Vision, Goals & Strategy
We professionally develop mobility, making it an exciting experience for our customers. As an airport group we are the most strongly performing player in all business segments of the industry.
- For Fraport, airports are worlds of excitement as well as intermodal hubs. We systematically link different modes of transportation.
- At all our locations process efficiency and innovation is our hallmark. Our success is based on competitive integrated services, which flexibly meet our customers’ requirements.
- Our top priority is safety and security.
- In pursuing our business, we create sustainable value for the benefit of our shareholders, employees, and the regions where we are located.
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.
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.
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.
Here you find more information on “sustainability” as one of our Group objectives.
Strategic Alignment – "Agenda 2015"
The 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
The implementation of our planned investment program at FRA will form the basis for the future development of our company and is thus a key element of our strategic agenda.
The most important milestone of our ambitious investment program – i.e. the construction of the new runway – has already been implemented. As scheduled, the new runway became operational at the start of the winter timetable 2011/2012.
Moreover, Pier A-Plus was opened on schedule in October 2012, offering additional terminal capacity for up to six million passengers a year. In 2013, Fraport inaugurated its new corporate headquarters building. Other major investment projects are also underway to expand Frankfurt Airport’s capacity - notably Terminal 3.
We are also working full steam ahead on other significant projects aimed at modernizing existing facilities. The redevelopment of Concourse B, for example, has been completed as scheduled in the second quarter of 2012. All aircraft stands in this Concourse were modernized and became operational in January 2012. Concourse C will also be remodeled over the next five years. The above projects are vital for ensuring FRA’s competitiveness.
2. Improving Profitability
Roughly estimated, each billion euro we are spending requires one hundred million euros of additional expenditures per year in interest and depreciation alone. Consequently, Fraport must enhance its efficiency to maintain the current earnings level and to further increase it in the medium 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.
Our key priorities are as follows:
- Sustainable traffic growth at Frankfurt Airport following the opening of Runway Northwest and Pier A-Plus
- Gradual increase of airport charges to cover our capital expenditures
- Increase of retail revenues at Frankfurt Airport, specifically following the opening of Pier A-Plus
- Expansion and enhancement of terminal and retail areas at our Group airports outside Frankfurt
For more detailed information, please see our Annual Report.
3. Increasing Customer Satisfaction
Increasing customer satisfaction is a challenge for all corporate units. The Ground Services and Aviation segments 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.
Our customer surveys have revealed that our passengers have taken very positive notice of the quality improvements achieved at Frankfurt Airport over the past few years. We plan to continue this trend also in the coming years. For this reason, we have pooled all our activities aimed at enhancing the passenger experience at FRA in our “Great to have you here!” service program. As part of this program, we continue to develop specific measures to improve our service standards and are committed to implement these measures effectively.
Further information can be found in our Sustainability Report.
4. Ensuring Sustainability
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 and environmental responsibility. We published our ambitious sustainability goals already in 2007. Since then, we have systemized our approach by creating a materiality matrix and by launching our sustainability program. The strategic goals described in our sustainability program form the basis for our medium and long-term activities. We regularly assess and review our performance and the effectiveness of the measures taken. Both the materiality matrix and our sustainability program were updated in 2013.
Our commitment to noise abatement is of particular relevance for the sustainable development of our company. In 2013, further progress was made in this field, particularly by implementing a series of measures developed by the initiative “Together for the Region – Alliance for Noise Abatement 2012” between Fraport, airlines and the Hessian state government.
Climate protection is another key element of Fraport’s sustainability activities. In 2013, we launched a program aimed at increasing the energy efficiency in operating our facilities and buildings. We also introduced a new energy-consumption and CO2 control system which will allow us to better monitor and control our energy consumption and CO2 emissions.
For more information, go to Sustainability.
5. Taking Advantage of Growth Opportunities
By implementing our expansion program, we have significantly increased capacities at Frankfurt Airport. To ensure that these new capacities add value to our business as soon as possible, Fraport has continued to intensify its sales and marketing activities over the past few years. As of 2014, FRA’s airport charges regulation also includes a new incentive program aimed at encouraging airlines to achieve passenger growth by deploying quieter aircraft.
In addition, there are three essential growth generators for the Fraport Group in the future:
Growth generator 1: Airport Retail
The expansion of retail, F&B and service areas in the Terminals, particularly in the airside part of the Terminals, remains the focal element of growth plans for our Retail business segment. With the opening of 12000 m² retail areas in Pier A-Plus, Fraport has created an important foundation for further retail growth at Frankfurt Airport in 2012. The continuous modernization of existing areas is an additional lever to increase earnings.
For more information, go to Airport Retailing.
Growth generator 2: External Business
After completed portfolio adjustment, the External Activities & Services segment is now well positioned. Our 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, the minority shares or management contracts at further airports round off the external activities portfolio. Fraport has been active, for example, at Pulkovo Airport in St. Petersburg (Russia) since 2010. Based on a positive development of the existing external activities portfolio, the external business segment will continue to significantly increase its contribution to profits of the Fraport Group in coming years. Furthermore, the objective is still to continue expanding external activities.
For more information, go to Our Airports.
Growth generator 3: Frankfurt Airport City
Hub airports around the world are evolving into airport cities. Fraport has identified this trend early on and specified locations suited for real estate marketing. Furthermore, for selected projects Fraport intends to intensify its own activities to profit more strongly than in the past from the value created by real estate development. Examples are the development and marketing of attractive business locations in near vicinity to the airport. Another project involves the demand-oriented further development of CargoCity South to be in a position to satisfy the high demand for additional logistics space at the FRA location. Depending on each project, Fraport decides if and to which extend the Group will participate in its development.
For more information, go to Airport City Development.