The municipal council group of the Neos party in Linz has submitted a formal request under the Freedom of Information Act to obtain the full release of a commercial valuation of Linz Airport by the consulting firm KPMG.
The trigger for this step is the release of partial results from an analysis that attests to the Upper Austrian airport having a negative enterprise value and an estimated liquidation value of only two to four million euros. Given pending investment decisions and the ongoing debate about the future of the city's shares, the opposition is demanding the disclosure of all calculation methods, audit mandates, and future scenarios. This matter raises fundamental questions about the economic viability of smaller regional airports, the transparency of public authorities, and the future direction of Upper Austria's transport infrastructure.
Background to the company valuation and reactions of local politicians
Linz Airport, officially known as Linz-Hörsching Airport, is owned by the State of Upper Austria and the City of Linz, each holding a 50 percent stake through their respective holding companies. Like many regional airports in Central Europe, the site has faced structural challenges for years. The decline in scheduled and feeder flights to international hubs, along with changing travel habits, has significantly impacted passenger numbers, while at the same time high fixed costs are incurred for maintaining operations, flight safety, and infrastructure.
Against this backdrop, the owners commissioned the auditing firm KPMG to prepare a comprehensive valuation report. The initial findings of this analysis sparked considerable debate in Upper Austrian state politics and Linz city politics. The reported negative valuation indicates that the airport's future revenues will not cover operating costs and investment needs under the current circumstances. Even in the event of a theoretical liquidation and breakup of the business, the remaining proceeds from the sale of the assets, after deducting all liabilities and liquidation costs, would be estimated at only two to four million euros.
Application under the Freedom of Information Act and arguments of the Neos
Stefan Burgstaller, a member of the Linz city council from the Neos party, justified the request for the release of the document by citing the city's responsibility to taxpayers and its assets. According to the party, the piecemeal release of individual key figures is insufficient for a sound political and economic assessment. The Freedom of Information Act, which aims to strengthen the transparency of public bodies towards the public, serves as the legal instrument to obtain access to the complete documents, including all appendices and supporting calculations.
The motion includes not only the final expert report itself, but also the owners' precise audit mandate to KPMG, the valuation methods used, and the underlying assumptions regarding the future development of the air transport market. Burgstaller emphasized that the parliamentary group was not seeking the immediate implementation of a sale or closure of the airport. Rather, the municipal council needed to be enabled to objectively weigh risks, opportunities, and alternatives against each other before making upcoming financial decisions.
Economic challenges and upcoming investment needs
The debate surrounding the company's value comes at a time when Linz Airport is facing infrastructure upgrades. Operating runways, taxiways, terminal buildings, and safety and firefighting equipment requires continuous reinvestment to comply with stringent European civil aviation regulations. Since ongoing operating revenues from passenger and cargo traffic only partially cover these expenses, maintaining the current operating model could lead to further subsidies or capital injections for the owners.
While cargo traffic has historically been a more stable pillar of the Linz airport's economy compared to passenger traffic, the airport remains under considerable pressure in the area of scheduled flights from neighboring airports such as Vienna, Salzburg, and Munich. The decision as to whether the city of Linz should retain, sell, or restructure its stake depends largely on the synergies and regional economic benefits attributed to the location. Critics demand that such economic gains be clearly quantified and weighed against the ongoing costs.
Outlook on the further procedure and the political debate
The decision regarding the release of the KPMG report now rests with the relevant municipal authorities and the owners' representatives. Should the request under the Freedom of Information Act be granted, the detailed disclosure of the calculations is likely to trigger an in-depth debate in the Linz City Council and the Upper Austrian Parliament. The central question will be under what conditions the economic consolidation of Linz Airport is realistic and what role the state and the city intend to play as future owners.
Regardless of the outcome of the information request, this case illustrates that transparency requirements for municipal holding companies have increased. When public funds are used to cover operational deficits or for long-term investment projects, policymakers and the public are increasingly demanding complete insight into the underlying business decision-making processes.