Budapest Airport Plans New Growth Strategy for China and Asia

Budapest Airport Plans New Growth Strategy for China and Asia

Hungary’s largest airport, Budapest International Airport recently unveiled a determined growth strategy for the Asian region. Set to launch in 2019 the Hungarian hub will increase their capabilities with the addition of direct freighter and belly cargo routes to China as well as enhanced e-commerce solutions.

The new strategy is aligned with the airport’s ongoing BUD20:20 expansion program that includes the much anticipated Cargo City development scheduled to open in 2019.

Budapest Airport Executive Director for Property and Cargo, René Droese had this to say, “China plays a major part in our BUD:2020 growth program, and we are working together with some of the country’s largest logistics and transport companies to meet rising demand for imports from China,” Mr. Droese explained further, “The new freighter routes launched this year complement our existing direct and indirect scheduled freighter and belly cargo connections with China operated by Air China, Cargolux, Emirates, Qatar Airways Cargo, and Turkish Cargo.

“The forwarder community in our region is seeking new ways to reach the Asia market; in addition to this we are witnessing an increasing demand from Chinese e-commerce companies for new, efficient distribution hubs in Eastern Europe, which amounts to a unique opportunity for us.”

He added e-commerce is a “major driver of growth in the air cargo market, particularly in Hungary where we are seeing more than 25 per cent growth rate per year, which is one of the reasons Budapest is one of the fastest growing cargo airports in Europe”.

“Eastern Europe represented a significant EUR73 billion of the e-commerce market in 2017, all of which represents a growing opportunity for BUD.”

“The electronics and automotive business are booming in our region, and more Chinese investment was announced recently regarding these sectors.

“Our new Cargo City project under construction with a total investment value of about EUR50 million will provide fast and highly efficient logistic solutions for all business-to-business, business-to-consumer, and consumer-to-consumer markets.”

Budapest Airport is currently in talks with some of the leading e-commerce companies including Alibaba Group, SF, ZTO, and STO Express in preparation for their additional China routes which are expected to launch in summer 2019.

The Consul General of Hungary in Shanghai, Szilárd Bolla said, ”We are witnessing historic moments in China; it was precisely 40 years ago that the Chinese Central Government, led by Deng Xiaoping, introduced the policy of opening the economy to foreign direct investment.”

“Now, the government of Xi Jinping would like to call the attention of global players to the dynamically growing Chinese internal market.”

“The quality of current diplomatic relations between the two countries and this momentum create an excellent opportunity for Hungarian businesses to enter the market.”