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-oriented basic charge

 

Fixed amount per take-off and landing depending on the noise class and the time of day/night

Pollutant-oriented basic charge

 

Nitrogen oxide equivalent emitted per landing

Passenger charge

 

Number of passengers on take-off

Cargo charge

 

Number of traffic units on take-off/landing

Parking charge

 

Maximum take-off mass (per 24 hours or part thereof, from 16 hours)

Security charge

 

Number of passengers and/or traffic units at take-off

Charge for passengers with reduced mobility (PRM charge)

 

Number of passengers on take-off

Waste disposal charge

 

Number of passengers on take-off

In the 2021 financial year, the new framework agreement on charges came into force with uniform provisions for all airlines, which fundamentally regulates the development of air traffic charges up to and including 2030 and thus ensures the refinancing of infrastructure to a defined extent.

Due to the long duration, three breakpoints were defined in order to be able to counter forecast uncertainties by monitoring and, if necessary, readjusting the development of charges. No increase in charges has been priced in for 2021 due to the crisis. Structural adjustments to the charge structure led in particular to a greater emphasis on environment-related charge components, with a simultaneous reduction in weight-based MTOM charges.

For example, extended noise classes now lead to a more differentiated classification of aircraft types. In addition, surcharges on the noise charge during nighttime margins were defined – and separately for each take-off and landing, in order to precisely allocate the polluter.

Munich Airport operates two runways with a maximum capacity of 90 aircraft movements per hour during daytime operations at normal capacity. This capacity was exhausted for long stretches in normal operation in the years before Corona. 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 midnight and 5 a.m., only night airmail 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 terminals will be continuously optimized and expanded as needed. The planned pier at Terminal 1 is designed to meet future requirements for efficient security checks and terminal infrastructure. Against the background of the massive impact of the coronavirus pandemic, the schedule for the expansion project has been stretched. Individual areas of the terminals were also affected by closures in 2021.

Munich Airport is strategically well positioned thanks to its central location in Europe, in the middle of the Munich metropolitan region, which is characterized 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 coronavirus pandemic. In the years before Corona, Munich Airport had the highest proportion of business travelers among Germany’s major hubs and was thus predestined for particularly high-value scheduled services. Despite downturns, the demographic and economic conditions in Bavaria and especially in the airport catchment area suggest that transportation demand at Munich Airport will continue to grow in the medium to long term. Further comments on this can be found in the section Economic and industry-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, the plans for the «T-Stiel» of the satellite building and Lufthansa’s commitment to station the Airbus A350 long-haul fleet in Munich are the foundations of a sustainable partnership that stands for long-term growth. However, according to current reports, the A380, which has been stationed in Munich to date, is no longer expected to return, as Deutsche Lufthansa will no longer operate this aircraft type. Even during the coronavirus pandemic, Deutsche Lufthansa reaffirms its commitment to Munich Airport and secures worldwide flight connections for Bavaria as a business location in the medium term.1)

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.2)

In addition, the German air traffic tax and the lack of traffic rights or protectionist measures in Asia are hampering future market-driven growth at Munich Airport. China’s zero covid policy further limits travel, while other Asian countries impose a mandatory fourteen-day quarantine in a special hotel.3)

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 airfreight at Munich Airport – over 80% – is transported as bellyhold cargo on normal long-haul flights. Globally, the share of airfreight volume accounted for by additional cargo is a good 50%.4)

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 around 18,500 m2 of catering space (previous year: 21,000) and approximately 20,700 m2 of retail and service space. Changes compared with the previous year resulted from mostly temporary closures of individual units. FMG subsidiaries operate their own retail or catering businesses on approximately 71% 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 34,600 parking spaces, of which some 20,800 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 was extended to the east by the Erding ring closure in order to achieve better accessibility 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 other companies in the Group complement the range of services offered by the airport. The most significant subsidiaries are:

Material subsidiaries

 

 

 

AeroGround Companies

 

The companies AeroGround Flughafen München GmbH (AE München) and AeroGround Berlin GmbH (AE Berlin) provide landside 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, IT and digital for all tenants at the airport

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, economical, 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. In addition, this division plays a key role in implementing Munich Airport’s CO2 strategy as part of its energy management activities.

IT

 

The IT service division offers its customers at Munich Airport a range of services in the fields of media and communications technology, IT workstation equipment, and server, database and storage system technology. The division’s core competencies lie in the integration of different technical IT platforms and the provision of customized technical system solutions to support logistics processes at Munich Airport. As part of the digital transformation, the IT service division actively supports change processes for the further or new development of digital business models and for linking value chains to create value networks. In this context, compliance with security-relevant requirements (cyber security) and uniform Group-wide standards are becoming increasingly important.

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

1) A350_data_and_facts_EN_fuel_LufthansaGroup_background

2) IATA forecasts solid long-term aviation recovery – The Moodie Davitt Report; Lufthansa backs Munich – aeroTELEGRAPH

3) China: Travel and safety information – Auswärtiges Amt; Japan: Covid-19_information – Auswärtiges Amt

4) Annual Statistical Report 2019; China: Travel and safety information – Auswärtiges Amt; Air cargo traffic by type-belly cargo & main cargo 2019 – Statista

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