GERMANY/INTERNATIONAL. Fraport has introduced an extensive range of cost-reduction measures in response to the COVID-19 outbreak.
The German and international airport operator noted that passenger and cargo traffic involving China and Asia in general had “already slumped massively” and was also having a major impact on Frankfurt Airport’s hub operations.
In response, Fraport has initiated a review of all major costs. The company said new staff hires would only be possible in “exceptional and justified” cases. Where compatible with operational requirements, administrative and operational employees have been offered voluntary unpaid vacation or temporary reduced working hours. Fraport said it was monitoring these measures continuously and will make modifications if required.
“The coronavirus epidemic comes at a time when Germany’s aviation industry, in particular, is already facing significant challenges,” said Fraport Executive Board Chairman Dr. Stefan Schulte.
“In April, an increase in the German aviation tax will unilaterally strain our industry even more. However, aviation has survived a number of crises in the last few decades and emerged stronger every time. We are responding decisively to this difficult situation with our timely countermeasures.”
Fraport noted that it was too early to reliably forecast the duration and extent of flight cancellations, the resulting decline in traffic volumes, and the overall impact on the business.
