The latest studies by the International Air Transport Association (IATA) project a doubling of air traffic by 2025. This growth is driven by the cumulative effects of the massive liberalization of the sector since the early 1990s, the growth of low-cost connections and the rapid growth of emerging markets.

At the same time, public authorities which have historically been involved in the development and management of public infrastructure face severe budgetary constraints and an increasingly competitive environment.

This insight focusses on the arrival of private investors and operators in the airport market segment and describes the main trends of the past 25 years.

• Professionals requiring a good overview of transfer of airport ownership
• National Aviation Authorities
• Professionals involved in projects with a focus on Airport Investments

COURSE BENEFITS

• Understand how to plan for and navigate an airport ownership change
• Identify the key points and main objectives so appropriate focus and resources can be allocated to each element of the process
• Appreciate the areas of risk and potential mitigants on both the seller and buyer side of the transaction

COURSE CONTENTS

LEVERAGING THE PRIVATE SECTOR TO IMPROVE AIRPORT INFRASTRUCTURE

UPSIDES AND RISKS OF AIRPORT PRIVATISATION

AIRPORT PRIVATISATION MODELS

• Full private ownership
• Long-term concession
• Partial privatisation

KEY SUCCESS FACTORS FOR AIRPORT PRIVATISATION

• Objectives –  Clear objectives guide scope and transaction design
• Governance –  Framework legislation and a central privatisation body ensure continuity  and consistency
• Regulation –  Regulatory framework needs to be clear before privatisation started
• Transparency –  Communication with key stakeholders builds support for the transaction

FEASIBILITY OF AIRPORT PRIVATISATION
KEY ECONOMIC AND FINANCIAL INDICATORS
DEFINING AN OPTIMAL TRANSACTION PROCESS

• Best practice in transaction process management
• Past failed transactions
• Type of shareholding structures
• The challenges of airport privatization

RISK & DUE DILIGENCE IN AIRPORT PRIVATIZATION
PRIVATIZATION OF AIRPORTS & AIRPORT FACILITIES

• Forms of Airport Privatization
• Private airports
• Investors
• Seller activities
• Market assessment
• Legal structure
• Buyer activities
• Consortium formation
• Offer delivery
• Different models of privatization
• Opening of capital through the issue or sale of shares on the stock markets
• Direct sale via a public call for tenders
• Long term concession

The Public Service Delegation (PSD)

• Success Factors
• Improvement of customer satisfaction
• Better use of private capital
• Performance improvement
• Create a partnership based on trust
• Choose a tailored approach toward privatization and remain realistic
• Developing an appropriate regulatory framework

Case Studies