Berlin’s ill-fated new airport finally ready for take-off

Berlin region’s new international airport has been dogged by one failure after another, becoming a financial black hole and a national laughing stock. (AFP)
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Updated 28 October 2020
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Berlin’s ill-fated new airport finally ready for take-off

  • The airport, located in the south-east of the capital, was originally due to open in 2011
  • BER initially projected to cost $2 billion but already was past the $7.6 billion mark

BERLIN: Nine years late and eye-wateringly over budget, the Berlin region’s new international airport will finally open on Saturday — in the middle of a global pandemic that has crippled air travel.
“We are ready for take-off!” insists the management team at the new Berlin Brandenburg Airport (BER), set to replace the German capital’s aging Tegel and Schoenefeld airports.
But the mood is one of relief rather than celebration.
Ever since construction began on BER in 2006, the project has been dogged by one failure after another, becoming a financial black hole and a national laughing stock — not exactly an example of German efficiency.
The airport, located in the south-east of the capital, was originally due to open in 2011.
Now it is opening its doors in the middle of the worst crisis the aviation industry has ever seen, as COVID-19 restrictions continue to suffocate air travel.
And as if that were not enough, there’s also the climate crisis: pressure group Extinction Rebellion is planning acts of “civil disobedience” on the opening day to protest against the impact of aviation on global warming.
Against that backdrop, “We will simply open, we will not have a party,” according to Engelbert Luetke Daldrup, president of the airport’s management company.
Lufthansa and EasyJet will be the first two airlines to touch down on the tarmac of what will be Germany’s third-largest airport, after Frankfurt and Munich.
A few days before the opening, around 200 staff were busy disinfecting the 360,000-square-meter Terminal 1.
Some 100 alcoholic hand gel dispensers have been installed and robot vacuum cleaners hum over the floors.
The “Magic Carpet,” a huge, bright red artwork by American artist Pae White suspended from the ceiling, brings a touch of color to the check-in hall.
The airport has been designed to welcome 27 million passengers a year, but in November it will see only 20 percent of usual air traffic thanks to the pandemic.
Terminal 2 won’t open until spring 2021.
About 15 shops and restaurants out of just over 100 will remain shut, while the rest will be forced to keep “limited opening hours” because of low traffic through the airport, a spokesman said
None of this good news for BER, initially projected to cost $2 billion but already past the $7.6 billion.
The airport has been granted $353 billion in state aid to help safeguard the jobs of the 20,000 people who will eventually work there until the end of 2020.
The health crisis is already having an impact on employment at the hub: at the end of July, Berlin’s airports announced the loss of 400 jobs out of a total of 2,100.
EasyJet has said it will cut 418 jobs in the German capital, and Europe’s leading airline Lufthansa, Germany’s flagship carrier, is to shed 30,000 jobs worldwide.
“We fear even greater job losses in the future,” a spokesman for the Verdi union said.
Luetke Daldrup hopes the situation will improve “from the spring onwards.” But the International Air Transport Association does not expect global air traffic to reach pre-crisis levels until 2024.
In the state of Brandenburg, which surrounds Berlin, local leaders remain optimistic about the prospects for development.
“No hotel has so far postponed its investment plans because of the pandemic,” insists Olaf Luecke, president of the local branch of Germany’s hotel and catering trade union (DEHOGA).
Construction work began in September on two 14,000-square-meter (150,000-square-foot) hotel complexes, due to open in 2022.
And in anticipation of the opening of BER, US electric-car giant Tesla has chosen Brandenburg as the location of its first European factory, which is set to employ 40,000 people.
“Having new, modern infrastructure will be beneficial in any case, despite the pandemic,” according to Carsten Broenstrup of the state employers’ association.
But “if there is not a vaccine soon, it will be a very big problem,” he admits.


Saudi Arabia’s budget deficit widens to $25.3bn in Q4 2025 as spending rises 

Updated 5 sec ago
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Saudi Arabia’s budget deficit widens to $25.3bn in Q4 2025 as spending rises 

RIYADH: Saudi Arabia’s capital spending rose 18 percent year on year in the fourth quarter of 2025, while higher overall expenditure widened the Kingdom’s budget deficit to SR94.85 billion ($25.28 billion), official data showed. 

According to the Ministry of Finance’s Quarterly Budget Performance Report, government spending increased to SR371.6 billion in the three months to December, up 3 percent from SR360.5 billion in the same period a year earlier. 

Capital expenditure — classified as spending on non-financial assets — climbed to SR50.9 billion in the fourth quarter from SR43.1 billion a year earlier, highlighting sustained investment in infrastructure and development projects. 

Total revenues reached SR276.7 billion in the quarter, increasing from SR269.9 billion in the third quarter but declining about 9 percent from a year earlier due to weaker oil income. 

Oil revenues totaled SR154.2 billion in the fourth quarter, down 10 percent year on year despite a quarterly increase supported by higher production levels. For the full year, oil revenues fell around 20 percent to SR606.5 billion from SR756.6 billion in 2024. 

Non-oil revenues — a key pillar of Saudi Arabia’s diversification strategy — stood at SR122.6 billion in the fourth quarter. On an annual basis, non-oil revenues rose by 1 percent to SR505.3 billion in 2025, compared with SR502.5 billion the previous year. 

Saudi Arabia maintained an expansionary fiscal stance throughout 2025, with total government expenditure reaching SR1.39 trillion, up 1 percent from SR1.36 trillion in 2024. 

Spending increased across several priority sectors. Education expenditure rose 4 percent to SR212.5 billion, while health and social development spending increased 2 percent to SR278.9 billion.  

Military and security sector spending climbed about 5 percent to SR249.1 billion, while public administration expenditure grew 7 percent. Spending on general items rose 3 percent, and regional administration outlays increased marginally by 0.4 percent. 

For the full fiscal year, total revenues reached SR1.11 trillion against expenditure of SR1.388 trillion, resulting in a budget deficit of SR276.6 billion — exceeding earlier government projections as oil revenues declined. 

Public debt rose to SR1.52 trillion at the end of 2025, compared with SR1.22 trillion a year earlier, as the Kingdom increased borrowing to finance fiscal gaps while continuing to fund large-scale development and infrastructure projects.