Betting on Budapest: Where to Invest, Visit, and Grow with BUD

Like the city it serves, Budapest Ferihegy International Airport (BUD) still shows traces of the Allied bombing raids that destroyed many buildings more than six decades ago. Now, with a $345 million modernization program underway, Hungary’s main airport — the base for national carrier Malév — aims to become the region’s leading hub.

Situated in the heart of central Europe, Budapest Airport handled 8.1 million passengers in 2009, ranking just behind Warsaw Chopin and Prague Ruzyne. Although that figure reflects a dip from earlier years, airport officials expect that planned improvements — expanded terminals including a new terminal, refurbished facilities, two additional piers and a large new parking structure — will raise total capacity to around 15 million passengers by 2015.

At the center of the redevelopment is the $264 million SkyCourt, a modern five-story concourse scheduled to open this spring. By linking terminals 2A and 2B, the bright, glass-and-steel SkyCourt will consolidate check-in, security, dining and shopping under one roof. A walkthrough duty-free area operated by the family-owned Heinemann group is among the retail highlights.

“Passengers will be able to shop right after passing through security,” says Director of Corporate Affairs Hardy Mihaly. “There will also be a dedicated customer service desk where travelers can collect items pre-ordered online.” In addition to the usual selection of perfumes, wines and spirits, the SkyCourt will feature a curated “Hungarian Corner” showcasing Tokaj wines, foie gras, salami and paprika, reflecting the country’s culinary specialties.

Adjacent to that area, a Hungarian wine shop will offer reds, whites and rosés from top domestic vineyards, while another boutique will sell hand-painted porcelain from Herend, famous for its craftsmanship. High-end fashion and luxury brands such as Burberry, Ralph Lauren, Hugo Boss, Longchamp and Montblanc are already confirmed SkyCourt tenants.

“Altogether, we’re delivering 260,000 square feet of new passenger facilities, with more than 46,000 square feet dedicated to retail and food and beverage,” Mihaly notes.

The airport’s expansion also includes the “Airport City” business park beside Terminal 2, slated for completion in late 2013. This complex will feature a multilevel parking structure and a 260-room, four-star hotel with conference facilities geared to business travelers, all within a short walk of the gates.

Those investments are already producing results. Delta has resumed daily seasonal non-stop service from New York’s John F. Kennedy International Airport to Budapest as of June 1, and American Airlines has announced plans to operate daily direct flights from JFK as well. Such moves underline carrier confidence in BUD’s potential as an important central European hub.

“We want to shift the conventional focus from western hubs to central Europe,” Mihaly says. “And that shift is already beginning.”