On June 1, 2021, the Ravensburg District Court opened insolvency proceedings under self-administration over the assets of Friedrichshafen Airport. In the course of the month, the financial plan developed by the management and the shareholders will be voted on in the creditors' committee. Lawyer Alexander Hubl acts as trustee.

Friedrichshafen Airport was already in deficit before the corona pandemic, but the crisis finally tore the airport's finances into the proverbial basement. The management had to apply for a protective shield procedure in February 2021 due to over-indebtedness. The Ravensburg District Court has now opened insolvency proceedings under self-administration. Nevertheless, one looks to the future with hope at Lake Constance.

“The increase in bookings in other European countries with an already higher vaccination coverage than in Germany shows that air traffic will recover again. That won't happen overnight, but after a long period of privation, the desire to travel will return. We have already done well in difficult times and achieved positive operational results. We assume that we will be able to do it again, ”explains Managing Director Claus-Dieter Wehr.

Investments in the infrastructure are pending

As early as autumn 2020, a package of measures was discussed in the committees of the two main shareholders and resolutions were passed on further financing. At that time, components included the compensation of the financial COVID-19 damage in the time of the lockdown from March to June 2020 in the amount of 1,9 million euros as well as temporary restructuring aid in the amount of 6 million euros. The latter has not yet been accessed.

The financial requirements in the next five years (until 2025) result from the operative business, the necessary investments and the financing costs. In the operational area, due to the COVID-19 pandemic, which will be reflected in lower passenger numbers beyond the lockdown from March to June 2020 until at least 2024, and to a lesser extent due to the insolvency proceedings under self-administration, a total of 13,9 million euros will be required.

In addition, investments in the infrastructure of 22,6 million euros will be necessary at the airport over the next five years. In addition, the financing costs will total 7,4 million euros up to 2025. This results in a total of around 43,8 million euros in funding for the next five years, or around 8,8 million euros annually. By 2024 at the latest, the operating business will be in the black again according to the plans, so that in the following years only subsidies for investments of a maximum of 3 million euros per year will be required.

Land is to be sold

The financial requirements can be covered by the measures that were already discussed in the committees of the two main shareholders in autumn 2020 and are to be confirmed again in the insolvency proceedings. A major part are financial subsidies, which also include temporary restructuring aid.

Another part of the financial package is to sell the airport property to shareholders or to companies in their vicinity and to lease them back by the airport. The resulting rental costs are then part of the annual operating costs. Talks are currently being held on this financing consideration.

The relief of the regional airports from air traffic control costs brought about by federal politics is another important component that supports the financing and possibly reduces the financial requirements in the future. The implementation of this cost reduction leads to equality with the 15 commercial airports controlled by DFS, which do not have to bear the costs for air traffic control themselves.

EU Commission has yet to examine

The financing plan must meet the requirements of the EU Commission under state aid law. "In joint discussions with specialist lawyers and the Commission, we discussed the key points of the financing and can therefore assume that we will be able to obtain their approval for this overall package," said Wehr.

The company's insolvency plan is taken into account in the financial plan, which in turn is subject, among other things, to the approval of the EU Commission for the overall concept. “We have worked very constructively and focused on restructuring the company over the past few months. I am convinced that with all measures we can put the company back on a solid footing, ”says Mr. Alexander Hubl from the law firm SGP Schneider Geiwitz & Partner, who accompanies and monitors the insolvency proceedings as trustee.

The competent bankruptcy court in Ravensburg opened the insolvency proceedings on June 1, 2021 under self-administration and scheduled the creditors' meeting for the end of July. The insolvency proceedings in self-administration are formally terminated after the approval of the creditors' meeting of the insolvency plan and the EU Commission of the financing plan. This can be expected by the end of the year at the latest.