Business units

Aviation business unit

Infrastructure for airlines and passengers

The Aviation business unit covers the operation of Munich Airport’s air traffic infrastructure.

The following airport charges are levied for the provision and operation of the air traffic facilities:

Air traffic charges

 

 

Assessment basis

Take-off and landing charges

 

Maximum take-off mass of the aircraft (MTOM) on take-off and landing

Noise charge

 

Fixed amount per landing depending on the noise category

Emissions charge

 

Nitrogen oxide equivalent emitted per landing

Passenger charge

 

Number of passengers on take-off

Cargo charge

 

Number of workload units on take-off/landing

Parking charge

 

Maximum take-off mass (for each started period of 24 hours, from the fourth hour)

Security charge

 

Number of passengers and/or workload units on take-off

Fee for passengers with reduced mobility
(person with reduced mobility – PRM fee)

 

Number of passengers on take-off

De-icing charge

 

Number of passengers and/or workload units on take-off

Waste disposal charge

 

Number of passengers on take-off

In fiscal year 2014, Munich Airport concluded a master agreement on charges with uniform terms and conditions for all airlines, which sets the future trend of air traffic charges up to and including 2020, and consequently ensures funding for infrastructure. A comparable long-term master agreement on charges has also been concluded for the subsequent period 2021 to 2030. In 2020, a contractual reduction in fees by an average of -4.5 percent was implemented.

Munich Airport experienced a historic decline in passengers and aircraft movements as a result of the Corona pandemic. Explanations are provided in the sections Course of business and Risks.

Munich Airport operates two runways with a maximum capacity of 90 aircraft movements per hour during daytime operations at normal capacity. In the past, this capacity was exhausted for long periods during normal operation. As a general rule, between 10 p.m. and 6 a.m., flight operations are only permitted to a very limited extent and only with particularly low-noise aircraft. Scheduled and charter traffic is restricted to 28 planned aircraft movements per night. Cargo can also be transported during this time only in exceptional cases due to the strict night flight regulations. Relief is only available for so-called homebase airlines and delayed flights. In the period between 12:00 midnight and 5:00 a.m., only night mail and survey flights by German air traffic control are permitted. Other exceptions to the curfew include, for example, emergency and medical aid flights, landings required for reasons of air safety, as well as flights in justified exception cases that are approved by the Bavarian Ministry of Housing, Building, and Transport as the responsible authority. The drastic drop in traffic made it possible to close one runway at a time in the summer of 2020 in order to carry out renovation work without disruption.

The terminals will be continuously optimized and expanded as needed. In 2019, the reconstruction of Terminal 1 started. This will be supplemented by a west-facing pier to prepare for future requirements and efficiency with respect to security controls and terminal infrastructure. In the meantime, the second level of the shell structure is in place and construction work on level three has begun. To increase efficiency and prevent the spread of infection during the Corona pandemic, new technologies were deployed on passenger routes, such as contact-free access points in secure areas. In order to comply with the Corona regulations, Corona test stations have been set up in both the security areas of the terminals as well as in the public access area. FMG was awarded the ACI Airport Health Certificate for these and many other measures.

Munich Airport is strategically well positioned thanks to its central location in Europe, in the middle of the Munich metropolitan region, which is characterized by its strength as a center of innovation, knowledge and business with a broad-based economic structure. However, growth in population and employment in the economically important airport region has slowed as a result of the pandemic. In previous years, Munich Airport had the highest proportion of business travelers among Germany’s major hubs and was therefore predestined for high-value airline connections. By the beginning of 2020, population growth and rising prosperity were also leading to increased demand for private flights from Munich Airport. In the 2020 fiscal year, air traffic collapsed and was temporarily brought to nearly a complete standstill. The demographic and economic general conditions in Bavaria and especially in the airport catchment area mean that further growth in transportation demand can be expected at Munich in the medium to long term despite short-term slumps. Further comments on this can be found in the section Economic and sector-specific conditions.

Over the years, Munich Airport has developed into a major international aviation hub in cooperation with Deutsche Lufthansa AG (hereinafter referred to as Deutsche Lufthansa). Jointly supported expansion measures such as Terminal 2 and the satellite building as well as the plans for the «T-Stiel» of the satellite building are the foundations of a sustainable partnership that stands for long-term growth. Deutsche Lufthansa continues to reaffirm its commitment to Munich Airport even during the Corona pandemic by securing global flight connections for Bavaria as a business location in the medium term.

Thanks to its promising market position and successful cooperation with Deutsche Lufthansa, Munich Airport had one of the most extensive networks of intercontinental connections in Europe, measured in terms of the number of destinations, before the Corona crisis. Highly frequented transfer connections ensured that Bavaria is optimally connected to Europe and the world. The combination of a dense network of German domestic and European links and a strong local demand made it possible to offer an attractive portfolio of long-haul flights from Munich. Due to the attractiveness of the location for tourists and the growing surrounding area with an affluent population, Munich Airport became increasingly interesting for point-to-point connections. However, according to the current forecast by the International Air Transport Association (IATA), a return to the traffic level of 2019 is not expected until 2024. Deutsche Lufthansa assumes that it will then operate a hub again at Munich Airport with approximately 30 long-haul aircraft stationed there.

In addition, the German air traffic tax and the lack of traffic rights or the ongoing traffic rights negotiations, for example with Africa (Ethiopia), are hampering future market-driven growth at Munich Airport.

The cargo business at Munich Airport is heavily dependent on the development of passenger traffic. The reason for this is that, as a rule, the majority of air freight at Munich Airport – over 80 percent – is transported as bellyhold cargo on normal long-haul flights. As a result of the Corona pandemic, the widespread elimination of long-distance passenger service has changed this ratio. All-cargo (transport on all-cargo aircraft) increased compared to bellyhold cargo, but was unable to compensate for the losses. Despite the decline, air freight showed the importance of Munich Airport as a critical piece of infrastructure. The short-term supply of the population with medical products as well as the economic connection to important markets could be maintained through the close cooperation between FMG, the airlines and freight forwarders. The only limiting factor was the number of available cargo aircraft. In some cases, passenger planes were used to transport light cargo such as medical masks.

Commercial Activities business unit

First-class service and promotions along the passenger route

The Commercial Activities business unit is responsible for developing, marketing, and managing space throughout Munich Airport that may be used for commercial purposes. This includes both strategic planning of the sector mix with regard to the retailing, service, and catering space, as well as the issue of leases and concessions to third parties and Group companies.

Munich Airport maintains approximately 21,000 square meters of catering space and some 20,600 square meters of retail and service space (previous year: 22,800 square meters). Changes compared with the previous year resulted from mostly temporary closures of individual units. FMG’s subsidiaries operate their own retail or catering businesses on approximately 68 percent of the total area.

Commercial Activities is also responsible for the five-star hotel in Munich Airport’s central area. It has 551 rooms and 30 conference rooms.

This business unit also develops and markets demand-oriented parking capacity. At present there are approximately 32,000 parking spaces, of which some 19,500 are close to the terminal.

Commercial Activities also markets the advertising media and spaces at Munich Airport. The offer of what is known as out-of-home advertising at Munich Airport is characterized by high-profile advertising spaces with little wastage, which are tailored to clients’ individual requirements.

The business unit’s portfolio also includes the event business.

Real Estate business unit

Real estate location with attractive appeal

The Real Estate business unit develops, operates, and markets all real estate and property owned by Munich Airport, both on and off-campus. The real estate location is divided into location-specific areas, which are marketed under the AirSite concept.

Munich Airport has a lot to offer as a real estate location: an attractive environment, good road connections, excellent parking, and a comprehensive range of goods and services for daily needs. The existing rail traffic access is being extended to the east by the Erding ring closure to improve access to the airport. In addition, the commissioning of the two additional lanes of the eastern airport feeder road at the end of 2020 means that road access is now even better. The bridge over the Zentralallee (traffic junction West 0), which was put into operation in December 2020, is of particular importance for the development of the AirSite West and the western parking center.

In accordance with the high demands placed on the entire area, an urban planning concept was developed that is continuously updated and is already visible with the construction of the first high-rise buildings.

Participations, Services & External Business

Participations & External Business: Full-Service-Provider

The Group’s other companies complete the airport’s business. The most significant subsidiaries are:

Material subsidiaries

 

 

 

AeroGround Companies

 

The companies AeroGround Flughafen München GmbH (AE Munich) and AeroGround Berlin GmbH (AE Berlin) provide land and airside handling services for airline customers at the Munich and Berlin locations. The main business units include the classic ramp-side ground handling services of aircraft loading and unloading (ramp and baggage handling), transport services for passengers and crews, and ramp-side cargo transport.

aerogate

 

aerogate München Gesellschaft für Luftverkehrsabfertigungen mbH offers passenger handling, operation services with ramp supervision, ticketing services and lost & found with baggage delivery and arrival services at Munich Airport. The range of services is completed by general aviation services as well as consultancy and training.

Cargogate

 

As a regulated agent, Cargogate Munich Airport GmbH performs services related to the handling of air cargo and the processing of the associated customs formalities. Cargogate also offers handling services for all common special goods, such as hazardous substances, refrigerated goods, and valuable goods. Since September 2018, Cargogate is the only airfreight handler on the campus certified according to the Pharma Good Distribution Practice (GDP). As a proven specialist, the company operates the border inspection post prescribed by the EU as well as the animal reception center on behalf of FMG.

MAI

 

Munich Airport International GmbH and its affiliates provide management, consulting and training services for the aviation industry worldwide. It has evolved from a consultant for airport commissioning projects (ORAT) to an international airport operator.

Services: energy and telecommunications for all airport tenants

Besides the business units and subsidiaries, Munich Airport’s service divisions are also involved in external sales. The largest contribution comes from the following service divisions:

Significant service divisions

 

 

 

Technology

 

The service division is responsible for the secure, cost-effective, and technical operation of airport infrastructure. Among other things, this includes the supply of energy and heating/refrigeration, maintenance of buildings and airport-specific equipment, as well as vehicle management for series vehicles and handling equipment. This division also plays a significant role in implementing Munich Airport’s CO2 strategy as part of its energy management.

IT

 

The IT service division offers its customers at Munich Airport various services from the fields of media and communications technology, workplace IT equipment, as well as server, database, and storage system technology. The core competencies of the division lie predominantly in the integration of various technical IT platforms and in the creation of tailor-made support services for logistical processes at Munich Airport. In this context, compliance with safety-relevant requirements and uniform Group-wide standards are becoming increasingly important.

The activities in the Participations, Services & External Business unit (excluding handling services) contribute a small share to the Group’s external sales, therefore a detailed explanation is not provided in the section on the economic environment. The impact of the Corona pandemic on business activities is explained in the Course of business section. Developments relating to handling services in the Group have been included in the passages covering aviation.

Airports Council International (ACI)
An international organization, headquartered in Montreal, which represents airport operators. More than 1,900 airports in almost all of the countries in the world are ACI members, including more than 500 airports in 46 European countries.

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