Strategy and managementManagement

Making an impression with qualityGRI 102-43; 102-44

Munich Airport is particularly well-known for the quality of the services it offers. These high standards apply across all areas – in the core business of aviation as much as in the consumer business and internal processes.

Passenger Experience Index (PEI): measuring quality and managing measures

Passenger satisfaction is of central importance to Munich Airport. A survey developed in-house provides information on how comfortable the passengers feel in the airport and what they think of the quality of the services provided. The PEI has been established as one of the non-financial key performance indicators in the airport’s targets system. It allows FMG to derive fields of action that sustainably improve the passenger experience.

Airport Service Quality (ASQ): worldwide benchmark

Munich Airport is one of more than 340 airports worldwide that regularly takes part in the ASQ survey on service quality initiated by the international airport association ACI (Airports Council International). As a result, it can compare itself to the best hubs in Europe. In 2018, Munich Airport ranked third place in the category for central European airports with more than 40 million passengers.

Europe’s only 5-star airport

As Europe’s only 5-star airport, Munich Airport is part of an exclusive group of just twelve airports worldwide that is permitted to carry this premium mark of approval. In particular, it was the commitment, friendliness, and expertise of the airport staff that contributed to the airport receiving this award once again. In addition to hospitality, the evaluation criteria included ambiance and comfort, services, processes, and orientation.

Skytrax: consolidating an international reputation

At the Skytrax «World Airport Awards 2018», Munich Airport was once again crowned the best airport in Europe and the best airport worldwide in the size category of between 40 and 50 million passengers. Terminal 2, which was used by 34 million passengers in the reporting year, received the accolade of second best passenger terminal in the world. In the overall ranking of all international airports, Munich Airport came in sixth place. Just under 14 million passengers from 100 countries rated 550 international airports and numerous airlines for the survey. They considered criteria such as the friendliness and expertise of airport staff, the range of shopping and leisure outlets, and transfer options.

Ten years of mobility service

Together with the Aicher Ambulanz Union, Munich Airport caters for passengers with restricted mobility. To date more than 2.5 million passengers have utilized the service, which, in the terminals and on the apron, provides barrier-free mobility using the most modern equipment.

Dialog management: dealing with feedback professionally

The central dialog management team quickly responds to, categorizes, and analyzes all customer feedback on a case-by-case basis. This office deals with constructive criticism and positive feedback, in addition to complaints. In order to elaborate optimal process solutions for passengers and, if required, to develop improvements, the divisions, authorities, and system partners active all along the passenger experience chain are closely networked with one another. In 2018, Munich Airport recorded 79 complaints per one million passengers handled. The increase compared to the previous year (55 complaints per one million passengers) is due, among other things, to the closure of Terminal 2 at the start of the Bavarian summer holidays and the associated flight cancellations and delays on arrival and departure.

Dialog management

Number of complaints on key issues

Graphic: Dialog management

Service and hospitality: maintaining and optimizing standards

Tailor-made training courses and workshops on the subject of service and hospitality raise the operational heads’ awareness of customer contact and emphasize their role as ambassadors for the service culture. FMG thus encourages an awareness of customer orientation and the role model function within the Airport Family. This community encompasses not just the Group, but also all partners based on the campus, such as the 5-star airline Deutsche Lufthansa, and the authorities active at the airport.

Certified quality management: creating effective processes

The quality management system launched at Munich Airport on the basis of the international standard DIN EN ISO 9001:2015 establishes structures that support the evaluation and improvement of processes. By optimizing its processes on an ongoing basis, Munich Airport has successfully established itself and its high quality standards on the market.

Strategic management and corporate governance GRI 102-46

In FMG’s strategic sustainability program, concrete initiatives and measures for sustainable corporate development are set out. Members of top management take responsibility for the sustainability program initiatives, while members of middle management are responsible for implementing the associated measures. Manager remuneration then contains a variable element calculated according to the success of these. FMG monitors target achievement in an internal management report prepared on a quarterly basis. This approach aims to ensure that the strategic targets are actually being realized in practice.

Munich Airport is contributing to the Sustainable Development Goals of the UN GRI 102-43

Munich Airport supports the Sustainable Development Goals (SDGs) of the United Nations and contributes to their realization. FMG has identified twelve SDGs that are relevant to it and that it can influence, and which it wishes to work on through its strategic projects up to 2030. For 2019, Munich Airport plans to bring its own targets more closely in line with the Sustainable Development Goals. The target formulations of the German Sustainability Strategy elaborated by the Federal Government are also binding here.

The Sustainable Development Goals (SDGs) relevant for Munich Airport

  Significance Material topics Initiatives

FMG has set itself the goal of continuing to improve occupational safety and, as a result, reduce accidents and the number of absences caused by accidents and sickness. To support them in their efforts in this area, the operating Occupational Safety team has been joined by the newly created Occupational Safety Management team. 

  • Occupational health and safety management
  • Introducing a process for recording and assessing employee satisfaction related to occupational health and safety
  • Using innovative lifting aids in the baggage transportation system in Terminal 1
  • Establishing a central staff qualification management structure, for instance designing training measures for foreign assignments and designing online training modules for safety instructions
  • Making improvements to the fields of occupational medical services and in-house health management, for example with the »Pro.Fit« project for the airport’s firefighting service, the »AufWind« musculoskeletal program, and the BETSI program

  • Designing a Group-wide program of measures for the systematic assessment of risks presented by hazardous substances (simple measures program issued by the Federal Institute of Occupational Safety and Health)

FMG has long been providing its staff with options for further development, including via the airport’s very own training institute, the Airport Academy. The goal is to effectively promote personal and professional development based on employees’ individual needs. 

  • Training and skills management
  • Enhancing product-based and methodological skills using a special training program for project managers and consultants
  • Redesigning the Airport Academy at AirSite West
  • Developing a consulting center of excellence

As a company with an international outlook, Munich Airport benefits from the diversity of its employees. It respects the cultural heritage of all of its employees, taking into account their diverse interests and needs. As an employer, FMG actively accepts responsibility toward all its employees and ensures equal opportunities and prospects at all levels. The promotion of women to management positions is an integral part of HR work. 

  • Equal opportunities and cultural diversity 
  • Making sure that men and women enjoy equal opportunities at management level within the Munich Airport Group

The aim of water management at Munich Airport is to affect the natural water balance as little as possible and arrange the various effects caused by water resource management, drainage, and the provision of drinking and extinguishing water so that they have as little impact as possible. This includes aspects like the treatment of de-icer and the airport’s handling groundwater. The certified environment management system documents the airport’s many environmental activities.

  • Sustainable use of resources

Since it launched its initiative in 2008, FMG has been taking ambitious steps towards maintaining CO2 emissions at a level of around 160,000 t (taking 2005 as the base year) despite its expansion and growth in traffic. To achieve this, it is applying measures such as a block heat and power plant, which the airport uses to generate over half of its on-site energy requirements using environmentally-friendly natural gas. The increased use of photovoltaic plants on the campus is also helping to reduce CO2 emissions.  

  • Greenhouse gas (CO2) and air pollutant emissions 
  • Introducing pre-conditioned air systems
  • Integrating new measures into the Green IT implementation program on an ongoing basis

  • Procuring new IT equipment, integrating the latest Energy Star or TCO requirements catalogs, and giving higher priority to energy-saving devices when choosing products in order to continually reduce consumption
  • Procuring hydroelectric power from the Uppenborn plants
  • Procuring green power for customers in Scope 3
  • Improving energy efficiency in existing resources

  • Developing a concept to make more use of renewable energy from photovoltaic systems
  • Converting the external lighting and apron lighting to LED technology
  • E-mobility: Expanding charging infrastructure and procuring more electric vehicles- CO2-Developing a carbon charter with specifications and guidelines
  • Developing a carbon charter with specifications and guidelines

The airport’s business activities have a major impact on various areas and stakeholders: Munich, Bavaria, and Germany as business locations, the region and its inhabitants, the airport staff, and passengers, as well as other companies in and around the airport plus further stakeholder groups. The airport’s over-arching aim is to make sure its operations are sustainable. 

Munich Airport operates in the aviation, commercial activities, and real estate business areas. The service portfolio offered by the Group covers virtually all the services available at the airport campus – from air travel including passenger and cargo handling through to retailing, hotels and catering services. The goal is to ensure safe working conditions for employees in all areas of the business model. 

  • Occupational health and safety management
  • Introducing a process for recording and assessing employee satisfaction related to occupational health and safety
  • Using innovative lifting aids in the baggage transportation system in Terminal 1
  • Establishing a central staff qualification management structure, for instance designing training measures for foreign assignments and designing online training modules for safety instructions
  • Making improvements to the fields of occupational medical services and in-house health management, for example with the »Pro.Fit« project for the airport’s firefighting service, the »AufWind« musculoskeletal program, and the BETSI program

  • Designing a Group-wide program of measures for the systematic assessment of risks presented by hazardous substances (simple hazardous substance measures issued by the Federal Institute for Occupational Safety and Health)

Strategy 2025 highlights key issues for the refinement of the business model, and sets the course for Munich Airport’s future growth. Flughafen München GmbH expands airport infrastructure based on need, networks various transportation operators, and extends the range of landside transport services – all while keeping quality and customer requirements at the heart of its work. Negative effects on the environment and the area around the airport are kept as low as possible, for example by applying extensive compensating and noise protection measures and by providing employees with an affordable place to live.

  • Air traffic development
  • Infrastructure development and sustainable building
  • Customer focus 
  • Certifying selected buildings according to the standards of the German Sustainable Building Council (DGNB)
  • Expanding the five-star airport hotel (Hilton) in the AirSite Center

  • AirSite West – property development for an automobile airport service
  • West 0 transportation hub
  • Creating affordable homes for FMG employees in liaison with the communities in the region
  • Building a new Group data center with the aim of achieving carbon neutrality
  • Developing, operating, monitoring and coordinating the Group-wide continuous improvement process (passenger satisfaction data, ASQ, dialog management etc.)
  •  Continuing and developing the quality and service offensive (5-star program)
  • Integrating the strategic landside transportation concepts and products (rail, inter-city buses, car sharing) into the long-term parking needs concepts
  • Developing and implementing an application concept for new passenger information technology

  • Implementing delay code analyses (analyses to determine the reasons for air traffic delays)

  • Conducting total airport management at Munich Airport (turn-around and traffic flow management process)

As a hub for intermodal passenger transport, attractive and efficient road links and, in particular, rail links are of huge importance to Munich Airport. As a result, one of Munich Airport’s priorities is to offer appealing rail links for long-distance passenger services and for intermodal services combining rail and air travel.

  • Landside access and traffic development
  • Supporting the Neufahrner Kurve project
  • Supporting the planning approval process for the Erdinger Ringschluss (airport–town of Erding)
  • Ensuring the route 38 extension project between Munich, Mühldorf, and Freilassing as part of the new Federal Transport Infrastructure Plan
  • Erdinger Ringschluss project: constructing the first section to Schwaig
  • Supporting the Walpertskirchener Spange project

When it comes to using resources, Munich Airport's strategy for using natural resources is based on a respectful and economical approach, while showing a sense of responsibility toward future generations. Supplier management plays a major role in this strategy. 

  • Collaboration with regional partners
  • Sustainable procurement
  • Continuing to integrate sustainability criteria into supplier management

  • Providing information for suppliers / service providers (for example, creating information flyers for potential suppliers and service providers from the region)
  • Fostering transparency in existing supplier and service relationships (recording and publishing details of FMG sales in the region)
  • Continuing existing sponsorship agreements, examining new project requests on the basis of the FMG sponsorship principles, and continuing intensive dialog with sponsorship partners

The airport has once again significantly tightened its climate-related goals: The airport is intending to make its operations completely carbon-neutral by 2030. To achieve this, the Munich Airport Group is aiming to reduce the greenhouse gas emissions that can be attributed directly to its operations by 60 percent using a wide array of technical measures. It is no longer possible for technology to have a major impact on the other 40 percent of these emissions. 

  • Greenhouse gas (CO2) and air pollutant emissions
  • Introducing pre-conditioned air systems
  • Integrating new measures into the Green IT implementation program on an ongoing basis

  • Procuring new IT equipment, integrating the latest Energy Star or TCO requirements catalogs, and giving higher priority to energy-saving devices when choosing products in order to continually reduce consumption
  • Procuring hydroelectric power from the Uppenborn plants
  • Procuring green power for customers in Scope 3
  • Improving energy efficiency in existing resources
  • Developing a concept to make more use of renewable energy from photovoltaic systems
  • Converting the external lighting and apron lighting to LED technology
  •  E-mobility: Expanding charging infrastructure and procuring more electric vehicles- CO2-Developing a carbon charter with specifications and guidelines

As the operator of a major piece of infrastructure, Munich Airport is aware of its responsibility for the environment. Its aim is to keep its impact on nature and the environment as low as possible in the interest of future generations, too. Integrating Munich Airport into its environment in the best possible way has therefore been one of the goals of the planning concept right from the start. 
Around two thirds of the area within the airport’s perimeters are currently used for green space. The airport meadows next to the two runways play a central role in conserving rare species of plants and animals. 

  • Biodiversity
  • Voluntary butterfly project within the framework of the Bavarian Environmental Pact (developing and implementing species protection measures for selected butterfly species on FMG areas)

Good cooperation with the region is essential if Munich Airport is to succeed. Ongoing dialog with all social groups involved is the only way to ensure sustainable development. In light of this, we therefore converse with all our stakeholders on an ongoing basis– including those within the company itself as well as those at a local, regional, national, and international level. As a responsible neighbor, FMG has spent more than 20 years supporting various institutions and initiatives in its local region that reach large groups of people and have a sustainable impact.

  • Collaborating with regional partners
  • Off-campus growth
  • Fostering transparency in existing supplier and service relationships (recording and publishing details of FMG sales in the region)
  • Continuing existing sponsorship agreements, examining new project requests on the basis of the FMG sponsorship principles, and continuing intensive dialog with sponsorship partners
  • Developing the sales organization
  • Investing in consulting firms / forming joint ventures
  • Presenting consulting services at other sites and preparing tenders
  • Establishing a customer relationship management tool for off-campus business
  • Documenting and implementing off-campus processes
  • Providing product descriptions for off-campus consultancy and management services

Identifying and integrating key issues GRI 102-43; 102-44; 102-46; 102-47

Materiality matrix

(Move your mouse over the different capital icons in the grid.)

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Materiality process

1. Identification: FMG conducts an annual survey of its main stakeholder groups and FMG management when it publishes its integrated report. It also uses the results of internal scenario analyses to understand the business model in the broader context of a sustainable approach to development.

2. Prioritization: The results of the annual stakeholder and FMG management survey are presented in a materiality matrix with two equivalent axes, which represent the importance of the individual issues for internal and external stakeholders. These issues are then discussed with experts within the company, and content is allocated to the strategic fields of action. The issues are also incorporated into the targets process.

3. ValidationMembers of the management team discuss the relevant issues as part of the annual strategic target agreement process. The stakeholder survey also provides external feedback on the content of the integrated report. Fields of actions and targets are adapted, expanded, or incorporated for the first time.

Munich Airport acts as a «corporate citizen» within society, consciously acting in a responsible manner and always looking to pick up on issues of importance to its stakeholders. It welcomes dialog as an opportunity to continue developing its corporate policy, focused on sustainability. The company’s sustainability management incorporates the concerns of the stakeholders into the strategic planning and operational implementation. Using a materiality process, FMG identifies and prioritizes the issues that are important to external stakeholders and Group employees. Existing in-house processes and methods are linked to the internal strategy process for this purpose. FMG has set itself the goal of continuously improving processes, particularly with respect to the assessment and measurability of internal and external impact.

The Group-wide materiality analysis is based on the principles of the Global Reporting Initiative (GRI). It is an important tool for strategic sustainability management and provides the basis for the Executive Board to set the central parameters for the sustainable development of the Group. In 2018, internal and external stakeholders’ top priorities were air traffic development, infrastructure and sustainable building, customer focus, security and safety in air traffic, and digitalization.

Transparency through dialogGRI 102-40; 102-42; 102-43; 102-44

Photo: Bavaria came to visit Erdinger Moos
Bavaria came to visit Erdinger Moos
Some 40,000 people attended the «Family & Music Days» in 2018. The chance to see aircraft up close, to enjoy live music, and a whole host of events, to experience the airport itself in a different light is something that draws numerous visitors from the region and the entire state to the airport every year.

«Airport City Munich»: around 160,000 people on the airport campus every day

Chart: Airport campus
1) On the airport campus including all businesses etc.
2) People who bring passengers to the airport or pick them up and who actually enter the terminal itself rather than just accompanying them to the door/car park.
3) People who have visited the airport without flying themselves.

Munich Airport’s brand message is «Living ideas – Connecting lives». Working with all stakeholders is the only way for the company to tackle upcoming challenges and successfully shape its future. FMG applies a three-stage approach to stakeholder dialog, thereby encouraging transparency and social acceptance.

Stage 1: information on target-group-specific channels

For the information of the various interest groups, the airport has defined customized communication content, which it places in the appropriate channels. One important medium for this is the integrated report. It addresses all the airport’s target groups.

Stage 2: exchange and collection of stakeholder feedback

The airport includes its stakeholders in discussions and decisions about issues that are important to them, thus creating the basis for trust and long-term acceptance. Via the reader survey, for example, the airport receives feedback on the integrated report every year and determines the significance of key issues for stakeholders.

Stage 3: results of dialog flow into business operations

Finally, Munich Airport also takes into account stakeholder feedback in relation to its business activities. Its stakeholders force FMG to confront new issues and thereby act as a mirror of society. This in turn makes it possible to identify issues and trends at an early stage, benefit from outside knowledge, communicate the company’s stance, and defuse conflicts.

Key stakeholder groups GRI 102-40

Chart: Key stakeholder groups

Media

FMG’s press office regularly and quickly updates the German and international media on the latest developments, caters for journalists on site, and thus pushes the airport to the forefront of media interest. Lufthansa’s basing of five Airbus A380 in Munich, the launch of the «LabCampus», and the test run for the humanoid robot «Josie Pepper» were huge media events in 2018.

Public relations

Corporate Communications shares information on the latest topics on its social media channels in the style appropriate for each online platform. The top stories for 2018, for example, the basing of the A380s as well as new routes and airlines, resonated well with the fans and followers of Munich Airport.

Sponsorship activities in Munich

In 2018, in addition to FC Bayern Basketball, Midsummer Night’s Dream in the Olympiapark, and the Munich Marathon, FMG supported more than 20 other flagship projects from the fields of sport, the arts and culture in the state’s capital. Through this effective presence, Munich Airport is pushing ever closer to the city of Munich and is thus meeting its responsibilities to it.

Region

Good cooperation with the region is essential if Munich Airport is to be successful, and the Regional Liaison Office is responsible for this. As a support office, it reports directly to the Executive Board and sees itself as a kind of bridge-builder between the airport and the region. For the municipalities, political decision-makers, institutions, and citizens, the Regional Liaison Office is the first port of call for questions relating to the airport.

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