DHL Hub Leipzig: The last hurdle is cleared in Brussels

Deutsche Post welcomed the conclusion of the most recent state aid proceedings with an eye on the new hub of its express subsidiary DHL. The proceedings against the Free State of Saxony, which have been pending since 2006, have focused on the state’s financial contribution to the construction of a new runway at Leipzig Airport. In its decision, the commission did not object to the contribution.
An additional aspect of the proceedings dealt with financial guarantees of Saxony and the airport with regard to permanent 24-hour use of the airport among other things. Commitments to liability had been made here, since unlimited use of its facilities in Leipzig is indispensable for DHL as an express company and the company had sought maximal security for its investments at that time. The commission has now declared the commitments as not permissible.
No negative consequences result for the hub itself, however. Operations and the required investment security have been ensured in the meantime to the greatest possible extent through political and legal decisions.
CEO Frank Appel emphasized that Deutsche Post can live quite well with the commission’s decision: “We have obtained in the meantime the long-term security that DHL urgently needs at the Leipzig location. After the conclusion of the last EU Commission’s proceedings we can really say that we no longer see any restrictions from Brussels on the further operations of our express business at this important location.”
The limited reimbursement requirement also has no consequence whatsoever on the operational day-to-day business nor on DHL’s decision to operate the central European hub in Leipzig for the long term.

Deutsche Post welcomed the conclusion of the most recent state aid proceedings with an eye on the new hub of its express subsidiary DHL. The proceedings against the Free State of Saxony, which have been pending since 2006, have focused on the state’s financial contribution to the construction of a new runway at Leipzig Airport. In its decision, the commission did not object to the contribution.
An additional aspect of the proceedings dealt with financial guarantees of Saxony and the airport with regard to permanent 24-hour use of the airport among other things. Commitments to liability had been made here, since unlimited use of its facilities in Leipzig is indispensable for DHL as an express company and the company had sought maximal security for its investments at that time. The commission has now declared the commitments as not permissible.
No negative consequences result for the hub itself, however. Operations and the required investment security have been ensured in the meantime to the greatest possible extent through political and legal decisions.
CEO Frank Appel emphasized that Deutsche Post can live quite well with the commission’s decision: “We have obtained in the meantime the long-term security that DHL urgently needs at the Leipzig location. After the conclusion of the last EU Commission’s proceedings we can really say that we no longer see any restrictions from Brussels on the further operations of our express business at this important location.”
The limited reimbursement requirement also has no consequence whatsoever on the operational day-to-day business nor on DHL’s decision to operate the central European hub in Leipzig for the long term.