Anniversary of Zurich Airport Ltd.: privatised for 25 years
25 years ago, on 1 April 2000, Zurich Airport Ltd. was founded following the merger of the Zurich Airport Authority and Flughafen-Immobilien-Gesellschaft. After a challenging start and numerous challenges, the company has developed into a successful airport operator in Switzerland and abroad.
With a clear majority of 61.2% in favour, the Zurich electorate paved the way for the new, privatised airport operator in 1999. On 1 April 2000, Zurich Airport Ltd. started operations as a semi-public company. Prior to privatisation, Flughafen-Immobilien-Gesellschaft (FIG) was responsible for the construction and operation of the buildings at the airport as a company limited by shares, while the Zurich Airport Authority (FDZ) was responsible for airport operations as well as the construction and maintenance of the civil engineering structures in its capacity as a body of the cantonal department of economic affairs. Privatisation was a response to changing market conditions in the aviation sector and the associated new demands on flexibility and efficiency.
The start of the company was anything but easy: the fifth construction phase with the Airside Center, Skymetro and Dock E was in the process of being implemented, and a lot had already been invested in this project when 9/11 and the grounding of Swissair presented the company with major challenges.
Responding to changing needs
However, the young company managed to get through these challenging times on its own and without government funding – just as survived the Covid pandemic in the company’s recent history. The company was able to build up this crisis resistance thanks to privatisation and the resulting access to the Swiss capital market.
We operate Zurich Airport, one of the country’s most important infrastructures. This requires foresight, forward-looking planning and often also patience. We aim to further develop Zurich Airport efficiently, safely and in a future-proof manner in line with population growth and customer needs.
Today, Zurich Airport Ltd., as a licensee of the Swiss Confederation, operates Switzerland’s largest national airport with the mandate of connecting Switzerland with as many destinations as possible in the world. Over the past 25 years, Zurich Airport Ltd. has not only developed flight operations at the Zurich site, but also its real estate, retail and catering offerings. In addition to Zurich, it now owns shares in ten other airports abroad and has received several awards both in Switzerland and abroad for the quality of its airports. The diversification of the business model has proved its worth, especially in difficult economic times, and was only made possible by privatisation.
Economic power with responsibility
As a listed company, Zurich Airport Ltd. has paid almost CHF 1.5 billion in taxes and dividends to the federal government, canton and communes since privatisation – around CHF 780 million to the Canton of Zurich alone. The highest share price in history was recorded on 2 August 2017 at CHF 248.90 per share. The lowest price was recorded on 27 February 2003 at CHF 3.60. It currently stands at CHF 211 per share. At the same time, with a market capitalisation of over CHF 6 billion, the company is an economically important player with low debt and stable earnings.
Zurich Airport Ltd. has become an important driver of the region’s economic development and has invested around CHF 6.6 billion in infrastructure since 2000. 35,000 people work on the airport site, including around 2,000 directly at Zurich Airport Ltd. in over 70 professional groups.
In order to protect the population from excessive noise, it has invested around CHF 330 million in sound insulation measures on 6,010 buildings in the region over the past 25 years.
More passengers – fewer flight movements
While the number of passengers has increased over the last 25 years, the number of flight movements has decreased.
Forward-looking development
The decision to privatise was a groundbreaking step that gave us the necessary entrepreneurial flexibility to respond to developments in the aviation industry and the changing needs of our customers. Today, we are regarded as a successful example of a state-of-the-art public-private partnership. We are an economically sound, reliable and crisis-resistant company. Thanks to our business model, we can diversify sustainably and further develop Zurich Airport operationally, structurally and digitally.
The most significant construction projects of the past 25 years include the Airside Center, Dock E including Skymetro, the renovation of Dock B, the construction of the Circle and the replacement of the baggage sorting system. In terms of construction, the main focus over the next few years will be on runway extensions, the new Dock A including tower, the development of Zone West and the development of the landside passenger areas.
In doing so, the company pursues ambitious climate goals: the airport operator wants to reduce its own greenhouse gas emissions to net zero by 2040. To that end, it will invest millions in decarbonising and modernising its infrastructure over the next few years – always with the aim of remaining a sustainable operator, reliable employer and strong partner for Zurich, Switzerland and the world in the future.
STARTKLAR: the anniversary podcast
To mark its 25th anniversary, Zurich Airport Ltd. is launching a podcast series entitled “STARTKLAR” on 1 April. In compact episodes, employees report on their day-to-day work, share their expertise and show what is happening behind the scenes so that airport operations run smoothly. The podcast offers surprising insights into areas that are often not accessible to the general public – from passenger services and environmental protection to architecture, innovation, wildlife, waste disposal and much more. “STARTKLAR” is published weekly on Tuesday mornings. The podcast is available on all popular platforms.
