BUDAPEST AIRPORT - CARGO DEVELOPMENTS

NOVEMBER 2017

• 100% privatized and managed by

AviAlliance consortium

• 340 Mio. EUR investment since

2007 in new infrastructure and

buildings

• 926 employees (including

affiliates)

2016 record year:

• 11.4 million passengers

• 112.000 tons cargo

• 96,100 A/C movements

• 5.600 freighter movements

• Further developments are

ongoing focusing intensively on

the air cargo

Budapest Airport – Fast Facts

Ownership structure of Budapest Airport

2017

12 months (Oct

2016 -Sep 2017)

total flown air

cargo volume

increase: 19.0%

2016

112,143 tons total

air cargo volume;

increase: 22.7 %

It was far above

the World (3.5%)

and EU (4.1%)

growth rates

BUD Cargo volumes in full development

AFR 164,5 4,1 1 680,3 0,6 1 680,3 0,6

ASP 3 194,8 10,9 33 819,2 4,5 33 819,2 4,5

EUR 1 610,0 10,2 17 842,3 4,1 17 842,3 4,1

LAC 400,9 6,3 4 364,8 1,5 4 364,8 1,5

MEA 652,9 10,4 7 258,7 5,8 7 258,7 5,8

NAM 2 674,4 6,3 27 516,0 1,7 27 516,0 1,7

ACI 8 697,5 8,9 92 481,4 3,5 92 481,4 3,5

TOTAL FREIGHT

Freight Flash Summary

DEC 2016

STATS

REGIONSMONTH % YOY YTD DEC 2016 % YOY YE DEC 2016 % YOY

Latest success stories

• In March 2016 Qatar Airways Cargo started DOH-

BUD-PRG-DOH freighter route with A330-200F,

and increased rapidly to three flights per week

• Starting May 2018, LOT will launch direct pax

flights from BUD to JFK and ORD (B787) (belly

cargo)

• Starting May 2018, American Airlines will launch

direct BUD-PHL pax flights with B767-300

aircrafts (belly cargo)

Regional distribution centre for freighter, and

belly cargo

• Cargolux three B747-800F flights per week HKG-

BUD-LUX

• Turkish Cargo three A330/A310F flights per week

IST-KBP-BUD-IST

• Emirates operates daily from Dubai with

increased capacities of B 777-300 (belly cargo)

• Air China 4 flights per week passenger flight

from Beijing, Air Canada Rouge to Toronto with

B767-300 from Toronto (belly cargo)

• Integrators (DHL, TNT, UPS, FedEx) operate daily

flights to BUD from the Western European hubs

• Daily air trucks to all important destination in

Europe

Success story at BUD – increasing network

Positive and stabile economic forecast for Hungary

Source: Trading Economics

CEE in 2017

Hungary in 2017- 2020

Positive and stabile economic forecast for Hungary

Outstanding export – import increase of Hungary in 2018

forecasted by OECD (Hungary in the top 5 of the world)

Export + 5,4% and Import + 6,8%

Strong and expanding air cargo relevant industry

Automotive; Electronics; Communication;Pharmaceuticals;

Biotech; Machinery; Medical Equipment; Live animals

International brands with air cargo relevant manufacturing or

logistic distribution units in Hungary:

+ Rapidly developing export of Hungarian companies

• 560.000 cars, AUDI, Mercedes, Suzuki,

Opel, 13 billion EUR total revenue

• Pharmaceutical products, majority for

worldwide export 2.6 billion EUR

• Computer, electronic and optical,

electrical equipment 12.6 billion EUR

• Machine and electric industry 44 billion

EUR

• Samsung invests 322m EUR in 2017 as

expansion

• BYD opens first European electric bus

factory in Hungary in 2018

• Mercedes invests 2 billion EUR in 2017

as expansion

• Audi expanded their factory by 2017

• HUAWEI: Huawei Europe Supply

Center, Huawei Europe Logistic Center

in Hungary

• Siemens Power and Gas in Budapest

expands factory in 2017-2018

• ZF Hungary invests 100m EUR in

expansion in 2017

• GlaxoSmithKline (GSK) invests 60

million EUR in their pharma unit in 2017

Major international logistic companies are present on the

Hungarian Market, many Hungarian ones provide services

The cargo flow always finds the best way…

BUD Cargo – positioning is important

BUD

BUD

• Great geographical location in Central and

Eastern Europe to be regional distribution hub

• Extensive road (highway) network to 20 (EU and

non EU) countries in trucking distance, the airport

has direct highway connection

• Developing local air cargo related industries

• EU and Schengen zone membership,

• 24/7 operation with ability to handle all,

Category D, even E and F aircrafts; two

independent Runways, always available apron

capacities,

• Flexible and co-operative Airport Operation Team

and Air Control Authority, 24/7 customs

clearance, bonded warehouses

• Favorable cargo handling prices and professional

handlers, low operating costs

• Very favorable incentive scheme for landing

charges (e.g. 100% discount in the first year of

operation for a new cargo route)

• Continuously expanding freighter, belly cargo and

integrator network

Attractiveness of Budapest Airport in Cargo Development

• Trucking from Western Europe (AMS, FRA) has

extra cost

• Trucking time needs an extra 18-24 hours

losing valuable transport time

• In case of time sensitive cargo this time

saving means extra value for the forwarders

• Longer road transport holds higher risks and

higher insurance costs

AMS

FRA

MXP

BUD – the excellent Central Eastern

European catchment zone

8 hours driving time with 90 kph from BUD

• BUD is located in the middle of the Central Eastern Europe and Hungary, via the excellent

highway and motorway system the entire region is rapidly accessible; the airport is directly

connected to the highway system.

• BUD can provide different and flexible solutions for the warehouse and logistic center

establishment within the airport land with high experience and references. Huge green field area

is available for a logistic unit

• In Hungary the operational (e.g. staff cost), air cargo and handling cost are lower than Western

Europe

• Actual trucking time and costs can be saved from Western Europe via the direct distribution

• Risks on long road transport (delay etc.) can be avoided (extraordinary cases, e.g. long waiting

times at extraordinary border control within EU)

• Budapest Airport supports new cargo flights intensively, the airport is „cargo friendly”

• Hungarian government supports intensively projects of foreign investment and company

establishment with tax allowances and other contributions

• Customs are 24/7 at BUD, customer friendly service, all customs procedures (import, export,

transit) are electronically supported (also by eFreight system), The time required for customs

clearance: import average 22 min, export average 15 min, transit average 15 min. More tax/ toll

free (bonded) warehouses are operation in the airport

Why is BUD a ideal logistic/air cargo hub in CEE?

New BUD Cargo concept –optimized cargo operation

Freighter cargo

new freighter stands

T2 Apron (Q2 2019)

Connection to

highway system

Belly cargo

Passenger aircraft stands

Passenger Terminal

New Integrator warehouses (2017)

Integrator parking

stands at T1 Apron

Cargo City

Belly cargo and

freighter handling

+ forwarder

Warehouses (Q2 2019)

Road to

City of Budapest

Cargo infrastructure developments

16,000 m2 new air

cargo handling facility

were constructed for

integrators in summer

2017

16,000 m2 new air cargo handling facility

will be handed over for freighters and belly

cargo in Q2 2019:

• Fully centralized concept for export and

import, belly cargo and freighters, plus for

the road feeder operation

• „Everything under one roof within one

building”, special storages (DGR, Vulnerable,

Valuable, Live Animals, Cold and Temperature

Controlled area including ULD build up, CEIV,

Freezers), GSA’s, Customs clearance

• Fast linear concept in cargo handling

• Two handling companies

• Freighter stands in 300m distance, belly cargo

in 500-800m

• Direct Airside and easy Landside access

Thank you for your attention!

Looking forward to see Qatar Cargo

at Budapest!

József Kossuth

Cargo Manager

Budapest Airport Zrt. Tel: +36 1 296 6264

E-mail: jozsef.kossuth@bud.hu

René Droese

Director Property

Budapest Airport Zrt. Tel: +36 1 296 6746

E-mail: rene.droese@bud.hu

Thank you for your attention!