Eastern European airport privatisation - risks and rewards
SYDNEY (Centre for Asia Pacific Aviation) - Airport privatisation opportunities in Eastern Europe are a beacon for the expanding global airport investment community. Attracted by strong growth rates following the EU's expansion last year, foreign investors are lining up for opportunities in Slovakia, Hungary, the Czech Republic, Poland and others.
However, the process will not always be smooth. A spanner in the works of the Budapest Airport privatisation process, in the form of the Budapest Labor Court, has left Hungary's State Privatisation Holding, APV, to consider its options to keep the process of track. Five bidders had been shortlisted and APV is now considering inviting fresh bids if an appeal against the Labour Court's decision is rejected.
Overall, investors must make some choices on which opportunities to pursue. For example, Fraport AG, has decided not to bid for two Slovakian airports, preferring to focus instead on Hungary, due to higher growth rates and a better "fit" within the Fraport Group.
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