Bern faces a difficult future

Bern-Belp Airport (Photo: Claudio Joss).
Bern-Belp Airport (Photo: Claudio Joss).

Bern faces a difficult future

Bern-Belp Airport (Photo: Claudio Joss).
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In the previous year, the airport posted a loss of around 1,5 million Swiss francs. The year 2020 will be even more difficult due to the corona crisis. The in-house brand FlyBair is due to take off shortly.

The 2019 financial year was extremely difficult for the Swiss airport at Bern-Belp, because with the bankruptcy of SkyWork in summer 2018, the home base carrier ceased to exist. The number of scheduled flights was therefore extremely manageable. In the summer of the previous year, only five destinations were offered from Belpmoos.

As a result of the reduced offer, the workforce at Flughafen Bern AG had to be reduced. A total of 2019 passengers flew to / from Bern in 35.787, which corresponds to a decrease of 76 percent. At the same time, the number of flight movements fell by 7,4 percent. Accordingly, the annual loss in 2019 was around 1,5 million Swiss francs.

Since the airport management was unable to get a new airline interested in Bern-Belp, the Board of Directors decided in August 2019 that an in-house, virtual airline should be founded. Due to the corona crisis, FlyBair's first flight was spared. The operational implementation of the connections is carried out by Helvetic Airways with Embraer 190.

Corona crisis hits Bern-Belp Airport hard

In view of the corona pandemic, the Board of Directors has adjusted the strategic options and taken immediate measures. This means that the corona crisis can be mastered in order to then be able to take the definitive option when the market development becomes clearer. In any case, flight operations can continue.

The effects of the crisis surrounding the coronavirus have led to drastic losses in earnings for Flughafen Bern AG since mid-March. Liquidity security and cost-cutting measures were immediately checked and implemented, short-time working was introduced and investment activity was reduced to a minimum. This can ensure survival in the ongoing crisis.

The Board of Directors also examined various strategic options with and without public access. The multi-year simulations show that the operation of Bern Airport can be ensured in all strategic scenarios and that the needs of local partners, especially the federal government and Rega, can be met. In all scenarios, however, this requires fee increases for larger aircraft types and a further reduction in the workforce - depending on the scenario, larger or smaller.

Flughafen Bern AG currently employs around 90 people, spread over 51 full-time positions. At the moment, a moderate reduction in the workforce can be assumed in the coming months.

In view of the current great uncertainty regarding further market developments and the fact that survival in the crisis can be ensured, the Board of Directors decided against an immediate strategic decision (public traffic vs. business aviation). Rather, it has taken measures to keep all options for continued existence open and to be able to react promptly to the relevant market needs at a later point in time.

Assuming that the demand for air travel should recover in autumn 2020 and in the coming year, the airport will initially focus on the business model with seasonal public traffic. In the summer of 2020, direct flights were planned to 9 destinations: Calvi, Jerez, Kos, Crete, Menorca, Olbia, Palma, Preveza and Rhodes. Due to the corona crisis, the start of the summer flight schedule had to be postponed to mid-July 2020 and the destinations Calvi and Olbia had to be deleted from the flight schedule. Initially, Mallorca will be served twice a week. The other destinations will follow from mid-August and early September.

Long-time COO Heinz Kafader has decided to bring his retirement forward by a few months at the end of 2020. The position will not be filled for the time being and will be taken over by Managing Director Urs Ryf from December 01, 2020.

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