The big six

Joe Bates discovers more about the ambitions, development strategies and networks of six of the world’s biggest global airport operators – Aena, Corporación América Airports, Fraport AG, Groupe ADP, TAV Airports and VINCI Airports.

Aena/Aena Internacional

World Headquarters: Madrid, Spain

Airports 100% owned and operated: Aena operates 46 airports and two heliports in Spain including Adolfo Suárez Madrid-Barajas and Barcelona El Prat airports.

Others: Aena Internacional has interests in 33 airports in Brazil, Colombia, Jamaica, Mexico and the UK.

In the UK, Aena has a controlling 51% shareholding in London Luton Airport.In Colombia, it has a 50% stake in Aerocali, operator of Cali’s Alfonso Bonilla Aragón International Airport (CLO); and in Mexico, it has a 33.4% interest in Aeropuertos Mexicanos del Pacífico (AMP), which operates 12 Mexican gateways that include Tijuana, Guadalajara, Hermosillo, La Paz, San José de Cabo and Puerto Vallarta on behalf of Grupo Aeroportuario del Pacífico (GAP).

In Jamaica, through AMP’s 15% interests in GAP, it has a controlling 74.5% interest in MBJ Airports Limited, which operates Sangster International Airport in Montego Bay, and holds a 25 year concession agreement for Kingston’s Norman Manley International Airport.

In Brazil, through Aena Brasil, the company holds a 30 year concession to operate and develop six airports (Recife, Maceió, Aracajú, Campina Grande, João Pessoa and Juazeiro do Norte) in the north east of the country; and a similar length concession for São Paulo’s Congonhas Airport and ten other gateways across São Paulo, Mato Grosso do Sul, Minas Gerais and Pará states.

The concessions, the latter one commonly referred to as the Bloco de Onze Aeroportos do Brazil (BOAB) group of airports, ensure that Aena is the biggest private airport operator in Brazil, its 17 airports accounting for around 20% of all air traffic.

Aena’s international success story

Aena reports that it “consolidated and maximised the value” of its international assets in 2023, which represented around 6.7% of the group’s EBITDA in 2023.

In terms of successes, it notes that in 2023 Aena raised the capacity of London Luton Airport to 19 million passengers per annum and took over the concession for the BOAB group of airports in Brazil, which includes São Paulo’s Congonhas Airport, after being awarded the concession in 2022.

Aena states that when it comes to developing its international business, its “priority objective is the consolidation of current international assets”, noting that its “non-binding goal is for international activity to represent 15% of EBITDA in 2026”.

Generating value for its shareholders is always another key consideration for the company when looking at new expansion opportunities.

Looking forward, Aena notes that it has upwardly revised its traffic forecasts for 2024 as it expects to handle 300 million passengers across its global airport network this year.

Its newly updated Strategic Plan 2022-2026 reveals that its goals for the period include striving to maintain its leading position on safety and efficiency; looking to “significantly increase” its revenues; and to grow by means of diversification (by expanding international activity and developing airport cities), always with sustainability and innovation as overarching factors in its growth.

Corporación América Airports (CAAP)

World Headquarters: Luxembourg

Airports 100% owned and operated: None

Others: Registered as CAAP on the New York Stock Exchange, Corporación América Airports has an 82.7% stake in Aeropuertos Argentina (AA2000), which operates 35 airports across the country, including Ministro Pistarini International (EZE) and Aeroparque-Jorge Newbery International (AEP) airports in Buenos Aires.

Elsewhere in Argentina, CAAP operates and has 82.6% and 74.5% stakes respectively in the Patagonian airports of Bahia Blanca and Neuquén, which are not part of AA2000’s group of airports.

In Uruguay, through wholly-owned subsidiary, Puerta del Sur (PdS), CAAP manages Montevideo Carrasco International Airport (MVD) and six regional airports serving the cities of Rivera, Salto, Carmelo, Durazno, Melo and Paysandú. As part of the deal for the regional airports, the PdS concession was extended for an additional 20 years in November 2021. Elsewhere in Uruguay, through subsidiary CAISA, CAAP operates Laguna del Sauce/Punta del Este International Airport (PDE).

In Brazil, through sister company Inframérica, it has a controlling 51% stake in Brasilia’s Presidente Juscelino Kubitschek International Airport (BSB), where state owned Infraero is the only other shareholder.

In Ecuador, CAAP operates Guayaquil’s José Joaquín de Olmedo International Airport (GYE) because of its 50% stake in the TAGSA consortium, and through 100% owned subsidiary, ECOGAL, runs Seymour/Baltra Airport in the Galapagos Islands.

Further afield, in Armenia, through fully-owned subsidiary Armenia International Airports CJSC, CAAP manages Yerevan’s Zvartnots International Airport (EVN) and Shirak International Airport (LWN) in Gyumri. And in Italy, through subsidiary Toscana Aeroporti S.p.A, it has a controlling 46.7% stake in Tuscany’s Pisa–Galileo Galilei (PSA) and Florence–Amerigo Vespucci (FLR) airports.

Plans to expand/reduce portfolio: CAAP currently operates 52 airports in six countries, which between them handled 81.1 million passengers in 2023. It notes that it is always looking to expand its airport portfolio.

News: In January, 2024, the company received R$610.4 million in compensation for the, “friendly termination” of its concession for Rio Grande de Norte/São Gonçalo do Amarante–Governador Aluízio Alves International Airport (NAT) in Natal, Brazil. CAAP notes that the process was carried out in strict compliance with Brazilian law and the country’s regulatory framework, and fully co-ordinated with all Brazilian authorities.

More recently, in May, 2024, 100% owned subsidiary CAISA signed a 10 year extension to its concession for Laguna del Sauce/Punta del Este International Airport in Uruguay, and will now operate the gateway until at least 2043.

May proved to be busy for CAAP as during the month it also received notification from the International Centre for Settlement of Investment Disputes (ICSID) that the Peruvian government should pay it $91.2 million in damages following the termination of its concession to operate Chinchero International Airport, which is expected to replace Cuzco’s Alejandro Velasco Astete International Airport. The tribunal found that Peru had breached the concession agreement by ending it without proving that the decision was taken in the public interest.

Fraport AG/Frankfurt Airport Services Worldwide

World Headquarters: Frankfurt, Germany

Airports 100% owned and operated: Frankfurt Airport in Germany.

Others: Through its 73.4% majority stake in Fraport Greece, Fraport AG operates 14 regional airports in Greece that include Thessaloniki, Aktion and Kavala on the mainland and the island airports of Kerkyra/Corfu, Chania/Crete, Kefalonia, Kos, Mykonos, Rhodes and Santorini.

Elsewhere in Europe, Fraport has a contract to manage, operate and develop Ljubljana Jože Pučnik Airport (LJU) in Slovenia until 2054; holds a majority 60% shareholding in the Fraport Twin Star Airport Management AD consortium responsible for running Bulgaria’s Black Sea gateways of Burgas and Varna; and owns 51% of Fraport TAV Antalya, the terminal operator at Antalya Airport in Turkey.

In Latin America, Fraport has a controlling 80.1% interest in Lima Airport Partners (LAP), which operates and develops Jorge Chavez International Airport in Lima, Peru, and holds long-term 25 and 30-year concessions respectively to manage and develop Fortaleza and Porto Alegre airports in Brazil.

Other international assets include 100% ownership of Fraport USA, which manages the former Airmall concessions at Cleveland and Baltimore/Washington airports and manages the concessions space at

Nashville, New York-JFK (Terminal 5), Newark-Liberty (Terminal B), Washington Dulles, and Ronald Reagan Washington airports.

Fraport is also a minority partner (18.75%) in Tradeport Hong Kong Ltd, operator of a high-tech logistics centre at Hong Kong International Airport.

Plans to expand/reduce portfolio: Fraport says that it continues to look for opportunities to grow its global airport network while driving the organic growth of its existing portfolio through major infrastructure developments, such as those in progress at its airports in Germany, Peru and Turkey.

News: Fraport AG recently announced the divestment of its 10% stake in Delhi International Airport Limited, the operator of Delhi’s Indira Gandhi International Airport in India, to GMR Airports Infrastructure Limited (GIL) for $126 million. The transaction is scheduled for conclusion in Q1 2025.

Reflecting on the deal, Fraport CEO, Dr Stefan Schulte, said: “After a successful 18-year partnership driving impressive growth in Delhi, it’s time to start a new chapter.

“We look back with pride on the various milestones we’ve achieved together with GIL. We jointly upgraded and expanded Delhi Airport into one of Asia’s leading air transportation hubs.”

Fraport AG continues to have a global focus

Fraport’s head of acquisitions and investments, Holger Schaefers, remains positive about the future potential of the group’s international assets, despite admitting that global events made 2023 a challenging year for the company.

“Last year presented significant challenges for the aviation industry, particularly across Europe, such as airspace restrictions due to the ongoing war in Ukraine,” said Schaefers. “However, despite these difficulties, we witnessed a remarkable recovery in traffic across most of the airports in our international portfolio.

“The demand within the touristic segment was especially impressive. Fraport Greece surpassed pre COVID passenger numbers, with traffic figures up by 12% compared to 2019. Similarly, Antalya Airport [in Turkey] achieved an exceptional recovery, reaching 101% of its 2019 levels.”

Has Fraport’s strategy/philosophy for developing its international business changed at all since COVID? Schaefers says: “We are, and always will be, a strategic investor with a long-term vision, seeking investment opportunities where we can leverage our expertise to create value. “In most cases, this involves airport infrastructure, operations, commercial performance, as well as HR, governance, and strategic matters. This investment philosophy proved particularly successful during the COVID-19 pandemic.

“Going forward, we aim to collaborate with strong partners who can add value to our projects through complimentary knowledge and unique characteristics.”

When it comes to the potential future expansion of Fraport’s international business, he notes that the company continues to focus its attention on “growth markets” rather than specific countries and territories.

“We evaluate investment opportunities on a case-by-case basis, focusing on their strategic fit and growth potential,” says Schaefers. “Certain geographic regions, such as Asia, the Americas and Southern Europe, generally exhibit higher traffic growth compared to Western Europe. However, these trends serve merely as indicators. Each opportunity is meticulously assessed on its own merits.”

Schaefers admits that the diverse make-up of Fraport’s global airport portfoilio means that it has faced a number of different operational challenges ths year.

“Our portfolio of airports is highly diverse, encompassing tourist and regional gateways as well as major hubs. It is also widespread geographically. As a result, the key challenges we face are equally varied.

“At Antalya Airport and in Lima, for example, our primary focus is on completing significant infrastructure expansion projects on time. In Porto Alegre, the worst flooding in its history has impacted our airport infrastructure, necessitating a focus on rebuilding efforts. Our goal is to reopen the airport in two phases, starting on October 21.

“In Europe, we have seen capacity issues with Eurocontrol throughout this summer, resulting in delays and putting pressure on airlines and airports. In addition, the limited availability of aircraft and crew remains a decisive factor affecting passenger growth.”

As a general rule, does he believe that the terms of airport concessions need to be more flexible to take into account both upturns and downturns in the industry?

“Considering the characteristics of the past decade, it appears that the volatility within the aviation industry has generally increased, and this heightened perception of risk will likely influence future investment opportunities, affecting both pricing and principal investment decisions,” responds Schaefers.

“To address these challenges and attract greater interest, going forward, more flexible concession agreements could serve as a solution to reduce complexities during concession periods.”

Groupe ADP – Aéroports de Paris (ADP)

World Headquarters: Tremblay-en-France, France

Airports 100% owned and operated: Groupe ADP owns and operates the three main airports serving Paris – Paris-Charles de Gaulle (CDG), Paris-Orly (ORU) and Paris-Le Bourget (LBG)

Others: Groupe ADP directly and indirectly manages a portfolio of 26 airports worldwide either as a shareholder and/or through service contracts.

Through its 46.12% stake in TAV Airports, Groupe ADP has interests in Ankara Esenboğa (100%), Antalya (51%, asset co-controlled by TAV), Izmir Adnan Menderes (100%), Milas Bodrum (100%) and Gazipasa (100%) in Turkey; Madinah in Saudi Arabia; and Monastir (100%) and Enfidah-Hamamet (100%) in Tunisia; Tbilisi (80%) and Batumi (76%) in Georgia; Skopje (100%) and Ohrid (100%) in North Macedonia; and Almaty (85%) in Kazakhstan.

In the Middle East, Groupe ADP has a controlling 51% shareholding in Airport International Group (AIG), operator of Amman’s Queen Alia International Airport in Jordan, and a 5% interest in MATAR, which operates and maintains the Hajj Terminal at King Abdulaziz International Airport in Jeddah, Saudi Arabia.

In South America, Groupe ADP has a 45% stake in the Nuevo Pudahuel consortium, which has a 20 year concession to operate and develop Santiago’s Comodoro Arturo Merino Benítez International Airport in Chile.

In Africa, Groupe ADP holds a 35% stake in Ravinala Airports, which holds the concession for Antananarivo and Nosy Be airports in Madagascar.

In India, Groupe ADP holds a 45.7% interest (composed of ordinary equity shares and preference shares OCRPS) in the newly listed GMR Airports Infrastructure Ltd (GIL) – formed by the merger GMR Airports Ltd (GAL) and the old GMR Infrastructure Ltd (GIL). The new GIL holds controlling stakes in Indira Gandhi International Airport (New Delhi), Rajiv Gandhi Airport (Hyderabad), Manohar Airport (Goa) and the under construction Alluri Sitarama Raju International Airport (Bhogapuram).

Outside of India, GIL has shareholdings in Kualanamu International Airport in Medan, North Sumatra province, Indonesia; and the consortium responsble for developing Kastelli International Airport, which is currently under construction in Heraklion, Greece.

Elsewhere in Europe, Groupe ADP has interests in Liege Airport (25.6%) in Belgium and Zagreb’s Franjo Tuñman Airport in Croatia through its 20.8% stake in Zagreb Airport International Company (ZAIC).

In the US, it is part of the Future Stewart Partners joint venture responsible for operating and maintaining the terminal at New York Stewart International Airport. Groupe ADP also holds a 39.66% stake in Embassair, a fixed base operator (FBO), which signed a 35-year lease to operate a business aviation terminal at Miami Opa-Locka Airport.

Plans to expand/reduce portfolio: By developing a multi-local approach, Groupe ADP continues to review opportunities to expand its global footprint both in terms of equity and non-equity assets.

Its international positioning is driven by synergies, complementary geography and exposure to growth between Groupe ADP in its own right, TAV Airports and the new GIL. Including its overall activities and different subsidiaries, Groupe ADP is active at around 120 airports in 50 countries.

News: Talking about Groupe ADP’s interests in newly restructured GMR Airports Infrastructure Ltd (GIL), Groupe ADP CEO, Augustin de Romanet, said: “The merger of GMR Airports into a listed GMR Airports Infrastructure is a major new step after the fulfilment of Groupe ADP’s acquisition of a stake in GMR Airports four years ago, revealing its intrinsic value and ensuring its liquidity.

“Due to the merger, the Indian airport holding simplifies its capital structure, enhances its visibility and agility, and puts itself in the best position to continue to support traffic growth in its assets, pursue its ongoing airport projects and seize relevant development opportunities in Asia.

“In line with its strategy, Groupe ADP is determined to serve the interests of its stakeholders through a unique global and multi-local airport network driven by a shared ambition for decarbonisation.”

Groupe ADP’s global approach

Groupe ADP’s deputy CEO, Edward Arkwright, tells us more about the growth and development of Groupe ADP’s global airport network.

How did your international assets perform in 2023 and were there any standout performers or underachievers?

We handled around 336.4 million passengers across our global network in 2023, which was in line with our expectations. The total was very close to pre-pandemic levels across the group, with the most dynamic recovery coming from our international assets.

TAV’s Turkish airports reached 93.8% of 2019’s traffic, driven by strong international traffic. Other airports belonging to TAV Airports are at 114.9%, with a solid contribution from Almaty, in Kazakhstan.

As for GMR’s airports, they are at 106.3% of 2019’s traffic levels in India, with strong growth in domestic traffic and nearly full recovery of international traffic. In Amman, Jordan, passenger numbers at Queen Alia International Airport have exceeded 2019’s traffic levels by 3.1%.

What is your strategy/philosophy for developing your international business and has this changed at all since COVID?

If anything, the pandemic has sharpened our focus on the importance of our international assets as having such a diverse portfolio means that we are not so dependent on one particular country or market. This advantage has strengthened the group’s resiliency and ability to adapt to different business conditions, ensuring that we were in a stronger position than some to take advantage of opportunities during aviation’s recovery from COVID.

Having such of a diverse network also makes it easier to benefit from real-time and live information on global traffic and to adjust to the evolving expectations of airlines and passengers.

The development of our international activities is governed by the quantified objective of stabilising concessions with an average maturity of 30 years.

Based on our experience of operating airports, Groupe ADP, of course, gives priority to developing our capital investments. We are, however, in a unique position in that Groupe ADP is present across the entire airport value chain and therefore does much more than just invest and manage infrastructure. We are very active on the retail and hospitality side, for example, and look to drive IT innovation across the airport campus.

Having a global network also helps in our efforts to increase connectivity at our airports, with a key post pandemic objective of our 2025 Pioneers vision being the launch of 100 additional international routes by 2025.

Do you have key focus areas in terms of expanding your international assets?

Groupe ADP’s strategy is to develop a well-balanced portfolio in terms of exposure, with a specific focus on promising regions showing significant growth potential due to their continued economic development, the growth of the middle classes, and the propensity to travel.

Geography also comes into it as we ideally consider potential targets that complement the existing assets of Groupe ADP, TAV Airports and GMR Airports Infrastructure. TAV has a strong presence in the Middle East, Central Asia, Eastern Europe, Maghreb [western and central north Africa] and English speaking Africa. GMR is present in South and South-East Asia; and Groupe ADP has mature assets in Europe and North America and in emerging countries in Latin America and French-speaking markets in Africa.

What do you see as the key challenges for your airports in 2024 and beyond?

The guiding core values of Groupe ADP are hospitality and responsibility. These will always be a top priority as we face a number of key challenges that include climate change, and more generally, environmental issues. Energy issues, the evolution of traffic dynamics, and debates around the development and future of the air transport industry are also profoundly transforming the airport sector.

To face these challenges, Groupe ADP is preparing the airport of tomorrow inline with our 2025 Pioneers roadmap based on three pillars:

– One ambition: Imagining the sustainable airport of tomorrow, which offers a seamless journey, innovative services and an original travel experience, on modular and sustainable airport platforms, true multimodal and energy hubs.

– One group: Building a global group, integrated and responsible, which enhances and integrates the regions, and mobilises expertise and multiplies it to consolidate the network.

– Shared dynamic: Innovating, supporting and empowering teams that share a culture of innovation and responsibility within a group that attracts and retains talent.

TAV Airports Holding

World Headquarters: Istanbul, Turkey

Airports 100% owned and operated: None.

Others: At home in Turkey, TAV Airports holds long-term concessions to operate and develop Ankara Esenboğa (2050), Izmir Adnan Menderes (2034), Milas-Bodrum (2037) Gazipasa–Alanya (2036) and Antalya (2051) airports, the latter being as part of a joint venture.

In North Macedonia, it has a contract to operate Skopje Alexander the Great and Ohrid St Paul the Apostle airports until 2032. Elsewhere in the region, TV is part of a consortium that holds the concession rights to operate Zagreb Airport in Croatia until 2042. It has controlling 80% and 76% stakes respectively in the companies responsible for operating Tbilisi and Batumi airports in Georgia. In addition, TAV operates commercial spaces at Riga International Airport in Latvia.

In Tunisia, TAV has the majority shareholding in and subsequently both Monastir Habib Bourgiba and Enfidha-Hammamet airports, and in Saudi Arabia the TAV-led Tibah consortium (TAV Airports and Al Rajhi Holding Group) has the concession rights to operate Madinah’s Prince Mohammad bin Abdulaziz International Airport until 2041.

Lastly, TAV Airports owns (85% shares) and has operated Almaty Airport in Kazakhstan since 2021. Plans to expand/reduce portfolio: TAV Airports operates at 15 airports in eight countries today and continues to look at investment opportunities to expand its global interests, which including its services subsidiaries, and the airports of shareholder and strategic investment partner, Groupe ADP, extend to more than 120 airports in 50 countries worldwide.

News: TAV notes that Almaty Airport in Kazakhstan opened its new $200 million international terminal on June 1, 2024, and that it is also on track to complete investments in Antalya and Ankara in 2025.

Passenger numbers across its global airport network increased by 17% in the first half of 2024 compared to the corresponding period a year ago.

TAV Airports back on growth trajectory

CEO, Serkan Kaptan, has no doubt in stating that 2023 was a good year for TAV Airports with almost all the company’s international assets peforming well and some breaking new records.

“Almost all our international assets went above and beyond pre-pandemic levels in 2023, with the sole exception of Tunisia,” reveals Kaptan.

“Our flagship asset in central Asia, Almaty Airport, achieved an impressive 32% growth compared to the previous year, with 9.5 million passengers. Relaxed visa requirements for Hajj and Umrah visits resulted in a 49% growth in Madinah with 9.4 million passengers. North Macedonian, Georgian and Croatian operations all recorded double digit increases in passenger numbers.

“In north Africa, our Tunisian airports, Enfidha and Monastir, saw a 57% increase in traffic, but the totals remained below pre-pandemic levels.”

How big an impact has COVID had on TAV Airports’ strategy/philosophy for developing its international business, and indeed willingness to undertake further investments?

“Very little. The strategy remains the same, we are targeting developing markets with a high-growth potential,” says Kaptan.

“We are focusing on opportunities in central Asia, eastern Europe, the Middle East and, selectively, in Africa.

“The long-term forecasts by aircraft manufacturers and industry associations point to the fact that the centre of gravity will continue shifting east. There is a strong correlation between GDP and the propensity to fly. Therefore, we believe that the growth in developing markets will be higher there than the global average.”

As a general rule, does he believe that the terms of airport concessions need to be more flexible to take  nto account both upturns and downturns in the industry?

Kaptan says: “Airport projects are long-term, strategic investments. Although we are confident that the industry will continue its growth over the long-term, it is never a straight walk. Flexibility and long-term thinking can certainly increase investor appetite and the resiliency of airports in times of crisis.”

In terms of what he views as the key challenges for his global airport portfolio in 2024, Kaptan believes that we are going through a period of “so-called poly-crisis”, which he says is damaging the idea of long term thinking.

“Geopolitical and economic risks will continue to be the key challenges facing travel and the airport industry this year, and I expect this to continue for the forseeable future,” adds Kaptan.

VINCI Airports

World Headquarters: Nanterre, France

Airports 100% owned and operated: Belfast International Airport in the UK.

Others: At home in France, a VINCI Airports-led consortium has a 60% stake in Aéroports de Lyon (ADL), operator of Lyon-Saint Exupéry and Lyon-Bron. It also manages the French gateways of Clermont-Ferrand Auvergne, Chambéry Savoie Mont Blanc, Grenoble Alpes Isère, Toulon Hyères and Ancenis (courtesy of mid-to short-term contracts), Nantes Atlantique and Saint-Nazaire Montoir (through an 85% stake and long-term concession), and Rennes Bretagne and Dinard Bretagne due to a 49% interest in the consortium responsible for operating the airports until 2024.

In Europe, VINCI Airports holds a 50-year concession to operate, build and develop the 10 Portuguese airports of Lisbon, Porto, Faro and Beja on the mainland; Ponta Delgada, Horta, Flores and Santa Maria in the Azores; and Funchal and Porto Santo in Madeira.

Elsewhere in Europe, VINCI Airports holds a a 25-year concession to manage and upgrade Nikola Tesla Airport in Belgrade (Serbia); and a 51% stake in Portuguese airport retailer, Lojas Francas Portugal (LFP), which operates more than 30 retail outlets across 10 Portuguese gateways managed by VINCI Airports.

In the UK, VINCI Airports holds a controlling 50.01% stake in London Gatwick and Edinburgh airports.

In Asia-Pacific, VINCI Airports has a 40% stake in Kansai Airport, which operates Kansai, Osaka Itami and Kobe airports. In Cambodia, it owns 70% of the shares in Cambodia Airports, which operates Cambodia’s Phnom Penh and Sihanouk international airports.

In Latin America, it has a 40% stake in the Nuevo Pudahuel consortium responsible for operating Santiago International Airport

in Chile; a 45% shareholding in Coriport, the operator of Costa Rica’s Guanacaste International Airport (formerly Liberia-Daniel Oduber Quirós International Airport); 100% owns Aeropuertos Dominicanos (AERODOM), which has the concession for six gateways in the Dominican Republic, including capital Santo Domingo’s Las Américas International Airport and Gregorio Luperón Airport in Puerto Plata; and in Brazil holds the concession for Salvador Bahia International Airport and a separate 30-year concession to operate and develop Manaus, Porto Velho, Rio Branco, Boa Vista, Cruzeiro do Sul, Tabatinga and Téfé airports in the north of the country.

In North America, VINCI Airports has an interest in seven airports. Plans to expand/reduce portfolio: Always looking for new opportunities.

News: VINCI Airports completed the acquisition of the majority shareholding (50.01%) in Edinburgh Airport for £1.27 billion

in June 2024. Global Infrastructure Partners (GIP) holds the remaining shares in the Scottish gateway under a similar model to the one used at London Gatwick Airport. At the time of the deal, Nicolas Notebaert, CEO of VINCI Concessions and president of VINCI Airports, stated that the addition of a third UK airport demonstrated the operator’s “long-term strategic ambition and continued commitment to the country”.

VINCI Airports has acquired a 20% shareholding in the Budapest Airport concession company and will operate and manage Hungary’s capital city gateway for 55 years until 2080.

At the end of August, VINCI Airports celebrated the completion of the modernisation works at Belgrade Airport in Serbia in presence of Presidents Macron and Vučić.

The new Terminal 1-A at Santiago’s Arturo Benítez International Airport (pictured above) was inaugurated by the President of Chile, Gabriel Boric, in early September 2024. The $20.2 million expansion of T1 has added eight new boarding bridges to the domestic terminal, whose footprint now covers 17,334sqm. It is part of the T1 modernisation project that will renovate and refurbish the facility, create a new baggage claim area, and an additional 18 boarding gates when the works are completed at the end of next year.

Twenty years and still growing

Nicolas Notebaert, CEO of VINCI Concessions and president of VINCI Airports, talks to Joe Bates about an eventful two years for the global airport operator.

How did your airports outside of France perform in 2023 and were there any standout performers?

For VINCI Airports, 2023 was marked by a return to pre-COVID traffic levels in our network in Europe and around the world. Our airports in Serbia, Portugal, in Central America and the Caribbean (Mexico, the Dominican Republic and Costa Rica) achieved record figures thanks to our commercial developments conducted with airlines and the work we’ve done in terms of enhancing the passenger experience.

It is true that the traffic in France has not yet returned to 2019 levels. However, the first months of 2024 give us confidence. For example, in May, Nantes Atlantique airport saw its traffic break record levels, thanks to routes with Spain, the United Kingdom and Portugal.

In 2023, we also celebrated important successes. From an environmental perspective, four of our airports have been awarded Level 5 status in ACI’s Airport Carbon Accreditation programme, making them among the first in the world to receive the honour. We are very proud to see the amazing work of our teams around the world being recognised.

VINCI Airports strengthened its international footprint while developing its business. We integrated 20 new airports in two countries, with 13 airports in Mexico through OMA and seven airports in Cabo Verde, all acquired in 2022.

We ended 2023 with the amazing news that our concession contract to manage six airports in the Dominican Republic had been extended by an additional 30 years.

What is your strategy/philosophy for developing your international business and has this changed at all since COVID?

First and foremost, the COVID period has not prevented us from pursuing our international development. At VINCI, we do not have an established strategy regarding our development. We keep the same approach as we had before: we remain selective and cautious; we look at every project with a clear attention on the traffic growth potential, the potential to improve the customer experience, and the length of the contract.

When I look back at the COVID period, we had just integrated one of our major acquistions, London Gatwick, in to our network. This year (summer 2024), London Gatwick airport experienced one of its busiest summers yet with a total recovery from this period. This success is the result of our expertise and know-how in the sector.

More generally, the COVID experience pushed our teams to reinvent themselves and to strengthen the collaboration with our partners. This has helped us grow and reinforce VINCI Airports’ network both in Europe and worldwide.

Do you have key focus areas in terms of expanding your international assets?

No, we don’t, as this is not our approach at VINCI. We, genuinely, have no barriers in terms of geography. Having said that, our most recent activity, has tended to be on the consolidation of our network in Europe, with the acquisitions of Budapest Airport in Hungary, and Edinburgh Airport the UK, in June and April 2024 respectively. They follow the acquisition of Belfast International in 2018 and London Gatwick in 2019.

As a general rule, do you believe that the terms of airport concessions need to be more flexible to take into account both upturns and downturns in the industry?

I truly believe in the concession model. It has never been so modern and relevant as it is today. Our Grantors need us to manage these infrastructures to the highest standards, to provide the best quality of service and to invest in the long-term on their environmental transition, as we are committed to do.

We are trusted and reliable partners for the countries where we operate, and they know that, so our contracts need to reflect it.

What do you see as the key challenges for your airports in 2024?

This is an important year for VINCI Airports, because we celebrate our 20th anniversary. I take great pride in knowing that we are now the No.1 private airport operator in the world with more than 70 airports in 14 countries.

Our main challenge is to continue, with commitment and conviction, our environmental strategy. It is the driver for all our decisions. We have set one main objective, to reach net zero emissions for our European network in 2030 and for the rest of our airports in 2050. I am confident that our work as a team and a global leader can actively contribute to the environmental transition.

Another challenge is traffic growth, but I remain confident that our traffic levels will continue to develop and grow in 2024 and be higher than 2019 by the end of the year.