Thursday, June 12, 2014

BER Update

It's a curious piece out of the Potsdam Neueste Nachrichten newspaper today.  The Green Party paid up an analyst to take all the public data given out by the Berlin Airport (BER) crowd....which is still in the incomplete status and likely to be 2016/2017 before it's opened (more than six years late).

What the financial analyst came to....was a shocking revelation.  Basically....with all cost figured and the best scenarios laid out.....the airport (new as it is)....would still be 150 million a year short on profit.

This takes into account the normal rent for concession folks, and the normal fees for takeoffs and landings.

Naturally, the operations crowd for the new airport jumped up immediately said that this was simply not the case.  Then, they left it there on the floor....with no further details.

The big trigger for the limited profits?  Well....there's some wording in the agreement that night flights are severely limited.  They didn't lay out the hours but it appears that it's NOT a twenty-four hour operation and likely to be more of a smaller regional airport deal.

What's this mean?  There are two curious things here.  One.....the existing two older airports were both to close within a year after BER opens.  If you look at this profitability situation.....I'm guessing one of the two will stay on, and likely take the role of a twenty-four hour flight center (night flights).

The second thing is that these guys likely knew the limited profit scenario back in the 1990s and never said a word.  This was the angle that the Koln municipal folks did with the event center construction in the early 1990s.....when a financial analyst said it'd never clear any profit or cover operations cost (before it was ever built, the report was issued and reportedly never read).  The political figures in Berlin back in the late 90's likely knew this no-profit situation?  Yeah.....I'd take a pretty good guess that they knew and just thought they'd let everyone know later that a second airport was now required.

Incompetence?  No.....someone knew exactly how to milk the system....get billions in cash....pay off various construction companies.....and get some payback to their political party for helping.  Hostility?  I would imagine no one in Berlin really cares much anymore.  The airport is a joke.....already considered too small for the needs of the city.....and likely never be the international airport that everyone talked up and bragged about.

No comments: