Klagenfurt Airport: renationalization or financial disaster?

Klagenfurt Airport: renationalization or financial disaster?

Klagenfurt Airport has undergone turbulent development in recent years, which is accompanied by increasing concerns about the future of aviation infrastructure in Carinthia. Since 2018, 74.9% of the airport has belonged to the Lilihill Group, which acquired the shares from Carinthian politicians for 8.1 million euros. The investor Franz Peter Orasch had announced big plans at the time, including the construction of a new terminal, a hotel and an exhibition center. But the reality is different: passenger numbers fell from 523,000 in 2005 to just 82,562 in 2022, which the State Audit Office described as “amateurish”. These developments led to the state of Carinthia buying back the shares for 3.24 million euros in 2023, while the city of Klagenfurt planned to transfer its 20% to the state free of charge.

With the renationalization in the commercial register, the airport is now held 80% by the Carinthian investment management and 20% by the city of Klagenfurt. This measure is no coincidence, as the Lilihill Group has not yet implemented its announced expansion plans. In addition, passenger numbers remained below 100,000 in 2022. Political disputes between the SPÖ, ÖVP, FPÖ, Greens and Team Carinthia parties shape the discussion about responsibility and transparency in relation to airport operations.

Political disputes and future prospects

Before the state elections in March 2024, the SPÖ had blocked the ÖVP's attempts to renationalize, but after the election it worked towards an agreement with the coalition partners to exercise a purchase option. Mayor Christian Scheider has called for clear conditions and emphasizes the need to revitalize the airport. This revival could be promoted by the announced direct flights to Hamburg between January and March 2024. Deputy Mayor Philipp Liesnig emphasizes the development of properties that are not necessary for operations, which could create additional sources of income.

The political situation is further complicated by the discoveries of the State Audit Office, which uncovered unlawful billing and inappropriate practices in 2025. The Lilihill Group planned to exploit 51 hectares of airport land without the necessary approval, which was stopped thanks to an injunction. Despite promises of transparency, parts of the contracts remain secret, which increases the pressure on those responsible.

Current passenger development and challenges

However, on a positive note, passenger numbers increased by 25% in 2025, particularly due to the return of the Euro Wings airline. However, the airport lags behind other airports in terms of its operating hours from 8 a.m. to 6 p.m. and faces extensive challenges. Given the declines at major airports worldwide, especially in Germany, where the largest airport, Frankfurt, still served almost 60 million passengers in 2023, Klagenfurt Airport is forced to develop targeted strategies in order to remain competitive. Germany's airports are increasingly struggling with the decline in passenger numbers due to changing travel patterns and increased ticket prices.

In summary, Klagenfurt Airport is facing a difficult situation: it is financially burdensome for Carinthia and requires either a viable concept for development or serious consideration of closing the facility. The next period will be crucial in setting the course for the future of the airport.