Goals
| Value Creation |
|
Our goal is to create sustained corporate value growth in all business segments. We generate above average financial returns in all our business segments. Therefore, we are among the top players in the industry in each segment. We strive to improve our financing capabilities and achieve a strong debt-service performance. |
| Strong Performance |
|
Our integrated business model ensures superior services due to safe, efficient and high-quality processes. Our strong performance is reflected by both significant market share and customer satisfaction. Our goal is to improve this performance continuously. |
| Sustainability |
|
As an employer and economic generator, we are conscious of our corporate responsibility for our employees, society and the environment. In managing our business we focus on sustainability and ensure that our corporate activities conform to economic, ecological and social criteria. Further information regarding "sustainability" is available here. |
Strategy
|
|
||
|
|
|
|
|
|
||
Strategic Alignment – "Agenda 2015"
Agenda 2015 was developed based on the Fraport Corporate Vision adopted in 2004 and on the corporate goals. Agenda 2015 describes in five elements Fraport's strategic challenges as well as the measures required to cope with these challenges.
1. The Basis: Implementing Investments!
In the current EWP business plan period, Fraport has to shoulder an enormous investment program. The focus is on the years 2009 to 2011.
The core of the ambitious investment program remains the construction of a new runway, approval of which was confirmed by recent court decisions. We continue to expect the new Runway Northwest to be inaugurated for the 2011 winter timetable. In addition to the new runway, we are working full steam ahead on other significant investment projects to expand capacity and modernize existing facilities. Examples:
a. The new Pier A-Plus to accommodate an additional six million passengers,
b. Hall C and the CD Connector Building for an additional four million passengers, (inaugurated in 2008)
c. Redesign of Terminal 1B
The above projects are vital for ensuring FRA's competitiveness and there is no viable alternative to any of these projects.
Roughly estimated, each billion euro we are spending requires one hundred million euros of additional expenditures per year in interest and depreciation alone. In order to maintain the current earnings level and further increase it in the medium term, Fraport must therefore improve profitability in the short term.
For this purpose, a large number of projects and measures have been integrated in the current planning which are designed to have an effect on both earnings and costs.
3. Increasing Customer Satisfaction!
The Skytrax customer survey revealed that customers have taken very positive notice of the quality improvements achieved at Frankfurt Airport in the past few years. We plan to continue this trend in the coming years.
Increasing customer satisfaction is a challenge for all corporate units. Ground Services and the Aviation segment will benefit from greater customer satisfaction when passengers continue to consider FRA as their airport of choice in the future. For the Retail & Properties segment, relaxed and contended passengers are a basic requirement for fully utilizing FRA's retail potential.
For Fraport, sustainability is a central issue for the future and has a high priority for the development of the company.
As a leading airport manager we are aware of our special social responsibility. For us, sustainability means creatively linking economic, ecological and social goals with our long-term corporate interests.
For that purpose we have established ambitious sustainability goals as early as 2008. A sustainability master plan will in the future describe in detail all measures and activities required to achieve these goals. In this way, we plan further to improve the transparency of our activities.
5. Taking Advantage of Growth Opportunities!
Implementation of the planned expansion program will significantly increase Frankfurt Airport's capacities. Qualified growth is required to secure quick and profitable utilization of these new capacities.
Dynamic passenger growth is the basis for the positive development of FRA. The new Runway Northwest in combination with the above mentioned landside expansion projects will provide for this growth. The focus of our sales activities continues to be on long-haul carriers from Asian growth regions and on North America traffic.
In addition, there are three essential growth generators for the Fraport Group in the future:
Growth generator 1: Airport Retail
Despite the economic crisis, airport retailing at FRA continues on the growth course. Expansion and modernization of the retail areas in the Terminals remain the focal element of our growth plans for the retail business. In addition, appropriate passenger flow concepts will ensure that our retail offerings will be conveniently available for as many passengers as possible.
Growth generator 2: External Business
Following a portfolio adjustment, the External Activities segment is now optimally positioned for the future. Our know-how and expertise is currently represented on four continents. In addition to Frankfurt, Fraport owns and manages four other airports, holding shares of 50 percent or more. In addition, we hold minority shares or management contracts at seven further airports.
Positive development of the existing investment portfolio will markedly increase the external business' return on investments and thus its contribution to the consolidated net income over the next few years. Moreover, our aim further to expand our external activities remains unchanged.
Growth generator 3: Frankfurt Airport City
All hub airports around the world are evolving into airport cities. Fraport has recognized this trend early on and identified locations suited for real estate marketing. By stepping up its own activities for selected real estate projects, Fraport also intends to profit more strongly than in the past from the value created by real estate development.