IR - News
New Management Board team: growth strategy and modernisation investments to safeguard the future of Vienna Airport ? focus on productivity improvement, cost reduction and increase in feel good factor
“A growth strategy und modernisation investments are the keys to safeguarding the future of Vienna Airport and maintaining our competitive position ? we need to provide better service for our customers, cut costs and increase productivity. On our first day at work we took important steps to realise these goals: the company’s organisational structure was streamlined; central management functions such as procurement and controlling were strengthened; and we froze new hiring. The next step will be a financial review of all areas in order to identify major opportunities for savings and possible new sources of income. The return on all investments will be evaluated, and project management must be improved. Our earning power must become substantially stronger to support further growth and investments", explained Günther Ofner, Chief Financial Officer of Flughafen Wien AG.
“The quality of our services must improve if we want to strengthen our competitive ability, and that will also require further investments in the airport infrastructure. Work to complete the Skylink is well underway, and the new terminal will provide an entirely new quality experience for travellers and airlines. We must then continue this course and, accordingly, make certain preparations today ? because growth doesn’t just happen, it must be actively planned and developed“, stated Julian Jäger, Chief Operating Officer of Flughafen Wien AG.
All terminal activities in a direct reporting line and stronger management functions
The new Management Board has already made a number of organisational changes to strengthen efficiency: among others, the Center Management-Retail and Gastro business unit was restructured and now reports to Julian Jäger. This step combines all terminal-related areas of business under a single reporting line, which will facilitate the adjustment of this offering to even better meet the needs of passengers. The central management functions for procurement and controlling were also restructured to support more effective cost management, and now report to Günther Ofner, who is also responsible for construction and real estate. The distribution of duties among the members of the Management Board can be reviewed on the homepage of Flughafen Wien.
Strategy for long-term growth: higher productivity and cost reduction
One focal point is particularly important for the new Management Board: costs must be reduced in all areas of the corporation. That applies not only to general operating expenses, but also to personnel costs. The Management Board has therefore announced a hiring freeze, whereby additional personnel may only be added in justified individual cases. Positions vacated by normal turnover will not be filled; redundancies will be avoided wherever possible and only used to deal with extreme events, e.g. a sharp decline in growth. Productivity must improve by at least 20% over the mid-term in order for Flughafen Wien to shoulder the planned investments and finance the growth course without a sizeable increase in debt.
Investments of more than € 600 million in the terminal extension VIE-Skylink and modernisation projects are planned up to 2015, including the adaptation of Terminal 2, the runway infrastructure and other projects. The objective is to give passengers a modern, feel good atmosphere and to position Vienna as a successful competitor to other hubs like Munich and Zurich. In addition to the new Skylink, these investments will notably improve the situation in the existing facilities and provide even more top-level service and quality, for example through the refurbishing of the old Terminal 2, the improvement of the shopping and gastronomy offering, the expansion of railway connections and the further development of leased properties. The renovation of the existing buildings is also a basic requirement for the successful handling of the forecasted increase in the number of passengers to roughly 30 million in 2020.
For additional information contact: Flughafen Wien AG Press Office