German airport operator Fraport has implemented extensive cost-reduction measures in response to the coronavirus outbreak.
The operator says it has seen a massive slump in traffic with China, and Asia overall, which is having a major impact on Frankfurt Airport’s hub operations. This has affected all business areas, from flight operations to ground handling, cargo and retail. To counteract the situation, Fraport has introduced a range of measures to lower costs and to adjust staff deployment to meet this reduced demand.
All major costs are being reviewed closely. New staff hires will be possible only in exceptional and justified cases. Employees in administrative and operational jobs have been offered voluntary unpaid vacation or temporary reduced working hours – where this is compatible with operational requirements. Fraport is monitoring these measures continuously and will make modifications if required.
Dr Stefan Schulte, chairman of Fraport’s executive board, said, “The coronavirus epidemic comes at a time when Germany’s aviation industry, in particular, is already facing significant challenges. We are responding decisively to this difficult situation with our timely countermeasures.
“It is too early to reliably forecast the duration and extent of flight cancellations, as well as the resulting decline in traffic volumes,” he continued. “Therefore, it is not yet possible to estimate the impact on our business.”