End for Third Runway at Vienna-Schwechat Airport

"After a thorough analysis of all relevant decision factors, the board of Flughafen Wien AG decided today (Tuesday, note)," said Vienna-Schwechat Airport on Tuesday evening. The company can continue to grow with the planned two-runway system and its expansions.

Vienna-Schwechat Airport aims for up to 52 million passengers annually with two runways

The plan is to handle up to 52 million passengers annually, it was further stated. "The decision made means that the payments incurred from 2018 to 2020 from the mediation agreement to the environmental fund and neighboring communities, which were activated for the runway project, are not to be adjusted for liquidity purposes with minus 55.9 million in the 2025 balance sheet," was communicated regarding the financial impact for the company.

Forecast for construction costs for the third runway at Vienna-Schwechat Airport explodes

"In addition to the massively increased forecasted construction costs of around two billion (euros, note), the conditions have fundamentally changed due to the excessively long procedure duration," explained airport board members Julian Jäger and Günther Ofner via a press release. "In 2005, 71 passengers were transported per flight movement, by 2024 it was already 139 passengers due to the use of larger aircraft, which eases the pressure on runway capacity."

The airport chiefs also point to a difficult refinancing of the large-scale project. "A decisive factor for the decision is also that the largest airline customers at the location are opposed to the project and without refinancing through higher tariffs, the economic basis of the investment is not feasible."

Long procedure duration and many opponents for the third runway at Vienna-Schwechat Airport

Another reason for the decision was the still pending decision of the Administrative Court (VwGH) 17 months later in the appeal against an amending decision of the Federal Administrative Court in the proceedings concerning the extension of the construction period. The long duration has always been criticized by airport representatives.

The VwGH is currently examining, as part of a complaint by Vienna Airport, whether the postponement for the construction permit shortened by the Federal Administrative Court (BVwG) from 2033 to 2030 is legally valid. A decision was most recently expected for 2026 - in the same year, the airport wanted to make a final decision on the construction of the long-controversial project.

Third Runway at Vienna-Schwechat Airport First Planned in 1996 for 2015

Business and tourism representatives in the eastern region were mostly in favor. Environmentalists and local residents were against it. The dispute has been ongoing for a long time, sometimes intensively. Looking far back, Vienna Airport already planned a third runway in 1996 to be completed by 2015. Those were different aviation times with far fewer passengers, in Vienna there were 8.5 million in 1995. With a third runway, they aimed to reach about 23 million. Most recently, as described, there were over 30 million travelers with two runways.

The airport is owned 20 percent each by the City of Vienna and the Province of Lower Austria (20.0). The Flughafen Wien Employee Participation Private Foundation holds 10 percent. The Airports Group Europe S.à r.l. and the free float account for around 44 and 6 percent, respectively.

Financial Impact of Cancellation of Third Runway at Vienna-Schwechat Airport

"The decision made results in the payments incurred from 2018 to 2020 from the mediation agreement to the environmental fund and to neighboring communities, which were activated for the runway project, not being cash-effective to be written down by minus 55.9 million in the 2025 balance sheet," it was communicated regarding the accounting impact for the company. Due to the write-down, a net result before minorities of 210 million is expected this year instead of the previously estimated around 230 million euros. The new guidance also includes positive effects of better traffic development in recent weeks than originally assumed.

(APA/Red)

This article has been automatically translated, read the original article here.