Brazil: Government approves concession of 12 airports in three regions

The federal government will transfer 12 airports to the private sector through a concession process. The decision. published in the Federal Official Gazette on Monday (5), was taken by the Council of the Investment Partnerships Programme of the Presidency of the Republic.

According to the resolution authorising the process, the concessions will be tendered in three blocks, one each for the Northeast, Midwest and Southeast regions. The concession period will be of 30 years for all blocks and airports.

The concession model is interesting for the country because it generates investments, creates jobs and improves services to consumers in the terminals, while allowing the government to receive a fee for each airport.

Check out the list of airports to be awarded

Northeast Block

* Recife International Airport/Guararapes – Gilberto Freyre

* Zumbi dos Palmares Airport – Maceió

* Santa Maria Airport – Aracaju

* Presidente Castro Pinto Airport – João Pessoa

* Orlando Bezerra de Menezes Airport – Juazeiro do Norte

* Presidente João Suassuna Airport – Campina Grande

Midwest Block

* Marechal Rondon Airport – Cuiabá

* Maestro Marinho Franco Airport – Rondonópolis

* Pilot Osvaldo Marques Dias Airport – Alta Floresta

* President João Batista Figueiredo Airport – Sinop

Southeast Block

* Eurico de Aguiar Salles Airport – Vitória

* Macaé Airport (SBME) – Rio de Janeiro

PPI

The Investment Partnerships Programme (PPI) was created in 2016 aiming to improve the country’s services and infrastructure through partnerships between the federal government and the private sector. In the case of airports, the concessions started in 2011, leading to increased quality and compliance with international standards. Concession contracts are inspected by the National Civil Aviation Agency (ANAC).

Greece to privatize another 23 regional airports mostly on the islands

Greece has opened the way for the privatization of another regional airports, 23 in total. The airports are mostly located on islands in the Aegean Sea, several in mainland and two in Peloponnese.

The relevant decision by the Ministry of Transport and Infrastructure has been published in the official gazette already on October 25, 2018.

The airports are currently managed by the Greek Civil Aviation Authority.

The airports to be privatized published are:

Alexandroupolis, Ioannina, Kozani, Kastoria, Nea Aghialos, Kalamata, Araxos, Limnos, Chios, Ikaria, Skyros, Milos, Naxos, Paros, Syros, Kalymnos, Astypalea, Sitia, Leros, Kasos, Karpathos, Kythera and Kastelorizo.

At this stage the privatization is still in the very beginning of the process. The Ministry decision allows investigation with the aim to prepare and develop a plan to the above mentioned airports taking into account their functionalities as well as the prospects for further development and modernization.

The investigation will also include options for the concession terms and conditions.

The Ministerial decision practically opens the way to the privatization of these airports.

Fourteen major Greek airports were privatized two years ago with tender winner to be German-led consortium Fraport.

Source: Keep Talking Greece

UPDATE. Slovakia will try to rent out Bratislava Airport

Transport Minister Árpád Érsek proposes renting Bratislava airport to a concessionaire for 30 years, the SITA newswire wrote.

It cited a draft public-private partnership project for selecting a concessionaire for the operation of M.R. Štefánik Airport in Bratislava (BTS), which his department submitted on October 26 for a fast-tracked interdepartmental review.

The expedited review should be closed as early as on November 2, as the Ministry claims, there is an urgent need to carry out further actions resulting from the project as well as the entire procedure of selecting a concessionaire. According to the proposed schedule, the concession agreement could come into force as soon as 2021.

The documents ultimately find a strategic partner to be the best solution, with the State acquiring an extra €61 million, and a higher residential value for BTS when it is returned.

The planned timeline
The conclusion of the concession is expected by June 2020, after a public tender. Its subject should be the operation, maintenance and development of Bratislava airport, while the runways and the connected infrastructure should remain in the ownership of BTS, according to Sme.

“By implementing the project of public-private-partnership in the form of granting a concession, the long-term sustainable development of M. R. Štefánik Airport will be secured,” the ministry predicts, as cited by Sme. “The precondition is that the strategic partner improves the competitive position of BTS in the region and increases the offer and quality of the airport services.

Source: The Slovak Spectator

The Slovak Government is finalising a concession strategy for Bratislava Ivanka Airport

Slovakia’s Ministry of Transport and Construction plans to finalise and submit a concession strategy to the Government for operation of Bratislava Ivanka Airport by late 2018. The Ministry argues the concession will “ensure further development of the airport” and accelerate passenger growth.

This is not the first time that an attempt at privatising the operation of the airport has been attempted. In 2006, the Two-One Consortium, comprising Flughafen Wien (Vienna Airport), the Austrian bank Raiffeisen Zentralbank and the Slovak private equity group Penta offered EUR113.3 million for a 66% stake in Bratislava and Košice airports, trumping one from Abertis of EUR84.87 million.

Interestingly, hardly any of those organisations (Flughafen Wien) remains involved directly in airport investment, and at a considerably lower level. Abertis has left the business altogether. How times change.

But the deal failed to take into account that when it was signed by the previous right wing Dzurinda government there was a clause that the sale had to be approved by the country’s antitrust authority (Protimonopolný úrad, or PMÚ) by 15-Aug-2006, or the contract would be declared invalid.

When the consortium failed to secure its approval in time, the socialist Robert Fico government, which was against the sale of state assets in general and the Bratislava airport in particular, quickly moved to annul the deal, or at least the Bratislava part of it; Košice eventually went ahead and was sold to Flughafen Wien.

Politics apart, the government could have been spooked by a neighbouring country “taking over” its main and capital city airport. Vienna and Bratislava airports are only 80km (50 miles) apart and Vienna wanted to use Bratislava as an LCC facility so that network/hub operations at Vienna would be unhindered (a strategy that has resurfaced recently at Lisbon and Madrid, for example, where new LCC-designated airports are proposed).

But the whole issue sort of queered the pitch for future investment or management contracts at Bratislava. There is no certainty like “uncertainty” where political interference is concerned. As it happens, the Fico government remains in power, within the framework of the coalition system that exists. Fico himself does not, though. He resigned in Mar-2018 and was replaced by Peter Pellegrini, who had been made Deputy Prime Minister for Investments by Fico in 2016.

Whatever Flughafen Wien’s intentions were back in 2006, Bratislava has actually effectively become an LCC supporting airport, with 92% of seat capacity accounted for by budget airlines, and two-thirds of it by Ryanair, followed by Wizz Air, which has a base there.

Source: The Blue Swan Daily