Fraport Cargo Services Restructures Cargo Business

After a very successful year 2006, Fraport Cargo Services Ltd. (FCS) intends to focus on new processes during 2007. Among other reasons, the expiration of the contract with Asiana Airlines led to this decision. The Korean airline decided to finish the successful cooperation after 5 ½ years at the end of the year.

"We regret this change, but have always been aware of the consequences. Based on our long lasting experience we are able to evaluate our processes in detail. We will not bind a customer at any cost who is under heavy cost pressure and therefore decides to restructure his own handling services.

We possess a first-class infrastructure and provide high quality services together with a lot of flexibility. These are factors which are of utmost importance for the satisfaction of our common customers, but can hardly be verified in terms of money. We know that our customers appreciate our high level of quality, but we also respect pure monetary decisions," - stated Winfried Hartmann, Managing Director of FCS.

The 100% subsidiary of Fraport Group will take the opportunity to set up new handling processes and to complete the implementation of the new handling software SCOPE. Overall the prognosis of FCS is positive: After two-digit growth in 2006, Frankfurt Airport expects another strong increase in 2007. The development of the FCS-customers also assumes an increase above average.

Due to this, Winfried Hartmann attaches importance to the need of an expansion of capacity. FCS will continue to plan a new cargo warehouse with an area of 4,800 sqm plus office space. This will enable FCS to provide additional dedicated handling area. Also the existing warehouse consisting of 47,000 sqm offers still capacity for more airfreight. After having improved the handling processes, one of the targets of FCS for 2007 will be the active acquisition of new customers.

Also at Frankfurt-Hahn Airport business is pushing forward: After a construction period of 7 months only, the new cargo warehouse with an area of 6,630 sqm and direct access to the apron has been completed.

Winfried Hartmann draws a positive balance: "Even if the leave of Asiana Airlines will result in a short-term decrease of tonnage, we look forward in a positive way and we will use the opportunity to implement new strategies together with our customers.

We expect that the existing capacities for aircargo handling in Frankfurt will reach the capacity limit during the next years. Only a few of the existing areas of CargoCity South are not yet projected by Fraport Group. Additional areas will be available in the course of the planned airport expansion. We observe that airlines attach more importance to a handling agent who is able to provide enough capacity for more cargo volume together with high performance."