Saturday - May 27, 2017

Fraport expands into US


Frankfurt Airport expansion gets the long awaited green light

German airport operator Fraport has made their first move into the US- with the acquisition of the company which operates retail space at four leading US airports.

Fraport have reportedly been long looking to expand its profitable retail operations into North America, and taken the first step by acquiring total ownership of AMU Holdings, owners of Airmail USA, for an undisclosed price.

Airmall controls franchised retail space in the Baltimore, Boston, Cleveland and Pittsburgh airports, covering a total of around 34,000 square meters of retail space at the four airports, containing around 270 retail, food and drink outlets at the four hubs.

While it is their first footprint in the United States, Fraport is used to running larger operations with their retail commodities alone at Frankfurt Airport, Europe’s third largest, covers around 41,000 square meters of retail space with 300 outlets operating under the one roof.

Managing Marketing space for retailers is recognized as being a lucrative source of income for airport operators. Fraport reported earnings before interest, tax, depreciation and amortization of $1.2 billion (€880 million) during 2013, with around $500 million of that coming from the retail and real estate operations.

Announcing their incursion into Europe Fraport chief executive Stefan Schulte stated that retailing business at our Frankfurt home-base has always been a growth engine, and With the acquisition of Airmall, “the company has succeeded in establishing a promising platform for developing our US business in the future.”

Fraport said that compared with European and Asian airports, many US airports had some catching up to do when it comes to the services they offer passengers.

Fraport, which also owns stakes in airports in Lima, Antalya, Varna and Burgas, currently has just one investment in the United States, a 100 percent-owned IT service company based in Orlando.

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