> Mike Cook Portfolio » Budapest Airport Concession Agreement

Budapest Airport Concession Agreement

Posted on Dec 4, 2020 in Uncategorized

All airlines were transferred in May after the closure of Terminal 1 in Terminal 2. The airport decided to close Terminal 1, which was previously used by low-cost airlines, as part of its efficiency journey after the sinking of Malév. Michael E Kyriakides, Managing Director of IAAC, said: “This contract will allow us to expand our airport advertising network and provide advertisers and their agencies with other ways to communicate their brand messages on premium sites and the latest brand technologies that will soon be launched at Budapest Airport.” “The European Investment Bank is once again supporting important and forward-looking development,” said Gébor Gion, Secretary of State for Finance. He said: “The EIB has made funds available to Hungary and continues to provide funds that have favourable conditions for competitiveness improvement programmes and contribute to the implementation of investments in both the private and public sectors. We are particularly pleased that the development of the airport announced today is supported by the European Fund for Strategic Investments. This allows the bank to play an important role in reducing risk to investors. The airport doubled the share of low-cost traffic after The bankruptcy of Malév. In 2011, low-cost airlines accounted for 26% of the number of passengers; This year, they will represent just over 50%. Wizz Air, now the airport`s largest customer, has deployed a sixth aircraft to Budapest and opened 10 new routes, bringing the total to 33. Wizz Air recently received two of the former Malév`s restricted routes and launched new flights to Kiev and Tel Aviv from December. Asked if the share of low-cost traffic would continue to increase, Lammers said ingeniously: “This will be an exciting question for the months ahead. At the moment, there is a stable balance that we are very satisfied with, as it offers us the full range of products for our passengers. The airport recorded a record 8.9 million passengers in 2011, but on February 3, 2012, the year took a traumatic turn when its largest customer and hub operator, Malév, ceased operations. Faced with such a difficult situation, the recovery has been impressive, as the airport has already managed to restore more than 80% of its point-to-point traffic.

The introduction of new routes and the airport`s strong partnership with LOT Polish Airlines bring back some of the transfer traffic. With LOT Polish Airlines, for example, making BUD its network in several European and long-haul destinations such as Chicago and Seoul, the airport is generating growth from a whole new segment. Meanwhile, property tax rules were changed in March, meaning the airport is facing an exceptional annual increase of 230%. The news could not have come at a worse time for the airport – just a month after the collapse of the national airline.