Lufthansa, Fraport Agree Deal On Airport Charges

July 5, 2017

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Lufthansa and Fraport have reached agreement on short-term cost savings for the airline at its Frankfurt Airport base.

The agreement, which includes a freeze on Lufthansa’s airport charges for 2018, calls for the two companies to increase efficiency and reduce costs. Expected improvements include better use of existing infrastructure and a reduction in costs by improving passenger traffic planning.

The companies in a joint statement said the agreement will provide the basis for further discussions on a medium and long-term partnership, and are designed to create the conditions for Lufthansa’s further growth in Frankfurt.

“Together, we want to exploit potential areas for cost reduction and growth, and thus open up new sources of revenue, which will ensure and strengthen Frankfurt Airport’s future viability and long-term competitiveness,” Fraport chairman Stefan Schulte said.

Lufthansa board member Harry Hohmeister said the agreement “is an important step in the right direction and a prelude to further discussions, with the aim of intensifying our partnership in the medium and long term.”

Lufthansa feels it has been disadvantaged by increased landing fees announced by Fraport late last year. The German airline said that although its fees increased by 1.9 percent, new entrants were given incentives to introduce services at the city’s main airport. The incentives were cited as one reason Ryanair added flights at Frankfurt rather than its existing base at Frankfurt Hahn, 120 km (75 miles) from the city.