Bearish On Berlin Airports

     It may come as a surprise for some industry watchers but right now there are still three airports in operation serving the air transportation needs of Berlin, Germany and the surrounding State of Brandenburg.
But if you are wondering “what happened to the new airport?” stay tuned.
     Today Tempelhof, the fabled and ancient airstrip in the heart of the city that once was among the most advanced airports in the world during the early 1930’s, Tegel located nearby and Schönefeld from the former German Democratic Republic, in Eastern Germany are the airports of record in Berlin.
     While Tegel continues setting record traffic in and out of Berlin, dowager Tempelhof has gradually been reduced for a number of technical and environmental reasons.
     Overall the Berlin Airports are demonstrating record growth and have moved up to third place in passenger count in the German statistics.
     Berlin Schönefeld is growing extremely fast and today is not only one of the busiest airports in Europe, but is also better connected to the world than ever before.
     The European and German network is dense. Two non-stop flights to the USA have begun this year.
     “With Qatar Airways flights to Doha, the capital of Qatar on the Arabian Gulf, we have been able to attain another milestone for improved international connections from Berlin.
     ”We have worked very rigorously to be able to include a destination in the Arabian region in the flight schedule,” said airport CEO Dieter Johannsen-Roth.
     Plans regarding Berlin-Schönefeld were pushed around among institutions and it took more than 10 years to reach the conclusion that this was to be the Berlin aerial gateway of the future.
     But the 21st century in Europe also means wide open spaces are few and far between so before anything else one village with some 300 inhabitants of a town named Diepensee, part of Selchow found itself square in the cross hairs of Schönefeld redevelopment and had to be resettled.
     As you read this, the very sensitive project—building new homes for the displaced population outside the airport boundaries has been completed.

A village moves.
Diepensee used to lie completely within the property of the new Berlin Brandenburg International Airport BBI in Berlin-Schönefeld.
The 335 inhabitants of the village were relocated to Königs Wusterhausen.

     Now some more legal process continues.
     The good news is that the German Administrative Court located in Leipzig should finally grant the airport company a permit to actually start redevelopment construction on Schönefeld some time later in 2006.
     In the meantime the next great, new airport for the Capital of Germany is ready on paper.
     Every detail is followed up that might later help to speed up the works in order to open the airport as planned in 2011.
     At that point if all goes well, BBI “Berlin Brandenburg International” a beautiful new facility located 20 minutes by train southeast of the City will emerge as newest Gateway Germany.
     The catchement area of the German capital is impressive. There are 3.5 million living in Berlin and some 6 million across the region.
     In the meantime as planning for the new construction continues, passenger and cargo growth is divided between Tegel and Schönefeld although interconnectivity at Schönefeld is growing.
     The airport is home base for eight aircraft of low cost carrier Easyjet. Another new entry Germanwings is also expanding its presence.
     What might lead to a controversial situation later is the fact that Berlin- Schönefeld is today taking the role of an East-West low cost hub, a role that has come front and center elsewhere.
     No doubt that Berlin is in the best geographical position for traffic exchange in this direction.
     Also Berlin has historically always been the gateway to Eastern Europe.
     Interesting to see that www.berlin-airport.de is in German, English and Polish.
     Where else in Europe could you board a MIAT-flight to Moscow and continuing to Ulan Bator/Mongolia?
     El Al and also Israeli ARKIA operate semi-scheduled and charter flights.
     Direct connections to China are in the pipeline.
     The simple facts that Berlin is located further east than any other major cargo hub—and that Schönefeld is open around the clock and not crowded yet are worth considering.
     Some forwarders for example have discovered that it is much more economical to feed out of and into Berlin moving freight to and from Western Europe.
     Presently there are already a number of charter operations, the giant AN 124 is a familiar guest. Actually, Torsten Jüling, who is in charge of airline and air cargo business development with special emphasis on traffic from and to countries east of Berlin confirms this:
     “Niche cargo markets are prospering.
     “FedEx, UPS, TNT and charter operators are utilizing Schönefeld.
     “Leading charter broker Chapman Freeborn is frequently operating different size aircraft in and out of Berlin.”
     There are a number of industries in Berlin able to generate global air cargo traffic as connections become more attractive, and freight forwarders shift part of their consolidated business here including BMW motorcycles, DaimlerChrysler small trucks and engine production for Smart Cars.
     Rolls Royce and MTU are building aero engines near Berlin while the pharmaceutical and chemical industry utilize air cargo as does Siemens Power Generation just to mention a few.
     The challenge according to Torsten Jüling is for BBI to manoeuvre through the next few years of transition while growing its business with as little upheaval as possible.

    
Dr. Rainer Schwarz assumes command of BBI as construction takes off later this year.
Air-Berlin, Germany’s second largest airline takes off from Tegel. Air Berlin said it transported 13.5 million passengers in 2005, up 12.45% compared to 2004. Turnover grew 17.1% to €1.23 billion ($1.49 billion). During 2006 it expects to take delivery of nine A320s and a further 49 through 2011.
It currently operates a fleet of 52 aircraft.
Leisure Cargo handles @www.leisurecargo.com.
It is still primarily holiday flights such as LTU that take off and land at Schönefeld Airport.
This will change in the next few years, as Berlin Brandenburg International Airport BBI will rise from Berlin's holiday airport.
The inner city airports of Tegel and Tempelhof will eventually be closed.

     Later this year Dr. Rainer Schwarz, presently managing director at Düsseldorf International will assume command at BBI.
     At that point a Chairman of the Board who is both an engineer and a well-known and respected manager experienced in successfully running a busy international airport will head management planning and construction.
GFM