Hamburg | | Press Release

Stuttgart Airport and Skytanking Sign a 30-Year Contract to Build and Operate the Airport’s Next Generation Aviation Fuel Storage Facilities

Skytanking Holding GmbH and Flughafen Stuttgart GmbH (FSG) today announced the signing of a contract for the construction and operation of the new aviation fuel storage facility at Stuttgart International Airport.

FSG announced its decision to appoint Skytanking after a Europe-wide tender process and a rigorous appraisal of tender submissions from each bidder. In order to win the concession, Skytanking had to demonstrate its capabilities in financing, engineering, construction and operations in airport fuel projects of this size and scope. In addition, FSG specified in the tender that the fuel storage facility should be ‘open access’ in order to maximise competition between fuel suppliers and to keep Jet A-1 prices as low as possible. As a result, the fuel storage system will be open to any qualified fuel supplier on identical commercial terms. Accordingly, Professor Fundel, Managing Director of Stuttgart Airport, commented "Due to intense competition among airports, lower costs for fuel supply and fuel logistics are increasingly becoming an important competitive advantage".

The so-called ‘BOOT’-contract will run over 30 years and is the first of its kind to be used at a German airport for a fuel project. ‘BOOT’ stands for Build-Own-Operate-Transfer and is a commonly-used contractual structure for infrastructure projects that is also becoming popular with airports that need new fuel facilities. It allows the airport to outsource the financing, design, construction and operation of the facilities to an independent specialist in aviation fuelling, like Skytanking. At the end of the 30-year contract, the facilities will be transferred to airport ownership.

"We are delighted that FSG has chosen Skytanking as its partner for a long-term project of such strategic importance", said Christoph Lindke, Business Development Manager of Skytanking. "The award of this contract highlights the fact that Skytanking is one of the few companies in the world with the technical expertise and financial resources to undertake this kind of BOOT project". The new aviation fuel facilities will be operational from 1st of January 2009. Besides building and operating the new facilities, Skytanking will also provide into-plane fuelling services to oil companies and airlines operating at Stuttgart Airport.