Berlin airport calls for cash to stave off bankruptcy

Berlin Brandenburg Airport (BER) finally opened last year after an eight-year delay, but it already needs a snap injection of large amounts of cash to avoid bankruptcy, the new CEO said on Saturday.

Berlin Brandenburg Airport.
The main entrance to Berlin-Brandenburg Airport. Photo: picture alliance/dpa | Paul Zinken

“We need money quickly, we need cash,” CEO Aletta von Massenbach told the newspaper Tagesspiegel.

The Flughafen Berlin Brandenburg Gmbh (FBB) operator should have enough liquidity available to continue to trade “until the first quarter of 2022”, the CEO said.

FBB also faces clearing a “big payment to reimburse debt” in February.

The operator’s public owners — the federal government and the states of Berlin and Brandenburg — have pledged to pump in 2.4 billion euros ($2.8 billion) by 2026.

“It’s very bitter for us to need so much money for BER,” admitted von Massenbach, who took charge on October 1st. “There is no plan B.”

The airport has been called cursed, after the opening was put off repeatedly amid technical difficulties and allegations of corruption. It has so far cost six billion euros — three times more than planned.

READ ALSO: REVEALED: The real story behind Berlin (BER) airport’s nine-year delay

READ ALSO: ‘No risks’ ahead of Berlin Brandenburg (BER) airport opening in October 2020

And Berlin international finally opened just as international air traffic collapsed with the global spread of the coronavirus pandemic.

It came in for more criticism as the autumn holidays brought chaos to the terminal with huge check-in queues causing passengers to miss flights, partly because of a lack of staff.

Newspapers report regular problems such as dustbins overflowing, damaged tiles, and lifts and escalators frequently being out of service.

Tagesspiegel said the airport management team is next week due to put forward proposals to tackle the problems. And von Massenbach is to have talks with the Transport Minister Andreas Scheuer.

Member comments

  1. This airport is a disaster. I no longer want to fly anywhere because of it. I say blow it up and start over.

    Flying in and out of Tegel was so easy, not we have to deal with hour long security lines, undrinkable water, and where in the hell is this airport? It is so far away from the city.

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UPDATE: When will Germany’s €49 ticket start?

Germany announced a €49 monthly ticket for local and regional public transport earlier this month, but the hoped-for launch date of January 2023 looks increasingly unlikely.

UPDATE: When will Germany's €49 ticket start?

Following the popularity of the €9 train ticket over the summer, the German federal and state governments finally agreed on a successor offer at the beginning of November.

The travel card – dubbed the “Deutschlandticket” – will cost €49 and enable people to travel on regional trains, trams and buses up and down the country.

There had been hopes that the discount travel offer would start up in January 2023, but that now seems very unlikely.

READ ALSO: What you need to know about Germany’s €49 ticket

Martin Burkert, Head of the German Rail and Transport Union (EVG) now expects the €49 ticket to be introduced in the spring.

“From our point of view, it seems realistic to introduce the Deutschlandticket on April 1st, because some implementation issues are still unresolved”, Burkert told the Redaktionsnetzwerk Deutschland on Monday. The Association of German Transport Companies, on the other hand, said on Wednesday that they believe the beginning of May will be a more realistic start date.

The federal and state transport ministers have set their sights on an April deadline, but this depends on whether funding and technical issues can be sorted out by then. In short, the only thing that seems clear regarding the start date is that it will be launched at some point in 2023. 

Why the delay?

Financing for the ticket continues to cause disagreements between the federal and state governments and, from the point of view of the transport companies, financing issues are also still open.

The federal government has agreed to stump up €1.5 billion for the new ticket, which the states will match out of their own budgets. That brings the total funding for the offer up to €3 billion. 

But according to Bremen’s transport minister Maike Schaefer, the actual cost of the ticket is likely to be closer to €4.7 billion – especially during the initial implementation phase – leaving a €1.7 billion hole in finances.

Transport companies are concerned that it will fall to them to take the financial hit if the government doesn’t provide enough funding. They say this will be impossible for them to shoulder. 

Burkert from EVG is calling on the federal government to provide more than the €1.5 billion originally earmarked for the ticket if necessary.

“Six months after the launch of the Deutschlandticket at the latest, the federal government must evaluate the costs incurred to date with the states and, if necessary, provide additional funding,” he said. 

READ ALSO: OPINION: Why Germany’s €49 travel ticket is far better than the previous €9 ticket

Meanwhile, Deutsche Bahn has warned that the network is not prepared to cope with extra demand. 

Berthold Huber, the member of the Deutsche Bahn Board of Management responsible for infrastructure, told the Welt am Sonntag newspaper that a big part of the problem is the network is “structurally outdated” and its “susceptibility to faults is increasing.” 

Accordingly, Huber said that there is currently “no room for additional trains in regional traffic around the major hub stations” and, while adding more seats on trains could be a short terms solution, “here, too, you run up against limits,” Huber said.

So, what now? 

Well, it seems that the federal states are happy to pay half of whatever the ticket actually costs – but so far, the federal government has been slow to make the same offer.

With the two crucial ministries – the Finance Ministry and the Transport Ministry – headed up by politicians from the liberal FDP, environment groups are accusing the party of blocking the ticket by proxy. 

According to Jürgen Resch, the director of German Environment Aid, Finance Minister Christian Lindner and Transport Minister Volker Wissing are deliberately withholding the necessary financial support for the states.

Wissing has also come under fire from the opposition CDU/CSU parties after failing to turn up to a transport committee meeting on Wednesday. 

The conservatives had narrowly failed in a motion to summon the minister to the meeting and demand a report on the progress of the €49 ticket.

“The members of the Bundestag have many unanswered questions and time is pressing,” said CDU transport politician Thomas Bareiß, adding that the ticket had falling victim to a “false start”.