The investment volume will reach ¤ 847.8 million, substant ially higher than the previous year’s volume. The major projects for the BBI: • Passenger terminal (¤ 475.6 million) • Movement areas (¤ 64.3 million) • Buildings specific to operations (¤ 52.6 million) • Planning of movement areas (¤ 40.1 million) • Utilities and waste (¤ 24.7 million) • Road construction (¤ 19.2 million) Investments of ¤ 3.1 million are planned for Schoenefeld Airport for 2010. The planned investment volume for Tegel Airport in 2010 amounts to about ¤ 1.8 million. Major projects include the renaturation of movement areas (¤ 0.7 million) and terminal fixtures and furnishings (¤ 0.1 million). 3. Project BBI The following major milestones for the construction projects are planned for 2010: • Completion of shell for Piers North and South (GU I, 2) • Completion of the steel construction work and most of the façade work on the passenger terminal (GU I, 3) • Commencement of the finishing work on the passenger terminal (GU I, 4 and 6) • Completion of most of the installation of heating, cooling, ventilation and sanitary facilities in the passenger terminal (GU I, 5) • Completion of the movement areas (GU II) • Partial start-up of the access routes and traffic ring to the passenger terminal (GU VII) • Partial start-up of the motorway access A113 by the Brandenburg State Office for Roads • Completion of most of the utility and disposal networks (GU XI) and of the power distribution networks (GU XII) • Completion of the shell for the railway tunnel (west side) and handover to EIU (GU XVII) • Commencement of construction on the expansion areas of the apron and commencement of the construction of Taxiway C (Charly/ GU XVIII) • Completion of most of the Fire Brigades East and West • Start-up of the computer centre in the building for technical maintenance Topping-off ceremony for terminal In the spring of 2010, the Berlin Airports will join all of the involved companies and the people from the region to celebrate the topping-off ceremony for the terminal. The terminal will be presented to the general public du ring the topping-off ceremony. The completed shell will give some impression of what has been accom plished since the ground-breaking ceremony in September 2006 and of the well-lit and friendly reception the fu ture Capital Airport BBI will give its passengers. The BBI trial runs Before the BBI opens on 30 October 2011, all of the procedures will be practised intensively during a sixmonth trial operation: baggage carousels will warm up, check-in counters will be manned during trial runs, secur ity checkpoints will be tested and any and all imaginable situations will be simulated. The Berlin Airports will be looking for spear-carriers, starting at the beginning of 2011, who can help to put the new Capital Airport to a thorough test. The biggest move ever in Berlin The night of the move is scheduled for 29 October 2011. Two become one: Tegel and Schoenefeld Airports will close in the evening. During the night, all of the mobile equipment, machines and furnishings will be transported to the new Capital Airport BBI, where the first scheduled flight will take off on the morning of 30 October 2011. 4. Opportunities and Risks of Future Development Primary objectives for the FBS, as in previous years, are the construction and completion of the BBI. The financing of a total of ¤ 2.4 billion was assured in 2009 by means of loan agreements with the European Investment Bank EIB and others. As the planning currently stands, the projection of operational start-up of the BBI at the end of 2011 can still be upheld. The opening is planned for 30 October 2011. By the middle of 2010, close to 100 % of the planning and execution volume of the BBI project will have been awarded on schedule. The award strategy oriented to trades for the terminal and the buildings specific to operation has resulted in the successful participation, either directly or in the form of subcontractors, of regional and small to midsize enterprises. This trend will presumably be continued for the remaining contracts to be awarded in 2010. Possible delays in partial areas can never be excluded in projects of this size and complexity despite all of the controlling and steering efforts. The delays which have been announced by contractors at this time confirm this experience. However, the possibility that the announced delays will lead to economic losses in the realisation of the BBI cannot be excluded with absolute certainty, especially because the initiation of measures to ensure compliance with deadlines is ether required or must be considered now because of the tight chain of deadlines in the schedule. In general, the effects are minimised within the scope of steering and reengineering, and efforts are made to compensate within the project. These measures concentrate on the technical furnishing of the building within the terminal due to the possible impact on later phases. 73
The completion of the shell for the railway station and tunnel is fully on schedule. The first shell section of the underground rail connections has already been handed over to Deutsche Bahn AG. FBS has therefore done its part to assure that the railway connection for the commissioning of BBI is ready on time. The value of major parts of tangible assets is based on the assumption of the successful realisation of the BBI. The point in time at which the financial crisis is overcome will have significant influence on the future devel opment of revenues at the Berlin Airports. Generally speaking, further growth in traffic is expected until the time of the operational start-up of the BBI. The expansion of Terminal C which took place in 2009 secured a major optimisation of the transfer functionality of Tegel Airport. This will create the important conditions for exploiting existing or future potential in transit passengers even before the operational start-up of the BBI. If traffic continues to grow, further increases in aviation and non aviation sales revenues can be expected in 2010 and 2011. Berlin’s attraction for the tourism market is also a solid basis for expectations of positive revenue developments in the coming years. However, the current overall economic situation is so uncertain that it is almost impossible to make reliable predictions concerning the short-term development of traffic. If – contrary to the expectations on which the 2010 budget is based – there should be a significant decline in traffic in 2010, the experience of recent years shows that the setbacks would likely be of a short-term nature and that the growth in traffic will continue in the middle term. Despite the increases in revenues, increasing the profitability of FBS will mean limiting the rise in costs or realis ing cuts in expenses. The management mecha nisms for this purpose have been consistently improved in recent years. It is important to develop these management instruments further in 2010 so that cost awareness is raised even higher. To secure the financing of the BBI, the Berlin Airports have undertaken the obligation to provide an own financing contribution of ¤ 440 million. It has been possible in the last few years to increase steadily the profitability of the operating business. If this own contribution to the financ ing is to be realised fully, the profitability of operating business or the EBITDA must be successively improved until 2011. Profitability must be increased once again when the new airport begins operation so that the loans can be repaid. This will require limiting the operating costs of the new airport as foreseen by the long-term planning. More over, it is important to structure the new fee model for the BBI so that a foundation for the aviation revenues projected in the long-term planning can be laid. 74 A major milestone on this road will be the submission of the fee application to the approval authorities, the Minis try for Infrastructure and Agriculture of Brandenburg, by the end of 2010. Consultations with the airlines in advance of this step are necessary. This involves a certain risk with respect to the ability to realise the planned aviation fees. The “Focus Programme” was initiated in autumn 2005 to develop additional potential for the improvement of profitability. This programme covers major cross-section projects in which additional revenue increases or further cuts in costs are to be examined and carried out. The “Focus Programme” will be continued in 2010. The financial requirements of FBS according to the longterm planning are covered with the conclusion of the BBI long-term financing. The credit lines have adequate reserves to cover risks. According to the current long-term planning of FBS, the reserves total about ¤ 300 million. At this time, the following risks are under especially close observation: • Construction risks of the BBI project • Construction tradesmen insurance claims which cannot be obtained immediately at the point in time of the greatest utilisation of credit • Risks related to the provision of the own financing contribution for 2010 and 2011 • Risks from the development of the unsecured interest rate level (at the peak, ¤ 1,500 million of the planned credit utilisation is fixed at about 4 % with three swaps) • Gap in the coverage for accrued interest (the banks reserve the right to reduce the secured lines of credit by the interest in each case for one quarter) • Sureties for swaps (a negative cash value of the three swaps must be secured with sureties from the BBI long-term financing in the amount of the negative cash value plus a possible fluctuation range of one month). The planned operational start-up of the BBI in 2011 is tied to the closure of Tegel Airport. The leasehold concluded between the Company and the State of Berlin or the Federal Government provides for compensation based on market value if and when the buildings and premises can continue to be used for other purposes. At the moment, there are indications that a possible subsequent use for the current facilities can be found at least for the property owner, the State of Berlin. The negotiations on the return of the land and buildings at the Tegel site to the owners, the Federal government and the State of Berlin, began in 2009. A new heritable building right agreement, effective as per 01 January 2007, was concluded with the State of Berlin which included the areas of the previous lease. The key parameters for the return of the land have been included in this heritable building right agreement.
Annual Report 2009
Important update: The new airport i
Editorial Dear Readers, The new Ber
Performed better than the market fo
2009 Biggest infrastructure financi
involved and people in the region.
DFS airport tower In November 2009,
BBI Facts & Figures • The midfiel
The three business segments Aviatio
famous face to Berlin. We also take
therefore was to support airlines t
Antalya Larnaca Paphos Tel Aviv Cai