Funding Secured for Leipzig/Halle and Dresden Airports until 2026
Great news for the aviation sector in Saxony and Central Germany! Mitteldeutsche Flughafen AG (MFAG) has assured financial stability until 2026, thanks to successful negotiations with the DHL Group, supportive shareholders, and renegotiated credit agreements with financing banks.
The key requirements outlined in KPMG's restructuring report have been met, and the renowned consultancy has endorsed MFAG's unrestricted restructuring capacity. KPMG also acknowledges MFAG's sustainable competitive edge and a bright outlook for a positive business continuation post-restructuring.
From 2026 onwards, MFAG intends to implement growth strategies, primarily by enhancing idle infrastructures surrounding Dresden and Leipzig/Halle airports.
Political backing and Future Prospects
Saxony's Prime Minister Michael Kretschmer (CDU) emphasized the importance of securing MFAG's financing for the entire region. He stated that the airports of Dresden and Leipzig/Halle are crucial infrastructures for Saxony and Central Germany's economic growth. The state government is committed to supporting these traffic centers' ongoing viability.
MFAG's CEO, Goetz Ahmelmann, hailed the contract adjustment as the foundation for a stable and sustainable future for the airports. He stressed that with this backing, they're pushing ahead with MFAG's restructuring and creating new growth prospects.
Initially, banks were reluctant to grant the agreed loans due to unmet restructuring objectives. However, they were eventually persuaded to continue granting loans, avoiding demands for early repayment of disbursed loans. This was achieved through financial contributions from MFAG's two major shareholders, the Free State of Saxony, and Saxony-Anhalt, which collectively hold 95.83% of MFAG's shares.
Although the exact amount of funds at MFAG's disposal was not disclosed, ongoing investments and operations at both airports suggest a positive outlook. Ryanair, for instance, has reduced its operations in Germany but is a minor player compared to the overall traffic at these airports. A noteworthy investment comes from Deutsche Aircraft, which is constructing a new Final Assembly Line (FAL) for its D328eco aircraft at Leipzig/Halle Airport, a significant milestone in the industrialization of regional aviation.
In summary, MFAG has secured its financial stability until 2026, ensuring smooth air traffic operations at Leipzig/Halle and Dresden airports. These airports play a vital role in driving economic growth in Saxony and Central Germany, making their continued financial viability crucial. ]
Additional Insights:
- Airport Operations: Both Leipzig/Halle and Dresden airports have been operating with a significant number of flights, especially during the winter holiday season.
- Ryanair's Impact: Ryanair has reduced its operations in Germany, which might have some impact on passenger traffic and revenue. However, this does not directly address the funding status.
- Deutsche Aircraft's Investment: There is an ongoing investment in Leipzig/Halle Airport by Deutsche Aircraft, constructing a new Final Assembly Line (FAL) for its D328eco aircraft.
- General Aviation Market: The German aviation market, including both airports, is facing challenges due to high access costs and government taxes, hindering recovery and growth. This is particularly noted by Ryanair, which has highlighted the need for reduced access costs to stimulate traffic.
