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DIGEST FROM ISSUE NR. 1212, PUBLISHED ON 4 MARCH 2024
Airport Development
Europe
IRELAND
DAA PLC has launched a tender for the detailed design, enabling works, and construction of the expansion of the passenger terminal at Cork airport. As reported earlier, it is planned to extend the mezzanine over the check-in desks to expand the footprint of the security section and allow the installation of new C3 security scanners. The duty-free and food and beverage area will also be enlarged. The works will increase the airport’s capacity to 5 million annual passengers.
The deadline for the tender is 22 March 2024. More information can be obtained from this email address: procurement@dublinairport.com. For daily alerts on global market opportunities please subscribe to Worldwide Airport Tenders here (free trial available).
FRANCE
Groupe ADP has launched the 'Paris Orly 2035' development project. Paris-Orly 2035 seeks to transform the airport into a sustainable hub by 2035, not by increasing traffic but by integrating it more effectively into its surroundings and minimizing its environmental impact. With the introduction of metro line 14, the project will promote public transport use over cars, contributing to the airport's goal of zero net emissions on the ground by 2030.
The project aims to keep aircraft movements stable while accommodating a moderate passenger increase through more efficient aircraft and operations. The project includes the following elements:
Passenger facilities:
- A new boarding lounge, connected to Orly’s Terminal 2, enabling six bus-boarding stands to be converted into six aircraft contact stands with a boarding bridge
Landside:
- A dedicated public transport system serving terminals and various areas
- Four new car parks and drop-off areas at the entrances to the airport, nearly a kilometre from the heart of the airport
Sustainability:
- New low-carbon energy production and distribution facilities
- A multi-energy station: distribution of hydrogen, biofuel (HVO, produced from vegetable matter or waste) and provision of electric charging
- A methanisation plant: using bio-waste from the airport, the nearby Rungis wholesale market and ten neighbouring municipalities.
- Commissioning of a second geothermal well
- Areas set aside for the deployment of hydrogen, totalling around 20 hectares
- Development of capacity and power generation
- Deployment of solar panels at the airport
The project marks a significant shift towards a sustainable, efficient, and integrated airport model. This vision for Paris-Orly aims to establish it as a leader in regional development, focusing on reduced car dependency, enhanced comfort for passengers and employees, increased production of low-carbon energy, and maintaining current aircraft movement levels.
Key to this initiative is the voluntary public consultation, which began on February 26, 2024, spanning three months, to engage with local communities and stakeholders extensively.
Russia & C.I.S.
RUSSIA
In 2025, construction will start on the construction of a new airport in the Zelenchuksky district of the Karachay-Cherkess Republic (KCR). The project, set to develop design estimates within the current year, aims to address the needs of the region's growing tourist influx, which saw over 2.1 million visitors in 2023, marking an almost 10% increase from the previous year.
The proposed airport will feature a 3,200-metre runway, suitable for large aircraft.
This development is particularly noteworthy as KCR is currently the only region in the North Caucasus Federal District without an airport.
North America
Latin America & The Caribbean
TURKS AND CAICOS ISLANDS
Five international construction firms are vying for a Public-Private Partnership (PPP) agreement to redevelop the Howard Hamilton International Airport in the Turks and Caicos Islands. The project, which will remain under the ownership of the Turks and Caicos Islands Airports Authority (TCIAA), aims to extend the airport's lifecycle by at least 40 years. This significant infrastructure project includes constructing a parallel taxiway, a new state-of-the-art passenger terminal to handle around 2.5 million passengers, and various other upgrades.
After an invitation for prequalification was released on 15 August 2023, eight applications were received. The shortlisted companies are Manchester Airports Holdings Limited with partners, Ferrovial Airports International SE and Projetech Construction, Aecon International, Olympic Construction, and VINCI Airports SAS, Regis Holdings S.A. with partners, and Grupo Aeroportuario del Pacifico with John Redmond Associates Ltd. The TCIAA plans to issue the Invitation to Tender by the end of March 2024, with the selection of a preferred bidder based on a thorough evaluation of their submissions.
VIRGIN ISLANDS
The Virgin Islands Port Authority (VIPA) has received multiple proposals for its Airports Public/Private Partnership (P3) Project, aimed at modernizing the Cyril E. King Airport in St. Thomas and the Henry E. Rohlsen Airport in St. Croix. An internal committee will now begin evaluating these proposals, a process expected to take several weeks, after which a preferred proposer will be recommended to VIPA's Board of Governors for final selection. VIPA has enlisted several advisory firms to support this initiative, including Frasca & Associates LLC, Mayer Brown LLP, The Paslay Group, and the Public Strategy Group.
This follows a 19 April 2023, announcement where four out of eight initial firms were named qualified proposers, including daa International, Vantage Airport Group Ltd., Vinci Airports, and VIports Partners. The selected firm will manage infrastructure financing, terminal redevelopment, and airport operations without adding capital debt to VIPA or the Virgin Islands Government. VIPA aims to retain ownership and control of both airports, ensuring eligibility for FAA grants. Executive Director Carlton Dowe anticipates a groundbreaking for redevelopment in late 2024 or early 2025. Governor Albert Bryan highlighted the project's importance for enhancing the tourism experience and providing a more convenient travel experience for residents. More information is available on the project's website.
MEXICO
Carlos Velázquez Tiscareño, the outgoing director of the Mexico City International Airport (AICM), has stated that Terminal 1 of the airport needs to be completely rebuilt. He acknowledged that the airport's own resources are insufficient for such a comprehensive overhaul.
This project will fall to the new government taking office in October. Velázquez Tiscareño criticized the current state of Terminal 1, the oldest parts of which date back to 1952, comparing it to a market rather than an airport, and highlighted the need for government budget intervention to construct the new terminal.
COLOMBIA
The Colombian government plans to expand El Edén Airport, enabling long haul passenger and cargo flights to Europe. Authorities plan to spend over USD 250 million on the airport in an effort to take advantage of its proximity to the Quindío Free Zone.
Studies are currently underway to determine which improvements are necessary but will include an extension of the 2,500-metre runway, as well as expansion of the passenger and cargo handling facilities. The master plan will be finalized in November. The improvements should be completed by the late 2020s.
GUATEMALA
The new Guatemalan government is currently evaluating necessary improvements at La Aurora International Airport, which serves Guatemala City. The initiative was prompted by concerns over the airport's condition, which have been described as being in a state of "intentional abandonment" by the preceding administration, which was in power until January this year.
The assessment is being supported by the International Civil Aviation Organization (ICAO) and the Central American corporation for aerial navigation services (Cocensa), with the latter's last evaluation conducted in 2018. The findings of this assessment, expected to be published in May, will guide the decision-making process regarding future projects at the airport.
Authorities highlighted significant issues at the airport, including insufficient capacity, deficient water and energy supplies, inoperable equipment, safety concerns, and poor internet service. Despite these challenges, authorities have noted that organizations like ICAO and Cocensa are aware of the issues and have offered their support for the recovery process.
Last year, it was reported that the airport was considering a number of future improvements including upgrade and expansion of the passenger terminal with an arrivals hall for meeters & greeters; partial reconstruction of runway; installation of new navaids and runway lighting; construction of a full-length taxiway and high-speed exits; expansion of the cargo platform; and relocation of hangars. These were to be implemented in the shape of a PPP. This is likely to be delayed or cancelled altogether.
BRAZIL
The Minister of Ports and Airports, Silvio Costa Filho, announced that the ministry is exploring the construction of a new airport in São Paulo. The airport would likely be situated between Cajamar and Caieiras on land owned by infrastructure company CCR. "We have already held some meetings with CCR to discuss the viability of this airport, since the company controls 80% of the land where it would be built," Ports and Airports Minister Silvio said.
The project, initially developed by CCR and later discontinued, was revived following government interest in supporting its viability.
Previous plans for the airport included a passenger terminal of 340,000 m2, two parallel 3,500 metre runways, and a final annual capacity of 48 mppa. However, the current view is that the new airport would focus on cargo and executive jet traffic, although that is still to be determined.
Studies on the need and feasibility of the new airport are set to be completed in the first half of 2024. Construction is expected to take 5 to 7 years, with several operators, including CCR, showing interest in managing the airport.
Africa
SOUTH AFRICA
rsa.AERO has won the bid to develop and operate Plettenberg Bay Airport, aiming to transform it into a hub for economic activity in the Garden Route area. As the current owner and operator of Cape Winelands Airport, rsa.AERO plans to upgrade Plettenberg Bay Airport with a new passenger terminal, extended runway, and enhanced fire, rescue, and emergency services to meet ICAO Category 6 standards. Additional developments will include a new car park, service station, and aircraft hangars.
The company aims to unlock demand for air services and stimulate socio-economic benefits, with an onboarding process expected to take three to five months. This period will include stakeholder engagement and technical due diligence to ensure efficient operations. Currently, the airport handles about 30,000 passengers annually, with projections to increase to 150,000 by 2050 following the upgrades. CemAir, the main user of the airport, anticipates incremental growth rather than a significant surge in passenger numbers.
Middle East
IRAQ
Iraq is set to construct a new civilian airport in the Maysan governorate, located in the southeastern part of the country. This initiative is part of the Transport Ministry's efforts to enhance air and land transport services across Iraq. The strategic importance of Maysan, underscored by its hosting of several foreign companies, has been highlighted as a key reason for the new airport.
Although the project has been proposed to the cabinet for funding approval, further studies are required to finalize its location and specifics. Iraq currently operates 8 international airports, with an additional 5 airports under construction in various regions.
Asia Pacific
MALDIVES
A new airport will be built on Gaafu Alifu atoll. Villingili International Airport will boast a 3,400-metre runway, enabling direct long-haul flights. The airport is part of a larger tourism development program, including 17 resorts boasting a combined 5,000 beds.
The entire project, expected to cost between USD 500 and USD 750 million, is being developed by Belgian company NV Besix SA.
PAKISTAN
Sukkur Airport is undergoing a significant expansion to improve air travel in the Sindh region. This expansion includes the construction of a new terminal building and the extension of the runway to accommodate larger aircraft, such as the Boeing 777.
Led by the Civil Aviation Authority (CAA) and Additional DGCAA (AVM) Timur Iqbal, this project aims to elevate Sukkur's status in the aviation sector and address existing infrastructure and service quality issues. The expansion has received approval from the Civil Aviation Authority Board and awaits further action from the Civil Aviation Division. The project seeks to not only improve physical infrastructure but also enhance the overall travel experience by addressing passenger concerns such as porter shortages, trolley scarcity, and lost luggage issues.
INDIA
Construction of phase 1 of Chennai's second airport is scheduled to start in January 2026 with completion scheduled for 2028. The airport, located in Parandur, will be developed in four phases, with completion of all four phases expected by the end of 2046. The project, spread over approximately 2,173 hectares, aims to alleviate the load on the current Meenambakkam airport. The new airport will feature three terminals and have the capacity to handle 100 million passengers. The total cost of the project is estimated at USD 3.95 billion, with USD 1.24 billion allocated for building the passenger terminals. The construction timeline spans 20 years, with the first phase scheduled to finish by December 2028 and the final phase by December 2046. Facilities will include:
- Two parallel runways of 4040 x 45 metres
- Terminal 1 (345,758 m2
- Terminal 2 (476915 m2 (to be built in a later phase)
- Terminal 3 (505,495 m2 (to be built in a later phase)
- Cargo terminal and truck docking area 230,500 m2
Plans for connectivity include approach roads linking the airport to the Bengaluru-Chennai Expressway (NH48) and a six-lane Airport Link Road, with Chennai Metro Rail connectivity to Parandur as an extension of the phase II project.
THAILAND
The Betong District Tourism Association in Yala is urging the government to extend the runway at Betong International Airport from 1,800 metres to 2,500 metres. This expansion would enable the airport to accommodate larger aircraft, up to 150-180 seats, compared to the current capacity of 80 seats or less.
The association argues that supporting larger aircraft will reduce travel costs to Betong, attracting more visitors. In 2022, Yala welcomed over 1.6 million visitors to Betong, contributing significantly to the local economy. The association plans to submit a proposal during the Prime Minister's upcoming visit, focusing on tourism stimulation.
INDONESIA
The project to build a new reliever airport for Denpasar (Bali) is being revived. The New North Bali Airport, a project that has been in discussion since 2015, is predicted to serve 32 million tourists annually. Prabowo Subianto, the likely incoming president of Indonesia, has promised to revive the project, emphasizing its importance for tourism, national, and provincial security.
The airport, designed to reflect traditional Balinese architecture with an environmental focus, is expected to become Indonesia's second-largest airport. According to existing designs, the airport will include a Phase 1 terminal of 230,000 m2; a runway of 4,100 m, with space for 2nd runway; a cargo terminal; maintenance area; and a seaport. The development process is set to begin with research into funding and technology requirements.
P.R.C.
Foshan Shadi Airport (Guangdong Province) has begun construction of a new passenger terminal. Funded by China United Airlines Co., Ltd., the project involves an investment of USD 14 million. The new terminal will cover an area of 8,060 m2, with a total construction area of 11,395 m2. It is expected to be completed and operational in the first half of 2024, designed to meet the passenger throughput demand of 2.6 million by the year 2028.
Foshan Airport is a key point in China United Airlines' "Diamond Flight Network Strategy" in the central and southern regions. In 2023, the airport achieved an annual throughput of 1.08 million passengers, entering the million-level airport sequence for the first time.
The new terminal is designed with a modular construction method, reflecting simplicity and functionality in modern design, in line with low-carbon, environmentally friendly, and sustainable concepts. Upon completion, it will offer passengers a more comfortable and convenient travel experience.
Management, Ownership & Finance
Abu Dhabi's Mubadala Investment Co. is considering acquiring a stake in London's Heathrow Airport (United Kingdom), potentially joining other Gulf state-backed investors such as Saudi Arabia’s Public Investment Fund (PIF) and Qatar Investment Authority as prominent shareholders. Mubadala's interest in the investment came after being approached by Ardian, a Paris-based buyout firm. This move comes after Ferrovial SE agreed to sell its 25% stake in Heathrow to Saudi’s PIF and Ardian for GBP 2.37 billion, with other shareholders potentially selling their stakes as well, which could result in new ownership for 60% of the airport.
The involvement of Middle Eastern wealth funds in global infrastructure is part of a broader strategy to diversify their economies away from oil. No final decisions have been made by Mubadala, and the acquisition is still under consideration.
Flughafen Wien AG (Austria) reported successful results for 2023, with significant increases in revenue and earnings. The group's net profit was EUR 188.6 million, a 47% increase from the previous year. Investments doubled to over EUR 200 million, and the company created about 1,000 new jobs at Vienna Airport.
The positive outlook for 2024 is supported by strong airline summer flight schedules, with an expected passenger volume of about 39 million across the Flughafen Wien Group and approximately 30 million at Vienna Airport alone. Financial projections for 2024 include a revenue of about EUR 970 million, EBITDA of over EUR 390 million, and a group net profit of at least EUR 210 million.
Significant growth was seen across all segments, with the Airport Segment's revenue rising to EUR 440.1 million due to increased passenger numbers, and both the Handling and Security Services Segment and the Retail & Properties Segment showing improved revenue and EBIT. The company invested EUR 107.0 million in 2023, with major projects including the Southern Expansion project and additional photovoltaic facilities.
The management board proposed a 70% increase in dividends to EUR 1.32/share for 2023, benefiting all employees through the employee foundation, which holds 10% of the company's shares. This financial flexibility supports dividends and an investment drive, with Flughafen Wien AG completely eliminating debt.
The company's capital expenditure will exceed EUR 200 million in 2024, focusing on various construction projects to enhance the airport's infrastructure and services. The outlook for passenger development in 2024 is positive, with anticipated growth in both the Flughafen Wien Group and Vienna Airport specifically.
Overall, Flughafen Wien AG's successful financial and operational performance in 2023 and its ambitious plans for expansion and investment in 2024 reflect the company's strong position in the industry and its commitment to enhancing service quality and sustainability at Vienna Airport.
Aena, the Spanish airport operator, has made a significant post-pandemic recovery, with its 2023 net profit surging by 81% to a record EUR 1.63 billion (USD 1.76 billion). This rebound is attributed to passenger traffic exceeding pre-pandemic levels, with the company operating all Spanish airports and terminals in Latin America and Britain. Aena's overall revenues increased by 21% to EUR 5.14 billion, outpacing analysts' expectations.
In 2023, traffic at Spanish airports rose to a record 283.2 million passengers, 3% higher than in 2019. Aena also expanded its operations by taking over 11 airports in Brazil, including the Congonhas terminal, allowing it to handle 314 million passengers in 2023. CEO Maurici Lucena indicated that Aena might manage nearly 1 million passengers daily as tourism worldwide is expected to fully recover this year. Despite its success, Aena is focusing on integrating its Brazilian assets rather than bidding for other international airports.
Moldovan authorities are currently in the process of presenting Chisinau International Airport to potential investors. Meetings have been held with representatives of both Vinci and Munich Airport.
Deputy Prime Minister Spînu highlighted that the process will be highly transparent and will take at least two years, with a completion timeline potentially extending beyond the parliamentary elections. He also noted that selecting a strategic investor could take at least two years.
Uzbekistan Airports has announced plans to privatise four airports: Bukhara, Namangan, Urgench, and Andizhan. This move is part of a broader strategy to transfer these airports into private ownership in order to development them and introduce more efficient management. This was announced at a presentation where Uzbek President Shavkat Mirziyoyev was familiarized with measures on the transformation of state-owned enterprises in the aviation sector on 22 February.
The Egyptian government is planning to launch an international tender for the management and operation of the country's airports, as announced by Civil Aviation Minister Mohamed Abbas Helmy. This initiative is part of a broader effort to involve more private sector entities in the aviation sector, a move that was first disclosed by Prime Minister Madbouly in November. The International Finance Corporation has also highlighted airports as a key area within the state's privatization program, noting the sector's attractiveness and potential profitability.
In addition to privatization efforts, the ministry aims to boost passenger traffic at Hurghada and Sharm El Sheikh airports to 10 million passengers this year. Furthermore, it is exploring funding options for a new passenger terminal at Cairo International Airport (CAI). Recent developments at CAI include the signing of a Memorandum of Understanding with Aecom and Pangiam for the construction of a fourth terminal and digital system upgrades.
There's also a consultancy agreement with Changi Airport of Singapore to enhance the airport's facilities. The government's ambition is to double CAI's capacity, allowing it to accommodate an additional 30 million passengers annually.
The Sri Lankan Ministry of Ports, Shipping, and Aviation has announced plans to privatize the operations of Mattala International Airport by transferring management to a joint venture between a Russian and an Indian company. This proposal, which has been agreed upon after several successful discussions, will soon be presented to the Cabinet. The Sri Lankan government will retain a share of the profits from the airport's operations under this arrangement.
The Chinese designed and built airport Mattala Rajapaksa International Airport has not been able to live up to expectations, as few airlines placed their bets on Mattala, and later ceased service, turning it into a so-called ‘ghost airport.’
Vietnam is inviting tenders for consultancy services for the management and operation of the upcoming Long Thanh International Airport. This international competitive bidding process aims to select a consultancy firm to provide comprehensive services for the preparation of the airport's management and operation.
The consultancy package includes four main tasks: establishing Concepts of Operation (ConOps) and assisting in ConOps implementation, establishing commercial strategies for the airport, creating an organization model for the airport's management and operation, and implementing ConOps trials and operational transfer. The tender is issued by the Airports Corporation of Vietnam-JSC, with a submission deadline of 27 March 2024. For daily alerts on global market opportunities please subscribe to Worldwide Airport Tenders here (free trial available).
Changi Airports International (CAI) has formed a significant partnership with Cam Ranh International Joint Stock Company (CRTC) to manage Terminal 2 at Cam Ranh International Airport in Vietnam. This five-year agreement, which has an option for a five-year extension, focuses on managing the terminal, developing its non-aeronautical businesses, and supporting international route development. This collaboration, the first under a cooperation framework with CAI's partner Legacy Infrastructure, aims to introduce innovative solutions to Vietnam's aviation industry, boosting its connectivity, efficiency, and international competitiveness.
Cam Ranh International Airport, a key tourist gateway for Nha Trang City and Khanh Hoa province, is the fourth-busiest international airport in Vietnam. The partnership between CAI and CRTC is set to enhance passenger experience and revenue growth at Terminal 2, which is connected to over 100 destinations and has more than 30 airline partners. This initiative is expected to increase the airport's global connectivity and attract more international partners, contributing to its competitiveness and appeal.
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