Strategy

Thinking sustainably, acting responsibly

Munich Airport’s Strategy 2025 lays the foundations for the company’s development as Germany’s second-largest commercial airport. The strategy also incorporates economic, environmental and social aspects. With this strategy, the airport aims to generate positive effects and long-term added value for everyone involved. However, it is also aware of the negative effects that its business may have and is making targeted efforts to keep these to a minimum and compensate for them.

The airport’s business activities have a major impact on various areas and stakeholders: Munich, Bavaria, and Germany as business locations, the region and its inhabitants, the airport staff, and passengers, as well as other companies in and around the airport plus further stakeholder groups. The airport’s over-arching aim is to make sure its operations are sustainable – a goal reflected by its medium and long-term strategy.

Strategy 2025: planning for the future today

The corporate strategy up to 2025 is made up of five main fields of action, which address the main challenges in operating Munich Airport, an international hub airport

  • Air traffic development
  • Landside access and traffic development
  • Seamless travel (contribution to improving the quality of the travel chain)
  • Expansion of non-aviation business
  • Off-campus growth

These fields of action were identified as a result of several scenario analyses regarding the future of the aviation industry. The evaluation also considered relevant factors such as the development of global mobility and economic trends. Initiatives and steps that set out the airport’s future development are established in order to implement the strategy within the fields of action. Specific key performance indicators measure success within the fields of action.

Strategic business decisions are implemented on the basis of the four Group-wide brand values: expertise, responsibility, innovation, and partnership.

Overview of Strategy 2025

Strategic fields of action

Grafik: Strategie 2025 – Überblick

Expansion plans

Needs-based expansion and infrastructure planning

Strategy 2025 highlights key issues concerning the refinement of the business model, and sets the course for Munich Airport’s future growth. Flughafen München GmbH (FMG) expands airport infrastructure based on need, networks various transportation operators, and extends the range of landside transport services – all while keeping quality and customer requirements at the heart of its work. Negative effects on the environment and the area around the airport are minimized as far as possible, for example by applying extensive compensating and noise protection measures.

Pioneering expansion of Terminal 1

Extensive building work is underway in T1, the older of the two passenger handling buildings. Renovations, such as the expansion to the T1 building in what is currently arrivals hall B, are aimed at making the area significantly more appealing to passengers and airlines in the non-Schengen segment. These renovations will also increase the capacity of Terminal 1 as well as creating new retail and catering outlets and improving the passenger handling processes through the use of centralized security zones. The use of innovative construction and technical systems is expected to reduce energy requirements, and therefore CO2 emissions, in the new areas in the building by at least 40 percent compared to the existing terminal.

A new gate area is due to be built over an area of around 140,000 square meters on the main apron, providing docking points for up to twelve aircraft – including two Airbus A380s. This area is forecast to open in 2022 at the earliest.

Changes to T1

  • Additional security checkpoint
  • EasyPASS system for independent check-in and arrival
  • Automated luggage system
  • Lounge

Terminal 2: Five-star quality in arrivals

The number of passengers and visitors using the waiting areas in Terminal 2 continues to rise, as is demand for retail, catering and services. As a high standard of facilities is essential for passenger comfort, the area known as the central midpoint is also being renovated alongside the arrivals zone. As a result, the areas will be larger and lighter, and it will be easier for travelers and visitors to find their way around. The renovation work is scheduled for completion at the end of 2017.

Changes to T2

  • Conversion of open-air spaces: space for new travel store, additional office spaces in a central location plus three new retail units and two airline offices
  • New bar, the «Sportalm», in a central location
  • Large open-air space in arrivals area with catering outlet

T2 satellite building: a smooth start

On April 26, 2016, the Terminal 2 satellite building opened for standard passenger traffic, four years after the foundation stone was laid. Departure processes in the new building ran seamlessly from the outset. During the start-up phase, the terminal satellite was launched step-by-step through to the beginning of July, so that a few subsequent changes – for instance to signage and passenger route guidance – could be made during this period. The satellite’s full capacity has been in use since the start of July. The central market square that surrounds the apron tower, which is integrated into the building, has proved particularly popular with passengers. As is the case for Terminal 2, the satellite building is run by Flughafen München GmbH as a joint venture with Deutsche Lufthansa AG.

First Lufthansa A320
takes off from satellite building to Rome Fiumicino Airport

6 million

more passengers in T1

A third runway: a decision for the future

Travel trend is on the up

The construction of a third runway at Munich Airport is a major decision whose impact will be felt in Munich, Bavaria, and far beyond the German border, both now and into the future. The airport will only be able to maintain and expand its position in the international aviation industry and its importance as an economic and locational factor for the State of Bavaria in the medium and long term if it can grow in line with its customers’ requirements. After all, demand for aviation services is still rising fast, both internationally and in Munich. The airport set a new record in 2016 at 42.3 million passengers. The number of aircraft movements also increased once again, reaching 394,430 take-offs and landings – four percent higher than the previous year. This trend is also expected to continue over the next year. According to the available filings from the airlines, the airport is expecting a further rise in aircraft movements for 2017 of around four percent.

Construction of a third runway

Capitals Impact on capitals

+ Expected growth in revenue
+ Increased value-added effects (IHK study)
– Costs of construction

+ Increased capacity
+ Improved competitive position
+ Higher-capacity hub function

+ Improved expertise in airport expansion

+ Job security
+ Creation of new jobs

+ Less of a backlog during take-off and landing
+ Improved conditions in conservation areas
– Impact on the environment due to construction

+ Response to demand for greater mobility with the maximum possible efficiency
+ Improving Bavaria’s status as a business location, and safeguarding that status in the long term
+  Increased value of Munich Airport, a publicly-owned asset
– Noise pollution due to increase in air traffic

Foto: Flughafen Halle

A third runway meets demand for the next few decades

Now in its 25th year in use, the old two-runway system is currently pushed to the limit: it is very difficult for airlines to offer new connections during the peak times of high demand. The third runway would increase current capacity of a maximum of 90 scheduled aircraft movements per hour to 120, therefore covering requirements for the next few decades. However, without this additional runway, the current range of attractive connections to and from Munich would be put at risk in the long term. It would be impossible to sustain such a strong network of 257 direct flight destinations in 2016 and a high frequency of connections with demand from the local area in Munich and South Bavaria alone – despite the enormous economic importance and appeal for tourists. It is Munich Airport’s role as a hub that makes it a gateway to the rest of the world. However, if airlines cannot continue to expand in Munich, they will move their flights to other airports with available capacity. In the worst-case scenario, Munich could lose its status as a high-performance hub airport in the international aviation industry – causing a great deal of negative consequences for both the population and economy of Bavaria.

Applicable construction law

The airport has therefore done everything in its power to implement the construction of the third runway. Following a ruling by the German Federal Administrative Court in July 2015, the planning approval notice now has legal standing. By issuing this approval, the judges also confirmed a few of the main arguments for the third runway that play a major role in public debate: the need for expansion, the compensation scheme for local residents affected by the expansion, and the project’s environmental compatibility. The decision regarding construction work now lies with the airport’s three shareholders – the State of Bavaria, the Federal Republic of Germany and the City of Munich.

FMG promotes the expansion of regional infrastructure

FMG’s shareholders have set up a regional fund with a volume of 100 million euros to promote municipal transport projects. Payouts are tied specifically to the start of construction of the third runway and are designed to support the expansion of regional infrastructure to balance out any additional burden. Funds will go towards:

  • The Erding north bypass and Freising west bypass
  • A road link between Berglern and Eitting in the Erding district, and the Moosburg west bypass

Regardless of when construction of the third runway begins, five million euros from the budget has already been made available for the Erding north bypass and Freising west bypass. The majority of these funds have already been accessed. All of the funding for the Freising project has already been paid out.

Working hard to protect local residents

Whilst airports – a major form of transport infrastructure – offer many advantages for the local area, they also negatively impact the environment and people nearby. This also applies for the third runway. However, Munich has the lowest level of noise pollution of any major airport in Germany with respect to impact on local residents. While over 197,000 people are affected by aircraft noise of over 55 dB(A) in Frankfurt, this figure is around 11,300 for Munich Airport in its current form. The planning authorities have also expanded the area for transfer claims for the third runway beyond the statutory requirements. The airport is working hard to look after everyone directly affected by the construction project, and is seeking individual solutions in each case.

Regional fund

In € million/Total fund: € 100 million

Grafik: Umlandfonds

Compensation areas for conservation, and environmental protection

Thanks to a carefully developed scheme, the compensation areas for conversation around Munich Airport will continue to grow once construction begins. The airport will create around one hectare of compensation area for every hectare required to build the new runway. These new areas are more valuable in terms of conservation than the corn cultivation that currently dominates the airport region. The low-nutrient airport meadows are already the best natural habitat for meadow breeders in Bavaria. They form the heart of the «Nördliches Erdinger Moos» European bird sanctuary set up in 2008. Whether biodiversity, noise protection, resource management or climate protection, ever since it first opened, the airport has pursued a program that is as ambitious as it is innovative in an effort to keep its operations’ impact on local people and the environment as low as possible.

The largest infrastructure network in Germany

Support for the project is growing: over 200 businesses and associations have already publicly pledged their support for construction to begin as soon as possible. This group is made up of a diverse range of companies, from major corporations such as Audi, Allianz, BMW, Deutsche Bahn, Infineon, Linde and Munich Re, to large SMEs, to regional and local, long-established enterprises. Furthermore, the plans are also supported by associations such as the Bavarian Industry Association, various chambers of industry, commerce and trade, the German Tourism Association and the Bavarian branch of the German Hotel and Restaurant Association. Munich Airport has become a key locational factor for a number of global players in Bavaria, both large and small. It provides them with access to the global markets, thereby improving prosperity and future opportunities for the entire region.

Focus on landside access and traffic development

Foto: Baustelle Neufahrner Kurve

Improvements to landside access – and rail access in particular – will continue to play an important role for Munich Airport. The decision to launch the second trunk route through Munich approved at the end of 2016 has now laid the foundation for increasing the appeal of transport connections to the state capital in the medium term. The plans for the airport tunnel as part of the «Erdinger Ringschluss» project have now progressed to the point for final approval to be issued by the airport’s shareholders during the course of 2017. In 2016, Flughafen München GmbH received approval from the European Commission to receive funding of 900,000 euros, which it will use to fine-tune plans for a rail link to Erding.

The Federal Transport Infrastructure Plan 2030, passed by the German cabinet in the summer of 2016, contains a series of road projects, which will further enhance landside access to the airport. For instance, the national A92 highway, the airport’s most important road link, will be expanded to a total of eight lanes. In addition, a section of the 301 federal road will be expanded to four lanes in the area around the airport, and Freising’s northern bypass, which is an important link road for passengers and staff, will be connected to it. Construction began in October 2016.

Strategic field of action: landside access and traffic development

Grafik: Strategisches Handlungsfeld: landseitige Verkehrsanbindung

4,6 million

passengers used the suburban train to travel to the airport in 2016