LU X I N T R O LU X S TO R I E S LU X F AC T S Welcome Table of Contents LUX INTRO LUX STORIES 04 Message from the Chairman 12 Rising to the Challenge Tom Weisgerber 06 Message from the CEO René Steinhaus 08 Our Year in Numbers 24 Ramp-up: An Adventure During Strange Times 34 A Massive Team Effort 42 In Brief 54 Outlook 12 RISING TO THE CHALLENGE Jump to the story
LUX FACTS 60 Passenger Numbers 62 Cargo Development 66 Airlines 68 Destinations 70 Shareholdings 71 Financial Performance 74 Governance 24 RAMP-UP: AN ADVENTURE DURING STRANGE TIMES Jump to the story 34 A MASSIVE TEAM EFFORT Jump to the story
LU X I N T R O LU X S TO R I E S LU X F AC T S “A motivated team and a solid infrastructure are the best foundations to navigate such a time of change.”
A N N UA L R E P O R T 2 0 2 0 4 — 5 Message from the Chairman Prepared for a New Normal 2 020 was an extraordinary and drastic year for the entire aviation industry: grounded fleets, a very dynamic situation with changing rules and uncertainty about the future all left their mark. Luxembourg Airport was no exception: passenger numbers fell to 2003 levels – a decline of 68 percent compared to the year 2019. There are, however, positive developments to report. The cargo sector has grown in im- portance, and in this respect, Luxembourg Airport is in an excellent position. Being a freighter hub, the plunge of inter- national bellyhold freight capacity and shift to all-cargo capacity, combined with a strong demand for logistic supplies (e.g. protective and medical materials), contributed to 2020’s increase in cargo volume by 6.1 percent, representing the second-best annual cargo volume ever. The airport played a crucial role at the height of the Corona crisis, which again shows its importance for Luxembourg and the Greater Region – both during normal times and in a crisis. We will continue on our course of infra- structure development, such as the runway refurbishment, the modernisation of the baggage handling system and other invest- ments. A motivated team and a solid infra- structure are the best foundation to navi- gate such a time of change. I want to thank everyone for continuing to rise to the challenge. Tom Weisgerber CHAIRMAN OF THE BOARD
LU X I N T R O LU X S TO R I E S LU X F AC T S Message from the CEO Staying Strong in a Challenging Year I t would seem that 2020 saw only one event: the Corona crisis and its radical impact on our industry. A closer look, however, reveals a much richer picture. The airport, for example, stayed open throughout the lockdown, keeping operations going for cargo traffic, the safeguarding of the medical supply chain and the organisation of medical and repatriation flights. A big thank you to everybody involved, not only at lux-Airport. This annual report is now fully digital and accessible via a dedicated website, in line with our efforts to go contactless. Worth highlighting in that regard is lux-Airport‘s new car-park booking system that was launched in 2020. The awarding of the Airport Health Accreditation (AHA) certification by the Airport Council International (ACI) illustrates how well the lux-Airport team handled the situation: we were one of the first airports in Central Europe to receive this certification.
A N N UA L R E P O R T 2 0 2 0 6 — 7 “The extraordinary circumstances required adaptation, creativity and commitment by the whole team.” The extraordinary circumstances required adaptation, creativity and commitment by the whole team. Many at lux-Airport have shown their eagerness to make things happen and get the job done: on many occasions during 2020, great efforts were required at short notice. As the impact from this crisis continues, the need for a spirit of dedication and close collaboration across many parties, even beyond aviation, remains. René Steinhaus CHIEF EXECUTIVE OFFICER
LU X I N T R O LU X S TO R I E S LU X F AC T S Facts & Figures Our Year 2020 in Numbers NONSTOP FLIGHT DESTINATIONS* EMPLOYEES 348 104 TONNES CARGO 947,000 CARGO DEVELOPMENT SCHEDULED PASSENGER AIRLINES 6.1 % 16
A N N UA L R E P O R T 2 0 2 0 8 — 9 PASSENGERS 1,425,880 DECREASE IN PASSENGER NUMBERS TOTAL MOVEMENTS -68 % 38,540 CARGO MOVEMENTS 13,588 * The airlines have adapted their port- folio regularly due to the pandemic and the changing travel restrictions.
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A N N UA L R E P O R T 2 0 2 0 10 — 11 LUX STORIES Chapter 02
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A N N UA L R E P O R T 2 0 2 0 12 — 13 Rising to the Challenge To say that the year 2020 brought unexpected challenges for the aviation industry would be a vast understatement. At lux-Airport, every department had to deal with the crisis in its own way as well as in cooperation with the others. We asked some of the people who made it possible for the airport to keep operating throughout the crisis about their impressions, how they solved the various challenges and how they dealt with the pressure of a novel and uncertain situation.
LU X I N T R O LU X S TO R I E S LU X F AC T S A irside operations: staying on top of things “There have been many challenges for operations because of COVID. For example, we have had to deal with the cancellation of flights: because at the beginning, nobody could predict the further develop- ments, we received notice only on a week to week basis. This meant we had to constantly reschedule. Meanwhile, the repatriation, cargo and medical flights were in full swing, and because of the grounded fleet, the parking space filled up quickly. To mitigate this, the teams had to be creative and reactive to meet the demand. Another difficulty was that we had to separate the security and operations teams at the control centre due to the hygiene requirements. Wildlife management was a challenge, too, because there were far more birds and other animals due to less overall activity at the airport! But I think the team managed quite well.” “We had to reschedule on a week to week basis.” — Derek Allard, Head of Airside Operations
A N N UA L R E P O R T 2 0 2 0 14 — 15 “The demand for protective equipment was huge, so we needed creative solutions.” — Simone Afonso, Purchasing Department P urchasing Department: chasing protective equipment “The need for protective equipment such as masks, disinfectant, gloves and acrylic glass (for protective screens) was immense. We needed to have enough equipment for everyone, staff in direct contact with passengers at the terminal as well as office staff. You can imagine that demand was huge and supply short, so we had to manage our stock of COVID-related products very carefully. We are also proud that we managed to offer everyone working at lux-Airport free PCR tests. It was not easy to organise testing, as it was again something everyone was trying to obtain, but in the end we made it.“
LU X I N T R O LU X S TO R I E S LU X F AC T S C ustomer Service: many questions “Our priority is always to help the customer and answer all questions. Of course, in 2020, we received many questions that were exclusively about COVID: how does the test work? Where do I get it? What do I need to know? On the other hand, the usual questions about flight schedules became rare. So we always had to stay on top of all regulations and new developments. Working from home was a novelty for us, but in the end we managed to handle this new situation pretty well. It’s good that we have such a flexible team, which made coordination easy. Everyone understood that we need to adapt.” “It’s good that we have such a flexible team.” — Maria Machado, Customer Service & Infodesk Coordinator
A N N UA L R E P O R T 2 0 2 0 16 — 17 “Everyone was in urgent need of the same supplies at the same time.” — Jean-Luc Sondag, Head of Maintenance M aintenance: serving everyone at once “Everyone was in urgent need of the same supplies at the same time: acrylic glass for protective screens, hand sanitiser etc., while prices exploded. We solved these issues with efficient teamwork within the COVID task force and our strong relations with our contractors who supported us quickly and efficiently in implementing all new measures. The work of our technicians and their schedule has been adapted to reduce the risk of contamination. We formed ‘work bubbles’: their shifts don‘t overlap and people don‘t move between bubbles. This is not good for social relations, but that way we pre- vented colleagues from infecting each other. This means that the measures in place have been efficient.”
LU X I N T R O LU X S TO R I E S LU X F AC T S “We needed to respond at short notice.” — José Vieira de Freitas, Head of Terminal Operations T erminal Operations: changing stakeholder needs “We keep having to implement and follow new policies regarding all COVID facilities at the airport. This means we have to adapt constantly. But we also consider our facilities to be a service for our passengers: for example, they can be tested within the airport, no tents or outside arrangements! We also take extra care that we don’t lose capacity, that there are no big queues and that the communication is always right. Of course, there are many challenges, such as the need for transit passengers from non-EU countries to be tested in a testing facility at baggage reclaim, or certain airlines demanding extra tests. Government, airlines and passengers all have their demands, and these can change quickly – so we needed to respond at short notice.”
A N N UA L R E P O R T 2 0 2 0 18 — 19 I T Department: setting up offices at home “When everyone started working from home, our team from the IT Department had to be on site, putting everying in place. Within less than 2 weeks we needed to establish solutions to enable our colleagues to work from home. It‘s about equipment and access rights but also about online meeting tools and their use. We supported the teams by putting everything in place, giving everyone a laptop, configuring the VPN, dealing with compliance issues and so on. But we managed to handle the workload. I think many colleagues appreciate that we did our best so that they can work from home.” “Everything had to be done very quickly.” — Mathieu Laplanche, IT department
LU X I N T R O LU X S TO R I E S LU X F AC T S “We collaborated with almost all departments.” — Coralie Delferier, Internal Communications Officer H uman Resources: a challenge for our internal organisation “The corona crisis has led us to challenge our internal organisation. Our staff have shown a lot of commitment to face these extraordinary events, which strongly impacted our activities. To mention but a few of our responsibilities: we had to inform the staff about the situation and current measures, organise a safe environment, answer questions, check safety installations, and much more. To achieve this, we have collaborated with almost all departments.“
A N N UA L R E P O R T 2 0 2 0 20 — 21 R etail & Business Development: making partners happy “We had to coordinate everything with our commercial and retail partners: specific safety concepts that are compliant with the fast adaptation of COVID rules, individual alignment of opening hours according to the airlines‘ flight schedules, to mention only two things from a much longer list. The goal was to keep as many shops open as possible while minimising the risk. This has not always been easy – for example, some of our com- panies also operate in countries where they faced longer lock-down periods, resulting in a slowdown and delay in supply management for our location. So we had to work together to find creative solutions for our specific situation at lux-Airport, where traffic recovery was a step ahead of the European average. We were also involved with setting up the test centre at the airport and we became the second airport in Europe to accomplish this!“ “The goal was to keep as many shops open as possible while minimising the risk.” Head of Retail & Business Development — Petra Emmerlich,
LU X I N T R O LU X S TO R I E S LU X F AC T S M arketing & Communication: updates, updates, updates “New information came in all the time, so we had to update the website for our passengers constantly, as well as regularly answer requests from journalists. Everyone wanted to know what the status was, what protective measures were in place, which airlines operated at that moment, and when flying will be possible again, and if so, under what conditions. When Luxair started operating again, we witnessed a big surge in hits on the website. One thing that helped a lot was a dossier we created to bring all the important information together, and we also developed FAQs that are helpful both for the passengers and the lux-Airport staff.” “New information came in all the time.” — Rebecca Pecnik-Welsch, Manager Marketing & Communications
A N N UA L R E P O R T 2 0 2 0 22 — 23
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A N N UA L R E P O R T 2 0 2 0 24 — 25 Ramp-up: An Adventure During Strange Times When the pandemic struck the aviation industry, we had to deal with an unprecedented situation. Not only did the airport have to ensure safe and reliable operations for cargo, medical and repatriation flights — the team also had to prepare for ‘take-off’ under an entirely new set of rules in record time. I t was a very strange time: there were not many passengers but many people carried on working, new COVID-related rules on top of the many regular rules, many projects, lots of work.” This is how Steve Bartholomé, Engineer Infrastructure & Maintenance at lux- Airport, sums up the situation after COVID struck. After all, the team had to make sure the airport remained operational and they needed to imple- ment new rules to protect the staff and other stakeholders while prepa- ring the airport for going back to “the new normal” – all at the same time.
LU X I N T R O LU X S TO R I E S LU X F AC T S “I had a lot to do during the ramp-up, constantly checking whether there is new information about rules and procedures,” remembers Coralie Delferier, Internal Communications Officer. “When the crisis started, nobody was really ready for this.” And how could anyone be prepared for a situation so new, so unexpected? However, despite all that, the team eventually not only managed to get by but they really made a difference.“
A N N UA L R E P O R T 2 0 2 0 26 — 27 “When the crisis started, nobody was really ready for this.” — Coralie Delferier, Internal Communications Officer
LU X I N T R O LU X S TO R I E S LU X F AC T S “We had only two weeks to prepare.” — Petra Emmerlich, Head of Retail & Business Development TIME TO DELIVER A good example of how everyone rose to the challenge was the preparation for the first passengers to arrive at the airport after lockdown. “When we learned that we would welcome the first passenger flight after lockdown, we had only two weeks to prepare everything and implement all the new rules,” says Petra Emmerlich, Head of Retail & Busi- ness Development. During the ramp-up, she was responsible for coordination with the shops and businesses at the airport. The crucial question was: what do the passengers need? “They are used to freely moving in an airport, drinking, eating, and shopping. We wanted to provide what was possible while ensuring their safety.” Emmerlich explains. Concepts needed to be developed across departments, signs had to be printed, and schedules had to be organised. “Sometimes, it took until late at night before everything was coordinated,” she remembers. “For example, how do we manage the queues at the check-in? The Operations Department brought their expertise to the table, and we contributed our view.”
A N N UA L R E P O R T 2 0 2 0 28 — 29
LU X I N T R O LU X S TO R I E S LU X F AC T S The goal was to present a clean airport, to make passengers feel safe. But also to send the message: you are welcome for safe travel. “That is why we came up with our very own concept,” explains Rebecca Pecnik, Manager Marketing & Communications. “We are a small airport with a focus on quality, so we didn’t want to copy and paste something others have done but do it in our own unique way.” Despite having only two weeks to pull everything off, the team suc- ceeded in the quest for combining safety with a unique approach.
A N N UA L R E P O R T 2 0 2 0 30 — 31 For example, the wording on the Corona- related signage is welcoming rather than commanding, pictograms depict both men and women, logos are custom-made, and everything is executed with an eye for detail.“ Despite the stress, we even enjoyed the challenge because we were looking forward to welcoming back our passengers and partners – this is lux-Airport, and it is not like any other,” Pecnik-Welsch puts it. To which Petra Emmerlich adds: “We didn’t care about dark circles under our eyes. It was a very challenging time, but also very interesting because we had to go beyond our limits every day. You get a different perspective on things.” “Despite the stress, we even enjoyed the challenge.” — Rebecca Pecnik-Welsch, Manager Marketing & Communications
LU X I N T R O LU X S TO R I E S LU X F AC T S GREAT TEAM SPIRIT The success of the ramp-up was a team effort where everyone had to work closely together under completely new circumstances. “It was hard to respond to all the needs regarding protective items, masks, acrylic glass screens and so on. But it became clear that our main goal was to protect our security officers who were in contact with all the workers and staff at the airport,” says Luc Simon, Security Projects & Procedures Officer. His conclusion: “We really experienced a great team spirit during this challenge.” “We really experienced a great team spirit during this challenge.” — Luc Simon, Security Projects & Procedures Officer
A N N UA L R E P O R T 2 0 2 0 32 — 33 And this is not just a subjective feeling: Luxem- bourg Airport was the first airport in Central Europe, and the eleventh worldwide, to be awarded the “Airport Health Accreditation“ (AHA) certification by the ACI for the imple- mentation of COVID measures. Also, lux-Airport was the second airport to open a fully-fledged COVID test centre – just after Rome. This again shows how well the ramp-up went, despite the huge workload and difficult situation.
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A N N UA L R E P O R T 2 0 2 0 34 — 35 A Massive Team Effort The upgrade of the baggage handling system (BHS) at the airport was one of those projects that gave the involved departments the opportunity to rise to a big challenge — and learn a lot. It also has been a reminder of just how crucial baggage handling is for the entire airport and beyond. I magine a situation where the baggage handling system shuts down for a few hours during peak times: huge queues, chaos at the check-in counters and gates, transit flights jeopardised, even a disruption of flight schedules way beyond Luxembourg. Such were the stakes during “operation BHS upgrade”. “We had to consider and prepare for many scenarios, including a situation of manual baggage handling during peak time,” says Alexander Wiegner. As Terminal Project Manager, he was part of the project team.
LU X I N T R O LU X S TO R I E S LU X F AC T S These fallback options were needed because, during the replacement of the first half of the system, there was no redundancy left should the other half of the system fail: WHAT IF THE X-RAY MACHINE MALFUNCTIONED? OR THE CONVEYOR BELT? FACTS AND FIGURES In light of the new EU regulation 2015/1998, three X-ray machines used for hold bag- gage screening have been replaced by new equipment using the latest technology. The project involved shut- ting down half of the system during opera- tion while the other half could be worked on. It now has been upgraded to “Standard 3 – Approved Explosive Detection Systems”.
A N N UA L R E P O R T 2 0 2 0 36 — 37 “It has really brought the team together.” — Alexander Wiegner, Terminal Project Manager “We prepared for different scenarios, one of which involved mobile conveyors and X-ray machines that could have been deployed to guarantee manual baggage handling even during peak hours,” remembers Wiegner. Back in February 2020, the team – with members from Security, Projects, IT and Operations – met at the airport at 3 am. Their intention: leave the baggage handling system switched off and see how it goes. The goal was to experience in real life how their fallback scenarios work in practice. “This was great training for all of us and has really brought the team together,” Wiegner reports.
LU X I N T R O LU X S TO R I E S LU X F AC T S In the end, the Corona crisis brought its own challenges – but in a way also made things easier. The typical passenger peak during summer didn’t materialise. Instead, the airport saw a drastic reduction in passenger numbers, like all airports around the world. This made some of the fallback scenarios less dramatic – and the team could use more daytime hours to install the new baggage handling system instead of working by night. Major challenges remained, though. “You need to keep in mind that the X-ray machine alone weighs 9 tonnes,” Project Engineer Andy Jadoul tells us. The level of technical expertise required for this project was high indeed: “We needed to consider the technical constraints of the building as well as the operational parameters at the terminal.” “I felt this was a tricky operation.” — Andy Jadoul, Project Engineer
A N N UA L R E P O R T 2 0 2 0 38 — 39 But Jadoul thinks that in the end, the project went very well. “I felt this was a tricky operation, where you need to be very attentive and do all and everything to avoid problems,” Jadoul sums up the necessary approach. After all, this project was not just about changing X-ray machines, but a complete overhaul of the system’s layout as well as the installation of new conveyor belts – and all that while keeping the system operational. GOOD TEAMWORK IS EVERYTHING “We are right on schedule and plan to have the entire baggage handling system back in operation before the now hopefully increasing passenger numbers of summer 2021,” Alexander Wiegner reports happily. The Corona situation slowed down logistics for a time, but the team managed to catch up. “With a project like this, there are always small problems coming up. Sometimes a part is too heavy, sometimes you need to build a new part, a delivery is delayed and so on. But as a team, we were so well-tuned that we could solve all these issues that might have delayed the progress or led to exceeding the budget,”Jadoul and Wiegner both agree. To achieve this, the team members held frequent meetings across departments, including all internal and external stakeholders.
LU X I N T R O LU X S TO R I E S LU X F AC T S The project also reminded us once again of the immense importance of the baggage handling system. “Imagine what happens to the connecting flights if the system is not available for a few hours,” Wiegner puts it. All the better that during the project, the team not only learned the ins and outs of the new system, but that it now knows precisely what to do, should the worst scenarios become reality. A big victory for team spirit. “The main challenge of the project: we had to implement all the changes while still remaining operational.” — Daniel Conrardy, Director Security
A N N UA L R E P O R T 2 0 2 0 40 — 41 3 questions for Daniel Conrardy, Director Security The project required a lot of cooperation across departments – how did you go about it? The cooperation within the project team and with all departments involved was very good. The project’s extreme com- plexity required very detailed and well- organised planning and communication between the different departments: Security, Projects, IT and Operations. Were there any challenges or setbacks? The main challenge of the project was that we had to implement all the changes while still remaining operational. To that end, we had to take out of operation half of the capacity of our baggage handling system! The second main challenge was that we had to guarantee that all passenger bags could be screened and loaded on an air- craft even in case of a failure of the only machine which was still in operation. It was essential for us to minimise the risk of delays on departing aircraft as much as possible. How did you manage to achieve this goal, given the many challenges? To minimise the risk of delays in the event of a system failure, we developed different fallback scenarios and imple- mented compensatory technical and human resources measures. Therefore, we installed three manual X-ray machines and additional conveyor belts to make sure all bags could have been screened if the automatic system failed. On a human resources level, we also implemented specific fallback procedures to replace the automatic transport system with manual manpower in the event of a failure.
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A N N UA L R E P O R T 2 0 2 0 42 — 43 Operations Runway refurbishment: ready for action After years of preparation and optimisation, the planning stage for the highly anticipated full renovation of the runway at the airport has been completed. The plan consists of building a new runway on top of the existing one, the complete re- placement of the runway drainage systems, the replacement of the 400+ runway lights and the reinforcement of the runway strip. This work will be done over a period of two years (2021 and 2022) during summer, mainly at night. This will reduce the (negative) impact for airport users to a minimum. OPERATIONS Pioneers in COVID testing The pandemic required a great deal of flexi- bility by all departments at very short notice, especially by the Operations Department. In close collaboration with the Ministry of Transport and the Ministry of Health, a testing station for passengers arriving at the terminal was set up at level -1 at the end of May, making Luxembourg Airport a pioneer in the country’s large-scale screening efforts. The tests are free and voluntary. More than 75,000 passen- gers have taken advantage of this opportunity.
LU X I N T R O LU X S TO R I E S LU X F AC T S OPERATIONS ADMINISTRATION & HR Luxembourg Airport: first Central European airport to receive AHA certification The year 2020 was marked by the implemen- tation of measures against COVID-19. Indeed, since the beginning of the pandemic, Luxem- bourg Airport has been one of the pioneers for certain measures (such as mandatory masks, distancing between passengers etc.). Consequently, the industry association Air- port Council International (ACI) has awarded lux-Airport the “Airport Health Accreditation” (AHA) certification: Luxembourg Airport was the first airport in Central Europe to obtain this certification! Human Resources in times of Corona Personnel management during the pan- demic required great efforts on many different fronts. Among other things, the teams had to be re-organised to respect the measures in place, the staff had to be informed and trained, questions had to be answered, and remote working had to be organised in collaboration with the IT Department. As for recruitment, this has been severely constrained as a result of the health crisis. The focus has been on preserving jobs – in the course of 2020, the company employed an average of 348 people.
A N N UA L R E P O R T 2 0 2 0 44 — 45 COMMERCIAL Upgrade of Lost & Found service In February, the InfoDesk’s Lost & Found service was upgraded. Finding a lost item is now easier as the dedicated page on the www.lux-airport.lu/lost-and-found website is accessible 24 hours a day. Besides, to retrieve lost items, customers can choose to have them delivered by mail or go directly to the location. COMMERCIAL New “Fast Lane” service To improve the passenger experience and meet the demand for premium service, the airport created a “Fast Lane” priority access service in late 2020. Upon booking, passen- gers can now accelerate their boarding pass and ID verification at the security check- point for an additional fee. Luxair Airlines is the first airline to offer this service – other airlines will likely follow.
LU X I N T R O LU X S TO R I E S LU X F AC T S MOBILITY MOBILITY Car sharing made easy: Flex Carsharing Since February, lux-Airport offers an ad- ditional mobility service 24 hours a day, 7 days a week: “Flex Carsharing”. The Flex Carsharing cars, products of CFL Mobility, can be booked via a dedicated application and borrowed for a period ranging from one to 72 hours. Moreover, there are no more formalities to be dealt with at the counter – and returning the keys is easy thanks to the application. It is also worth noting that when returning the car, it is not necessary to fill it up if the fuel level is still high enough. Thanks to this system, car sharing can be used more efficiently, supporting sustaina- ble development. A contactless parking experience Touching as few surfaces as possible is good advice, not only because of COVID. With contactless parking at Luxembourg Airport, passengers can now enjoy an almost con- tactless parking experience thanks to the new pre-booking platform of lux-Airport at www.airportparking.lu. Travelers can book their parking space online and pay directly in advance on the website. There is no longer any need to wait in line or pay in cash. In addition, pre-booking can even be paperless because it allows you to enter the parking lot via a QR code on a smartphone. Video: Parking at Luxembourg Airport youtu.be/2lHwZBSAKaY
A N N UA L R E P O R T 2 0 2 0 46 — 47 MOBILITY New Business Club limousine service EXECUTIVE LANE launched its “Business Club” service at Luxembourg Airport in July 2020, offering its customers a high-end limousine service – thus offering customers more flexibility. The new service is available at the arrivals hall on level -1. By joining the club and paying a monthly subscription fee, customers have access to business or premium limousines at a preferential rate, on a fixed price basis and by reservation only. COMMUNICATION & MARKETING Visit of His Royal Highness, the Grand Duke In May 2020, the airport experienced a much-appreci- ated highlight: His Royal Highness, Grand Duke Henri of Luxembourg, visited the COVID-19 testing station together with Prime Minister Xavier Bettel and Minister of Health Paulette Lenert. The delegation was given a presentation of the preventive measures at the airport by René Steinhaus, CEO lux-Airport, and was introduced to the procedures of the test station at the airport.
LU X I N T R O LU X S TO R I E S LU X F AC T S COMMUNICATION & MARKETING #be(e)lover virtual Christmas card One of the main communication themes in 2021 will be the bees, whose protection is the common goal of lux-Airport and the Air Navigation Administration (ANA). The 2020 virtual Christmas card already featured this theme: we chose the hashtag #be(e)lover. This play on words is an opportunity for us to remind everyone of the importance of enjoying every moment and remaining optimistic – even in the face of great challenges! Video: lux-Airport Xmas wishes for 2020 and a good start into 2021 youtu.be/8axeVSSq_tA COMMUNICATION & MARKETING Some fun despite difficult times: Jolly Trolley How to have a fun event despite COVID? The Jolly Trolley contest was organised on the lux-Airport website, promoted by the airport stores and partners such as Luxair, Aelia, SSP and Press & Books. In this online game, participants had to build a luggage tower. The idea was to spread a bit of Christmas spirit among all passengers and offer the possibility to win great prizes.
A N N UA L R E P O R T 2 0 2 0 48 — 49 SECURITY Shoes on: new SAMDEX machines After a testing phase, three SAMDEX machines (Shoe Analyzer Metal Detector & Explosives) were installed at the terminal. This represents a strong improvement in terms of security and helps us increase the level of customer satisfaction: our customers no longer have to remove their shoes in the event of an alarm. INFRASTRUCTURE New SKYPARK building The massive groundwork next to the termi- nal building began and continued until the end of the year. During this stage, the team of architects, engineers and the lux-Airport project team continued to prepare for the start of the structural work planned for the next stage.
LU X I N T R O LU X S TO R I E S LU X F AC T S INFRASTRUCTURE Cargolux headquarters completed 2020 saw the completion of the construction work and start of operations of the new Cargolux headquarters with its multi-level parking facility and centre for two 747 simulators. Work began in 2019. Video: Construction of the Cargolux headquarters | Timelapse youtu.be/ehxmXomLc4A
A N N UA L R E P O R T 2 0 2 0 50 — 51 INFRASTRUCTURE & SECURITY New main gate for the runway refurbishment The construction of a new main gate (E-121), located to the northwest of the airport (on the Sandweiler side), has begun as part of the runway renovation work planned for 2021. It will allow for the rapid transport of materials, equipment and personnel. ENVIRONMENT More honeybees! Our honey-producing friends at the airport have been productive again – not least because two hives have been added, for a total of four hives. Here are the results of our 2020 harvest shared be- tween the ANA and lux-Airport: This new station, made up of two buildings, is covered by a canopy. It allows controlling personnel and vehicles simultaneously on three entry lines, and is also equipped with an X-ray machine for large and heavy goods. Spring honey 2020 240 jars of 250 g – 60 kg Summer honey 2020 241 jars of 250 g – 60.25 kg
LU X I N T R O LU X S TO R I E S LU X F AC T S ENVIRONMENT Carbon neutrality strategy update Initially, the goal was to reduce carbon emissions by 50 % by 2030. However, driven by the management‘s ambitions and supported by the Ministry of Transport, lux-Airport will al- ready reach carbon neutrality in 2030. lux-Airport will achieve the savings in carbon emissions by focusing efforts on the energy optimisation of buildings and installing innovative solutions such as smart buildings. Then, for the remaining carbon foot- print, lux-Airport will only use or produce renewable energy. ENVIRONMENT Airport Carbon Accreditation: well on our way! The Airport Carbon Accreditation is a global carbon management programme that controls and certifies participating airports’ efforts to reduce their carbon footprint. After reaching Level 1 in 2019 and Level 2 in 2020, work will be done to meet reduction objectives. To reach Level 3, third party input is required through a stakeholder engagement plan. The airport‘s total carbon footprint will also be calculated. Level 3+ re- quires the neutralisation of all remaining direct carbon emissions by offsetting. Due to the COVID crisis, the year 2020 will not be taken into account in the Airport Carbon Accreditation calculation. Nevertheless, the airport will be able to reach Level 3 and Level 3+ in 2021, based on the data from 2019.
A N N UA L R E P O R T 2 0 2 0 52 — 53 ENVIRONMENT ENVIRONMENT LEAN & GREEN Certification lux-Airport‘s environmental report wins “German Brand Award 2021” The first environmental report compiling data for 2018 and 2019 was published and sent to our partners in 2020. This report won the prestigious “German Brand Award 2021” in the “Excellence in Brand Strategy and Creation – Branded Corporate Social Responsibility” category. We are proud for this report to have gained such recognition! By participating in the LEAN & GREEN programme, we are committed to achieving a 20 % reduction in our carbon footprint over five years. In just three years, between 2016 and 2019, we are proud to have achieved a 26 % reduction in our emissions relating to the traffic unit and thus to receive our first star. The effort is all the more substantial as with 100 % renewable electricity, the reduc- tions in our electricity consumption have little impact on our overall footprint. We hope to achieve the second star in the coming years by targeting our old, energy-intensive buil- dings and by further optimising Terminal A.
LU X I N T R O LU X S TO R I E S LU X F AC T S OUTLOOK 2021 New Milestones
A N N UA L R E P O R T 2 0 2 0 54 — 55 Moving forward The COVID-19 crisis is unprecedented and is having a profound and long-term impact on the aviation sector. It is, therefore, difficult to predict how the recovery of traffic and passenger numbers will evolve but the impact of the crisis remains significant in 2021. Further devel- opment will depend on the pandemic, the related restrictions and the vaccination programmes. However, the crisis has confirmed that Luxembourg Airport is part of the critical infrastructure and we are convinced that aviation will remain an essential aspect of private and business life. With many nonstop routes and a focus on continental traffic, the airport is well positioned for traffic recovery. The cargo sector has also shown its importance in 2020 and that trend is expected to continue in 2021 with Luxembourg Airport acting as one of the main gateways for full freighter cargo in Europe. Through 2021, continued cost reduction efforts to mitigate the eco- nomic effect of the crisis are accompanied by operational challenges. For passenger traffic, we expect high peaks caused by changes in passenger travel demand and more complex travel documentation and process requirements due to the continuation of distancing measures. The experience we gained in 2020 will, however, help us meet these challenges head-on.
LU X I N T R O LU X S TO R I E S LU X F AC T S Apart from dealing with the ongoing challenges, lux-Airport maintains its policy of investment in the future: in 2021, we will start the complete renovation of the airport‘s only 4,000-metre runway. The SOMO Findel Airport Consortium, an association of experienced construction companies, won the tender for this project. Thanks to night work, the effect on regular flight sche- dules will be minimised. The project involves the complete resurfacing of the runway, including shoulders, water drainage and signage – and the runway lighting will be designed with the latest LED technology, saving energy and reducing the airport‘s CO2 emissions. To finance this project, a new airport charges regime took effect on 28 March 2021, adapting the charges structure, including those for take- off and landing and surcharges for movements at night. lux-Airport is also pursuing its investment in real estate projects. The first phase of the Airport City project will start in 2021 with the Skypark Business Center, which is being built right next to the terminal. The refurbished police school building was handed over to the new tenant – Grand Ducal Police – in April 2021 after a tight refurbishment programme. Work on the new fire brigade building, called CIS, will also start in 2021.
A N N UA L R E P O R T 2 0 2 0 56 — 57 Despite current and future challenges, we will continue our mission to ensure and build upon our high standards for our customers and our role as a crucial part of the Greater Region’s infrastructure.
LU X I N T R O LU X S TO R I E S LU X F AC T S
A N N UA L R E P O R T 2 0 2 0 58 — 59 FACTS & FIGURES Chapter 03
LU X I N T R O LU X S TO R I E S LU X F AC T S Passenger Numbers As a result of the COVID-19 pandemic, there was a sharp drop in passenger numbers in 2020: Luxembourg Airport closed the year with a total of 1.425 million passengers. 1.425 MILLION PASSENGERS -68 % DECREASE IN PASSENGER NUMBERS
2010 2 0 1 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 A N N U A L D E V E L O P M E N T O F P A S S E N G E R N U M B E R S 1,630,165 1,791,255 1,919,880 2,197,497 2,468,075 2,687,566 3,021,915 3,599,390 4,036,878 4,416,038 1,425,880 A N N U A L R E P O R T 2 0 2 0 6 0—6 1
LU X I N T R O LU X S TO R I E S LU X F AC T S Cargo Development The unprecedented coronavirus pandemic has had a profound impact on the global economy and the air transportation markets. The International Air Transport Association (IATA) reported a significant decline in global air cargo traffic for 2020 with a decrease in Cargo-Tonne-Kilometers of 10.6 % compared to 2019. According to IATA, this represents the biggest drop within one year since the beginning of this annual reporting. As a consequence of the measures against the pandemic, the global passenger air transport market has shrunk significantly. Grounded long-haul passenger aircraft operations have also reduced the supply of capacity for air cargo transport substan- tially. Thus, global supply chains and fast transport of much needed medical supplies around the world relied heavily on sustain- able freighter aircraft operations. These developments are also visible in the annual cargo traffic figures at major European airports. Generally, airports with a focus on freighter operations grew in 2020, while passenger-traffic dominated airports experienced a drop in overall cargo volumes. THE VOLUMES HANDLED AT LUX-AIRPORT IN 2020 REPRESENT THE SECOND-BEST ANNUAL CARGO VOLUME EVER RECORDED. At Luxembourg Airport, the cargo volumes handled in 2020 increased by 6.1 % to 947,399 tonnes. This represents the second- best annual cargo volume ever recorded and is even more significant, as the number of freighter aircraft movements grew less than one per cent compared to 2019. Looking into 2021, the air cargo markets will also be subject to the global pandemic development and the pace of economic recovery. In the current prevailing conditions with a lack of capacity, sustainable freighter operations will continue to play an important role in global air cargo transport.
A N N U A L D E V E L O P M E N T O F A I R C A R G O V O L U M E I N T O N N E S 2010 2 0 1 1 2012 2013 2014 2015 2016 2017 2018 2019 2020 735,212 676,708 638,068 693,153 725,062 759,096 822,283 938,000 957,000 893,090 947,399 T O N N E S O F C A R G O , 9 4 7 3 9 9 6 . 1 % C A R G O D E V E L O P M E N T A N N U A L R E P O R T 2 0 2 0 2—6 6 3
LU X I N T R O LU X S TO R I E S LU X F AC T S Top 5 Airlines Operating at Luxembourg Airport in 2020 IN TERMS OF PASSENGER NUMBERS IN TERMS OF TONNES OF FREIGHT HANDLED 1 Luxair 2 Ryanair 3 easyJet 1 Cargolux 2 Qatar Airways 3 Silk Way West Airlines 4 Lufthansa 4 China Airlines 5 KLM 5 Atlas Air
A N N UA L R E P O R T 2 0 2 0 64 — 65
LU X I N T R O LU X S TO R I E S LU X F AC T S Scheduled Passenger Airlines in 2020 Aegean Alitalia British Airways www.aegeanair.com www.alitalia.com www.britishairways.com KLM www.klm.com LOT www.lot.com Lufthansa www.lufthansa.com Swiss TAP Turkish Airlines www.swiss.com www.flytap.com www.turkishairlines.com
A N N UA L R E P O R T 2 0 2 0 66 — 67 easyJet flybe Hahn Air www.easyjet.com Flight operation stopped www.hahnair.com Luxair Ryanair SAS www.luxair.lu/en www.ryanair.com www.flysas.com Volotea www.volotea.com The airlines stated here operated until the first quarter of 2020, before the Corona pandemic began. Most airlines restarted operations from LUX after the first lockdown, some with a reduced schedule.
LU X I N T R O LU X S TO R I E S LU X F AC T S EDINBURGH MANCHESTER DUBLIN LONDON (LGW/LCY/LHR/STN) PARIS CDG NANTES BORDEAUX STOCKHOLM ANGELHOLM COPENHAGEN SYLT HAMBURG 3 AMSTERDAM DUSSELDORF BERLIN (TXL/SXF/BER) WARSAW LUXEMBOURG 4 FRANKFURT PRAGUE KRAKOW ZURICH GENEVA MILAN (MXP/BGY/LIN) TURIN RIMINI 5 NICE PISE MUNICH VIENNA SALZBURG INSBRUCK BOLZANO BUDAPEST VENICE BOLOGNA PULA FLORENCE ZADAR MADRID VALENCIA 2 LISBON SÉVILLE ALICANTE FARO JEREZ MALAGA POINTE-À-PITRE FUNCHAL MARRAKESH AGADIR LANZAROTE FUERTEVENTURA GRAN CANARIA VIGO 1 PORTO BIARRITZ MONTPELLIER TOULOUSE MARSEILLE BARCELONA CALVI BASTIA AJACCIO FIGARI OLBIA ROME NAPLES BARI SPLIT MOSTAR DUBROVNIK PODGORICA TIRANA BRINDISI CORFU PALMA DE MALLORCA IBIZA MENORCA CAGLIARI PALERMO LAMEZIA TERME CATANIA ENFIDHA MALTA DJERBA
A N N UA L R E P O R T 2 0 2 0 68 — 69 ROVANIEMI NEW DESTINATIONS TOP DESTINATIONS* Brindisi Florence Insbruck Montpellier Nantes Seville Alicante Toulouse CHISNAU BUCAREST VARNA DUBROVNIK PODGORICA TIRANA ISTANBUL (IST) YEREVAN BAKOU ATHENS KOS HERAKLION LARNACA RAS AL KHAIMAH Porto Lisbon Amsterdam Frankfurt Nice 6. Munich 7. Madrid 8. London Heathrow 9. Vienna 10. Barcelona *in terms of passenger numbers 104 NONSTOP FLIGHT DESTINATIONS The airlines adapted their portfolio regu larly due to the pandemic and the changing travel restrictions.
LU X I N T R O LU X S TO R I E S LU X F AC T S Shareholdings AIRPORT-ENERGY S.A. LUXFUEL S.A. One of the tasks entrusted to lux-Airport by the state involves the construction, financing and operation of a co-generation plant meeting the identified requirements of the airport precinct. This power plant, which was built at the same time as the new Terminal A and the underground car park, generates and supplies heat for heating applications, cooling energy for air-conditioning applications and back- up power in case of a breakdown of the main electricity supply. lux-Airport holds 30 % of the shares of Luxfuel S.A. The company is based at Luxembourg Airport and its object is the operation of a fuel and lubricants depot as well as receiving, storing, distributing, and loading these products onboard aircraft. In 2020, the financial statements of Luxfuel S.A. disclosed positive earnings of €1,144,639.42. A second power plant was built and commissioned at the same time as the new maintenance hangar for Cargolux. Airport-Energy S.A., a 50 %-owned subsidiary of lux-Airport, is in charge of the development and management of these power plants. In 2020, the financial statements of Airport-Energy S.A. disclosed positive earnings of €394,495.95.
A N N UA L R E P O R T 2 0 2 0 70 — 71 Financial Performance – Balance Sheet 1/2 Intangible fixed assets Tangible fixed assets Financial fixed assets 2019 2020 785,444.41 626,626.68 198,729,570.22 203,271,630.54 1,109,063.00 1,996,955.00 TOTAL FIXED ASSETS 200,624,077.63 205,895,212.22 Debtors 29,224,716.71 21,893,202.33 Cash in bank, post office accounts, cheques and cash 39,933,836.95 55,382,442.14 TOTAL CURRENT ASSETS 69,158,553.66 77,275,644.47 Prepayments and accrued income 766,285.87 856,996.83 TOTAL ASSETS 270,548,917.16 284,027,853.52 Amounts are indicated in euros. The balance sheet shown here is an abridged version of the balance sheet included in the annual accounts as at 31 December 2020, which were audited by the certified auditor (Réviseur d‘entreprises agréé) PricewaterhouseCoopers, which issued an unqualified audit report without any reservation on 4 June 2021.
LU X I N T R O LU X S TO R I E S LU X F AC T S Financial Performance – Balance Sheet 2/2 2019 2020 Subscribed capital 7,577,000.00 7,577,000.00 Share premium and similar 893.30 893.30 Legal reserve Other reserves 757,700.00 757,700.00 86,800,000.00 102,300,000.00 Profit or loss brought forward 79,141.89 278,073.36 Result for the year 15,698,931.47 -4,011,004.83 SHAREHOLDER’S EQUITY 110,913,666.66 106,902,661.83 Provisions Creditors 13,992,738.42 12,705,543.26 142,455,748.69 161,356,454.96 Accruals and deferred income 3,186,763.39 3,063,193.47 TOTAL (CAPITAL, RESERVES AND LIABILITIES) 270,548,917.16 284,027,853.52 Amounts are indicated in euros. The balance sheet shown here is an abridged version of the balance sheet included in the annual accounts as at 31 December 2020, which were audited by the certified auditor (Réviseur d‘entreprises agréé) PricewaterhouseCoopers, which issued an unqualified audit report without any reservation on 4 June 2021.
A N N UA L R E P O R T 2 0 2 0 72 — 73 Financial Performance – Income Statement Net turnover Other operating income Other external expenses Staff costs Value adjustments 2019 2020 63,355,357.47 37,422,363.41 22,199,578.09 35,864,097.04 -29,671,321.30 -38,249,766.04 -16,855,913.86 -20,063,497.41 -17,293,471.47 -18,940,455.37 Other operating expenses -1,262,002.85 -1,630,706.71 Income from participating interests 677,500.00 610,000.00 Other interest receivable and similar income 218,726.82 114,841.20 Value adjustments in respect of financial assets and of investments held as current assets -610,035.10 887,892.00 Interest payable and similar expenses -37,712.76 -52,597.83 Tax on profit or loss PROFIT FOR THE FINANCIAL YEAR Amounts are indicated in euros. -5,021,773.57 26,824.88 15,698,931.47 -4,011,004.83 The profit and loss accounts shown here is an abridged version of the profit and loss accounts included in the annual accounts as at 31 December 2020, which were audited by the certified auditor (Réviseur d‘entreprises agréé) PricewaterhouseCoopers, which issued an unqualified audit report without any reservation on 4 June 2021.
LU X I N T R O LU X S TO R I E S LU X F AC T S Board of Directors TOM WEISGERBER Chairman of the Board Premier Conseiller de Gouvernement au Ministère de la Mobilité et des Travaux publics FÉLICIE WEYCKER Vice Chairman of the Board Premier Conseiller de Gouvernement au Ministère de la Mobilité et des Travaux publics BÉATRICE ABONDIO Board Member Premier Conseiller de Gouvernement au Ministère de la Sécurité Intérieure ANA CATARINA DOMINGUES INÁCIO Board Member Staff Representative ROLAND FOX Board Member Directeur de l’Administration des Ponts & Chaussées BAHRUDIN HALILOVIC Board Member Staff Representative SERGE HOFFMANN Board Member Premier inspecteur des finances au Ministère des Finances DAMIEN SEIL Board Member Staff Representative ANDRÉ WEIDENHAUPT Board Member Premier Conseiller de Gouvernement au Ministère de l’Environnement, du Climat et du Développement durable VÉRONIQUE WIOT Board Member Attaché de Gouvernement au Ministère de la Mobilité et des Travaux publics
A N N UA L R E P O R T 2 0 2 0 74 — 75 Management Committee RENÉ STEINHAUS Chief Executive Officer ALEXANDER FLASSAK Director Finance & Real Estate Development TOM GORIS Director Operations DAVID KONSBRUCK Director Administration & Human Resources CLAUDINE LEINENVEBER Director IT
LU X I N T R O LU X S TO R I E S LU X F AC T S “The cooperation between all partners at the airport and the strong engagement of our staff drove 2020. Thank you all for continuing to rise to the challenge!” — Management Commitee (from left to right): David Konsbruck, Tom Goris, Claudine Leinenveber, Alexander Flassak, René Steinhaus
A N N UA L R E P O R T 2 0 2 0 76 — 77
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