NetJets Buys German Airport Near Frankfurt

Feb 2, 2009
Jens Flottau/Frankfurt jflottau@freenet.de



Fractional ownership provider NetJets signed an agreement today to buy Egelsbach Airport, a general aviation field just South of Frankfurt International.

The field is considered key to improving access to the German banking capital, as well as the economically important Rhein/Main region.

NetJets says slot scarcity at the main airport played an important role in the decision. Roughly two-thirds of requests for slots are turned down if submitted one day before, the company points out. Bill Kelly, CEO of NetJets Europe, says that the region is therefore "underrepresented" in the NetJets network compared to other German bases.

Egelsbach has been operating at significant losses for the past few years leading its current shareholders - communities surrounding it - to sell their stakes. NetJets promises significant infrastructure investment. The airline wants to renew the apron and runway, install an instrument landing system (ILS) and extend the runway by several hundred meters to allow for aircraft up to a Hawker 800.

The field is the first airport NetJets has purchased. Operations are capped at 100,000 movements annually compared to 80,000 in 2008. Kelly says that leaves enough room to expand. A nightly curfew between 9 p.m. and 7 a.m. will be installed. Egelsbach will also be turned into a business park with several companies planning to invest around EUR100 million in addition to the EUR30-40 million earmarked by the fractional ownership provider.

The agreement is subject to approval by the city of Egelsbach, which is expected in March. Local initiatives are still trying to block the deal for noise concerns.

Photo: NetJets