Financially troubled Leipzig/Halle Airport operator Mitteldeutsche Flughafen AG (MFAG) is set to receive a cash injection from its shareholders, while it is also considering the merger of its cargo handling business.
Citing an MFAG spokesperson, Air Cargo News’ sister title DVZ said a report from auditor KPMG found that the company requires €145m to keep operating although it is not in any immediate danger.
“In this context, we would also like to emphasise that Mitteldeutsche Flughafen AG is not or has not been involved in insolvency proceedings,” the spokesperson stressed.
According to reports from TV channel MDR and newspaper Leipziger Volkszeitung, an internal paper from the Saxon Ministry of Finance shows that MFAG will receive a multi-million-euro state financial injection.
The two main shareholders, the Free State of Saxony and the State of Saxony-Anhalt, are to pledge at least €100m to ensure that banks continue to lend and do not call in loans prematurely.
The Free State of Saxony owns 77.29% of MFAG, Saxony-Anhalt holds 18.54%.
Banks and shareholders are currently organising a financing package to support MFAG, the Saxony-Anhalt Ministry of Finance announced on request.
Saxony’s Ministry of Finance initially declined to comment on the matter.
In addition to the injection of fresh capital by the public shareholders, existing bank loans are also to be increased and a restructuring and reorganisation programme for MFAG is to be implemented.
The reorganisation report from KPMG was handed over to the management and supervisory boards of MFAG at the start of the year.
The report dealt with the question of whether the operating company can be sustainably and successfully reorganised and continued despite the difficult economic situation it has been in for some time.
According to the KPMG report, MFAG is competitive compared to its competitors within its market segment, emphasised the spokesperson.
This assessment is based on the high growth potential in the areas of logistics and space development as well as moderate growth in passenger volumes – particularly in tourist traffic.
Handling merger
Meanwhile, DVZ has also reported over recent weeks that MFAG is considering bringing in a partner on its Portground handling business.
The airport operator is considering transferring Portground’s cargo division at Leipzig/Halle Airport into a joint venture with CHI Deutschland Cargo Handling, although others are also under consideration.
Elsewhere, the airport operator is in the process of negotiating with major customer DHL Express over a contract extension.
Future of Leipzig/Halle cargo hub under scrutiny
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