KPMG Report: City of Linz Likely to Get Little Money for Its Airport Stake

The KPMG auditor's report is intended, as has been reported repeatedly, to settle this question once and for all. What concrete steps the owners will derive from the valuation is currently unclear. The exact valuation date and the methodology of the assessment have likewise not been made public so far.

Burdens from Renovation and Lawsuits

Further burdens remain on the table that could reduce the value even more. Runway renovation and compensation claims could push the value down further, according to the report. This brings together for the City of Linz not only risks arising from any potential sale, but also ongoing questions of investment and liability.

The OÖN coverage picks up the topic as a question of municipal finances and places it in the discussion about the future ownership of the airport. In the Upper Austrian state parliament, the valuation is likely to come up as well, since the state, as the other 50 percent owner, is directly affected.

Political Dimension of the Valuation

Politically, the valuation is likely to be seized upon as an argument in the debate about the airport's future. Critics raise the question of whether continued operation under the current conditions can still be justified economically. Supporters, by contrast, point to the airport's significance for the location and its impact on employment.

Outlook on Further Decisions

Observers expect the City of Linz and the State of Upper Austria to enter into further negotiations once the report has been presented. It remains unclear whether a sale, a change in ownership structure, or a mere renovation of the existing facility is being pursued. An official statement from the owners has not yet been issued.

For the city's budget planning, proceeds of one euro would be symbolic but operationally of little help. If a sale were actually to take place, investments in runway renovation and pending compensation claims would have to be factored into the new owner's calculations. The economic pressure on the location would thus remain high.