Annual Report 2001 - Flughafen Wien

Annual Report 2001
Future Development Risks
Flexible strategies and measures safeguard our position
The impact of 11 September
___11 September 2001 was a black day for the international aviation industry – for the first
time in history, aircraft were used as weapons. The terrorist attacks came in the midst of a
downturn in the airline business. Traveller uncertainty had a severe effect on international
airlines, resulting in bankruptcies and thousands of lost jobs.
___The US Federal Aviation Authority has confirmed the exemplary role of Vienna International
Airport in security issues for many years. Nevertheless, we reacted in a number of ways, cooperating
closely with the Austrian Federal Ministry of the Interior to increase and optimise
security measures without obstructing the flow of passengers. We view these heightened
security measures as an opportunity to become more attractive as a transfer airport through
security, speed and comfort.
___As a result of slower traffic growth – a decline of 4% in the number of passengers is expected
for 2002, followed by a return to annual growth rates of 5 to 6% – we have added greater
flexibility to our expansion and investment programme for the terminal and parallel runway.
We will adjust our development plans to meet actual traffic trends, and advance or postpone
projects accordingly. Furthermore, we have started a cost reduction programme to offset any
potential decline in turnover.
Securing our position as the most important East-West hub in Europe
___During the months since 11 September, we have been able to expand the position of Vienna
International Airport as the key hub to Eastern Europe. This is demonstrated by double-digit
growth in these markets, as well as the fact that Vienna offers the greatest number of flights
to direct and secondary destinations in Eastern Europe. An important marketing tool was the
creation of a regional tariff, which provides a 27% reduction for many destinations, including
a number in Eastern Europe. We also introduced a 20% reduction for long-haul flights from
November 2001, which will also help increase the attractiveness of Vienna as a hub.
Development of our home carrier
___In the past year, the development of business for Austrian Airlines, our home carrier, has
been a source of concern. We are convinced that measures introduced by the new management
and opportunities arising in markets such as Switzerland and Belgium will help guarantee the
future of Austrian Airlines as a successful, independent company.
Risk management
___We have introduced an analysis and evaluation process for the monitoring of strategic
projects and assessment of risk in the pre-project stage. This involves the development of a
multi-dimensional scoring model for the systematic quantification of risk.
Financial risks
___The solid results recorded in recent years have generated cash and cash equivalents totalling
€ 172.4 mill. for Flughafen Wien Group. The Company is therefore in a good position to
finance international projects and expansion plans, and to take necessary marketing steps in
times of crises.
Insurance
___We carry business interruption insurance that covers both liability and the consequences of
major incidents (e.g. fire), even if operations should cease for a longer period of time. However
the events of 11 September have increased uncertainty on the part of insurance companies
throughout the world, and the legal opinions of airports and insurers diverge on the issue of
terrorist attacks.
Status Report 45