Frankfurt-Hahn Airport has reached an important target: Within three years, the Airport has managed to achieve yearly contributions totaling nearly €10 million by cutting costs and implementing various measures; the restructuring programme of the airport has been instrumental in repositioning the company.
The Frankfurt-Hahn airport has seen a positive result from this rehabilitation programme. Since 2013, the costs of running the airport have been steadily reduced. Through projects such as process optimisation, sourcing and renegotiating contracts, have resulted in saving millions. This week, the Supervisory Board of the airport has published the final report of the programme.
“The airport has been systematically re-arranged over the past three years and has made savings in all areas of the company,” said Airport CEO, Markus Bunk. “Also, all revenue items were scrutinised and adjusted,” he added. This so-called “future programme” resulted in the first year of savings of €4.8 million. In 2015 the savings rose to €8.1 million and, in 2016, a saving of approximately €10 million is expected.
The biggest savings achieved the airport are in the area of new awards of contracts, for example, in passenger and baggage handling. It is expected by new contracts and in-sourcing of tasks this year, a saving of almost €1 million in this area. Other projects included the optimisation of processes, such as in the administration and ground handling services as well as new contracts, e.g. in the field of IT services. Price increases, in parking space management and non-aviation, also contributed to this result.
For the rehabilitation programme of the airport there were also socially acceptable staff cuts, under which around 100 jobs should be cut. “By sourcing certain tasks that were previously carried out by external service providers, we could limit the job cuts to 60 full-time positions,” said Bunk. After this reduction in staff numbers by 15%, there are currently 315 people employed at the Frankfurt-Hahn airport. “They all have been very involved in the rehabilitation programme,” said CEO Bunk. “The restructuring of the internal processes and the associated change in the work areas and tasks of the employees has been supported by all colleagues,” said Bunk. “Without this commitment the diverse savings could not been achieved.”
After these internal issues are processed, the airport is now concentrating more on increasing traffic figures. “The transport development has made a very good development in the passenger area with an increase of 9% to 2.7 million passengers, now the cargo area must follow suit,” said Bunk. In particular, losses in the cargo division of the airport this year – despite the successes in the adjustment programme – saw a deficit of €17.4 million.