topics that have proven significant in dialog with stakeholders are then also integrated into the fields of action. Strategic business decisions are implemented on the basis of the four Group-wide brand values: expertise, responsibility, innovation, and partnership.

Overview of Strategy 2025

Expansion plans

Planning and expanding infrastructure in line with requirements

Strategy 2025 highlights key issues for the refinement of the business model, and sets the course for Munich Airport’s future growth. Flughafen München GmbH (FMG) is expanding airport infrastructure based on need, networking various transportation operators, and is actively involved in the expansion of the landside transport services – all while keeping quality and the changing needs of customers brought about by increased digitalization at the heart of its work. Negative effects on the environment and the area around the airport are kept as low as possible, for example by applying extensive compensating and noise protection measures.

Terminal 1: meeting expectations

In addition to the expectations of passengers regarding the quality of handling and the amenities available to them, the official requirements on control facilities of international airports have also increased. In many respects, Terminal 1 can no longer meet these demands. The building is therefore being expanded to include a new gate area on the West apron with modern passenger handling facilities designed to meet all requirements. These renovations are also creating new retail and catering options and improving the passenger handling processes through centralized security zones; they aim to make the area significantly more appealing to passengers and airlines in the non-Schengen segment.

Third runway remains important future project

Munich Airport is at the limits of its capacity

Munich Airport will significantly expand its infrastructure in the coming years and must adapt to the growth in global aviation which all forecasters agree will take place over the next few decades. At the moment, the airport is already working at its limits with its two-runway system: even now airlines can no longer offer new connections at the high-demand peak travel times. Only through the construction of the third runway, which has been officially approved and confirmed by the court of last instance, can the existing bottlenecks be permanently eliminated. Such an expansion of the runway system would increase current capacity of a maximum of 90 scheduled aircraft movements per hour to 120, therefore covering requirements for the next few decades.

Important hub function

Without the third runway, on the other hand, a question mark would hang over the future of even the current offering of attractive direct connections to and from Munich. If airlines cannot continue to expand to meet demand in Munich, they will move their flights to other airports with available capacity. In the worst-case scenario, Munich could lose its status as a high-performance hub airport in the international aviation industry. It is this role as a hub, which was recently strengthened further by the decision by Lufthansa to base a number of its long-haul aircraft here, Airbus A380s and A350s, that makes Munich Airport a gateway to the rest of the world and an important factor in the economy and in the lives of local people in Munich, Bavaria and beyond.

Largest alliance of supporters

Consequently, the largest alliance to have ever supported an infrastructure measure in Germany has formed for the construction of the third runway. More than 230 companies, and business and tourism associations are promoting the quick expansion of the airport. This group is made up of a diverse range of companies, from major corporations such as Audi, Allianz, BMW, Deutsche Bahn, Infineon, Linde and Munich RE, to large SMEs, to regional and local, long-established enterprises. Munich Airport has become a key locational factor for a number of global players in Bavaria, both large and small. It provides them with access to the global markets, thereby improving prosperity and future opportunities for the entire region.

Applicable construction law

The airport has therefore done everything in its power to implement the construction of the third runway. Following the ruling of the German Federal Administrative Court of July 2015, the planning permission is now legally valid; the decision to build is now in the hands of the three shareholders in the airport: the Free State of Bavaria, the German federal government and the City of Munich.

Expansion of regional infrastructure

FMG’s shareholders have set up a regional fund with a volume of 100 million euros to promote municipal transport projects. Payouts are tied specifically to the start of construction of the third runway and are designed to support the expansion of regional infrastructure to balance out any additional burden. Funds will go towards:

  • The Erding north bypass and Freising west bypass
  • A road link between Berglern and Eitting in the Erding district, and the Moosburg west bypass

Regardless of when construction of the third runway begins, five million euros from the budget has already been made available for each of the Erding north bypass and Freising west bypass projects. The majority of these funds have already been accessed. All of the funding for the Freising project has already been paid out.

Regional Fund

In € million/Total fund: €100 million

Working hard to protect local residents

By issuing this ruling, the judges also confirmed a number of the main arguments for the third runway that play a large role in the public debate on the topic. One important topic in this respect is the ability to reconcile the planned infrastructure measure with noise control and environmental protection requirements. Of course, an airport, as a major form of transport infrastructure, will impact on the environment and the people living nearby. However, Munich has the lowest level of noise pollution of any major airport in Germany with respect to impact on local residents. While over 197,000 people are affected by aircraft noise of over 55 dB(A) in Frankfurt, this figure is around 11,300 for Munich and its hinterland. This is despite the planning authorities tripling the statutory stipulations governing the size of the area eligible for compensation for the third runway. The airport is working hard to look after local residents and seeking individual solutions that benefit both sides.

Compensation areas for conservation, and environmental protection

Thanks to an excellent compensation scheme, the biotopes around Munich Airport will continue to grow over the course of the construction project. For every hectare that the runway requires, the airport is creating almost one hectare of ecologically-valuable compensation area. Whether the issue is biodiversity, noise protection, resource management or climate protection, Munich Airport understands its responsibilities and has, since it first opened, pursued a program that is as ambitious as it is innovative in an effort to keep its operations’ impact on local people and the environment to a minimum.

Strategic field of action: Landside access and traffic development

Greater performance by improving the landside access

In 2017, as part of the «Erdinger Ringschluss» project, Flughafen München GmbH succeeded in obtaining the financing and building permission from the shareholders for the extension of the railway tunnel eastward. In combination with the first stage of the «Erdinger Ringschluss» through to the Schwaigerloh reverser, the railway tunnel forms the basis from which in the medium term the planned service improvements in railway transport at the airport can be achieved. These are simultaneously dependent on the construction of the second trunk route through Munich, the first preparatory measures for which began in 2017. Construction of the «Neufahrner Kurve», which will enable direct rail access in the direction of Freising and Regensburg, is well advanced. It will be put into operation in December 2018. In terms of the road projects, the construction of the new Freising northeastern bypass as part of the 301 federal highway and the Freising west bypass are on schedule. Both route stages, which are parts of important link roads for passengers and staff, are due to be completed by the end of 2020.

Strategic field of action: landside access and traffic development

5.3 million

passengers used the subtrain to travel to the airport in 2017

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