Aarhus Airport secures investor to avert closure and boost future operations

After two years of efforts, Aarhus Airport has successfully secured an investor willing to acquire a stake in the facility, averting potential closure. Lars Dige Knudsen, the chair of the airport’s board, expressed his relief, stating that it was a remarkable day and that the airport’s future is now more secure.

The airport has been struggling with passenger numbers and flight routes for several years, leading to significant financial losses. The newly identified foreign investor is set to inject a total of 120 million kroner over the next three years. However, the identity of this investor remains undisclosed until the owner municipalities approve the plan.

In 2022, Aarhus, Syddjurs, and Norddjurs municipalities provided a combined grant of 200 million kroner, contingent upon Aarhus Airport finding a private investor willing to contribute between 90 and 100 million kroner. The new investor will take ownership of 51% of the airport’s shares, while the municipalities will hold the remaining shares.

The agreement is conditional on individual approval from each municipality, and the investor will also have the opportunity to review the airport’s operations closely. So far, Aarhus Municipality has owned approximately 90% of the shares and previously granted a loan of 200 million kroner to the airport in 2019. Under the new deal, this loan will be converted into additional equity rather than repaid.

Aarhus Airport aims to reach a target of 1.5 million passengers annually within the next three to four years, though as of October this year, only 449,000 passengers have been recorded. Last year, the airport reported an 83 million kroner loss, raising concerns that it would run out of cash by the fourth quarter. Major projects, including the construction of a new terminal for non-European flights, were also put on hold. In June, the airport alleviated some financial pressures with a bank credit line to sustain operations through the year.