Details on Value Management Program "WM 2005 - Creating Future
Frankfurt, Germany (ots) - Management and employees of the company
operating Frankfurt Airport intend to contribute to a sustainable
increase of the value of the company. The name of the new Group-wide
project is "WM (Value Management) 2005 - Creating Future Values"
which was initiated by Fraport AG in autumn 2001 and will continue to
The measures being currently implemented should effect an
improvement of the results by at least euro 150 million in 2005.
Johannes Endler, Member of the Fraport Executive Board in charge of
Finance: "The objective is to achieve an EBITDA margin between 35 and
40 percent by 2005". For the years 2002 to 2004 Fraport expects a
total of EBITDA improvements in the range of additional euro 150
million, of which at least euro 10 million are to be already
accomplished by the end of this year. Dr. Wilhelm Bender, Chairman of
the Executive Board of Fraport AG: "This underlines our confidence to
generate an EBITDA of at least euro 500 million for 2002".
During the past months all divisions of the Group were carefully
examined to find possibilities to cut costs, optimize work procedures
and to improve profit. This project, which consists of 21 partial
projects, also focussed on strategic topics such as the review of the
associated companies portfolio and a sharp look at all central
functions. The result of this preliminary work was a package of 100
specific measures which are now being implemented step by step over
the entire project period.
Examples of these effective and sustainable measures are the
strategic development of the airport from a pure traffic location to
an attractive business location, optimization of the procedures
involving both real estate management and terminal management as well
as the continuous review of cost-saving options for some activities.
In addition, the available work force must be in a position to handle
peak working times (high demand for services) better, for example by
optimized working hours concepts in operational divisions.
The identified potentials to increase work force productivity are
to be achieved during the project period by not always replacing
employees that leave the company and intensified filling of job
vacancies with people already working for the company. Furthermore,
the work load distribution within the Group must be optimized and -
dependent on the market situation - for certain functions in specific
divisions the options must be considered, possibly with cooperation
partners at the location.
Considering the expected traffic development at this airport,
Frankfurt Airport will continue to offer a growing number of jobs.
Based on independent expert opinions, approximately 30,000 additional
jobs will be created in connection with the planned expansion of this
airport. The project "WM 2005" helps create the foundations by
improving the competitiveness of Fraport AG - the operator of
ots Originaltext: Fraport AG
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