AIRPORT WORLD 2024, ISSUE 05
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Airport profile: Mactan Cebu
Special report: Sustainability
Plus: Customer Experience Summit & Master planning and design
In demand
Editor, Joe Bates, considers the attraction of airports to private investors in this ‘global airport operator’ themed issue of Airport World
While there are plenty of examples to show that the mantra ‘build it and they will come’ isn’t always true, there is no denying that airports with modern facilities, state-of-theart technology and a customer service ethos are more appealing to use than those without.
The route network offered by the airlines, accessibility and location are, of course, also crucial to the success of any airport, especially those in direct competition with similar sized or bigger gateways on their doorstep.
And, going forward, what airports do to minimise their impact on the environment and develop in a sustainable manner is likely to become even more important to both passengers and investors.
What isn’t up for debate is the fact that airports are capital intensive businesses and, ultimately, require owners to invest significant amounts in the development of infrastructure, technology and the manpower necessary to ensure growth.
The need to find the funds to develop airports, or in some cases for governments to raise income from airport sales to invest elsewhere in national economies, was the catalyst for the birth of private sector participation in airports either through ownership, management or investment programmes.
It all started with the privatisation of the British Airports Authority (BAA) in the UK in 1986 and, I don’t think it’s an exaggeration to say that airports have been in demand by private investors ever since, with the possible exception of in the aftermath of 9/11, the global financial crisis of 2008 and more recent COVID pandemic.
What has changed, however, is the type of investors involved in buying airports, with the winning consortiums today often involving the financial clout of a sovereign wealth or pension funds and the experience of an established airport operator.
These stakeholders have a vision, and are in it for the long-haul, ensuring that they are a far cry from some of the early investors that only seemed to be in it to make a quick buck and then exit the industry.
Our ‘big six’ feature in this ‘global airport operators’ themed issue of Airport World focuses on half-a-dozen of the biggest, best and brightest operators in the market today with assets in multiple countries.
Specifically we learn more about the airport portfolios, ambitions and concerns of Aena/Aena Internacional, Corporación América Airports, Fraport AG/Frankfurt Airport Services Worldwide, Groupe ADP, TAV Airports and VINCI Airports.
The themed section also includes our annual ‘buying game’ investment feature which takes a closer looks at the airport concessions that have either been completed this year, are in the pipeline, or in danger of stalling.
We also hear from ACI World’s former vice president and chief economist, Patrick Lucas, who in his new role as principal and founder of Airport Economics Consulting, considers whether there is a business case for small scale airport Public-Private Partnership (PPP) projects.
Our main airport feature is on Mactan Cebu International Airport, which is flourishing under new owners and has ambitious plans to become the first transfer hub in the Philippines and a sustainability leader for the region.
This edition also includes a review of the recent ACI World Customer Experience Summit in Atlanta; the planned expansion of Madinah Airport in Saudi Arabia; and the process involved in drafting the master plans for three airports in the Cayman Islands.
Elsewhere in the issue we report on some of the latest sustainabilty initiatives going on at airports across the world; hear some tips for boosting non-aeronautical revenue; reflect on the importance of the human connection in changing work environments in our regular ‘people matters’ column; and report on the latest news from ACI and ACI’s World Business Partners (WBP).