University research reveals true economic benefit of Budapest Airport.

Tuesday 28th June 2011

The economic impact of Budapest Airport (BUD) on the local Hungarian economy is highly significant and directly related to passenger numbers according to recent research undertaken by the renowned University of Szeged, Hungary.

According to the study, the capital's airport is a major provider of direct and indirect employment. In fact the findings show that due to BUD's history and location, the combined employee count of almost 9000 employees makes the airport the largest one-location enterprise in Hungary if the 120 enterprises and offices operating in its area formed an organisational unit. The study also clearly confirms that BUD is a substantial contributor to the country's GDP.

BUD commissioned the research led by Professor Miklos Lukovics from the University's Faculty of Economics and Business Administration to assess the true economic impact of the growing airport on the local economy. In undertaking the study, Professor Lukovics and his research team identified four different types of economic impact: Direct, Indirect, Induced and Catalytic impact:

The research study highlighted the following key economic findings:

In 2009, the top companies operating at BUD generated almost 9000 jobs and achieved over HUF 341 bn in net sales revenue with a total contribution of over HUF 73 bn to GDP.

The total value of supplies purchased by companies operating at BUD amounted to HUF 52 bn with those purchased locally valued at HUF 26 bn.

In 2009, the total value of spending by visitors arriving at BUD was over HUF 468 bn with over HUF 413 bn of it spent locally.

In 2009, the total spending impact of BUD (direct, indirect and visitor spending) amounted to over HUF 326 bn in GDP and the creation of 32,000 jobs in total.

Economic impact and passenger numbers have a clear linear relationship: 1% more passengers = 1% more economic impact. The expected impact of one million more passengers using BUD is approximately 1340 more jobs and growth of over HUF 13 bn in GDP.

On reviewing the findings of the study, Professor Lukovics concluded: "Aviation investment should be focused at BUD, the capital's airport where demand is greatest and where the opportunity exists to grow passenger and cargo traffic. By encouraging investment and removing any bureaucratic obstacles, the potential to reduce unemployment levels and boost economic growth is considerable. Failure to do so would risk falling irreversibly behind other airports in neighbouring countries."

Commenting on the research, Jost Lammers, CEO of Budapest Airport said: "These findings are highly significant and confirm the positive correlation between passenger numbers and economic impact, as well as the importance of location. It is vital then that any constraints such as outdated traffic rights agreements between countries are liberalised to boost employment opportunities and maximise air passenger numbers to and from Hungary. The long term investment climate and legal framework for Budapest Airport must also be equal to or better than competing markets and countries in the CEE region. The respected Hungarian University of Szeged study further validates this position and we will continue to work with all stakeholders on achieving these common goals"

About Budapest Airport:

During 2010 Budapest Airport handled almost 8.2 million passengers through scheduled, charter and general aviation services. In 2011, passenger traffic will rise by almost 7%. Budapest Airport Zrt are the exclusive asset managers and operators for Budapest Ferenc Liszt International Airport. The state of Hungary remains the legal owner of the airport land and it's premises.

Through its BUD Future investment programme Budapest Airport aims to be the aviation hub of the CEE region.

Leading projects include:

SkyCourt - a new centrally located building links the existing terminals 2a and 2b. and has doubled the commercial area of the terminals. SkyCourt provides a wide range of retail outlets, international brands and an improved food and beverage offering. The contemporary glass structure also offers an impressive view of the apron providing passengers with a unique travel experience.

Cargo City - New on-airport cargo facilities will feature 140.000sqm of cargo and logistics terminals designed for airlines, handlers and integrators.

Budapest Airport incorporates two terminals. Terminal 1 is a dedicated low cost carrier terminal and Terminal 2 services the traditional carriers. The airport is also the base for Malev, Hungary's national airline and part of the One World alliance and is home to a further 32 airlines, serving over 92 destinations which represents 40 countries worldwide.

www.bud.hu