• Germany's news in English
 
app_header_v3

New Berlin airport 'cannot service its loans'

The Local · 10 Aug 2012, 07:21

Published: 10 Aug 2012 07:21 GMT+02:00

The new Willy Brandt airport was due to open in June, but just weeks before the opening ceremony, the plans were cancelled and the start date pushed back to next March.

A new project manager was appointed to take care of the multitude of problems that still remain to be solved at the airport. He has since also questioned the new opening date of March 17, 2013.

Now it appears the financing of the project is doubtful. Initially set to cost €2.8 billion, the airport is now likely to cost more than €4.2 billion according to latest estimates.

Even the financial guarantees put up by the three shareholders – the states of Berlin and Brandenburg, and the federal government – are not enough to pay all the bills, the BZ newspaper said on Thursday.

The airport corporation (FBB) will have to find around €1.17 billion that it does not have, the paper said.

“Under the current costs and receipts structure the airport corporation is not in a position to continue to service the loans,” said the Brandenburg state government in answer to a written question from Ludwig Burkardt, finance spokesman for the state Christian Democratic Union.

“Insolvency could be registered as early as November,” he told the paper.

FBB spokesman Ralf Kunkel said this estimate was harsh. “There is no problem with liquidity at the airport corporation. The estimate is that the money will last until the end of the year and this has not changed,” he said.

The next board meeting on August 16 will discuss how the €1.17 billion needed after that can be found, he said.

But Burkardt said it was not just the missing €1.17 billion that was tricky.

Story continues below…

“The big problem is that the FBB can no longer service the loans it has, and which were awarded to it on the basis of the guarantees of the shareholders,” he said.

This is most likely to result in the taxpayer shelling out more money to keep the corporation afloat – or the European Union could rule that a publicly-funded rescue would be against the rules, and force the corporation to be sold, as it did in the rescue of Berlin's state bank.

The Local/hc

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
Pegida take to Dresden streets - to march against Pegida
Pegida demonstrators. Photo: DPA

Followers of the xenophobic Pegida movement marched in two factions on Monday evening in the capital of Saxony, brandishing fierce accusations of treason against one another.

Analysis
Is it fair to call the AfD far right?
AfD leaders, from left, Georg Pazderski, Frauke Petry and Jörg Meuthen. Photo: DPA.

The AfD has been dubbed "far-right" over the past year as it has taken on a tougher stance against immigration and made gains in state elections. But at what point does one call a group far-right?

Dresden police guard Islamic buildings after mosque attack
The Dresden mosque that was hit by a homemade bomb attack on Monday. Photo: DPA.

All Islamic buildings in the capital of Saxony have been put under police protection on Tuesday after explosive devices were detonated at a mosque and a congress centre in the city.

Germany blocks WhatsApp data transfers to Facebook
Photo: DPA

German data protection authorities on Tuesday said they had blocked Facebook from collecting subscriber data from its subsidiary WhatsApp, citing privacy concerns.

Stuttgart fest pulls in twice as many boozers as Oktoberfest
Is this Oktoberfest or is this Stuttgart's Cannstatter Volksfest? Can you tell the difference? Well, it's Stuttgart. Photo: DPA.

Apparently Munich is no longer the top place to wear lederhosen and down beer one litre at a time.

The Local List
10 German films you have to watch before you die
Photo: DPA

These films are so good, not even The Cabinet of Dr. Caligari made the list.

Young man destroys 17 cars after visiting Oktoberfest

Early on Monday morning a drunk 29-year-old trashed 17 cars after staggering out of Oktoberfest into the Munich streets. It was one of several eye-popping crimes from "Wiesn" over the past few days.

VW emissions scandal
Audi tech chief leaves after reports link him to 'dieselgate'
Audi's head of technical development Stefan Knirsch stepped down on Monday. Photo: DPA.

Audi's head of technical development stepped down "with immediate effect" on Monday, the luxury carmaker announced, after German media accused him of involvement in parent company Volkswagen's "dieselgate" scandal.

Deutsche Bank shares hit lowest level in quarter century
Photo: DPA.

Shares in Deutsche Bank, Germany's biggest lender, sank to a historic low on Monday after reports at the weekend that Berlin had refused state aid for the embattled lender.

The Local List
The 10 worst German cities for students to find digs
Photo: DPA

It's the start of autumn, which means the start of the university year. But along with the excitement comes the stress of finding housing - and in some glamorous locations this can be a nightmare.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
15 pics that prove Germany is absolutely enchanting in autumn
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
10 German films you have to watch before you die
Lifestyle
6 things about Munich that’ll stay with you forever
Lifestyle
10 pieces of German slang you'll never learn in class
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
6,621
jobs available
Toytown Germany
Germany's English-speaking crowd