Tuesday February 3, 05:45 PM
UPDATE 1-Fraport hives off stake in Hahn airport for 1 euro
FRANKFURT, Feb 3 (Reuters) - Airport operator Fraport (Xetra: FRA.DE - news) sold its 65 percent stake in Hahn airfield to the German state of Rhineland-Palatinate to limit losses, Fraport said on Tuesday.
Fraport sold the holding for a symbolic price of 1 euro ($1.29), effective from Jan. 1, also ending all financial obligations tied to Hahn.
'We cannot afford loss-making operations permanently,' Deputy CEO Stefan Schulte said.
The state had urged the group not to introduce an extra fee of 3 euros per passenger, a move Fraport said was needed for Hahn to break even.
Fraport said it will take a charge of 30 million euros on its investment in Hahn, a former U.S. military airfield about 100 km (60 miles) west of Frankfurt.
The write-down will affect its 2008 accounts, it added.
Ryanair (Dublin: RY4.IR - news) , the airport's main airline, said last month it would not go ahead with threats to scale back flights to Hahn after Rhineland-Palatinate pledged to fend off mooted passenger fees.
UPDATE 1-Fraport hives off stake in Hahn airport for 1 euro
FRANKFURT, Feb 3 (Reuters) - Airport operator Fraport (Xetra: FRA.DE - news) sold its 65 percent stake in Hahn airfield to the German state of Rhineland-Palatinate to limit losses, Fraport said on Tuesday.
Fraport sold the holding for a symbolic price of 1 euro ($1.29), effective from Jan. 1, also ending all financial obligations tied to Hahn.
'We cannot afford loss-making operations permanently,' Deputy CEO Stefan Schulte said.
The state had urged the group not to introduce an extra fee of 3 euros per passenger, a move Fraport said was needed for Hahn to break even.
Fraport said it will take a charge of 30 million euros on its investment in Hahn, a former U.S. military airfield about 100 km (60 miles) west of Frankfurt.
The write-down will affect its 2008 accounts, it added.
Ryanair (Dublin: RY4.IR - news) , the airport's main airline, said last month it would not go ahead with threats to scale back flights to Hahn after Rhineland-Palatinate pledged to fend off mooted passenger fees.
