Vienna-Malta airport deal to be signed on Friday

Vienna International Airport (VIE) will play a central role in the development of Malta International Airport as a Mediterranean hub for passengers and cargo, Kurt Waniek, member of the management team at VIE, said.

Vienna airport, known as Flughaven Wien AG, and two other business partners will take on 40 per cent ownership of MIA as a result of an agreement between the consortium and the Maltese government last April.

VIE is the majority shareholder in the consortium with a 53.24 per cent interest of that shareholding. The other partners are SNC-Lavalin Inc., which owns 36.13 per cent of the shares, and Bianchi & Company, a Maltese firm with interests in tourism, with 10.63 per cent.

VIE's share in the consortium is valued at E26 million, about Lm10.8 million.

VIE will receive a licence to operate MIA for the next 65 years. The Maltese government will remain the majority shareholder, owning a 60 per cent stake.

The agreement of the part privatisation is expected to be signed on Friday when Benita Ferrero-Waldner, Federal Minister for Foreign Affairs of Vienna, will be in Malta.

As part of the agreement, VIE will assist in strategic development, the development of retail business, airport and aviation marketing as well as human resources.

The SNC-Lavalin Group, which has 15,000 employees in 125 countries, has wide ranging experience in airport development and in the cruise and fly business.

This latter sector will be important for Malta when one takes into consideration the planned building of the sea passenger terminal at Pinto Wharf to cater for cruise and fly passengers.

VIE will come to Malta with an impressive track record. Over the last 20 years their business volume has quadrupled, shooting up to 12 million passengers.

Their experience in the development of hubs is outstanding - since 1990, their share of transfer passengers has increased from 14.6 per cent to nearly 32 per cent.

Dr Waniek said: "You need to have the right aircraft for your destinations. The geographical position of a country is important but you have to do something about it.

"Malta has a perfect geographical position but you have to develop the business. At VIE, we have the know-how to develop Malta as a hub.

"Moreover, Vienna International Airport is the fastest transfer airport in Europe with a minimum connecting time of 25 minutes.

"Vienna is extremely popular as a transfer airport because it is also convenient and safe," he said.

Over 12,000 people work at VIE, of whom 2,600 are employed by the Flughaven Wien Group.

MIA, which employs 450 staff, last year handled three million passengers and reported a turnover of Lm16.6 million.

VIE was privatised in 1992 and the shareholding is divided as follows: 20 per cent belongs to the City of Vienna, 20 per cent to the Province of Lower Austria and 60 per cent to private shareholders, including 10 per cent that belongs to an employee trust.

"The 10 per cent shareholding made available to the employees has proved to be a good solution to enhance the employees' dedication and loyalty. The overall accent of each and every activity at the airport is to make a profit," Dr Waniek said.

VIE has a high growth potential as it develops into a hub of growing importance in Europe. One of the key factors contributing to this expansion is the opening of central and eastern European countries.

This great business opportunity will become more pronounced with the next enlargement of the European Union. The Czech Republic, Slovakia, Hungary, Croatia and Slovenia are in the queue awaiting the enlargement.

Last year, VIE handled 11.85 million passengers, of whom about 45 per cent were business travellers. After three record years in succession, turnover last year declined by 2.2 per cent to E320.1 million (Lm133.4 million). Earnings before interest and tax decreased by 8.5 per cent to E85.2 million (Lm35.5 million).

A traffic forecast prepared together with the British Airports Authority (BAA) indicates that Vienna International Airport can expect to handle about 26.5 million passengers and 304,500 flight movements in 2015.

In three years time, the number of passengers is expected to reach 16.1 million and flight movements to climb to 226,100. In eight years' time the existing two runways will probably reach full capacity.

VIE are planning to have a third runway after 2010. Additionally, VIE have set up a joint venture with the Austrian railroad company for the provision of an airport express train from Vienna to the airport by 2003, guaranteeing the journey in 16 minutes flat.

Expansion of the Northeast Terminal will enable VIE to handle 20 million passengers annually at a high standard of comfort in five years' time.