Corporate | 26 February 2004 12:39

Flughafen Wien AG: Safeguard airport location and improve competitive position

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Flughafen Wien AG: Safeguard airport location and improve competitive position Flughafen Wien AG has set a goal to improve its competitive position over neighbouring airports such as Frankfurt, Munich, Prague, Budapest, Zurich and Milan by 15% before the year 2007 in order to increase its attractiveness for airlines and safeguard Vienna’s position as a hub. Vienna currently ranks exactly at the average of these airports with respect to its tariff structure, as indicated in a study by A.T. Kearney. This cost reduction will be financed through above-average growth (forecast for 2004: 8%), process improvements realised together with airlines, and a general cutback in expenses. Based on the 2003 activity level, EUR 20 to 30 million should be passed on to airlines by 2007. The major beneficiary of this programme will be the Austrian Airlines Group, which handles over 60% of passengers at Vienna International Airport. After extensive discussions, the Management Boards of Flughafen Wien AG and Austrian Airlines have agreed to continue their cost reduction programmes in order to further strengthen the competitive ability of the aviation industry in Austria and the hub function of Vienna International Airport. “This goal and the planned cooperation represent a milestone in relations between the airport and all airlines, but especially with our largest customer Austrian Airlines” commented Herbert Kaufmann, Speaker of the Management Board. This programme will make an important contribution to safeguarding and improving the competitive position of Vienna International Airport and, in turn, the entire eastern region of Austria. In order to coordinate activities related to this project, working groups will be established to prepare specific concepts. Forecast for passenger growth nearly doubled In 2003 Vienna International Airport recorded an increase of 6.8%, or almost three-times the European average, in the number of passengers. The continuation of this trend into January 2004 with a plus of 10.9%, the entry of new airlines on the Austrian market, and new frequencies confirmed for the current summer flight schedule have led management to double the forecasted increase in the number of passengers from 4,5% to 8% for 2004. With this new goal, Flughafen Wien AG is convinced of its ability to also maintain an above-average pace of growth over the coming years. This development will also support the better utilisation of investments totalling EUR 722 million, which will be realised to match planned growth. end of message, (c)DGAP 26.02.2004 ——————————————————————————– WKN: 091180; ISIN: AT0000911805; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin-Bremen, Frankfurt, Hamburg, München, Stuttgart; London 261239 Feb 04