The Flemish government has, through its investment fund PMV, become the largest stakeholder in Brussels’ international airport at Zaventem, increasing its wager in Brussels Airport Company by €2.77 billion and significantly upgrading its hand: from one percent to 39% of shares.
Despite the politics behind the acquisition (which comes as the Federal government has also been contemplating some of the 30% stake up for grabs from Canadian pension fund OTPP), Flanders is not simply at the table for a geopolitical power play. It is, in fact, banking on continued economic growth at the airport, which saw a record turnover of €748 million in 2024, an increase of 11%.
Betting on cargo
That upward trend is anticipated to continue if the airport’s current revenue diversification strategy proves successful. The company is shaping its ambitions around three “pillars” according to Ariane Goossens, spokesperson for the airport, namely: “hub performance, revenue diversification, and sustainability.”
The strategy to grow each area of the business by 10% has been vindicated in some measure already, as seen by the airport’s pursuit of hub and cargo activity. Cargo space leasing, which has cost the airport company €2 billion over the last decade and a half, is now earmarked for 50% growth over the next fifteen years.
And that’s only half the speculate-to-accumulate story. By investing all that, of which 95% went on “airport infrastructure, including the logistics buildings at Brucargo”, Goossens said, the airport is improving its offer to airlines, convincing them that Brussels can supplement their passenger income by carrying goods and has somewhere to put the load.
Real estate and services
Elsewhere, more evidence of revenue diversification can be seen in moves toward further terminal expansion, a new intermodal hub to cater to up to 40 million passengers, and commercial income through the Lagardère group from parking income.
That’s on top of airline fares and charges, as well as rental yields from a growing real estate portfolio, aside from cargo buildings, such as hospitality venues and professional buildings. An events space, a 300-room hotel and more office accommodation are just two examples of pipeline plans.
One advantage of developing property in the airport’s vicinity is that the property tax is significantly lower than in Brussels, and there is no regional or municipal tax, which makes it a desirable area.
A question of sentiment
The fiscal advantages the airport offers are something clearly understood by the roll-call of financially-savvy firms who already rent space there, among which sit Deloitte, KPMG, and construction specialist, Etex. But increasing its stake at Brussels airport is more for Flanders than a simple financial equation. Debates about routes, noise, and night flights abound in Flemish districts surrounding the airport, underlining the societal sensitivities in the balance.
Though it serves the capital and the country, ultimately, the airport is in Flanders, and as Flemish minister-president Matthias Diependaele put it, “We want to be in the cockpit when it comes to the future of our airport,” he declared. “If we are not involved, someone else will make the decisions for us.”
