Flughafen Wien AG

Earnings Release • Apr 28, 1999

News Details

Ad-hoc | 28 April 1999 10:04

Ad hoc-Service: Flughafen Wien AG Outlook

Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— OUTLOOK In the first Quarter of 1999, an unusually strong increase was registered in traffic with +12,4% in passengers, +5,9% in flight movements, and +9,9% in MTOW. In contrast, cargo declined by 6,5% during the same period. In spite of this development, the Flughafen Wien Group forecasts average growth of only five percent in general traffic for 1999, and an increase of only one percent in cargo due to the unchanged economic situation in the CIS countries. Turnover in 1999 will be below that recorded in 1998 as Flughafen Wien AG has decided, in agreement with its customers, not to provide handling services (check-in and passenger services) in conjunction with the liberalization of the Austrian Ground Handling Law. This will result in a loss of around ATS 360 million in turnover, but will give rise to savings of approximately the same amount due to a decline in the use of third party services. The Flughafen Wien Group has forecast an EBIT margin of 21%. During the first quarter of 1999, the EU Commission confirmed its decision to ban the sale of duty-free goods between EU member countries from 1 July 1999, despite a request to the contrary made by the Vienna EU Summit in December 1998. This decision is expected to result in decline in turnover of around ATS 25 million. The Consumer Services business unit is, however, well prepared for the new situation with attractive shop concepts and an expanded range of facilities and services. The Handling Services business unit was able to conclude contracts with the most important airlines for 1999. The best technical standards in Europe, well-trained employees and excellent logistics will enable the Handling Services Group at Flughafen Wien AG to remain highly competitive compared to any potential service providers. After a year of lower investment activity, capital expenditure is forecast to total approximately ATS 1 billion in 1999. As indicated in the Masterplan 2015, the construction of Parking Garage 4 is scheduled to begin this year. Work on the improvements to Runway System 16/34, which was postponed last year because flight movements were below forecast during the first Quarter of 1998, began on 7 April 1999. In the first phase, the capacity of the runway system will be expanded. In order to submit an environmental feasibility study for the project “Parallel Runway” by the end of 2000, a number of expert opinions and planning studies will be commissioned this year. These analyses are designed to identify the best site for the parallel runway. A traffic study will be prepared together with the Planning Group East (“Planungsgemeinschaft Ost”), which will form the basis for an optimization of traffic connections – both road and railway. The international urban development competition is well underway, and the results will be announced during the summer of 1999. The feasibility study for the “Aeroworld” project, the new visitor centre at Vienna International Airport, will also be completed this summer. In addition, marketing activities for the “Vienna International Airport Business Park” are scheduled to begin. Work is also proceeding on the “Terminal 2005” project. All project teams involved with this ATS 4 billion undertaking include customer representatives, and their specific needs, will be incorporated into the planning process. In conjunction with the Austrian Airlines Aviation Group, a further increase is planned in the share of transit passengers at Vienna International Airport. The target figure is a share of 30%, compared to the 26% recorded in 1998. Forecast growth in traffic, further reduction in costs and increases in productivity will help to ensure the continued positive development of the business during the coming years for the shareholders of Flughafen Wien AG. Ende der Mitteilung