Global Market Updates

Airport Operators & Concessions • Global Market Update • March 2018

March 2018

Mexico – Feb 24/18 – Mexico’s GAP Appoints New CEO to Head Group

Grupo Aeroportuario del Pacífico (GAP) announced appointment of Raul Revuelta Musalem as Chief Executive Officer of the group effective April 26, 2018. Mr. Revuelta currently serves as Chief Executive Officer of the Cross Border Xpress in San Diego, California and previously worked with GAP as Chief Financial Officer and Chief Commercial Officer from 2005 to 2015.

Saudi Arabia – Feb 22/18 – Saudi Terminates Jeddah Deal with Changi

The General Authority of Civil Aviation (GACA) has terminated its 20-year concession agreement with Changi Airports International for operation of Jeddah’s King Abdulaziz International Airport, which GACA awarded in spring 2017. What prompted the move still the subject of speculation. Changi has asserted that RFP requirements were strictly observed.

Bulgaria – Feb 15/18 – Bulgaria Reboots Concession Process for Sofia

Buoyed by Serbia’s award of a 25-year concession of Belgrade’s Nikola Tesla Airport to VINCI early in the new year, Bulgaria has rebooted the process to attract private sector participation in the Sofia Airport. The original proposal call was terminated in mid-2017 following numerous deadline extensions. The renewed effort is expected to kick-off in Q1 of 2018.

India – Feb 11/18 – Malaysia Holding to Sell its Minority Stake in Hyderabad

Malaysia Airports Holdings recently announced plans to sell its 11% stake in GMR Hyderabad International Airport Ltd. for USD$76.1m to fellow shareholder GMR. Targeted to transact by April 30, 2018, with a provision of extension up to December 1, 2018, the deal is still subject to board, shareholder and regulatory approvals. GMR’s share will increase from 63% to 74%.

Greece – Feb 08/18 – Extension of Athens Concession Waylaid in Brussels  

The 20-year extension of the Athens International Airport concession hit a stumbling block in Brussels, as the EU’s competition bureau has weighed in on the transaction. Initially set to be inked by the end of 2017, ratification of the deal will likely run into Q2-2018. So the Є251m payment to the state privatizations fund TAIPED and Є117m in VAT remains in limbo for the moment.

United States – Feb 06/18 – St. Louis Privatization Plans Hit Some Turbulence

The City of St. Louis is continuing its pursuit of potential private sector operation and investment in the St. Louis – Lambert International Airport. The City’s recent selection of an advisory firm with ties to a local “mega-donor” to various Missouri election campaigns is raising some ire amongst local politicians and activist groups which could put the City’s plan in peril.

India – Feb 05/18 – New Kannur Airport Set for Mid-year Launch

The greenfield Kannur International Airport (KIAL) is set to be operational by mid-year. Structured under a public-private partnership framework, KIAL’s shareholders include the Kerala government (35%), various public sector entities (25%), a collection of cooperatives, banks and individual shareholders (30%) and the Airports Authority of India (10%).

United States – Feb 04/18 – LAX Awards People Mover to Hochtief Consortium

Germany’s Hochtief and a consortium including ACS has been selected to develop and operate the USD$1.95b LAX automated people mover under a 25-year PPP encompassing planning, financing and construction. The above-ground light rail system will link parking lots, rental car locations and local metro stations with the LAX terminals.

Russia – Feb 03/18 – Sheremetyevo Considers Minority Sale to “Strategist”

The private shareholders of Russia’s busiest airport, Sheremetyevo International, are reported to be considering sale of a 10% stake in the venture to a “strategist” investor. Currently the two main shareholders are Sheremetyevo Holding LLC (66%) and Rosimushchestvo (30.43%). At present, the company’s total capitalization is pegged at USD$1.8b.

Colombia – Feb 01/18 – Colombia’s Armenia Airport to See PPP Investment  

The national infrastructure agency of Colombia has announced plans for a US$21m PPP structured project at Armenia – El Edén airport, which will be added to the USD$25m project already underway. The airport is currently served by Spirit Airlines, Avianca, Air Panama and Aerolínea de Antioquia.