Concessions run in clear sky

The input of private resources in the Brazilian airport system is considered an alternative to enlarge and update its infrastructure in medium term

Acknowledged as strategic for the reduction of existing logistic bottlenecks of the country, the airport system is passing through a period of huge effervescence when large amounts of resources brought by national and foreign private investors started to “land” as result of the concession of air terminals by the federal government. There is a huge expectation that the whole Brazilian airport infrastructure may eventually come into a new cycle of expansion and modernization activated by the large sum of money that is expected to come. But the market is also optimistic about the integration between the experience of public management and the agility of private dynamics, which may create a unique opportunity for all parts involved. Private management has also potential to increase the businesses of construction industry in the country.

The Empresa Brasileira de Infraestrutura Aeroportuária (Infraero), responsible by the management of 67 public airports spread through the whole country has shown that—if depending only of it—the situation of these terminals tends to worsen. The federal company had a budget for investment of about R$ 12.6 billion between 2000 and 2012. Nevertheless, it spent just a few more than half of these resources—R$ 6.9 billion—in this period. In the first half of 2013, the company invested R$ 479.6 million, corresponding to 30.7 percent of its budget.

This scenario of postponed investments invariably compromises the quality of the services rendered in the airports. According to the Instituto de Pesquisas Econômicas Aplicadas (Ipea), among the 20 largest airports of Brazil—responsible by 90 percent of total passenger movement—12 are operating above its installed capacity and other five are reaching this limit.

For specialists of the area, the input of private resources brings concrete perspectives about investments that may give to the system operational efficiency and capacity to absorb the demand that is growing quickly in the whole country. In 2012, 101 million passengers had flown by airplane in Brazil. According to the study Aviação Brasileira – Agenda 2020 (Brazilian Aviation – Agenda 2020), issued in March by ABEAR (Associação Brasileira das Empresas Aéreas), the market of aviation may reach 211 million passengers, 976 aircrafts and 795 domestic destinations in the next decade.

For the next 15 to 20 years, a growth of almost three times the Brazilian GDP rate is foreseen. In 2030, 312 million passengers will be circulating through Brazilian airports. Just to fit the 20 largest airports to this projection of demand increasing their operational efficiency, a total investment between R$ 24.5 billion and R$ 33.6 billion will be necessary, according to calculations developed by the Banco Nacional de Desenvolvimento Econômico e Social (BNDES).

The “historic milestone” of the process of airport opening to private companies in Brazil occurred in August, 2011 with the concession of the Airport of São Gonçalo do Amarante (RN) to the Consortium Inframérica. The consolidation came in February, 2012 with the auctions of the airports of Brasília, Guarulhos and Viracopos, in the state of São Paulo. And the climax occurred with the auction of the airports of Galeão (in the state of Rio de Janeiro) and Confins (in the Metropolitan Area of Belo Horizonte) occurred in November 22, 2013. The last two auctions got together more than R$ 21 billion, 250 percent above the minimum price established by the federal government. According to the Agência Nacional de Aviação Civil (Anac), the airports of Galeão and Confins together move about 14 percent of the passengers, 10 percent of the load and 12 percent of the aircrafts of the whole Brazilian air traffic.

International experience

The management of the airport of Galeão through a period of 25 years was awarded to the consortium composed by Odebrecht and Changi, from Singapore. The winner proposal was of R$ 19.018 billion, corresponding to an increase of almost 300 percent over the established minimum offer. The airport of Confins was awarded to the consortium Aero Brasil composed by the CCR Group (with participation of 75 percent) and the international airport operators Flughafen München GmbH and Flughafen Zürich AG (with the remaining 25 percent). The offer of R$ 1.820 billion represented an increase of 66 percent over the minimum offer proposed by the federal government, R$ 1.096 billion. In this case, the period of concession is 30 years.

The concessionaries of both airports agreed with a program of investments of R$ 8 billion, including construction of terminals, improvement of aircraft yards and construction of new runways.

The model of concession maintains Infraero with a partnership of 49 percent in each managing company. The publication required in each consortium an airport operator experienced in terminals with more than 22 million passengers per year in the auction of Galeão and of 12 million passengers per year in the auction of Confins.

Besides the program of investments, the management of the terminals will be subjected to the control of Anac, responsible by preventing abusive practices. The need of regulation is important to prevent practices of discrimination, such as, for example, priority to some companies in the use of fingers, or in the positioning more near or more far of the boarding gate. These practices could interfere in the final attendance of each company’s passenger, compromising its competitiveness. The purpose of the government is not only to stimulate the airport development but also the competition between air transporters.