Brazil concession rebalancing – four airports gain, one loses

It has been a long and sometimes tortuous road for the Brazilian authorities to privatise Brazil's main airports by way of concession; a process that is now drawing to a conclusion.

Some of the early deals in particular were signed off under agreements that anticipated far greater traffic growth, prompted to a degree by the Soccer World Cup and the Olympic Games, both of which took place in Brazil during the main concession period.

But the impact of successive economic downturns in Brazil, followed by the COVID-19 pandemic, took its toll on the forecasts.

Hence the regulator there, ANAC, has approved the rebalancing of four concessions, effectively giving the concessionaires a refund.

But in one case an operator has been penalised, mainly for its failure to build a second runway, although it could be argued that there are extenuating circumstances.