Fraport AG Establishes New Cargo Subsidiary to Enhance Competitiveness

Frankfurt/Main 28. 6. 2004 (PROTEXT/ots) - Fraport AG has reorganized its cargo handling activities at Frankfurt Airport (FRA) into a newly established subsidiary called Fraport Cargo Services GmbH (FCS), which begins operations on July 1. Intensifying cost pressure and competition in this market segment inevitably required restructuring to ensure longterm competitiveness and to secure jobs within the Group.

For years, Fraport's former Freight Services had been operating in an extremely difficult market situation, which made it necessary to create new framework conditions for sustained profitability. Otherwise, the entire segment would have been jeopardized. Therefore, in 2003 Fraport's executive board and supervisory board both decided to reorganize the company's Freight Services to ensure that a strong presence in this growth market could be maintained. The new subsidiary, with its noticeably leaner structures, will allow Fraport to offer airlines seamless freight-handling services at a more competitive and economical price.

About 570 Fraport employees had a choice to transfer to the new Fraport Cargo Services GmbH subsidiary or to remain with the mother company, however at a lower pay rate under a direct union agreement. Over 90 percent of the affected employees decided to remain with the mother company. In the future, new cargo handling staff will be recruited exclusively by FCS at competitive market conditions.

For More Information, Please Contact: Fraport AG Frankfurt Airport Services Worldwide Robert A. Payne - Manager International Press Press Office (Dept. UKM-PS), Corporate Communications 60547 Frankfurt am Main, Federal Republic of Germany Tel.: +49 69.690.78547; Fax: +49.69.690.60548; E-mail: r.payne@fraport.de; Internet: www.fraport.de

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