- Agreement reached on funding for Leipzig/Halle and Dresden airports
Mitteldeutsche Airport AG (MFAG) has assured financial stability till 2026, as per the company's declarations. Besides successful negotiations with the DHL Group and the unwavering support from shareholders along with the states of Saxony and Saxony-Anhalt, MFAG has renegotiated its credit agreement with financing banks. This accomplishment satisfies one of the key requirements stated in KPMG's restructuring report. The exact amount of funds at MFAG's disposal was not disclosed.
KPMG's endorsement confirms MFAG's unrestricted restructuring capacity, enabling this process to conclude. KPMG also recognizes MFAG's sustainable competitive edge and a promising outlook for a positive business continuation, provided the restructuring is successful. From 2026 onwards, MFAG intends to implement growth strategies beyond restructuring, primarily by enhancing currently idle infrastructures, such as developing areas surrounding Dresden and Leipzig/Halle airports.
Political backing and Future Prospects
"Securing MFAG's financing is crucial for the entire region," stated Saxony's Prime Minister Michael Kretschmer (CDU). The airports of Dresden and Leipzig/Halle are crucial infrastructures for Saxony and Central Germany's economic growth. The state government commits to supporting these significant traffic centers' ongoing viability.
Goetz Ahmelmann, MFAG's CEO, hailed the contract adjustment as the "basis for a stable and sustainable future" for the airports. "With this backing in the background, we're pushing ahead with MFAG's restructuring and simultaneously opening up new growth prospects that will make our airports a powerful driving force for the entire region," he added.
Initially, banks refused to grant the agreed loans due to unmet restructuring objectives. However, the banks were eventually persuaded to continue granting loans and refrain from demanding early repayment of disbursed loans through financial contributions from MFAG's two major shareholders, the Free State of Saxony and Saxony-Anhalt. Saxony accounts for 77.29% of MFAG's shares, while Saxony-Anhalt represents 18.54%.
The successful restructuring negotiations with financing banks have ensured that Mitteldeutsche Airport AG (MFAG) can maintain its air traffic operations smoothly until 2026. Given the crucial role of Dresden and Leipzig/Halle airports in driving economic growth in Saxony and Central Germany, securing their financial stability is of utmost importance.
