Management

Strategic management and corporate governance

Flughafen München GmbH (FMG) has defined targets within its five strategic fields of action, geared toward sustainable corporate development. These targets take the form of specific initiatives and projects within the sustainability program. While the Executive Board and divisions are responsible for achieving these targets, all first- and second-tier managers are responsible for implementing them. Manager remuneration then contains a variable element calculated according to the success of the initiatives and measures. FMG monitors target achievement in an internal management report prepared on a quarterly basis. This approach aims to ensure that the strategic targets are incorporated into day-to-day work.

Sustainability management GRI 102-43; 102-44; 102-46; 102-47

Identifying and integrating key issues

As a corporate citizen, i.e. a company that consciously acts in a responsible manner toward society, Munich Airport is always looking to pick up on issues of importance to its stakeholder groups and takes dialog as an opportunity to continue developing its corporate policy, focused on sustainability. Sustainability Management, an important component of the corporate strategy, anchored within the Corporate Development division, fulfills this task. This team is based on the main elements in the business model and incorporates stakeholder issues into strategic planning and operational implementation. Using a materiality process, FMG identifies and prioritizes key issues for the Group’s stakeholders. Existing in-house processes and methods are linked to the internal strategy process for this purpose. Munich Airport has set itself the goal of continuously improving processes, particularly with respect to the assessment and measurability of internal and external impact.

The Group-wide materiality analysis is based on the principles defined by the Global Reporting Initiative (GRI). It is an important tool for strategic sustainability management and provides the basis for the Executive Board to make decisions on central parameters for sustainable Group development. In 2016, internal and external stakeholders’ top priorities were customer focus, air traffic development, landside access and traffic development, infrastructure development, sustainable building and security and safety in aviation.

Materiality matrix

(Move your mouse over the different capital icons in the grid.)

FMG has made an effort to link these key issues even more closely than in the previous year to the targets and priorities defined by management. For this reason, a few of the topic names have changed.

Materiality process

  1. Identification: FMG conducts an annual survey of its main stakeholder groups and FMG management when it publishes its integrated report. It also uses the results of internal scenario analyses to understand the business model in the broader context of a sustainable approach to development.
  2. Prioritization: The results of the annual stakeholder survey are presented in a materiality matrix with two equivalent axes, which represent the importance of the individual issues for internal and external stakeholders. These issues are then discussed with experts within the company, and content is allocated to the strategic fields of action. The experts look at the impact within the four business units. The issues are also incorporated into the objectives process.
  3. Validation: Members of the management team discuss relevant issues as part of the annual strategic target agreement process. The stakeholder survey also provides external feedback on the content of the integrated report. Fields of actions and targets are adapted, expanded, or incorporated for the first time.

The importance of sustainable development goals for the airport

At the end of 2015, the General Assembly of the United Nations defined 17 sustainable development goals (SDGs). These SDGs represent a global system of targets for the challenges of the 21st century, and are used to safeguard sustainable development on an economic, social and ecological level. Businesses around the world have been called upon to transfer these SDGs into their fields of action and make a key contribution to achieving them through innovation, pioneering technology and responsible supply chains.

Munich Airport took up the SDGs at the beginning of 2016 and asked Group employees to fill out a survey regarding the goals’ relevance to the airport. Almost 400 employees completed the online survey to provide an initial weighting. The SDGs then became the focus of a series of workshops, where participants discussed the content of the survey and worked on proposals for refining and implementing the goals in the company. The results of these workshops will be incorporated into the strategic planning process for 2018.

The Sustainable Development Goals relevant for Munich Airport

Goal 3
Good health and well-being
Goal 4
Quality education
Goal 5
Gender equality
Goal 6
Clean water and sanitation
Goal 7
Affordable and clean energy
Goal 8
Decent work and economic growth
Goal 9
Industry, innovation and infrastructure
Goal 12
Responsible consumption and production
Goal 13
Climate action
Goal 15
Life on land
Goal 17
Partnerships for the goals

Transparency through dialogGRI 102-40; 102-42; 102-43; 102-46

Munich Airport’s brand message is «Living ideas – Connecting lives». Working with its stakeholders is the only way for the company to tackle upcoming challenges and successfully shape its future. FMG therefore applies a three-stage approach to stakeholder dialog, encouraging transparency and, as a result, social acceptance.

Stakeholder environment

Central stakeholders
Airlines, business partners, the media, employees, passengers and visitors, politicians and public authorities, the region, associations, and organizations

Examples of central stakeholders
Local residents, potential business partners, end customers, shareholders, society/the public, the real estate sector, interested parties, suppliers, the air traffic industry, lessees, ministries, leaseholders, the regional economy, and scientific and research organizations

Communication channels

Online

Public relations work

  • Publications (for example the integrated report)
  • Press events and press releases
  • Marketing partnerships
  • Airport tours
  • Visitors Park

Dialog

  • Conferences, meetings
  • Trade fairs
  • Works meetings
  • Employee survey
  • Employee meetings
  • Passenger survey
  • Terminal services, InfoGate counters
  • Dialog management
  • Personal conversations
  • Regional Liaison Office

Committees

  • Expert talks and specialist discussions
  • Working groups and committees
  • Parliamentary evenings
  • Communities Council
  • Aircraft noise commission
  • Airport forum

Stage 1: customized information on target-group-specific channels

The first phase is to provide information to the various groups of stakeholders. This involved defining communication content tailored to the respective interests and developing suitable communication formats. The integrated report represents one of the most important measures; FMG is now publishing this for the seventh time for fiscal year 2016. This brings together financial and sustainability reporting within a central publication and addresses all target groups in equal measure. Munich Airport will also be publishing an online report for the first time. This will enable readers to search for specific content and issues, consolidate information based on their interests, and compare data.

Stage 2: exchange and collection of stakeholder feedback

During the second phase, the airport works to engage stakeholders in discussions regarding issues of importance to them, and involve them in decision-making. This direct exchange is becoming increasingly important, as social media enables anyone to immediately publish information and opinions. Through asking stakeholders questions in a targeted way and taking their opinion into account if there are any unresolved issues, the airport inspires confidence and paves the way for acceptance in the long term. Munich Airport follows this approach, for example, with the annual survey of readers of the integrated report. This is a good way of checking how far the content of the report has been accepted and of determining how important specific issues are for stakeholders.

Stage 3: the results of dialog flow into business operations

During the third phase, Munich Airport takes into account stakeholder suggestions and feedback in relation to its business activities. Its stakeholders often present FMG with new and relevant issues, acting as a mirror that gives the company an idea of what is going on in wider society. This in turn makes it possible to identify issues and trends at an early stage, benefit from outside knowledge, communicate the company’s stance, and defuse conflicts.

Examples for stakeholder dialog

Passengers
For the past 20 years, passengers have been providing Munich Airport with information on the purpose of their trip, their origin and how they traveled to the airport. Around 840,000 passengers have taken part in the passenger survey to date.

Region
Good cooperation with the region is essential if Munich Airport is to be successful, and the Regional Liaison Office has been responsible for ensuring this for the past fourteen years. As a support office, it reports directly to the Executive Board and sees itself as a kind of bridge-builder between the airport and the region.

Public relations
Corporate Communications shares the latest information on the social media channels of Facebook, Twitter, Instagram and YouTube, in the style appropriate for each online platform. In July 2016, Munich Airport became one of the world’s first airports to launch a travel blog on its website «Travellers Insight – Mein Fernwehblog» («My Wanderlust Blog»).

Media
FMG’s press office regularly updates the media on the latest developments. The on-schedule launch of operations in the T2 satellite building generated particular interest from the media in 2016. Much attention was also paid to the annual press conference in March 2016, where the company discussed the dynamic growth in traffic and Munich Airport’s strong economic development.

Making an impression with quality GRI 102-43; 102-44

Munich Airport is Europe’s first-ever 5-star airport.

First-class ambiance and ultimate comfort
A diverse range of services
Efficient workflows
Easy orientation
Exceptional hospitality

Munich Airport is particularly well-known for the quality of its services. These high standards apply equally to the core business of aviation and all other areas, such as consumer business and internal processes.

Passenger Experience Index (PEI)

Passenger satisfaction is of central importance to Munich Airport. A survey recently developed by FMG will soon provide in-depth satisfaction indices. These will indicate how its quality of service is perceived, passenger comfort, and the longer-term effects of these perceptions. From 2017 onwards, the PEI will be included in the airport’s targets system as a non-financial key performance indicator.

Airport Service Quality (ASQ) Overall Index

The airport regularly takes part in ASQ surveys run by the International Airport Association. As part of this, Munich Airport improved on its 2015 rating in 2016, increasing its score from 4.07 to 4.11 out of a maximum of 5 possible points. In a direct comparison of European hub airports with over 40 million passengers, Munich took second place behind London-Heathrow.

5-star airport

In 2015, an expert committee from the London-based aviation research institute Skytrax named Munich Airport as Europe’s first 5-star airport, making Munich Airport part of an exclusive group of just six airports in the world who carry this premium mark of approval. The institute announced that it would be conducting a new assessment of the following seven fields of action in 2017: ambiance and comfort, services, processes, cleanliness, information, signage, and service and hospitality.

Skytrax passenger surveys

Over 13 million passengers from 106 countries rated 550 international airports and countless airlines for the Skytrax «World Airport Awards 2016». They considered criteria such as the friendliness and expertise of airport staff, the range of shopping and leisure outlets, and transfer options. Munich Airport was once again named as the best airport in Europe. The airport took third place in the global ranking, defending its strong position from the previous year. In a regional competition between European airports, Munich Airport came out on top to be named the «Best Airport – Central Europe».

Dialog management

Customer feedback is an important tool for managing the company. Munich Airport has managed its own feedback system for airport users for more than 20 years. This system was standardized, systematized, and optimized using a new software solution in 2016. Munich Airport’s central dialog management team quickly responds to, categorizes and analyzes all suggestions and complaints on a case-by-case basis. Collaborating with the relevant departments, the team develops improvement measures and optimizes services.

Certified quality management

The quality management system launched at Munich Airport on the basis of the international standard DIN EN ISO 9001:2008 establishes structures that support the evaluation and improvement of processes. By optimizing its processes on an ongoing basis, Munich Airport has successfully established itself and its high quality standards on the market.

«M» – an emotional and trustworthy brand GRI 102-43

Strong brands are shaped by direct staff contact with customers and partners. This inspired the Munich Airport Group to focus on anchoring the shared brand values and attributes at all levels in 2016. According to an in-house brand survey 1), the brand’s presence rose from an average of 3.5 to 3.8 points (on a scale of 5). This positive trend has also reached the airport’s customers. 2) 66 percent (plus three percent) perceived Munich Airport to be particularly customer-focused, 52 percent (plus four percent) stated that the customer experience at Munich Airport is significantly better than at other airports. Its identity as a premium airport with a Bavarian core also cultivated a strong emotional connection for passengers – 63 percent named Munich Airport as their favorite airport, while 69 percent perceive «M» as a trustworthy brand. «InnovationPilot», a new crowd-sourcing platform, was launched in 2016, to engage customers and partners even further and deliver specific ideas for ways to improve the customer experience. As many as 66 percent of customers confirmed that Munich Airport was working hard to make sure it stands out from other airports. Furthermore, the climate protection strategy that was launched in December 2016 emphasized the airport’s commitment to the brand value of «responsibility».

1) In-house brand survey in 2016, Mannheimer W.O.-Institut Wirtschafts und Organisationspsychologie OHG
2) External brand study 2016, IMPACT IRC

Grafik: Markenversprechen

We put the spotlight on the customer, regularly benchmark our progress against our own high standards of quality, and improve our processes on an ongoing basis. The great honor of being named as the ‹Best Airport in Europe› shows that we are on the right path.

Top five measures in the sustainability programs

Material topics Initiatives Measures Status 2016 Measure ends
Customer focus Ensuring the necessary quality and efficiency at the Munich Airport site Refining, operating, monitoring and coordinating Group-wide improvement processes (passenger satisfaction data, ASQ, dialog management, etc.) Ongoing Ongoing
Continuing and refining the quality and service offensive (5-star program) Ongoing Ongoing
Landside access and traffic development Improving rail access in the medium term Supporting the Neufahrner Kurve project Needs-based 2018
Supporting the planning approval process for the Erdinger Ringschluss (airport–Erding) Needs-based 2018
Improving rail access in the long term Ensuring the additional route 38 Munich–Mühldorf–Freilassing is part of the new Federal Transport Infrastructure Plan 75 % 2020