Were Making Fraport Fit, Maintaining Sustainability is Fraports Goal Dialogue for Cost Reductions

FRANKFURT (Germany) 19.01. 2005 (PROTEXT/ots) - At a pressconference announcing Fraport AGs (FSE:FRA) third quarter 2004results last November, the companys executive board alreadyexplained the need for further cost reductions. Now Fraport islaunching "Were Making Fraport Fit," a wide-ranging cost-savingsprogram designed to ensure that the company remains competitivein the future. The year 2004 was a record year for Fraport. Witha relaxed and target-oriented approach, Fraport wants to preparefrom this position of strength for meeting the growing marketpressures early enough and in consensus with employees and theworks council to ensure the companys earning power and providejob security within the Fraport Group in the long-term and evento create new jobs. In the current year alone, the Fraport Groupplans to add at least 700 new jobs.

Cost reductions are indispensable for sustaining thecompany's ability to compete and invest. In view of ever-increasing cost pressures, Fraport's management does not see anyalternative.

The newly started program targets changes in working hours,pay rate structures and some company social benefits. The resultsof comprehensive internal dialogue with the work force andemployee representatives will determine specifically where thenecessary cost-savings can be made.

At a conference today with senior executive staff, Fraport'sexecutive board chairman Dr. Wilhelm Bender, chief financialofficer Dr. Stefan Schulte, and labor relations director andexecutive board member Herbert Mai made it clear also vis-ŕ-visthe works council that there are two key parameters for thisprocess, which are not automatically part of cost-savingsprograms: "Our goal is to continue avoiding operationally-related job terminations in the future, said Bender, and weintend to implement the necessary reductions in personnel costsin such a way that every employee will still receive the sameabsolute pay at the end of the month."

Todays management conference will be followed by some 30dialog sessions with employees until the beginning of March.These sessions will discuss ways for achieving the inevitablereductions in personnel costs, and gather ideas for furtherreducing material costs and for increasing profits. Employeeswill be intensively involved in the process of looking for waysto make cost structures more competitive and sustainable over thelong term.

At the kick-off event for the "Were Making Fraport Fit"program, Fraport's executive board emphasized that the airportcompany faced enormous challenges ahead. Resolute action isrequired now, if Frankfurt Airport wants to maintain its positionas continental Europe's central air transportation hub. "It isalmost impossible for us to implement price hikes in the market.Indeed, we even have to accept price cuts for some charges,"Bender said. Enormous investments have to be made in the existingpassenger terminals and security expenditures are increasingsteadily. This negatively impacts the company's earningsperformance. At the same time, personnel costs account for abouttwo thirds of Fraport's total costs.

For More Information, Please Contact:

Fraport AG Frankfurt Airport Services Worldwide Robert A.Payne, B.A.A. Manager International Press Press Office (Dept.UKM-PS), Corporate Communications (UKM) 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:http://www.fraport.de

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