Vienna Airport

I refer to the report on Vienna Airport`s published first quarter earnings (May 17), the sole source of which appears to be Vienna Airport. I draw your attention to the fact that, within hours of Vienna Airport`s publication of these earnings, JPMorgan`s London office issued a `research alert` for public circulation, from which I quote:

"Vienna Airport`s first quarter numbers were close to our expectations with underlying earnings declining by 25 per cent to E14.5 million. Reported earnings were boosted by a one-off release of provisions of E19.9. We maintain our forecasts of a 12 per cent decline in underlying earnings for the full year, with continued earnings declines in 2002 and 2003. The traffic outlook is weaker at Vienna than at other European airports as Austrian Airlines consolidates and low cost carriers avoid the airport. Vienna remains a relatively high cost airport, despite recent airport charges reductions, which are also weakening earnings. ...Vienna`s traffic performance was weak at -5.6 per cent. Given its significant exposure to business traffic, its April performance should have been flattered by the timing of Easter. Our full year outlook for Vienna is for a 1.3 decline in traffic, unlike our positive forecasts at the other airports currently under coverage."

I trust this serves to put the record straight for your readers, who may have been led to believe that it is only passenger numbers that have declined at Vienna Airport, and not also the far more significant underlying earnings (by 25 per cent).

JP Morgan`s `research alert` makes it clear that the first is not the result of that now ubiquituous catch-all for blame, September 11, and that it is specific to Vienna Airport rather than, as suggested by your report (which quotes Vienna Airport as the source), pertaining to "most European airports".