Interview about Zurich Airport – “Nervousness is not good advice”
«Nervousness is not a good advisor»
There is a yawning emptiness in the departure hall. And Lukas Brosi vehemently put the brakes on costs. The airport’s chief financial officer explains how his company survived the pandemic.
Lukas Brosi, there have only been a few planes in the last two years due to the pandemic. As CFO, how did you make ends meet for the airport?
We have very difficult times behind us. In 2020, when passenger traffic came to an almost complete standstill at times, we recorded a loss of almost 70 million francs. Thanks to various measures, the loss last year was limited to CHF 10 million. In the past, we have always paid attention to financing operations and investments. This has benefited the airport during the pandemic.
The airport was always open. How could you still reduce the costs?
Many employees and employees were on short-time work. We are also trying to save where there was less demand for capacity: Dock E was shut down for a while. And we have overseen construction projects. With such measures, the operating costs can be reduced by a quarter and the investments can even be halved.
You could have used the time when the halls were deserted for renovations…
Logistically, that makes sense. Nevertheless, we have renounced it. Because at that time we had to ensure that the company had sufficient liquid funds. That is why we have postponed expenses that are not absolutely necessary. But I can imagine that such renovation work will be tackled soon – as soon as the prospects are better, but the customer frequency is a little lower than usual.
Have you eliminated employees and employees?
Yes, individual layoffs could not be avoided. In total we separated from 26 people. Currently we start around 1800 employees.
Which planned investments did you forego during the pandemic?
The airport invests heavily and regularly. However, we have some flexibility in terms of timing. For example, we have postponed the construction of Dock A or Terminal 1. Because those projects aren’t as urgent anymore: We expect the pandemic to delay air travel growth by about five years. Can we take this time However, we have continued with all larger projects that involve implementation. A new baggage sorting facility is currently being built. And during the pandemic, the circle has been completed.
With the circle you are completing a gigantic complex with shops, offices and hotels as well as an offshoot of the hospital in the middle of the crisis. Did the big project make you nervous?
Nervousness is not a good advisor. Construction was well advanced. We didn’t want to stop him. The circle should also contribute to sales. It worked: Last year we already took in CHF 20 million with our new airport district. This money was very important to cushion the loss of earnings in the airline business. The entire real estate sector was a stable support during the crisis.
The hotels, restaurants and shop operators who rent space have had very difficult times. Did you meet this company?
We waived the rent for the time that the federal government ordered the lockdown. In those cases where economical operation was not possible due to the low customer frequency, we looked for individual solutions. The airport made concessions worth 40 million Swiss francs last year.
Other airports have the fees they collect from the airlines. Was this also an option for Zurich Airport?
In the summer of 2020 we sat down with the most important airport partners. At that time it was agreed that no adjustments to the fees would be made for the time being. On the contrary: as a start-up aid for the airlines, Zurich Airport is waiving 10 percent of the fees.
Why did you make these concessions?
The airlines are our business partners, they need binding planning bases. With the agreement, we ourselves have a basis for refinancing the losses from the pandemic over time. We are convinced that air traffic will continue to grow in the medium term.
Matthew born is an editor and data journalist in the business department. He has been working as a journalist since 2000. Mathias Born has a degree in media studies and a degree in data journalism.
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