Global Market Updates

Airport Operators & Concessions • Global Market Update • May 2016

Canada – Apr 28/16 – Vancouver Airport Sells Remaining Stake in Vantage

The Vancouver Airport Authority (YRVAA) has sold its remaining 50% stake in Vantage Airport Group (formerly Vancouver Airport Services) to fellow shareholder, Gateway Airports LP, who now owns 100% of the global operator. YVRAA invested CDN$52.6m into Vantage and received CDN$105m in dividends and sale proceeds amounting to 9% return on investment.

Albania – Apr 26/16 – AviAlliance Strikes Deal to Sell its Stake in Tirana

The AviAlliance-led consortium have successfully concluded negotiations with the Albanian gov’t to end the Tirana Int’l Airport (TIA) monopoly established in the 2004 concession agreement, paving the way for operation of a new greenfield airport near the northern city of Kukes. In related news, AviAlliance subsequently announced that it has reached an agreement with Chinese joint venture partners China Everbright and Friedmann Pacific Asset Management to acquire its TIA shares.

Spain – Apr 16/16 – Spain’s “Ghost” Airport One Step Closer to Liquidation

The fate of the Ciudad Real “Ghost” Airport may be one step closer to certainty. CR Int’l Airport SL has deposited €1.87m through a court-order liquidation process and has four months to come up with the remaining €56.2m to close the sale.

Kenya – Apr 15/16 – Kenya Considers Private Partnerships in Face of Growth

The Kenyan gov’t is reported to be considering greater private investment in state infrastructure, including airports, through PPPs in a drive to reduce pressure on its public finances. The gov’t is feeling the fiscal strain as it is currently in the midst expanding the Nairobi Int’l Airport and its principal sea port in Mombasa.

Dominican Republic – Apr 12/16 – VINCI Airports Seals Deal to Purchase Aerodom

French investor/operator VINCI Airports has sealed the deal with for purchase of AERODOM, the Dominican concession company holding rights to operate six airports in the Dominican Republic to 2030, including Santo Domingo and Puerto Plata.

United States – Apr 05/16 – Cargo Hub Planned for Baja Via PPP Model

Baja, California has sets its sights on developing a new a cargo airport in the Ojos Negros Valley just outside Ensenada, through a PPP which would serve a national/domestic market and eventually expand into a cargo transfer hub to/from Asia.

Honduras – Apr 04/16 – Honduran “Extreme” Airport Slated to Replacement

Toncontin Int’l Airport, considered one of the world’s most “extreme” airports, due to its treacherous approach and short runway, is slated for replacement by a new greenfield airport, to be developed by a consortium including local firm Inversiones EMCO and Flughafen Munchen, under a 30-year concession with a commitment to invest USD$114 million.

Bulgaria – Apr 03/16 – Sofia & Plovdiv Airports Poised for Concession

The Bulgarian gov’t has set the wheels in motion to concession Sofia and Plovdiv airport. Under the country’s existing legislation a maximum term of up to 35 years is allowable however, upon adoption of the new Concession Act by the Bulgarian parliament, terms can be extended to 99 years in line with applicable EU requirements.

Japan – Apr 02/16 – Japan Eyes Four Airports in Hokkaido for Privatization

Following the successful privatization of Kansai/Itami and buoyed by a sharp rise in foreign visitors, four more airports in Hokkaido Prefecture (New Chitose, Wakkanai, Kushiro and Hakodate) have been ear-marked for concession. In 2015, New Chitose Airport traffic topped 20 million, ranking it fourth in the country behind Haneda, Narita and Fukuoka.

India – Apr 01/16 – India’s Nagpur Airport Explores Privatization

Mihan India Limited (MIL), which currently operates Nagpur Airport, is considering privatization of the facility. If approved by its board of directors, a request for qualifications will be issued, followed by submittal of financial offers. MIL is looking to partner with the successful bidder though a special purpose vehicle with the private investor holding a 74% stake.