Frankfurt to raise rates by 12.5 per cent

FRANKFURT Airport has announced plans to raise its rates by 12.5 per cent by October 2011, despite freight traffic at the airport dropping 17 per cent his year.Charges will increase by four per cent on 1 July, 2010, and by three per cent on 1 October and again on 1 April, 2011, with a final 2.5 per cent on 1 October, 2011.“The increase in airport charges is an essential element for financing the immense capital expenditures for FRA’s future viability and competitiveness,” said Fraport executive board chairman Stefan Schulte. “By staggering the increase well into 2010, we have also taken into account the currently difficult economic situation faced by the airlines.”Frankfurt is the main hub of Lufthansa. A spokesman for the airline said that the raise would be “painful”.Fraport is currently investing about €1 billion (US$1.5 billion) a year into modernising its facilities.