Deutsche Lufthansa AG has entrenched its position in Frankfurt by increasing its shares in Frankfurt Airport’s operating company.
The company now holds a total of 4.5 million shares which is equivalent to about 4.95 per cent of Fraport’s nominal capital. The purchase price, amounting to around 170 million euros, was funded entirely from existing financial resources. Lufthansa intends in the short term to increase its stake to 5 per cent.
“We are investing at the Frankfurt base in Germany’s air traffic infrastructure. Our stake in the airport operator will intensify our partnership with Fraport and lastingly strengthen our airline’s position at the major Frankfurt hub,” commented Lufthansa Chairman and CEO Wolfgang Mayrhuber. The investment underpins the objectives of the “Air Traffic for Germany” initiative. It is a good development for the entire air traffic system in Germany. Competition in the industry is no longer between airlines and alliances but between air traffic systems in their entirety, encompassing airlines, airports and air traffic control, said Mayrhuber. Seamless flight connections in Frankfurt also strengthen other airports linked with the hub by Lufthansa.
“We have a stake in Munich’s Terminal 2 and all have profited from it: customers, the airport and the airline. That is precisely also our aim in Frankfurt.” The stake in Fraport AG is a strategic investment in our core business, Mayrhuber added. It will allow Lufthansa to leverage influence in the airport’s development, improve cooperation and enhance quality on the ground for the benefit of customers. “That will strengthen our competitive position.” Moreover, Fraport AG generates strong returns. “The investment in the airport operator will pay off,” observed Mayrhuber.
Fraport Chairman Dr. Wilhelm Bender was equally positive: “We wholeheartedly welcome Lufthansa as a shareholder in the company. Its financial investment will strengthen the successful system partnership between Lufthansa, Star Alliance and Fraport.”