Opportunity and risk report

Risk management system

The Executive Board of FMG and all subsidiaries and affiliated companies is responsible for the early detection and prevention of risks that jeopardize the continuity of Munich Airport and the investments. Group Management has overall responsibility for an effective risk management system and lays the essential foundation for it by communicating and defining corporate strategy and targets. It formulates specifications for the risk management process and the organizational structure of the risk management system.

The goal of the risk management system is to identify events and developments that may have a negative impact on the achievement of strategic and operational targets in good time and develop suitable countermeasures. It takes account of all aspects of entrepreneurial activity – economic as well as ecological and social.

The risk management guideline regulates the general principles of risk management in the Group as well as the tasks and responsibilities of the function holders involved in risk management. This is aligned in accordance with the internationally recognized framework model «COSO ERM» (Committee of Sponsoring Organizations of the Treadway Commission – Enterprise Risk Management).

The Risk Management Committee serves as an additional supporting management, control, and supervisory body within the risk management system. As the highest-ranking risk management body, it reports directly to the Executive Board and consists of the Chief Financial Officer and Chief Infrastructure Officer, the heads of the Aviation, Commercial Activities and Real Estate business units, the heads of the Legal, Corporate Bodies, Compliance and Environment, Group Controlling and Investment Management, Group Security, Group Development and Corporate Communication & Politics departments, the head of the IT service division, and the Risk Manager. The head of Compliance is involved in the Risk Management Committee as a guest. The task of the Risk Management Committee is to analyze the risks from a Group perspective and to monitor the effectiveness of countermeasures. It provides support for developing the risk management system and for risk identification, assessment, and control. The Risk Management Committee meets quarterly and issues the risk report, which is subsequently presented to the Executive Board and the shareholders.

The risk management process comprises the following steps. A coordination and communication platform has been established in the system to support this process.

Identification and communication of risks

All divisional managers and Chief Executive Officers of subsidiaries and shareholdings are responsible for the identification and assessment of risks. In the relevant divisions, all risk-relevant information is coordinated, administrated, documented, and passed on by the relevant risk managers. The risk manager checks the divisions’ risk reports for plausibility and compliance with the Group-wide standards for risk assessment. The role involves combining the divisions’ individual reports in a risk report, taking account of materiality for the Group, and reporting quarterly to the Executive Board and shareholders. Risks that jeopardize the Group’s existence that have been identified for the first time must also be reported to the Executive Board on an ad hoc basis.

As a basis for dealing with risks responsibly, each individual employee is involved in managing risks throughout the company. Each employee is responsible for eliminating hazards in his or her own area and for reporting any indications of existing risks to his or her manager without delay.

Assessment of risks

The systematic risk assessment allows the company to determine the extent to which individual risks jeopardize the fulfillment of Munich Airport’s corporate goals and strategies and which risks may possibly threaten its existence. For this purpose, the factors damage amount, and probability of occurrence/frequency, are presented in a two-dimensional risk matrix. The expected loss describes the impact on profits that can be expected if the loss event occurs. In the case of events that recur over time, the company works with the frequency with which they occur. The assessment first takes place without considering measures to limit the risk (gross risks, see the section «Risks»). Subsequently, the risks are assessed after risk-minimizing measures are initiated or implemented (net risks, see section Risks).

Dealing with risk

Starting from the risk analysis, appropriate countermeasures for dealing with risk are specified according to corporate strategy and economic aspects. Risk management strategies include: control, insure against, minimize, eliminate, and transfer. The risk officers have the task of specifying and implementing countermeasures to manage risks in the respective division affected.

Risk monitoring

The risk manager continuously monitors the effectiveness of risk management. Risks are also monitored separately by Internal Audit.

Compliance management system

Compliance covers compliance with all Munich Airport-related laws, specifications, and regulations, national and international rules and standards, as well as in-house rules and guidelines. Munich Airport has established a Group-wide compliance management system, which encompasses all organizational provisions ensuring compliance with the aforementioned rules.

The Compliance Department submits reports on the current status of the compliance management system to the Executive Board on a regular basis and to the Supervisory Board on an annual basis.

Compliance risks are also communicated as part of the risk reporting to the Executive Board and shareholders if internal thresholds are exceeded. Regular dialog takes place between Risk Management and Compliance.

For the first time, a Code of Conduct was presented to management. This Code of Conduct contains the principles and guidelines for conduct within the Munich Airport Group that complies with values and the law.

Identifying and mitigating compliance risks

The Compliance department prepares the compliance risk analysis with input from the FMG divisions and combines it with the subsidiaries/affiliates compliance risk analyses every year.

Compliance risks are assessed in the same way as the risk management process. Once the compliance risk analysis has been carried out, the Executive Board is notified of the results in a report.

The annual Compliance Report to the Supervisory Board of FMG also includes the results of the compliance risk analysis. If, despite all countermeasures taken, a risk has a high potential for damage and at the same time a high probability of occurrence, then it is examined in more detail in the report.

After consideration of the implemented countermeasures, no significant compliance risks remain for the year 2021. In connection with the coronavirus pandemic, appropriate protective measures for the health of employees and customers were taken with the highest priority.

Preventing corruption

The Compliance Principles and the Gift/Invitation Policy support management, executives and employees in behaving lawfully and ethically in the workplace. They are published on the intranet and are therefore available to all employees. In addition, the principles refer to the observance of other internal company guidelines, such as compliance with public procurement law during procurement and procurement processes, data protection organization or information security. These ensure that processes and procedures are transparent and traceable, both internally and externally. In contracting and tendering procedures, Munich Airport requires bidders to submit a declaration of commitment stating that they will undertake everything necessary to preclude corruption. Compliance failures are subject to sanctions, such as exclusion from the contracting process.

The position of anti-corruption officer is exercised by the head of the Compliance department. There are no known confirmed cases of corruption in the Group for 2021.

Communication and training

A key task of the Compliance department is to train and advise employees, managers, and the FMG Executive Board in compliance matters as a preventative measure to stop compliance breaches from occurring.

Group compliance regularly provides training and publishes information to ensure that all employees and managers are familiar with the guidelines and any updates or amendments to them. As a result of the effects of the coronavirus pandemic, compliance training for employees in 2021 was conducted in a flexible manner, both in person and digitally. Participation in the training was documented.

In order to raise awareness of compliance issues and data privacy violations, management has decided that web-based compliance training is mandatory for all employees throughout the Group once a year, in addition to compliance instruction by the respective manager, and must be successfully completed with a test. The training course has been redesigned in terms of content and technically updated to meet the latest challenges. An English language version of the training could also go live in 2021.

Training courses under the Leadership Excellence Program had to be canceled due to the coronavirus pandemic and will be resumed in a modified form in 2022 in line with current developments.

The Executive Board addresses the issue of compliance in an ongoing process at frequent intervals, and the Supervisory Board is informed at regularly scheduled intervals.

Electronic whistle-blower system

Through an electronic whistle-blower system, the Business Keeper Monitoring System (BKMS®), Group employees, business partners, and customers can report behavior potentially damaging to our organization. As part of the advancing globalization and internationalization of business activities, the whistleblower system will also be offered in English from now on. Furthermore, documents can now also be forwarded electronically in anonymized form. People inside the Group and outside can also contact the Compliance department by other means of communication (telephone, e-mail, face-to-face discussions) if they wish to draw attention to compliance infringements and need advice. Tender documents inform potential bidders of the possibility of using the BKMS® should compliance infringements be suspected.

Data protection

Munich Airport has taken comprehensive measures to comply with the General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG). The subsidiaries and associated companies have appointed data protection officers to perform advisory and oversight duties in accordance with the GDPR. Data protection coordinators have also been established in FMG’s specialist departments in order to identify and address the issues and risks faced by the departments. They are continuously trained, informed, and advised by the Corporate Compliance unit in cooperation with the Data Protection Officer. Since the outbreak of the coronavirus pandemic, this has also been handled flexibly at short notice via various media.

The Group-wide data privacy policy has been redesigned with the aim of ensuring a consistent and high level of protection for data subjects when their personal data is processed within the Munich Airport Group and to ensure compliance with data privacy laws.

Responsibility for data protection compliance in their respective processing operations is decentralized among the individual FMG departments and subsidiaries/affiliates.

FMG’s Data Protection Officer is responsible for advising and supporting the departments and is directly appointed as data protection officer in most subsidiaries/affiliates. The data protection officer of FMG is assigned organizationally to the Compliance department and reports directly and independently to the Executive Board.

Due to the impact of the Corona pandemic, training measures for Group employees and managers to further raise awareness of data protection and data security took place almost exclusively on a digital basis in 2021. In addition, information was provided on an ongoing basis via the intranet. In individual cases, professional and individual advice was also provided to ensure greater security in the handling of personal data.


Risks that could have a material influence on the business activity or on the assets, financial position, and results of operations as well as the reputation of Munich Airport are explained below. In each case, the risks are shown before (overview of gross risks) and after consideration of suitable countermeasures (overview of net risks).

The risk assessment relates to the economic impact in the assessment period quoted. As of December 31, 2021, the following material gross risks have been identified for Munich Airport.

Overview of gross risks

Overview of gross risks (matrix)

The current military actions in Ukraine and the sanctions triggered by them may have negative influences on the supply of raw materials and the global economy that cannot be foreseen at present. At the present time, the further development of the Ukraine crisis and its impact on the aviation industry is subject to a high degree of uncertainty and may have an impact on the assessment of risks in the Group.

Risks resulting from force majeure



Description and analysis



Natural disasters


Persistent and intensive rainfall together with melting snow and ground saturation to the south of Munich as far as the Alps could cause flood run-off in the Isar. A resulting breach of the Isar dams and the flood protection dikes near Freising could lead to flooding in the airport vicinity.


The Water Management Office has remeasured the Isar River. Studies have shown that the existing flood protection dikes in the airport’s sphere of influence are adequate for intense precipitation and flash floods, which can occur during appropriate weather conditions. In addition, a review of drainage safety within the airport will be conducted to establish the requirements for a «Hochwasser-TÜV» (a technical inspection agency for flooding).
On a permanent basis, Munich Airport monitors the wastewater discharge and carries out maintenance and repair measures. Countermeasures are being intensified at an operational level by means of crisis and risk management procedures at Munich Airport. Insurance to cover earthquakes, storms, hail, and flooding has been arranged.

Attack on air traffic/terror at the airport


Air traffic is subject to threats from terrorist attacks. Aircraft and infrastructure facilities are relevant targets. In addition to bodily injury and property damage, this would result, at least temporarily, in a decrease in the number of aircraft movements and passengers.


To avert a terrorist attack, Group security takes strategic, operational, and technical/organizational measures: Provision of sufficient and well-trained personnel resources, structural measures to ensure modern and approved security technology and infrastructure, monitoring of service quality through sustainable quality measures, and constant exchange with the relevant security authorities. Bodily injury and property damage as well as interruptions of operations are insured.

Fulfillment of security tasks


The airline companies are responsible for security tasks in transferred areas. In these areas, airline companies fulfill the same task as airport operators, but are not subject to the same supervisory authority. For Munich Airport, there is a risk that inspections will reveal defects in transferred areas and the airport as a whole will lose its security status as a result.
Defective controls could lead to property damage and bodily injury as well as reputational damage.


At present, a subsidiary of FMG is responsible for operational security tasks in the transferred areas; its services rendered are subject to regular monitoring by FMG. Furthermore, a mutual, intensive exchange takes place with the responsible government and supervisory authorities.

Market slump from epidemics/illness


Munich Airport is an arrival, departure, and transfer point for millions of travelers and thus a potential gateway for bacteria and viruses from all over the world. Epidemic/sickness outbreaks can result in market downturns with reduced aircraft movements and passenger numbers. As a result of the coronavirus pandemic, this risk is becoming particularly important. It is currently evident that the coronavirus pandemic is causing enormous economic burdens at Munich Airport, which has caused a very high drop in earnings since the beginning of the pandemic. Worldwide, vaccination rates are not yet high enough, so new virus variants could emerge. The effects on future years cannot be reliably estimated at this time due to the high degree of uncertainty.


Munich Airport is subject to the Act Implementing the International Health Regulations (IGV-DG) and employs a subsidiary to fulfill the necessary functions. Likewise, the rules specified by EASA (European Union Aviation Safety Agency), which are regularly audited by the supervisory authority, are met.
Examples of protective measures against infection include: touch-free access points and faucets, regular hygiene inspection tests, safety distances, and «eGates» for touch-free identification using facial recognition technology.
The recommendations for safe travel in times of the pandemic issued by EASA as well as by the European Public Health Agency (ECDC) will be implemented. The Bavarian Ministry of Health’s «Airport Infectious Diseases Task Force» is on site. With the «ACI Airport Health Certificate», ACI World confirms the successful implementation of effective security measures at Munich Airport.
For explanations of the economic countermeasures, please refer to the «Economic cycle» risk.

Large fire


In the event of damage to or destruction of terminals or infrastructure facilities by a major fire, property damage and personal injury, as well as significant and long-term business interruptions, are to be expected.


To minimize the risk of a large fire, Munich Airport takes all necessary preventive and defensive fire protection measures. To this end, it operates its own airport fire department. The risk of a major fire is additionally minimized by a fire insurance policy (property and interruption of operations insurance) and public liability insurance (liability claims of third parties). After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Aviation accidents


Aviation accidents or damage to aircraft can result in bodily injury and property damage, as well as interruptions of operations and secondary damage.


To minimize the risk, Munich Airport maintains an Airport Rescue and Firefighting service, a medical service, and a counseling team. The risk of aviation accidents is minimized through liability insurance and fully comprehensive insurance. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Market risks



Description and analysis



Loss/impairment hub, discontinuing, reduction airlines


The global coronavirus pandemic is having an unprecedented impact on air traffic, on the entire travel industry, and on other parts of the overall economy. Currently, the planning horizon of the airlines is very short term due to the internationally varying quarantine and entry restrictions in numerous destinations. The uncertainty is reinforced by the «omicron» variant that became known at the end of 2021.
Irrespective of this, Deutsche Lufthansa underscores its commitment to Munich as a business location. In addition to a significant expansion of services in the 2022 summer timetable, further leased aircraft of the same type will be stationed in Munich in addition to the company’s entire fleet of Airbus A350s. In addition, Airbus A340 aircraft will strengthen the premium segment.
Even in the current crisis, the intensive cooperation with Lufthansa will continue in order to further develop the globally renowned hub.
The future is uncertain for other airlines, which were already struggling with financial problems before the pandemic.
The risk of losing the hub in the short-term is therefore rated as «low.»


Munich Airport’s collaboration with Deutsche Lufthansa is based on joint investments and long-term cooperation agreements.
Despite the coronavirus pandemic and its impact on air traffic, the cooperation between Munich Airport and Deutsche Lufthansa continues.
The Letter of Intent between the two parties for the satellite expansion and the «MUC 2030 Partnership» project should be seen in this context.
In addition, Munich Airport was again awarded the top rating of «5-Star Airport» by the Skytrax institute in 2021. This is the best prerequisite for a successful new beginning after the coronavirus pandemic.

Economic cycle


As a result of a weak economy, the growth parameters assumed in the planning process cannot be achieved, which has a negative impact on earnings development.
During more significant economic crises, a collapse in loan finance markets may occur.
Increasing protectionist tendencies could put a strain on global trade in general, but especially on European-American trade and consequently on the transatlantic aviation market. This could result in growth-inhibiting effects for Munich Airport.
In addition to the above explanations, the outbreak of the pandemic is putting a heavy strain on the global economy. Since the second quarter of 2021, a slow recovery phase has been noticeable in the global aviation market.
Since the further development of the pandemic is uncertain due to possible virus mutations, among other things, all forecasts are subject to very high uncertainties. At present, it is not possible to make a reliable estimate of the economic impact this will have on Munich Airport in the years to come. The greatest economic risk continues to be a worsening of the pandemic, which may lead to an expansion or reimposition of infection control measures and a dampening of consumer and capital spending.


The reduction of expenditures by means of cost-cutting measures in all areas, socially acceptable staff reductions, short-time working and a short-term cut in the investment budget in non-critical divisions aim to mitigate the consequences of economic slowdowns.
To ensure solvency, revolving credit lines exist or loans can be taken out on the capital market.
In the wake of the coronavirus pandemic, Munich Airport initiated these countermeasures at an early stage to reduce the economic impact. The aim is to safeguard earnings and liquidity.

Operating risks



Description and analysis



IT failure/cyber attacks


Constant new technological developments and the increasing threat of cyber attacks worldwide lead to risks in relation to the security of IT systems and networks as well as data security. In the area of cybercrime, there is an increasing, abstract potential risk that requires constant monitoring and assessment.
Failure of IT for traffic operations can lead to interruptions in operations. This would result in financial losses and reputational damage.


Critical corporate IT systems are fully redundant with systems located in physically separate locations. Property damage and business interruption are covered by all-risk insurance.
To avert a cybercrime attack, strategic, technical, and organizational measures are specified and monitored by an information security management system, and managers and employees receive regular training. In June 2021, an audit confirmed the industry-standard security level as a critical infrastructure operator (CRI).
In its own competence center against cybercrime, IT specialists at the airport work together with experienced IT security companies to develop new procedures for combating cybercrime. To reduce losses, FMG has taken out insurance against cyber risks.
After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.



Description and analysis



Water damage


Water damage caused by a break in the main drinking water or fire extinguishing water pipelines could lead to the failure of infrastructure systems important for air traffic.


Remotely controlled emergency shut-off equipment and additional protective devices in the pipeline connections limit the possible damage. Property damage and interruptions of operations are insured. After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Change in national and EU-wide security requirements


Munich Airport is subject to national and EU-wide aviation security requirements, encompassing the topics of airport security, air passenger and hand luggage checks, airfreight, airmail, and goods control, among others.
Security requirements are adjusted continuously to the current circumstances. This can give rise to procedural and also infrastructural changes for Munich Airport. Corresponding financial burdens would then follow.


Munich Airport attempts to minimize these consequences through work in associations and on committees. Early information relating to ongoing legislative procedures ensures the timely implementation of security regulations.
Additional expenses incurred as a result of infrastructural changes are used as the basis for the master agreement on charges.

Failure to pass an EU safety inspection


The EU’s aviation authorities are conducting safety inspections at airports. Should it fail to comply with a safety standard and subsequently fail the follow-up audit, Munich Airport can lose its «Clean» status. The consequences would be a heightening of the safety regulations, considerable obstruction with operational processes, competitive disadvantages, and a loss of image.


Munich Airport conducts thorough and strict quality controls to manage the quality of all safety aspects at the airport.
The quality controls carried out have shown that the countermeasures taken and the consistent monitoring are effective and that – in theory and practice – very well trained personnel are employed.

Utilities and waste disposal facilities


Insufficient availability of utilities required for operations, such as electricity, heating, cooling, drinking and fire-fighting water, wastewater and waste, can lead to property damage and business interruptions.


The service and maintenance programs, network redundancies, and storage reduce the risk of gaps in supply. Property damage and interruptions of operations are insured.
After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Reorganization of ground handling


The success of the reorganization of the former Ground Handling business unit could be put at risk by the following uncertainties and circumstances: sustained reductions in traffic from existing customers, ground handling losses due to the transfer of part fleets to third parties, aggressive pricing policies of competitors, and increasing price decline at Munich Airport.
Due to the coronavirus pandemic, this risk is becoming increasingly important as high traffic declines are experienced.


In the negotiations to extend the long-term contract with an important customer of AE Munich, a contract was concluded at the end of 2016 until October 2024. As a result, associated collective restructuring agreements could be extended.
To compensate for declining ground handling volumes, talks with potential new customers are ongoing. In the event of a loss of ground handling, capacities and associated costs will fall. Constant monitoring and reporting of the renovation progress and renovation path is carried out.
The «Restart» change program was implemented in order to make ground handling viable for the future in view of the significant slump in handling volumes caused by the pandemic.

Personnel situation


Given the background of the coronavirus pandemic, Munich Airport is in crisis mode. Due to the massive drop in air traffic, the Group is expecting significantly lower staffing levels in the future.
Munich Airport is focusing on overcoming the crisis and is taking measures to ensure the health of its employees on the one hand and to cushion the economic consequences on the other.
Regardless of the tight staffing situation, care is taken to ensure that sufficient qualified personnel are available to maintain operator responsibilities.


To safeguard earnings/liquidity, personnel capacity is adjusted to the reduced workload.
The Group-wide «Restart» change program included the conclusion of early retirement agreements and a reorganization agreement with employee representatives.
Once the option of short-time work has ended, the emergency collective agreement concluded between the Association of Municipal Employers’ Associations (VKA) and Verdi/Beamtenbund dbb for Flughafen München GmbH also has the effect of safeguarding earnings and liquidity.



After the German government adopted stricter rules on the operation of drones in airport control zones in 2017, the EU Commission added a regulation on the safe operation of drones in 2019. At the national level, legal responsibility was regulated on this basis. German Air Traffic Control (Deutsche Flugsicherung – DFS) is responsible for all German commercial airports. Details of this were published in the Federal Law Gazette on June 17, 2021 and are in force.
In the coalition agreement of the new German government, the detection and defense of drones is classified as a sovereign task. It therefore does not lie with the airport operator.


Munich Airport has taken measures to minimize the impact on operations in terms of safety and security. This includes, among other things, participation in the uniform regulation of drone traffic via associations (ADV, ACI, BDL) as well as participation in EASA initiatives, public education, and participation in a test project on «Technology for Future Drone Detection» with DFS.
The systems demonstrated in the test project need to be further developed to ensure effective, reliable use at commercial airports. To this end, DFS, with the support of Munich Airport, is in close contact with system manufacturers.
After taking the countermeasures into consideration, the net risk is below the risk tolerance limit.

Legal risks



Description and analysis



Third runway


Due to the postponement of the decision to realize the third runway, all planning and land acquisition costs incurred to date must be examined for recoverability on an ongoing basis and written off if necessary.
Effects from the moratorium agreed in 2018 and the coronavirus pandemic were accounted for in the balance sheet in previous years. 2021 there was no need for adjustment.
Without an increase in capacity brought about by the construction of the third runway, there could be a significant loss of company value in the medium and long-term. This will be influenced primarily by a stagnation or decline in the traffic volume and the associated lower revenues in the Aviation and Non-Aviation divisions.
The further development of the Corona pandemic and its impact on the aviation industry are subject to a high degree of uncertainty at this time and depend heavily on international travel restrictions and warnings. Based on current vaccination activity, the risk will be reassessed in 2022 and the classification revised.


The confirmation of the planning approval decision by the Bavarian Administrative Court (BayVGH) on February 19, 2014 and in the following year by the Federal Administrative Court limited the legal risks for project implementation.
Diversification of the product range and expansion of foreign business are planned or already being implemented as countermeasures to the significant loss of company value. In previous years, the «LabCampus» project was launched, with which Munich Airport intends to create a unique location for innovation and cross-industry cooperation. Expansion in the USA continues to be implemented.
The third runway remains a key strategic project for Munich Airport in the medium and long term.

EU General Data Protection Regulation


In addition to the legal risks listed in the risk matrix, there are risks in connection with the EU General Data Protection Regulation (GDPR). The GDPR expands the existing obligations arising from the Federal Data Protection Act (BDSG) and increases the legal, operational, and technical/organizational requirements for data protection. An infringement of these rights and obligations could incur high fines, claims for damages, reprimands, and reputational damage.
Currently, Munich Airport is considering issues related to the use of closed circuit television (CCTV) video surveillance.


At Munich Airport, the project to implement the requirements of the GDPR has been successfully completed. As part of this, organizational structures and processes as well as their documentation were adjusted and awareness of data protection was heightened within the Group.
In particular, the following measures were taken as countermeasures for data protection risks arising from CCTV: Role usage concept, re-signage to indicate video surveillance, renegotiation of the company agreement on CCTV, consolidation of the legal basis, implementation of a data protection consequence assessment.
Munich Airport has also appointed data protection officers and data privacy coordinators who receive awareness training and other types of training on a regular basis from the Group’s Compliance unit.
The gross risk here is below the risk tolerance limit set by FMG and is therefore not represented in the risk matrix.

Construction price increases


Risks can arise in construction projects from increases in construction prices, supplier defaults, planning delays and external influences from the public, the environment, politics, changes in technology, rules of technology or other requirements, including the postponement of construction projects.
In 2021, prices in the German construction sector recorded their highest increase since 1970. This was mainly due to price increases for raw materials and finishing work.


The investment projects are planned appropriately in terms of their commercial viability, their financial feasibility and the risks associated with the investments, and are monitored continuously during implementation.
At present, only those projects are being implemented that are relevant and necessary to Munich Airport’s operations from the perspective of the airport’s ownership or operator responsibility, or that are already being implemented, or for which there is a legal obligation, or for strategic future projects.
The gross risk here is below the risk tolerance limit set by FMG and is therefore not represented in the risk matrix.

Munich Airport is confronted with various legal disputes during the normal course of business. These can lead, in particular, to the payment of compensation claims or, in the case of construction projects, to changes in the remuneration of services. Moreover, other legal disputes can be initiated or existing legal disputes can be expanded. Apart from matters for which provisions have already been made in the balance sheet, Munich Airport is not currently anticipating any material negative impacts for the assets, financial position, and results of operations from other known cases at the present time.

In the case of foreign subsidiaries, risks may arise in particular from the assumption of operational responsibility abroad in the context of consulting services for other airports and the operation of terminals. Airport operating projects, like the Munich location itself, are subject to general economic and company-specific risks. To minimize risk, Munich Airport therefore works with local partners who have experience with respect to the specific country regulations and conditions. Risks can arise, in particular, with what are typically long-term airport operator projects, when it comes to assessing future aviation development and consumer behavior on the part of air travelers. This became increasingly evident, particularly as a result of the coronavirus pandemic. A possible lack of growth and/or a possible decline in air traffic, including delayed expansion projects, could have a material adverse effect on the earnings performance of the foreign companies, which would consequently result in risks for the invested capital. Munich Airport is currently seeking to agree on a compensation mechanism with appropriate contractual provisions toward the client. To counter liability risks for Munich Airport in particular, local limited liability companies have been established outside Germany to act as independent entities and as local contractors. Risks may also arise from unforeseen regulatory intervention in the tariff, tax and levy structure of airports or from contractual breaches to the detriment of airport operators.

Tax (operational) audits by the tax authorities are also considered a general risk.

In addition to the risks presented in the matrix, there was the risk in connection with surface de-icing agents in the previous year. As a result of successful countermeasures, this risk fell below the risk tolerance limit as of December 31, 2021.

Financial risks

The expected financial liability for the gross financial risks listed below were under the reporting limit as at December 31, 2021. Therefore they were not included in the risk reporting. The monitoring and management of these risks are the responsibility of central finance and cash management.

Financial risks



Description and analysis



Currency risks


Currency risks arise insofar as planned sales in foreign currencies are not balanced by any corresponding expenses or outgoings in the same currency.


Munich Airport hedges currency risks using forward exchange transactions.

Credit and reliability risks


Credit and credit rating risks primarily arise from short-term deposits as well as trade receivables.


Deposits are (generally) only made with (German) banks with deposit protection.
The management of credit risks includes the constant monitoring of debtors’ creditworthiness, overdue invoices, and stringent collections management. Dependent on the credit rating, certain services are only performed against prepayment or provision of collateral in the form of guarantees.

Interest rate risks


Interest rate risks largely arise from floating-rate financial liabilities with respect to loans and financial liabilities to shareholders.


Interest rate risks from floating-rate financial liabilities from loans are countered by Munich Airport by hedging with interest payer swaps.

Liquidity risk


Munich Airport monitors risk as part of its long-term business planning and short and medium-term financial planning. In order to ensure solvency at all times, long-term credit lines and liquid funds are made available based on a rolling liquidity plan.
In the wake of the coronavirus pandemic, this risk is becoming increasingly important.
Risks to the assets, financial position and operating results may arise from banks’ lending practices and changes in the general conditions on the capital market.


Munich Airport has set up a separate liquidity management system to safeguard liquidity during the pandemic. Liquidity planning takes into account ongoing business, capital expenditure and financing aspects for the entire Group.
In addition to cost reductions, as described under the risks «Economic cycle» and «Personnel situation», the goal is to postpone or avoid capital expenditure projects.
In addition, Munich Airport has taken out loans with a total volume of €425 million to secure liquidity in 2021. In addition, there are revolving credit lines.

After considering countermeasures, the following net risks remain:

Overview of net risks

Overview of net risks (matrix)


As an international aviation hub, Munich Airport competes with other major commercial airports. Functional and targeted opportunity management is of central importance for maintaining and expanding the airport’s market position. This is an integral part of the strategy and planning processes at Munich Airport. Opportunities are future developments and events that may lead to a positive deviation from planning or strategic targets. Both external (for example, changes in the market environment) and internal opportunities (for example, programs to increase efficiency) are considered.

All divisional heads and managing directors of the subsidiaries and associated companies are responsible for developing and implementing measures to take advantage of opportunities. They are supported by the Group Controlling and Investment Management department. In addition, all Flughafen München GmbH employees in the business units and their subsidiaries are generally required to identify opportunities in the course of their daily work and report them to their supervisors. In order to make the best possible use of the company’s own resources, Munich Airport operates a professional and tool-supported innovation management system in addition to a traditional ideas management system (for more information, see the section on Innovation and idea management).

As a basic principle, Munich Airport strives to strike a balance between opportunities and risks. Where opportunities are likely to occur, they have already been included in the 2022 forecast or the medium and long-term planning. The opportunities presented therefore focus on future developments or events that could lead to a positive deviation for Munich Airport from the forecast and the medium and long-term planning.

The evaluation of opportunities is based on the risk assessment system. The economic benefit resulting from the opportunities and the probability of occurrence are divided into the following categories analogous to the risks under consideration:

Economic advantage


Amount in €



1–5 million



5–30 million



30–150 million

Very high


> 150 million

Probability of occurrence


Percentage intervals

Very low











> 50%

In contrast to the risks, the probability of occurrence and financial impact (economic advantage) are not shown separately, but are combined in the «high relevance» and «low relevance» opportunity categories.

Since Munich Airport is confronted in some cases with very long planning periods, the opportunities are also indicated as to when they will occur in the short, medium or long-term.






< 2 years



2–5 years



> 5 years

Compared to the previous year, there have been minor changes in the identified opportunities as of December 31, 2021. The «off-campus» opportunity has been fundamentally revised and renamed «International Business».

Overview of opportunities at Munich Airport





Time of occurrence


Summary of the measures

Development of the coronavirus pandemic


high relevance


short- and medium‑term


  • Systematic monitoring of pandemic development and identification of measures
  • Close cooperation with relevant stakeholders (especially airlines)

Economic development


high relevance


short- and medium‑term


  • Continuous monitoring of global economic developments
  • Identification of measures to exploit opportunities in all relevant business units

Market development


high relevance


short-, medium-, and long‑term


  • Intensive airline acquisition
  • Quality management
  • Close cooperation with system partner DLH

Regulation and legislation


low relevance




  • Association work
  • Use of expertise in the area of Corporate Communication & Politics

Rail access


high relevance




  • Intensive contact with political decision-makers and the Deutsche Bahn
  • In-house expertise in the field of rail connectivity

Interest and exchange rate trends


low relevance




  • Adjustment of product and service portfolio in the retail sector

Implementation of climate protection measures (CO2 strategy)


low relevance




  • Focusing on regional, regenerative energy supply and introduction of emission-reducing technologies

Internal process and efficiency improvements


low relevance




  • Intensive use of the expertise available in the company
  • Efficient alignment as well as organizational changes

International business


low relevance


medium- to long‑term


  • Intensive observation of relevant markets
  • Professional customer acquisition
  • Ongoing adaptation of the product and service portfolio

Real Estate


low relevance




  • Intensive observation of relevant markets
  • Professional customer acquisition

Development of the coronavirus pandemic

The travel and tourism industry is particularly affected by the coronavirus pandemic due to severely restricted mobility worldwide. Further developments, specifically with regard to mobility restrictions, are therefore extremely important for the recovery of global air traffic and for the economic success of Munich Airport as well. At present, it is generally assumed that the aviation industry will take several years to return to pre-crisis levels. Further medical advances and the spread of highly contagious but less pathogenic viral variants could lead to a more rapid end to the coronavirus pandemic. Remaining international travel restrictions and warnings could then be lifted sooner than expected. This would have a significant positive impact on Munich Airport’s EBT. The Group is systematically monitoring further developments and is in close contact with airlines as part of its acquisition activities. The aim is to offer above-average participation in a recovery.

Although the probability of an early recovery is presently rated as low, the resulting opportunity is rated as «high relevance» due to its high earnings effect.

Economic development

There is a close correlation between the growth of national and global economic activity and air traffic (the connection is currently obscured by government restrictions on travel and reluctance to travel on the part of the population). The coronavirus pandemic plunged the global economy into a deep crisis. There was a significant slump in economic output in almost all major economies. A recovery in the global economy was observed in fiscal 2021 and is expected to continue in 2022. Crisis-related supply difficulties for important intermediates, which are impacting industry in particular, are hampering the fundamentally positive development. Consumption opportunities were also constrained by the persistence of Corona rules, resulting in substantial surplus savings for households. If the supply difficulties resolve quickly and the accumulated savings are spent, there is a chance that the economy will recover more quickly and that air traffic will grow as a result.

Protectionist trade policy tendencies have been observed in various countries in recent years. Prominent examples of this are the trade disputes between the United States and China and the United Kingdom’s exit from the European Union (Brexit). Since air traffic volumes are strongly dependent on the degree of globalization of the world economy, protectionist measures generally have a slowing effect on global air traffic. If these trends reverse in the following years and there is a renewed political focus on the global distribution of labor, it could boost economic and air traffic growth.

Different divisions of Munich Airport intensively monitor all relevant economies worldwide. In this way, potential for the various business units (e.g. Aviation, Commercial, International Business) is identified and appropriate measures are initiated to exploit opportunities on a decentralized basis.

Since economic development is one of the key factors influencing air traffic, the associated opportunities must be rated as «high relevance» in the short and medium term.

Market development

Airline industry trends are of particular importance for traffic volumes at airports. The airline industry is currently facing historically unprecedented challenges. The current situation is associated with significant losses for the airlines due to the still significantly restricted traffic volume. Since a clear trend towards a consolidation of the European airline market could be observed before the outbreak of the pandemic, a continuation or even an intensification of this trend can now be expected due to the effects of the crisis. At present, demand for air travel is expected to remain below pre-crisis levels for an extended period. In the event of a widespread airline consolidation, however, demand would be spread among fewer suppliers. Furthermore, it appears possible that the remaining network carriers will emerge from the crisis downsized and focusing on hub locations to efficiently bundle their traffic.

Munich Airport has been pursuing intensive quality management for some time and is just one of a small number of airports worldwide to hold the status of a 5-Star Airport. It also has an extremely attractive catchment area, both in terms of business and private travel, and has been operating a professional airline acquisition service for years. Deutsche Lufthansa is an important customer for Munich Airport. They operate a hub at the Munich location and intend to maintain it in the future. In addition, cooperation is based on joint investments and long-term cooperation agreements.

If there is a large-scale consolidation of the airline market, Munich Airport could benefit disproportionately from the recovery in the aviation market in the medium term, which could lead to earnings growth well above plan.

Although such a development is uncertain due to the current situation, the resulting opportunity must be rated as «high relevance» due to its impact on the subsequent development of the company in the medium and long-term.

Regulation and legislation

Air transport has historically been a highly regulated market. Accordingly, laws, ordinances and international agreements are still a decisive factor influencing air traffic today. The introduction of new regulations as well as changes to existing ones may involve risks, but also present opportunities for market participants.

In 2011, the German government introduced a ticket tax in the form of the German aviation surcharge, which was increased on April 1, 2020. The surcharge is used to implement climate policy objectives. The goal of the increase is to achieve a volume shift to rail. Due to its national character, the German aviation surcharge has competition-distorting effects in the European air traffic market. As a result, air travelers from areas close to borders are increasingly choosing airports abroad as their departure point. If the German civil aviation tax were to be replaced by more effective international climate policy instruments, this could reduce the competition-distorting effects. And this could lead to an increase in traffic at Munich Airport.

In the wake of the current crisis, the discussion on the creation of a Single European Sky gained momentum. The European Commission launched the Single European Sky program back in 1999. In addition to the introduction of uniformly high safety standards, the goal is to expand airspace capacity and achieve more economical supranational cooperation between the individual national air traffic control organizations. In concrete terms, the goal is, among other things, to enable airlines to operate more economical flight routes (direct air route), since there is still considerable potential for improvement in this area. More efficient flight routes could significantly save kerosene and thus reduce CO2 emissions (by up to 10 percent). While the latter could bring a positive image boost for air travel as a whole, the former would have a positive impact on demand for air travel due to lower costs. However, Single European Sky is an extremely complex issue, since it involves questions of national sovereignty of the individual European states. Accordingly, the formulation of solutions must take place in cooperation with all national and European players and in dialog with industry.

In order to properly utilize opportunities arising from regulation and legislation, Munich Airport maintains a Policy & Region department and is involved in various aviation associations, such as the BDL. The central objective here is to help shape important regulations for the aviation sector and counteract competition-distorting effects.

In summary, the opportunities arising from regulation and legislation are currently rated as «low relevance» due to the low probability of occurrence.

Rail access

For some time now, the EU in particular has been calling for the various modes of transport to be interlinked as efficiently as possible, thus conserving resources. To this end, it makes sense to optimally connect the major European hub airports in particular to the rail infrastructure. In connection with the intensively conducted climate protection debate, this topic has gained momentum in recent years.

With regard to the rail link to Munich Airport, several projects, including the Erding ring closure, the Walpertskirchen Interchange, the second main line in Munich, and the Munich-Mühldorf-Freilassing/Salzburg Line 38 extension, are currently being planned or implemented. Should an adequate connection to the long-distance rail network also be established, Munich Airport could be efficiently integrated into a future multimodal transportation system. This would expand the passenger catchment area and consequently result in a higher-than-planned development of earnings.

Munich Airport has the necessary expertise on this subject and is in intensive contact with regional and national authorities as well as with Deutsche Bahn. The goal here is to realize an optimal connection of the airport to the long-distance rail network, which would bring a considerable economic advantage. The resulting opportunity is to be rated as «high relevance» in the long term.

Interest and exchange rate trends

Favorable interest rate and exchange rate trends may have a positive impact on the Group’s financial result. Thus, currency effects from the conversion of earnings not denominated in euros into the Group’s functional currency (euros) may have a positive impact on the financial results.

In the retail business at Munich Airport, international customers (outside the eurozone) play a special role due to retail spending, some of which is significantly above average. Internal analyses have shown that fluctuations in the exchange rate (euro versus foreign currency) have a significant impact on retail revenues. An appreciation of relevant foreign currencies against the euro therefore offers the potential for an above-target earnings performance. However, due to the low passenger numbers as a result of the crisis and the corresponding drop in retail sales, this effect is significantly weaker than in previous years.

Interest rates remain at a historically low level. An improvement in financing conditions can largely be ruled out. Munich Airport’s planning therefore assumes rising interest rates for variable-rate loans. However, if interest rates rise less sharply than assumed in the planning period, this would have a positive effect on the Group’s EBT.

Nevertheless, Munich Airport expects to benefit overall from favorable conditions on the financial markets.

Altogether, the opportunity arising from interest rate and exchange rate trends must be rated as «low relevance» in the short-term due to the current crisis situation.

Implementation of climate protection measures

Munich Airport is pursuing the climate target of «CO2 neutrality by 2030». It will reduce the CO2 footprint it can control to zero through a combination of reduction and offsetting measures. The implementation of this CO2 strategy is associated with costs. In the field of energy generation and conservation as well as renewable energies, a progressive increase in efficiency can generally be observed. If this development continues at an accelerated rate, the cost of CO2 neutrality at Munich Airport could fall below the expected level thanks to a better price-performance ratio for low-emission energy generation. The environment, technology, and strategic sustainability management departments at the airport monitor trends in this direction.

In the long-term, this could lead to higher than expected earnings. Despite changing political incentive or sanction mechanisms, the resulting opportunity is rated as «low relevance» due to the comparatively low earnings outcome effect.

Internal process and efficiency improvements

The impact of the coronavirus pandemic has prompted Munich Airport to launch the «Restart» change program. The program served to make the company viable and efficient for the future. In addition to measures to adjust personnel capacity, organizational changes were also developed as part of the program. The management structures and the interfaces between departments were put to the test, as were the company strategy and the Group structure. Initial estimates of the program’s earnings-improving effects are part of the medium-term plan presented to FMG’s governing bodies at the end of 2020. The measures of the program were specified in the course of 2021 and subsequently implemented. Since the economic effects of the «Restart» change program have already been taken into account in Munich Airport’s medium-term planning and ambitious targets have been assumed, the likelihood of a significantly greater than planned performance can be classified as low. The resulting opportunity is therefore currently rated as «low relevance».

International business

Munich Airport’s international business could develop better than expected.

After the pandemic, the macroeconomic environment will recover and demand for consulting and management services will increase again. In the medium term, the further acquisition of airport-related consulting firms and the establishment of new strategic partnerships could also strengthen the local market position of the international business in important target markets. On the one hand, this can ensure faster market entry, local networks can be adopted, and local personnel cost structures can be established. On the other hand, acquisitions can complement the product portfolio and thus strengthen competitiveness.

Current developments also show that more and more governments want to place their airports in the hands of the private sector by means of public-private partnerships or concessions. This could provide opportunities for entering into airport concessions or concluding long-term management contracts for international business.

To this end, the Group closely monitors all relevant markets and developments, conducts professional customer acquisition, and continuously adapts its product and service portfolio to market requirements. In this way, opportunities that arise can be optimally exploited.

In the medium and long-term, this could lead to higher than expected earnings. However, the resulting opportunity must be rated as «low relevance» due to the comparatively low earnings effect.

Real Estate

The current major ecological and economic challenges are putting companies in the Federal Republic of Germany under high pressure to innovate and collaborate. This could lead to an expanded need for cooperative sites and test sites.

With its «LabCampus» project, Munich Airport is creating a new type of innovation center focused on cross-sector collaboration, joint development, testing, presentation, and realization. Currently, infrastructural measures are planned in the immediate vicinity of the LabCampus, including the so-called multifunctional arena. This could lead to a significant increase in the attractiveness of Munich Airport as a real estate location. Higher revenue streams and an associated faster implementation of the LabCampus would be the result (additional buildings and further clusters can be realized earlier with the corresponding revenue streams). In the long term, therefore, there is potential for earnings to develop well ahead of plan.

The Group keeps a close eye on all relevant markets and conducts professional customer acquisition activities in order to make the best possible use of opportunities that arise in this respect on the market.

Although there is a certain probability of occurrence for such a development, the resulting opportunity is currently rated as «low relevance» due to the long-term impact horizon.

Overall assessment of the opportunities and risk situation

As the second-largest commercial airport in Germany and one of the largest airports in Europe, it is important for Munich Airport to actively seize opportunities as they arise in order to secure and further improve its position in the market through steady growth. However, it is also a key objective of Munich Airport to recognize risks in good time and to counter them systematically.

Therefore, the actual expected impact of possible events and developments is already taken into account in the business planning every year. The reported opportunities and risks are defined as potential deviations going beyond the forecast corporate result. Munich Airport consolidates and aggregates the risks reported by the corporate divisions and Group companies, and reports quarterly to the Executive Board and shareholders. Opportunities are identified and managed with the participation of the Group Controlling and Investment Management departments.

The spread of the coronavirus and its impact on global air traffic have had a significant negative impact on the risk situation at Munich Airport. Taking this current situation into account, the risks were reviewed or reclassified at the beginning of the pandemic. The Executive Board expects that the economic impact of the coronavirus pandemic will continue to affect earnings. However, the further course of the pandemic is not foreseeable, so that a conclusive risk assessment is not possible at the present time.

No risks were foreseeable from the Group-wide risk management system or in the assessment of the Executive Board during the current forecast period, which individually or in their entirety could jeopardize the continued existence of Munich Airport. As in the previous year, management is confident that access to liquidity to meet financing needs will be available to overcome the challenges posed by the coronavirus pandemic. With its diversified business units, Munich Airport’s fundamental earnings power forms a solid basis for exploiting opportunities for future business development and for providing the necessary resources to accomplish this.

Munich Airport would like to point out that various known and unknown risks, uncertainties and other factors could lead to material differences between the actual events, financial situation, development or performance of the company and the estimates given here.

Munich, April 8, 2022

Jost Lammers

Nathalie Leroy

Jan-Henrik Andersson

Share this report on social media: