
Article 1 
The State aid which Germany is planning to implement amounting to EUR 350 million in relation to the construction of a new runway and related airport infrastructure at Leipzig Halle Airport is compatible with the common market under Article 87(3)(c) of the EC Treaty.
Article 2 
The State aid which Germany is planning to implement by granting the comfort letter in favour of DHL is incompatible with the common market. The aid may accordingly not be implemented.
Article 3 
The State aid which Germany granted to DHL in the form of unlimited warranties (according to sections 8 and 9 of the Framework Agreement) is incompatible with the common market. These unlimited warranties granted by the Framework Agreement must accordingly be abolished.
Article 4 

1. Germany shall recover the part of the aid referred to in Article 3 which has already been put at the disposal of DHL (i.e. the warranty fee for the period from 1 October 2007 until the abolition of the unlimited warranties).
2. The sums to be recovered shall bear interest from the date on which they were put at the disposal of the beneficiary until their actual recovery.
3. The interest shall be calculated on a compound basis in accordance with Chapter V of Regulation (EC) No 794/2004 and to Regulation (EC) No 271/2008 amending Regulation (EC) No 794/2004.
Article 5 

1. Recovery of the aid referred to in Article 3 which has already been put at the disposal of DHL shall be immediate and effective.
2. Germany shall ensure that this decision is implemented within four months following the date of notification of this Decision.
Article 6 

1. Within two months following notification of this Decision, Germany shall submit the following information to the Commission:
(a) the total amount (principal and recovery interests) to be recovered from the beneficiary;
(b) a detailed description of the measures already taken and planned to comply with this Decision;
(c) documents demonstrating that the beneficiary has been ordered to repay the aid.
2. Germany shall keep the Commission informed of the progress of the national measures taken to implement this Decision until recovery of the aid referred to in Article 3 which has already been put at the disposal of DHL has been completed. It shall immediately submit, on simple request by the Commission, information on the measures already taken and planned to comply with this Decision. It shall also provide detailed information concerning the amounts of aid and recovery interest already recovered from the beneficiary
Article 7 
This Decision is addressed to the Federal Republic of Germany.
Done at Brussels, 23 July 2008.
For the Commission
Antonio TAJANI
Vice President
Neelie KROES
Member of the Commission
ANNEX
(EUR million)
Cash-flow calculations  (1) (2) (3) (4)=(2)-(1) (5)=(3)-(1)
Airport Airport Airport Southern runway Southern runway
Status Quo Expansion with DHL Expansion without DHL with DHL without DHL
EBITDA (2006-2042) a […] […] […] […] […]
Investment costs (2006-2042) b […] […] […] […] […]
Investment costs 2005 c […] […] […] […] […]
Cash-flow 2005 d=a+b+c […] […] […] […] […]
Risk costs e […] […] […] […] […]
Risk-adjusted cash-flow 2005 f=d+e […] […] […] […] […]
Correction for security and safety costs
Security and safety cost (operating + investment costs) g […] […] […] […] […]
Corrected cash-flow 2005 h=f+g […] […] […] […] […]



Germany submitted 3 different scenarios for the development of the 2006-2042 cash-flows of Leipzig Airport:

— Airport — Status quoThe southern runway is not built. The airport operations continue on the existing northern runway.— Airport — Expansion with DHLThe southern runway is built and DHL begins operating its European hub in 2008.— Airport — Expansion without DHLThe southern runway is built but DHL does not move to Leipzig and another operator will be attracted to the airport after 2010.

Based on the differences in cash-flows, the expected profitability of the southern runway is calculated thus:

— Southern runway with DHLThis column shows the cash-flow difference between the expansion with DHL and the status quo.— Southern runway without DHLThis column shows the cash-flow difference between the expansion without DHL and the status quo.


— While the opening decision discounted revenues and costs to 2006, the current calculations take 2005 as reference year because the decision to build the southern runway was taken in November 2004, and construction started in early 2005.
— The Commission learnt from the German submission to the opening that additional investment costs of EUR […] were incurred in 2005, which further increase the cash-flow losses. These investment costs were included.


— The construction and operation of the southern runway with DHL yields a discounted cash-flow loss of about EUR […] in 2005. The discounted cash-flow loss for the expansion without DHL amounts to EUR […].
— Finally, the risk costs of EUR […] (as calculated by Germany) increase the cash-flow losses to EUR […] for the southern runway with DHL. It is thereby important to note that the estimated risk costs of EUR […] m merely represent lowest end of the scale since the Germany does not quantify all risks assumed by the airport and builds its calculations on very questionable assumptions.
— Even if the Commission followed Germany's argument that security and safety costs of EUR […] fell within the public policy remit and had therefore to be excluded from the calculation for the southern runway, a substantial cash-flow loss of EUR […] would remain.
