In a significant strategic U-turn, the state capital Klagenfurt has decided to retain its shares in Klagenfurt Airport (KLU) for the time being and to provide a financial injection for necessary investments.
This decision puts an end, for the time being, to speculation about a possible withdrawal of the municipality from airport operations and signals a commitment to the airport's role as a key piece of transport infrastructure in Carinthia. The financing of the city's investments is to be partially generated by leasing unused land on the airport grounds, a step considered key to covering the airport's future costs.
This decision, announced on Tuesday, represents a significant milestone in the restructuring and realignment of Klagenfurt Airport, which has repeatedly been at the center of financial and political disputes in recent years. Over the next two years, Klagenfurt will participate in the investments alongside the state of Carinthia.
Financial participation and securing liquidity
The state capital Klagenfurt sees itself as obligated to contribute to securing flight operations and further developing the infrastructure. According to Finance Councillor Constanze Mohar (SPÖ), the city's share of the upcoming airport investments amounts to €1,3 million. She confirmed to ORF Carinthia that Klagenfurt will continue its financial commitment over the next two years to provide the necessary funds together with the state of Carinthia.
This step is being taken against the backdrop of a complex ownership structure, in which the State of Carinthia and the City of Klagenfurt play a crucial role in ensuring the airport's strategic direction. The decision to provide fresh capital is a necessary signal from the public sector to strengthen the financial stability of Carinthia's air traffic hub and enable necessary modernizations. Municipal involvement is often decisive in securing the airport's creditworthiness for major development projects.
Value creation through land development
The central component of the new financial strategy is the development and leasing of unused land on the airport grounds. Finance Councillor Mohar anticipates that after the successful leasing of these properties, the airport will once again be able to operate on a cost-covering basis. This would significantly reduce its dependence on direct public subsidies.
In early October, Europe-wide tenders were launched for the development of over 420.000 square meters of so-called high-quality land. The areas being tendered are located in the south, north, and southeast of the airport grounds. The plans envision specific uses for non-aviation-related commercial purposes, including the construction of a supermarket and a hotel.
This so-called "non-aviation" business is becoming increasingly important for airports worldwide, as it offers a stable source of revenue independent of fluctuating flight operations. By developing and leasing adjacent properties, the airport can create a consistent revenue base that contributes to covering fixed costs and financing the operating costs of the runways and terminals. It is a common model that aims to develop the entire airport area as a mixed-use commercial zone focusing on logistics, hospitality, and retail, with the properties remaining under the ownership of the airport operating company.
Background to the ownership dispute
The city's decision to retain its shares for the time being is directly related to the turbulent ownership situation of Klagenfurt Airport in the recent past. The airport operating company, Kärntner Flughafen Betriebsgesellschaft mbH (KFBG), was previously majority-owned by a private investor, which led to considerable political tensions and discussions about its future strategic direction.
The private investor had repeatedly attempted to sell his majority stake, prompting the city of Klagenfurt and the state of Carinthia to consider whether to also sell their shares or exercise their so-called "right of repurchase" to fully reintegrate control of the critical infrastructure into public ownership. The decision now made to retain the shares and participate in investments signals the public owners' primary interest in maintaining control over the site's development and securing its position as a regional transportation hub.
Agreement on the necessary steps for area development and cost coverage is an important element to ensure the future viability of Klagenfurt Airport.
Regional importance of Klagenfurt Airport
Klagenfurt Airport plays a vital role in Carinthia's regional economy. It serves as a gateway for tourism, particularly during the summer season, and is a key factor in attracting local businesses. Ensuring continued flight operations is therefore not just a financial matter, but a matter of regional competitiveness.
To secure the airport's role in the long term, not only are revenues from non-air traffic activities important, but also improved flight connections, particularly to key European hubs. The public funding and infrastructure development aim to make the airport more attractive to airlines and draw new routes to Klagenfurt, thereby increasing flight frequencies and improving the region's accessibility.
Klagenfurt's decision to retain its shares and participate in the value chain through land development marks a pragmatic shift in airport policy. Instead of shirking their responsibility, the public owners are pursuing a strategy of controlled development and diversification of revenue streams to secure the long-term future of Carinthia's air traffic hub.