Air Transport World

Bavaria's big M: Munich Airport's future is tied to Lufthansa's new terminal. (Airports).(to be built by Flughafen Muenchen GmbH and Deutsche Lufthansa AG)(Statistical Data Included)

Few airports arguably would be willing or able to double passenger capacity in one fell swoop after little more than 10 years in operation. Exactly that is going to happen at MUNICH AIRPORT, deep in the heart of scenic, high-tech Bavaria, where some 2,000 workers are toiling around the clock to finish the massive Terminal 2 project in rime for next summer's projected opening.

The new facility is designed to handle 20-25 million passengers annually and is intended to meet an anticipated doubling of passengers in the first decade of the new millennium from 23.7 million in 2001 to about 43.4 million by 2010. While only about half the size of Frankfurt, which handled 49 million in 2001, Munich surpassed its larger rival in terms of domestic travelers last year and ranks eighth overall among European airports--Frankfurt is No. 2.

In what is described as a first for Germany, Munich Airport operator Flughafen Muenchen GmbH with a 60% stake and Deutsche Lufthansa AG with 40% are sharing responsibility for constructing and operating Terminal 2 via two subsidiaries. The subsidiaries will rent the facility to Terminal 2 Betriebsgesellschaft mbH, a specially formed operating company in which FMG and LH again will have respective holdings of 60% and 40%.

FMG is carrying 60% of the construction costs and Lufthansa will provide 40% of the financing. The airline's long-range interest is no secret: It has been enhancing MUC's role steadily to bolster its dual-hub strategy, partly forced on it by frustrating capacity constraints at home base Frankfurt. …

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